The strength of our fund shelf remains a top priority for Canada Life. We’re invested in ensuring our product shelf remains relevant, competitive, and positioned to win.
Effective on or about Feb. 3, 2023, Canada Life Investment Management Limited (CLIML) is streamlining our mutual fund shelf by merging five of our funds that have either somewhat similar or substantially similar investment objectives and strategies. These mergers simplify our product shelf, making it easier for advisors to navigate our offering, while also ensuring those continuing funds aim to deliver better risk-adjusted returns for clients.
Mergers that required a unitholder vote
Given somewhat similar mandates and the low level of assets in some of our funds, we proposed mergers of the following two funds. The proposed continuing funds, while somewhat similar, have different investment objectives and strategies to those of the terminating funds. Therefore, on Jan. 18, 2023, there was a unitholder vote to merge the following two funds.
On or about Dec. 16, 2022, clients who held somewhat similar funds requiring a unitholder vote were mailed all applicable documents on the proposed mergers, including a proxy that they could use to vote.
|
Terminating fund |
Continuing fund |
|---|---|
|
Canada Life Canadian Low Volatility Fund |
Canada Life Canadian Core Dividend Fund |
|
Canada Life U.S. Low Volatility Fund |
Canada Life U.S. Value Fund |
Note: the Canada Life U.S. Low Volatility Fund has been soft-capped since Sept. 9, 2020
We’re merging three of our Canada Life Pathways funds outlined below with substantially similar mandates managed by the same subadvisor and portfolio management team. These mergers did not require a unitholder vote.
Clients who held substantially similar funds not requiring a vote were mailed a notification of the mergers on or about Dec. 2, 2022.
|
Terminating fund |
Continuing fund |
|---|---|
|
Canada Life Pathways Money Market Fund |
Canada Life Money Market Fund |
|
Canada Life Pathways Canadian Equity Fund |
Canada Life Canadian Growth Fund |
|
Canada Life Pathways US Equity Fund |
Canada Life U.S. Value Fund |
All fund mergers are done on a tax deferred basis; clients are deemed to dispose of the funds for an amount equal to their adjusted cost base so that no capital gains or capital losses will be realized on the disposition. Thus, there are no tax consequences related to the fund mergers, provided clients choose to remain in the funds..
We want to deliver the best possible outcomes for you and your clients, while causing as little disruption as possible. Review the frequently asked questions and familiarize yourself with the voting and non-voting client letter mailings so you’re prepared to answer any questions clients may have.
If you’d like a report of your clients impacted by the mergers, contact your advisor service representative (ASR).
If you have questions about the mergers or proxy vote, reach out to your Canada Life wealth wholesaling team.
Key dates
|
Date |
Activity |
|---|---|
|
Nov. 28, 2022 |
Record date (the date any clients who hold the terminating funds are captured and will receive the applicable client mailings) |
|
Dec. 2, 2022 |
Client mailings on fund mergers not requiring a unitholder vote. |
|
Dec. 16, 2022 |
Client mailings on proposed fund mergers requiring a unitholder (mailing includes investor circular and proxy mailing) |
|
Jan. 18, 2023 |
Unitholder meeting |
|
Feb. 3, 2023 |
Fund merger effective date |
For more details on what the continuing funds seek to deliver, check out the fund profiles below.