National Bank Investments announces results of securityholder meetings
May 10, 2017
National Bank Investments Inc. (“NBI”) announces the results of the proposals voted upon at the special meetings of securityholders of certain NBI Funds held today (the “Meetings”). These proposals stem from a series of initiatives that seek to ensure a more streamlined NBI Fund line-up to provide investors with a comprehensive, more clearly defined range of investment products.
During the Meetings, securityholders of 22 NBI Funds approved the following fund mergers:
Fund mergers to occur on or about May 12, 2017
| Fund Mergers Each terminating fund shall merge into the corresponding continuing fund. |
|
| Terminating Funds | Continuing Funds |
| NBI Health Sciences Fund | NBI Global Equity Fund |
| NBI Energy Fund | NBI Resource Fund |
| NBI U.S. Growth & Income Private Portfolio | NBI U.S. High Conviction Equity Private Portfolio |
| NBI Currency-Hedged U.S. High Conviction Equity Private Portfolio | |
| NBI Currency-Hedged International High Conviction Equity Private Portfolio | NBI International High Conviction Equity Private Portfolio |
| NBI Resource Fund |
Fund mergers to occur on or about May 19, 2017
| Fund Mergers Each terminating fund shall merge into the corresponding continuing fund. |
|
| Terminating Funds | Continuing Funds |
| NBI Long Term Bond Fund |
NBI Bond Fund |
| NBI U.S. $ Global Tactical Bond Fund |
NBI Global Tactical Bond Fund |
| NBI Monthly Secure Income Fund |
NBI Secure Portfolio* |
| NBI Monthly Conservative Income Fund | NBI Conservative Portfolio* |
| NBI Monthly Moderate Income Fund | NBI Moderate Portfolio* |
| NBI Monthly Balanced Income Fund |
NBI Balanced Portfolio* |
| NBI Monthly Growth Income Fund |
NBI Growth Portfolio* |
| NBI Asset Allocation Fund |
|
| NBI Monthly Equity Income Fund |
NBI Equity Portfolio* |
| National Bank Dividend Income Fund Inc. |
NBI Dividend Fund |
| NBI High Dividend Fund | NBI Canadian Equity Fund |
| National Bank AltaFund Investment Corp. |
NBI Canadian Equity Growth Fund |
| NBI Westwood Global Dividend Fund | NBI Global Equity Fund |
| NBI Westwood Global Equity Fund |
|
| NBI European Equity Fund |
|
| NBI Asia Pacific Fund |
|
| NBI Global Small Cap Fund | |
* * Funds to be created on or about May 12, 2017
During the Meetings, securityholders of NBI Japanese Equity Fund voted against the fund merger proposal into NBI Global Equity Fund. Consequently, as previously announced, NBI Japanese Equity Fund will be terminated on or about June 12, 2017. Pre-established systematic investment plans in respect of this fund are terminated effective immediately.
Furthermore, NBI has postponed indefinitely the securityholder meetings of each NBI Precious Metals Fund (in connection with the proposed fund merger of NBI Precious Metals Fund into NBI Resource Fund) and NBI Science and Technology Fund (in connection with the proposed fund merger of NBI Science and Technology Fund into NBI Global Equity Fund). As a consequence, these fund mergers will not proceed as proposed. NBI Precious Metals Fund and NBI Science and Technology Fund are reopened to new subscriptions effective immediately.
No new subscriptions for National Bank Diversified Funds, National Bank Strategic Portfolios and National Bank Managed Portfolios
By no later than July 1, 2017, National Bank Diversified Funds, as well as the National Bank Strategic Portfolios program and the National Bank Managed Portfolios programs will be closed to new subscriptions other than purchases through pre-established systematic investment and distribution reinvestment plans or switches from one series to another within the fund and/or portfolio.
Risk rating changes
NBI also announces a change in the risk ratings of certain NBI Funds:
- The level of risk attributed to NBI Global Tactical Bond Fund has been lowered from "low to medium" to "low".
- The level of risk attributed to NBI Unconstrained Fixed Income Fund has been lowered from "low to medium" to "low".
- The level of risk attributed to NBI Science and Technology Fund has been lowered from "high" to "medium to high".
- The level of risk attributed to NBI U.S. Bond Private Portfolio has been lowered from "low to medium" to "low".
- The level of risk attributed to NBI Multiple Asset Class Private Portfolio has been lowered from "medium" to "medium to low".
These changes follow the introduction of a new methodology to classify funds' risks by the Canadian Securities Administrators. No changes have been made to the investment objectives, strategies or management of these funds.
Lower management fees and trailing commissions for certain NBI Private Portfolios
In addition, the management fees (effective June 1, 2017) and trailing commissions (effective May 12, 2017) of the Advisor Series of certain NBI Private Portfolios will be reduced as indicated in the table below.
| Portfolio |
Current Management Fees Advisor Series* | New Management Fees Advisor Series | Current Trailers** | New Trailers |
| NBI Multiple Asset Class Private Portfolio |
1.35* |
1.32 | 1.10** | 1.00 |
| NBI North-American Dividend Private Portfolio |
1.60* |
1.45 | 1.25** | 1.00 |
| NBI Equity Income Private Portfolio |
1.60* |
1.45 | 1.25** | 1.00 |
| NBI Canadian Equity Private Portfolio |
1.60* |
1.45 | 1.25** | 1.00 |
| NBI Canadian High Conviction Equity Private Portfolio | 1.60* | 1.45 | 1.25** | 1.00 |
| NBI U.S. Equity Private Portfolio | 1.60* | 1.45 | 1.25** | 1.00 |
| NBI U.S. High Conviction Equity Private Portfolio | 1.60* | 1.45 | 1.25** | 1.00 |
| NBI International High Conviction Equity Private Portfolio | 1.60* | 1.45 | 1.25** | 1.00 |
* Effective until June 1, 2017
** Effective until May 12, 2017
These changes will be reflected in the upcoming amendment to the simplified prospectus for the National Bank Mutual Funds, which will be available at www.sedar.com and www.nbc.ca.
About NBI Funds
National Bank Mutual Funds (the “Funds”) are offered by National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with investments in the Funds. Please read the prospectus of the Funds before investing. The Funds’ securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The Funds are not guaranteed, their values change frequently and past performance may not be repeated.
About National Bank Investments Inc.
National Bank Investments (“NBI”) is an investment fund management firm committed to manufacturing and distributing mutual funds, investment solutions and services designed to help Canadian investors pursue their financial goals. As at December 31, 2016, the value of assets under management in NBI products amounted to $32.2 billion.
Guided by a 100% open architecture structure, NBI is dedicated to providing diverse solutions to meet the evolving needs of its clients. NBI consistently strives to be recognized as a key partner by combining innovation and excellence. NBI’s role is not limited to administrative aspects of management; NBI Advisory Services and its registered representatives form a team of specialists who provide information and advice to help advisors build portfolios adapted to their clients’ financial needs.
About National Bank of Canada
With $234 billion in assets as at January 31, 2017, National Bank of Canada, together with its subsidiaries, forms one of Canada’s leading integrated financial groups. The Bank has more than 21,000 employees and is widely recognized as a top employer. The Bank's securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank’s activities at nbc.ca or via social media such as Facebook, LinkedIn and Twitter.
Information (the telephone number provided below is for the exclusive use of journalists and other media representatives):
Marie-Pierre Jodoin
Senior Manager, Public Affairs
National Bank of Canada
Tel. : 514-394-4209