The Securities Commission has approved mutual fund mergers involving IG Mackenzie Low Volatility Canadian Equity Fund and IG Irish Life Global Equity Fund (Terminating Funds) into IG FI Canadian Equity Fund and IG Mackenzie Global Fund (Continuing Funds), respectively. The approval was necessary as the mergers did not meet the criteria for pre-approval due to differences in investment objectives between the Terminating and Continuing Funds. The decision is contingent upon securityholder approval.
The key regulations involved are National Instrument 81-102 Investment Funds (NI 81-102), particularly sections 5.5(1)(b), 5.6(1)(a), and 5.7(1)(b), which govern mutual fund mergers and the criteria for pre-approval. The mergers are expected to streamline offerings, potentially reduce management fees, and provide investment management efficiencies and diversification opportunities.
The Filer, I.G. Investment Management, Ltd., is the trustee and manager of the funds and is registered as a Portfolio Manager and an Investment Fund Manager in multiple Canadian provinces. The mergers are anticipated to be tax-deferred under the Income Tax Act (Canada) and are planned to be effective on or about June 18, 2021, subject to securityholder approval at special meetings scheduled for June 3, 2021. The Filer will bear the costs of the mergers, and no charges will be payable by unitholders for acquiring units of the Continuing Funds as a result of the mergers.