Subject: MISCELLANEOUS
NEI Investments Announces Changes to its Mutual Fund Lineup
TORONTO, June 19, 2018 (GLOBE NEWSWIRE) -- NEI Investments ("NEI" or the "Manager") today announced a number of changes to its mutual fund lineup. In an effort to streamline and improve the experience of investors and advisors, NEI proposes to:
- change the names of certain funds
- close Series T units to all purchases
- adjust the distribution policy for certain funds
- reduce the management fees and/or fixed administration fees for certain funds
Fund Name Changes & Rebranding
In an effort to simplify fund names and focus brand awareness on NEI's leadership and differentiation around responsible investing, NEI is renaming a number of its funds effective on or about June 18, 2018. Specifically, NEI has retired the use of both the Ethical Funds and Northwest Funds sub-brand names. While the mandates of each fund lineup have had different focuses in the past, over time NEI has adopted Responsible Investment ("RI") approaches across the fund lineup making these sub-brand names and distinctions less important. As a result of this decision, all funds that previously used the Ethical sub-brand name will instead include a new designation ? "RS", which stands for Responsible Screens, and is used to denote funds that automatically exclude companies in the areas of tobacco, illegal weapons and nuclear power as the predominant RI approach.
| Current Fund Name | New Fund Name |
| NEI Northwest Speciality Global High Yield Bond Fund | NEI Global High Yield Bond Fund |
| NEI Northwest Tactical Yield Fund | NEI Tactical Yield Portfolio |
| NEI Global Strategic Yield Fund | NEI Balanced Yield Portfolio |
| NEI Northwest Growth and Income Fund | NEI Growth & Income Fund |
| NEI Ethical Balanced Fund | NEI Balanced RS Fund |
| NEI Northwest Canadian Dividend Fund | NEI Canadian Dividend Fund |
| NEI Ethical Canadian Equity Fund | NEI Canadian Equity RS Fund |
| NEI Northwest Canadian Equity Fund | NEI Canadian Equity Fund |
| NEI Northwest U.S. Dividend Fund | NEI U.S. Dividend Fund |
| NEI Ethical U.S. Equity Fund | NEI U.S. Equity RS Fund |
| NEI Ethical Special Equity Fund | NEI Canadian Small Cap Equity RS Fund |
| NEI Northwest Specialty Equity Fund | NEI Canadian Small Cap Equity Fund |
| NEI Ethical Global Dividend Fund | NEI Global Dividend RS Fund |
| NEI Ethical Global Equity Fund | NEI Global Equity RS Fund |
| NEI Northwest Global Equity Fund | NEI Global Equity Fund |
| NEI Ethical International Equity Fund | NEI International Equity RS Fund |
| NEI Northwest Emerging Markets Fund | NEI Emerging Markets Fund |
| NEI Ethical Select Income Portfolio | NEI Select Income RS Portfolio |
| NEI Ethical Select Conservative Portfolio | NEI Select Income & Growth RS Portfolio |
| NEI Select Conservative Portfolio | NEI Select Income & Growth Portfolio |
| NEI Ethical Select Balanced Portfolio | NEI Select Balanced RS Portfolio |
| NEI Ethical Select Growth Portfolio | NEI Select Growth RS Portfolio |
| NEI Select Global Maximum Growth Portfolio | NEI Select Maximum Growth Portfolio |
Series T Closure
As of June 18, 2018, Series T units of the funds will be closed to new investors. Investors with pre-authorized payment plans for Series T units will have their plans automatically re-established to purchase Series A units of the same fund. Investors are not required to take any action in regards to these changes and will not experience any change to the fees or distribution policy relating to their investment. The Manager will reclassify all Series T units of a fund into Series A units of the same fund and expects to do so on or about the second quarter of 2019.
Distribution Policy Changes
NEI undertook a review of the distribution policy for each of its funds in order to provide investors with a consistent income distribution experience across its product lineup by applying a "monthly-fixed" policy to all fixed income funds, equity income (dividend) funds, Select portfolios and Yield portfolios. In addition, updates were made to implement a fixed percentage of net asset value distribution policy methodology that will reset annually and is more in line with industry practice. It should be noted that a change in distribution policy has no impact on the performance of a fund.
Fee Reductions
The following management fee ("MF") and fixed administration fee ("FAF") reductions will be effective after the close of business on June 18, 2018.
Management Fees:
| NEI Funds | Old MF (bps) | New MF (bps) | Difference (bps) |
| NEI Canadian Equity Fund, Series F | 90 | 85 | 5 |
| NEI Canadian Equity RS Fund, Series F | 90 | 85 | 5 |
| NEI Emerging Markets Fund, Series A | 215 | 200 | 15 |
| NEI Emerging Markets Fund, Series F | 115 | 100 | 15 |
| NEI Select Growth Portfolio, Series A | 200 | 190 | 10 |
| NEI Select Growth Portfolio, Series F | 100 | 90 | 10 |
| NEI Select Growth RS Portfolio, Series A | 200 | 190 | 10 |
| NEI Select Growth RS Portfolio, Series F | 100 | 90 | 10 |
| NEI Select Income & Growth Portfolio, Series A | 175 | 165 | 10 |
| NEI Select Income & Growth Portfolio, Series F | 75 | 65 | 10 |
| NEI Select Income & Growth RS Portfolio, Series A | 175 | 165 | 10 |
| NEI Select Income & Growth RS Portfolio, Series F | 75 | 65 | 10 |
| NEI Select Maximum Growth Portfolio, Series A | 210 | 190 | 20 |
| NEI Select Maximum Growth Portfolio, Series F | 110 | 90 | 20 |
Fixed Administration Fees:
| NEI Funds | Old FAF (bps) | New FAF (bps) | Difference (bps) |
| NEI Balanced Yield Portfolio, Series P | 30 | 20 | 10 |
| NEI Balanced Yield Portfolio, Series PF | 25 | 15 | 10 |
| NEI Canadian Equity RS Fund, Series A | 40 | 35 | 5 |
| NEI Canadian Equity RS Fund, Series F | 30 | 25 | 5 |
| NEI Conservative Yield Portfolio, Series P | 30 | 20 | 10 |
| NEI Conservative Yield Portfolio, Series PF | 25 | 15 | 10 |
| NEI Emerging Markets Fund, Series A | 55 | 45 | 10 |
| NEI Emerging Markets Fund, Series F | 45 | 35 | 10 |
| NEI Environmental Leaders Fund, Series F | 40 | 30 | 10 |
| NEI Generational Leaders Fund, Series F | 40 | 30 | 10 |
| NEI Global Dividend RS Fund, Series F | 40 | 30 | 10 |
| NEI Global Dividend RS Fund, Series P | 40 | 30 | 10 |
| NEI Global Dividend RS Fund, Series PF | 40 | 25 | 15 |
| NEI Global Equity Fund, Series A | 50 | 40 | 10 |
| NEI Global Equity Fund, Series F | 45 | 30 | 15 |
| NEI Global Equity RS Fund, Series A | 50 | 40 | 10 |
| NEI Global Equity RS Fund, Series F | 45 | 30 | 15 |
| NEI Global Value Fund, Series F | 40 | 30 | 10 |
| NEI International Equity RS Fund, Series A | 50 | 45 | 5 |
| NEI International Equity RS Fund, Series F | 45 | 35 | 10 |
| NEI Select Balanced RS Portfolio, Series A | 40 | 30 | 10 |
| NEI Select Balanced RS Portfolio, Series F | 35 | 25 | 10 |
| NEI Select Growth RS Portfolio, Series F | 35 | 30 | 5 |
| NEI Select Maximum Growth Portfolio, Series A | 50 | 40 | 10 |
| NEI Select Maximum Growth Portfolio, Series F | 45 | 35 | 10 |
| NEI U.S. Dividend Fund, Series A | 50 | 40 | 10 |
| NEI U.S. Dividend Fund, Series F | 40 | 30 | 10 |
| NEI U.S. Dividend Fund, Series P | 50 | 30 | 20 |
| NEI U.S. Dividend Fund, Series PF | 40 | 25 | 15 |
| NEI U.S. Equity RS Fund, Series A | 50 | 40 | 10 |
| NEI U.S. Equity RS Fund, Series F | 40 | 30 | 10 |
ABOUT NEI INVESTMENTS
NEI Investments is a national investment firm with approximately $6 billion in assets under management. It offers Canadian retail investors access to experienced money managers through a wide range of investment solutions across its fund family. Its products provide investors with a full range of investment management styles and a focus on responsible investment solutions.
The general partner of the Manager, Northwest & Ethical Investments Inc., is a wholly-owned subsidiary of Aviso Wealth Inc. ("Aviso"). Aviso is a wholly-owned subsidiary of Aviso Wealth LP, which in turn is owned 50% by Desjardins Financial Holding Inc. and 50% by a limited partnership owned by the five Provincial Credit Union Centrals and The CUMIS Group Limited.
NEI Investments has offices in Toronto, Vancouver and Montreal.
Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to the future outlook of the NEI Funds and anticipated events or results and may include statements regarding the future financial performance of the NEI Funds. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.
Media contact:
ConnieBurke
infinitycomm
[email protected]
Office: 9052575555
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