Subjects: MUTUAL FUNDS, MERGERS AND ACQUISITIONS (M&A)
Stone Asset Management Limited Announces Mutual Fund Mergers
TORONTO, July 30, 2019 (GLOBE NEWSWIRE) -- Stone Asset Management Limited, the Trustee and Manager of the Funds, today announced the following fund mergers:
| Merging Corporate Fund | Continuing Trust Fund |
| Stone American Dividend Growth Fund (Corporate Class) | Stone American Dividend Growth Fund |
| Stone Covered Call Canadian Banks Plus Fund (Corporate Class) | Stone Covered Call Canadian Banks Plus Fund |
The merger of the two Funds will take effect on or about the close of business on October 4, 2019 (the "Merger Date"). Investors who continue to be a securityholder of the Merging Corporate Fund at the close of business on the Merger Date will automatically become a securityholder of the Continuing Trust Fund after that date.
The Manager believes that these mergers are in investors' best interests. Apart from minor weighting differences in equity holdings and cash, the Merging Corporate Funds and Continuing Trust Funds have common holdings and therefore the mergers will help to improve cost efficiencies. In addition, the Continuing Trust Funds will benefit from larger asset bases, allowing for increased portfolio diversification opportunities. Both Merging Corporate Funds have the same risk category and management fees as their respective Continuing Trust Funds.
The mergers of the two Funds qualify as a "pre-approved" merger under securities regulations and do not require securityholder approval as the Funds' Independent Review Committee ("IRC") has reviewed the Manager's submission to implement these mergers based on certain conditions being met, including that securityholders receive written notice about the merger at least 60 days in advance. The IRC has reviewed the mergers for potential conflicts of interest and views that the mergers achieve a fair and reasonable result for the investment funds and their securityholders.
Notifications to investors in these Funds were mailed in July 2019. Investors have the option of switching to units of a different Stone Fund, redeeming or transferring to reinvest in another group of funds, or redeeming for cash. Investors will not be required to pay any redemption fees, sales charges or other fund fees associated with the termination of the Fund.
Investors in these Funds are encouraged to speak to their Financial Advisor regarding their investment options and to determine any tax implications associated with redeeming units of the Funds.
About Stone
Stone Investment Group Limited is an independent, Canadian-owned wealth management company and the parent company to its wholly owned subsidiary, Stone Asset Management Limited ("SAM"). SAM is an active asset manager, providing investment management services via distinctive investment mandates, overseen daily by the disciplined execution of a proprietary investment process and investment philosophy. Access to SAM investment mandates can be achieved via a family of open-ended mutual funds, a pooled fund, and Private Wealth Management services. SAM's expertise ranges from servicing Canada's retail investors and working with their financial advisors to the complexities of working directly with Family Offices, endowments and foundations.
At Stone, we want our investors to sleep well, knowing they'll have the financial resources to live well.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Contact:
Jason Stone, Vice President National Accounts
1 800 336 9528 x4429, [email protected]
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