Firm unveils plans for merger and proposal to alter one fund's investment objective
NCM Asset management has announced plans to make changes to two of its funds.
Subject to all required securityholder and regulatory approvals, the firm is proposing to merge NCM Entrepreneurs Class, an equity mutual fund that invests in Canadian micro-cap companies, into NCM Small Companies Class, which invests in equity securities of fast-growing small-cap companies that are trading at reasonable valuations.
The independent review committee of the funds has reviewed the proposed merger and deemed that if implemented, the merger will achieve a fair and reasonable result for the funds. Pursuant to the proposed merger, securityholders of NCM Entrepreneurs class will exchange their shares for shares of NCM Small Companies Class.
The firm is also seeking to change the investment objectives of NCM Norrep Fund. Specifically, the revision would see the fund’s objective expanded to include not just long-term capital appreciation, but also consistent income. It will also see an enhanced investing scope that includes equity securities of all market capitalization issuers, not just small- and mid-caps.
The fund’s portfolio will still potentially “consist of all types of equity and debt obligations of issuers in Canada and the United States,” and it will still have leeway to invest its assets in debt obligations or hold them in cash, depending on what’s appropriate based on prevailing economic, market, or other conditions.
NCM also seeks to reopen Series A and Series F units of the NCM Norrep Fund.
The changes will be discussed in concurrent special meetings of shareholders, with separate votes for each fund to be held on October 28. Should the changes be approved, the proposed merger and changes to investment objectives will push through on or about October 30.
