Scotia Global Asset Management announces proposed fund mergers, fee reduction and fund termination

TORONTO, June 13, 2024 /CNW/ - Scotia Global Asset Management (the "Manager") today announced a proposal to merge certain ScotiaFunds and to terminate one fund, to simplify its product shelf.

Subject to obtaining securityholder approval, the Manager proposes that each of the following mutual funds (each, a "Terminating Fund") be merged into its corresponding mutual fund (each, a "Continuing Fund"):

If approved, each series of each Terminating Fund is to be merged into the equivalent series of its corresponding Continuing Fund.

Approval from securityholders of the Terminating Funds will be voted on at special meetings to be held virtually on or about August 22, 2024. It is anticipated that each proposed merger will be implemented on or about November 22, 2024. All costs and expenses associated with each of the mergers will be borne by the Manager.

For each merger, the Terminating Fund will transfer its assets (less amounts necessary to satisfy its liabilities) to the corresponding Continuing Fund in return for securities of the Continuing Fund, issued at the applicable series net asset value per security and having an aggregate net asset value equal to the aggregate value of the assets transferred by the Terminating Fund to the Continuing Fund. Each securityholder of the Terminating Fund will receive securities of the applicable series of the Continuing Fund with a value equal to the net asset value of the relevant series of the Terminating Fund that were held by such securityholder prior to the merger. Each Terminating Fund will then be wound up as soon as possible following the merger.

In advance of the applicable securityholder meetings, a notice-and-access document will be sent on or about July 19, 2024, to securityholders of record as at July 8, 2024. The notice-and-access document will describe how securityholders can obtain a copy of the management information circular (the "Circular") that contains full details of the proposed mergers. The notice-and-access document and Circular will also be available on SEDAR+ at www.sedarplus.ca.

The Independent Review Committee of the Terminating Funds and the Continuing Funds has reviewed the potential conflict of interest matters related to the proposed mergers and has provided the Manager with a positive recommendation for the mergers, after determining that each merger, if implemented, would achieve a fair and reasonable result for the Terminating Fund and its corresponding Continuing Fund.

Securities of the Terminating Funds will no longer be available for purchase effective as of the close of business on June 20, 2024, except for subsequent purchases by existing securityholders (including to pre-authorized contribution plans), which will be available until the close of business on November 14, 2024. Securityholders of the Terminating Funds can redeem or switch their securities at any time up until the close of business on the business day immediately before the applicable merger. More particulars regarding these matters will be set out in the Circular that will be available for securityholders to access.

In connection with the proposed mergers, the Manager will reduce the fixed administration fee

on Series A and Series F of Scotia Canadian Income Fund from 0.07% to 0.06%, if either or both the mergers of (i) Scotia Canadian Bond Fund into Scotia Canadian Income Fund and/or (ii) Scotia Conservative Fixed Income Portfolio into Scotia Canadian Income Fund is approved. It is anticipated that the fee reductions will be effective concurrent with the implementation date of the applicable merger.

The Manager also announced its intention to terminate Scotia Wealth Canadian Mid Cap Pool (the "Fund"). The termination date of all series of the Fund, including Pinnacle Series, Series F and Series I, will be on or about August 22, 2024.

The Fund will be closed to new investors starting June 14, 2024. From thereon, existing securityholders can continue to make subsequent purchases (including in pre-authorized contribution plans) until the close of business on August 15, 2024. All securityholders of the Fund may redeem their securities at any time up until the close of business on the termination date. A notice will also be mailed to securityholders of the Fund at least 60 days prior to the termination date.

On or before the termination date, the Manager will liquidate the assets of the Fund and, after paying or making adequate provision for the liabilities of the Fund, distribute the cash proceeds on a pro rata basis to the Fund's securityholders of record on the termination date. In consideration of the termination, the Fund may make distributions prior to the termination date if this is deemed in the best interests of the Fund and its securityholders.

For further information on the merger and termination, please visit scotiafunds.com.

Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed or insured by the Canada Deposit Insurance Corporation or any other government deposit insurer, their values change frequently and past performance may not be repeated.

Series A securities are generally available for purchase to all investors, while Series F securities are generally only available to investors who participate in eligible fee-based or wrap programs with their registered dealers.

Scotia Global Asset Management® is a business name used by 1832 Asset Management L.P., a limited partnership, the general partner of which is wholly owned by Scotiabank. Scotia Global Asset Management offers a range of wealth management solutions, including mutual funds, ETFs, and investment solutions for private clients, institutions and managed asset programs. For more information, please visit www.scotiagam.com

Scotiabank's vision is to be our clients' most trusted financial partner, to deliver sustainable, profitable growth and maximize total shareholder return. Guided by our purpose: "for every future," we help our clients, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With assets of approximately $1.4 trillion (as at April 30, 2024), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit www.scotiabank.com and follow us on X @Scotiabank.

SOURCE Scotiabank

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