Investor Group announces changes to fund offering

Winnipeg, MB – June 18, 2015: Investors Group has announced changes to its fund offering including:

  • A proposed investment objective change involving IG Mackenzie Canadian Equity Growth Class1;
  • Proposed fund mergers involving IG AGF Canadian Growth Fund/Class1;
  • Change of volatility ranking for two funds/classes.

Additionally, Series Tjnl of Investors Short Term Capital Yield Class1has been terminated as of June 17, 2015.

Proposed investment objective change

Securityholders of IG Mackenzie Canadian Equity Growth Class will be asked to approve a change of investment objective for their fund.  IG Mackenzie Canadian Equity Growth Class will continue to seek to provide long-term capital growth, but will do so primarily by exposure to the common shares of Canadian based corporations of any size through investment in other mutual funds and/or directly in equity securities.   Initially, the Class intends to invest up to 100% of its net assets in IG Mackenzie Canadian Equity Growth Fund.  This change is expected to result in potentially greater efficiencies in the management of the Class’ portfolio.  The proposed investment objective will become effective on or about September 4, 2015, pending required approvals.

Proposed fund mergers

The following proposed mergers are expected to take effect on or about the close of business on September 11, 2015, subject to any necessary securityholder and regulatory approvals:

Merging fund


Continuing fund

IG AGF Canadian Growth Fund

To merge into

IG Mackenzie Canadian Equity Growth Fund

IG AGF Canadian Growth Class1

To merge into

IG Mackenzie Canadian Equity Growth Class1

The mergers are expected to provide securityholders of the merging funds with the potential for more efficient investment management due to a larger asset base, and generally more comprehensive investment mandates. 

Both of these mergers have been reviewed by the Investors Group Funds Independent Review Committee (IRC) which has determined that the mergers achieve a fair and reasonable result for all of the funds involved.

Securityholder meetings

Securityholders of the merging funds and IG Mackenzie Canadian Equity Growth Class will be asked to approve their respective mergers and, also, securityholders of the IG Mackenzie Canadian Equity Growth Class will be asked to approve the objective change of their fund at special meetings scheduled to be held on August 31, 2015, in Winnipeg.

Securityholders of these funds as at the record date (July 13, 2015) will receive a meeting notice, proxy, and a management information circular detailing the mergers and investment objective change, as applicable.  The mergers are not considered to be material for the continuing funds, but a meeting for IG Mackenzie Canadian Equity Growth Class is required for corporate law purposes. 

Persons who become registered securityholders of a voting fund or Class after the record date may request to receive the meeting materials and vote at the meeting of their fund, by contacting the manager at least 10 days in advance of the meeting.

Change in volatility

Investors Group is decreasing the risk rating associated with IG AGF U.S. Growth Fund/Class and IG Putnam U.S. Growth Fund/Class.  Investors Group has a risk rating methodology that follows the guidelines established by the Investment Funds Institute of Canada which assesses risk primarily based upon the variability of past returns for a mutual fund.  During a recent periodic review, Investors Group determined it is appropriate to change the risk rating for these funds from “Medium to High” to “Medium”.  No material changes have been made to the investment objectives, strategies or management of these mutual funds.

These changes in risk ratings are effective immediately and will be reflected in updated simplified prospectuses and Fund Facts, which are expected to be dated on or about June 30, 2015.

This is not a solicitation to purchase securities of these funds.  Commissions, trailing commissions, management fees and expenses all may be associated with mutual funds investments.  Please read the prospectus of the mutual funds before investing.  Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer.  There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you.  Past performance may not be repeated.  These funds are distributed across Canada by Investors Group Financial Services Inc., (in Quebec, a financial services firm) and Investors Group Securities Inc. (in Quebec, a firm in financial planning).

Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of over 5,100 Consultants located throughout Canada.  In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services.  Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies.  IGM Financial is one of Canada’s premier financial services companies with over $148 billion in total assets under management as of May 31, 2015.

This mutual fund is a class of securities issued by Investors Group Corporate Class Inc.™

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