TORONTO, June 28, 2023 /CNW/ - 1832 Asset Management L.P. (the "Manager") today announced a proposal to merge certain ScotiaFunds to simplify its product shelf and more closely align with client preferences. If approved, the mergers will initiate fee reductions of 0.05%. The Continuing Funds will be renamed to ensure asset allocation options are described consistently across all Scotia Portfolio Solutions.

Subject to obtaining unitholder approval, the Manager proposes that each of the following mutual funds (each, a "Terminating Fund") be merged into the 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. Premium T, Premium TL and Premium TH Series of each Terminating Fund will be merged into Series T of its corresponding Continuing Fund.

Approval from unitholders of the Terminating Funds will be voted on at special meetings to be held virtually on or about September 15, 2023.

It is anticipated that each proposed merger will be implemented on or about October 13, 2023. 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 to the corresponding Continuing Fund in return for units of the Continuing Fund having an aggregate net asset value equal to the value of the assets transferred to the Continuing Fund. Immediately thereafter, the Terminating Fund will cause all its units to be redeemed in exchange for units of the Continuing Fund. This will result in each unitholder of the Terminating Fund receiving units of the applicable series of the Continuing Fund having equal value to the units of the Terminating Fund that were held by such unitholder prior to the merger. Each Terminating Fund will then be wound up as soon as possible following the mergers.

In advance of the applicable unitholder meetings, a notice-and-access document will be sent on or about August 16, 2023, to unitholders of record as at July 27, 2023. The notice-and-access document will describe how unitholders 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.sedar.com.

The Independent Review Committee of each 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 Funds and their corresponding Continuing Funds.

The Terminating Funds will be closed to new investors effective at the close of business on July 20, 2023. From thereon, existing unitholders of the Terminating Funds can continue to make subsequent purchases (including Pre-Authorized Contributions) until the close of business approximately five business days before the applicable merger implementation date. Unitholders of the Terminating Funds can redeem or switch their units at any time up until the close of business on the business day immediately before the merger. More particulars regarding these matters will be set out in the Circular being sent to unitholders.

In connection with the proposed mergers, if approved, the Manager will reduce the fixed administration fee of each series of each Continuing Fund from 0.10% to 0.05%. It is anticipated that all applicable fee reductions will be effective concurrent with the effective date of the applicable merger.

Effective October 20, 2023, the Scotia Aria Build Portfolios will be renamed to Scotia Essentials Portfolios and the asset allocation naming conventions will be changed so they are described in a manner that is consistent across all Scotia Portfolio Solutions. The new names are listed below:

Concurrently, Premium Series of the listed Scotia Essentials Portfolios will be renamed to Series A.

For further information on these and other ScotiaFunds, please visit scotiafunds.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investments in the funds. Please read the prospectus before investing. Investments in the funds are not guaranteed, their values change frequently, and past performance may not be repeated.

Scotia Global Asset Management includes 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.

Scotiabank is a leading bank in the Americas. Guided by our purpose: "for every future", we help our customers, 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 a team of over 90,000 employees and assets of over $1.3 trillion (as at April 30, 2023), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on Twitter @Scotiabank.

SOURCE Scotiabank