1832 Asset Management L.P., the trustee and manager of ScotiaFunds, announced March 7 that it will seek regulatory and unitholder approval for two proposed fund mergers.
If approved, both the Scotia Latin American Fund and the Scotia Pacific Rim Fund will be terminated and merged into the Scotia International Equity Fund. The proposed mergers, if approved, are expected to take effect as of July 12, 2019.
May have tax consequences
Each of the mergers would take place on a taxable basis, which would be considered a deemed disposition for tax purposes and may have tax consequences for unitholders of the terminating funds if held within a non-registered account, says the company.
Effective March 15, 2019, purchases of units of the terminating Funds will be suspended, including purchases under existing pre-authorized contribution plans.