On June 17th, Investors Group announced that it plans to make changes to the investment objectives of the Investors Capital Yield Class and the Investors Short Term Capital Yield Class. The changes are being made in response to amendments to the federal Income Tax Act that were introduced in 2013 which eliminated the tax-related benefits of certain types of forward sale transactions.
In order to ensure compliance with the new tax regulations, Investors Group plans to remove references to the use of these forward sale transactions from its documentation, and also intends to revise the investment strategies of the two fund classes. A notice will be sent to shareholders of the Classes at least 60 days before these changes become effective, which is expected to be on or about September 23, 2014.
On the same day, Investors Group also announced that the risk rating of its Canadian Balanced Fund has increased. While no material changes have been made to the fund’s investment objectives, strategies, or management, the Investment Funds Institute of Canada (IFIC) methodology assesses risk primarily based upon the variability of returns for a mutual fund. As a result, Investors says it is appropriate to change the risk rating for the fund from "Low to Medium" to "Medium".