TORONTO–(BUSINESS WIRE)–Russell Investments Canada Limited (“Russell Investments”) announced today that it proposes to merge Russell Investments Focused Canadian Equity Pool and Russell Investments Focused Canadian Equity Class (each a “Terminating Fund”) into Russell Investments Canadian Dividend Pool and Russell Investments Canadian Dividend Class (each a “Continuing Fund”), respectively.
The merger of Russell Investments Focused Canadian Equity Pool into Russell Investments Canadian Dividend Pool will be implemented by selling the assets of the Terminating Fund to its Continuing Fund in return for units of its Continuing Fund. The Terminating Fund’s units then will be redeemed, and each investor’s units of the Terminating Fund will be exchanged for a proportionate number of units of an equivalent series of its Continuing Fund. This merger will be completed on a tax-deferred rollover basis.
The merger of Russell Investments Focused Canadian Equity Class into Russell Investments Canadian Dividend Class will be implemented by reallocating the assets of the Terminating Fund to the Continuing Fund internally within Russell Investments Corporate Class Inc. and exchanging each outstanding share of the Terminating Fund for shares of an equivalent class of its Continuing Fund based on their relative net asset values. Canadian tax laws currently do not permit this exchange to be implemented on a tax-deferred rollover basis and, consequently, this merger will result in disposition for tax purposes of all shares of the Terminating Fund held by its investors. Russell Investments expects that this will not result in a material tax liability for most investors.
The investors of each Terminating Fund will be asked to approve its merger at special meetings to be held on or about November 28, 2022. The Merger of Russell Investments Focused Canadian Equity Class also is subject to approval by the shareholders of its Continuing Fund. The mergers will proceed and take effect on or shortly after December 9, 2022, only if both mergers receive all required approvals, following which each Terminating Fund will be wound up as soon as reasonably possible. As well, on or about November 28, 2022, the management fee charged to each Terminating Fund in respect of its Series E units or shares will be reduced to 1.65%.
On or prior to the effective date of the mergers, Russell Investments will suspend purchases of units and shares of each Terminating Fund. Investors will have the right to redeem units and shares of the Terminating Fund up to the close of business on the effective date of its merger. Following the mergers, all optional plans, including pre-authorized purchase programs, automatic withdrawal plans, systematic switch programs and automatic rebalancing services, which were established with respect to a Terminating Fund will be re-established in comparable plans with respect to the Continuing Fund unless investors advise otherwise. Units or shares of a Continuing Fund received by an investor of a Terminating Fund as a result of its merger will be subject to the same deferred sales charge (if any) applicable to the units or shares of the Terminating Fund they replace.
About Russell Investments Canada Limited
Russell Investments Canada Limited is a wholly owned subsidiary of Russell Investments Group, Ltd. Established in 1985, Russell Investments Canada Limited has its head office in Toronto.
About Russell Investments
Russell Investments is a leading global investment solutions firm providing a wide range of investment capabilities to institutional investors, financial intermediaries, and individual investors around the world. Building on an 86-year legacy of continuous innovation to deliver exceptional value to clients, Russell Investments works every day to improve the financial security of its clients. The firm has C$385.9 billion in assets under management (as of 6/30/2022) for clients in 32 countries. Headquartered in Seattle, Washington, Russell Investments has offices in 18 cities around the world, including New York, London, Toronto, Tokyo, and Shanghai. For more information, please visit www.russellinvestments.com/ca.
Nothing in this publication is intended to constitute legal, tax securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. This is a publication of Russell Investments Canada Limited and has been prepared solely for information purposes. It is made available on an “as is” basis. Russell Investments Canada Limited does not make any warranty or representation regarding the information.
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Contacts
Steve Claiborne, 206-505-1858, newsroom@russellinvestments.com
