QUEBEC CITY, June 21 /CNW Telbec/ - Today, Industrial Alliance Fund Management Inc. ("IAFM"), manager of the R Funds, in partnership with its sister company, Industrial Alliance Mutual Funds Inc. ("IAMF"), manager of the IA Funds, announced plans to consolidate and reorganize their respective fund families. The proposal includes changes in management, trustee, registrar and custodian of the IA Funds and fund mergers involving both the R Funds and IA Funds.
Effective on or about July 8, 2005, the manager and trustee of the IA Funds will change from IAMF to its affiliate IAFM. On or about the same date the registrar of the IA Funds will change from Unisen Inc. to IAFM. On or about August 26, 2005, the custodian of the IA Funds will change from Canadian Imperial Bank of Commerce to Royal Trust Company. These changes will result in all the mutual fund families under the Industrial Alliance group of companies being moved under a common manager, trustee, registrar, and custodian.
"This reorganization represents a watershed in our ongoing efforts to establish a broad and integrated offering of leading investment options," remarks David Scandiffio, President of IAFM. "With these changes, our clients will be able to choose from a number of compelling investment options across our complete line-up of individual funds and Distinction portfolios that feature full exchangeability and integrated support from our in-house team."
Subject to unitholder and regulatory approval, effective on or about August 26, 2005, the following fund mergers will occur:
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Terminating Fund Continuing Fund
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IA Canadian Money Market Fund R Money Market Fund
R Corporate Treasury Fund R Money Market Fund
IA Canadian Bond Fund R Bond Fund
IA Canadian Diversified Fund R Balanced Fund
IA Canadian Core Equity Fund R Canadian Leaders Fund
IA Crystal Enhanced Index World Fund IA Crystal Enhanced Index
America Fund
IA Credit Suisse Global Equity Fund R Global Equity Fund
R Techno-Media Fund R Global Equity Fund
R Techno-Media RSP Fund R Global Equity Fund
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The mergers of IA Canadian Bond Fund to R Bond Fund and IA Canadian
Diversified Fund to R Balanced Fund, R Corporate Treasury Fund to R Money Market Fund will be effected as a "qualifying exchange" according to the Income Tax Act (Canada). All other fund mergers under this proposal will be completed on a taxable basis.
Under the proposal, IAFM has ensured that all of the terminating funds will be merged into funds with lower or identical management fees. Special meetings of the terminating funds will be held in Montreal on or about August 19, 2005 at which time investors in the terminating funds will vote on the proposed mergers. If mergers are approved at the special meetings and if regulatory approval is received, they will take place on or about August 26, 2005.
Effective as of the date that the funds become managed by IAFM, investors in each of the fund families (IA Funds & R Funds - including Distinction Portfolios) will be able to switch between all funds managed by IAFM. For switches between the mutual funds managed by IAFM, the switch rules described in the simplified prospectus of the mutual fund from which the investor is switching will apply.
About Industrial Alliance Fund Management Inc.
On January 19, 2005, BLC-Edmond de Rothschild Asset Management Inc. (BLCER) was renamed Industrial Alliance Fund Management Inc. to reflect the previously announced acquisition of BLCER by Industrial Alliance Insurance and Financial Services Inc. IAFM is the trustee and manager of the R Funds and Distinction Portfolios. IAFM manages over $1.6 billion in mutual fund, institutional, hedge fund and private client assets.
About Industrial Alliance Mutual Funds Inc.
Industrial Alliance Mutual Funds Inc. is a Toronto-based subsidiary of Industrial Alliance Insurance and Financial Services Inc. Created in 2003, IAMF is the trustee and manager of the IA Canadian Conservative Equity Fund, IA Canadian Core Equity Fund, IA Canadian Diversified Fund (formerly IA Canadian Balanced Fund), IA Canadian Bond Fund, IA Canadian Money Market Fund, IA Credit Suisse Global Equity Fund, IA Crystal Enhanced Index America Fund and IA Crystal Enhanced Index World Fund. IAMF manages $170 million in mutual fund assets.
About Industrial Alliance Insurance and Financial Services Inc.
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. (Industrial Alliance) is a life and health insurance company that offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services. The fifth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group - the Industrial Alliance Group - which has operations across Canada. Industrial Alliance insures over 1.7 million Canadians, employs more than 2,600 people and manages and administers $30.0 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. Industrial Alliance is among the 100 largest public companies in Canada.
/For further information: Jacques Carrière, Vice-President, Investor Relations, Industrial Alliance Insurance and Financial Services, Office tel.: (418) 684-5275; cell: (418) 576-3624, E-mail: jacques.carriere(at)inalco.com, Website: www.iafunds.com ; Website: www.rfunds.ca ; To request a free copy of this organization's annual report, please go to http://www.newswire.ca and click on reports(at)cnw/
FUNDS INC.
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