NCM Asset Management Ltd. Announces Changes to its Investment Fund Line-up

August 28, 2020

Calgary, Alberta – NCM Asset Management Ltd. (“NCM”), the manager of a strategically focused group of public mutual funds, alternative investment funds, and related products and services, announced changes to certain investment funds. The changes include plans to merge NCM Entrepreneurs Class (the “Terminating Fund”) into NCM Small Companies Class (the “Continuing Fund”), subject to all required securityholder and regulatory approvals, and to change the investment objectives of NCM Norrep Fund.

The changes, as outlined below, are subject to regulatory and/or unitholder approval at special meetings of unitholders (each, a “Meeting” and collectively, the “Meetings”), of each applicable fund, to be held concurrently, with separate votes for each fund, on October 28, 2020. If the requisite approvals are obtained, it is anticipated that the proposed merger and investment objectives change will be implemented on or about October 30, 2020.

In advance of the Meetings, a notice-and-access document will be mailed on September 30, 2020, to unitholders of record as at September 25, 2020. The notice-and-access document will describe the various ways in which unitholders can obtain a copy of a management information circular that contains full details of the proposed changes. The notice-and-access document and management information circular will also be available on SEDAR at www.sedar.com.

Fund Merger

The Independent Review Committee (“IRC”) of the funds has reviewed the proposed merger and determined that the proposed merger, if implemented, will achieve a fair and reasonable result for the funds.

Pursuant to the proposed merger, the Continuing Fund will acquire all or substantially all of the net assets of the Terminating Fund and securityholders of the Terminating Fund will exchange their shares of the Terminating Fund for shares of the Continuing Fund such that securityholders of the Terminating Fund will become securityholders of the Continuing Fund.  As soon as reasonably possible following completion of the proposed merger, the Terminating Fund will be terminated. All costs and expenses associated with the proposed merger will be borne by NCM. 

Securityholders of the Terminating Fund will have the right to redeem securities of, and make switches out of, the fund up to the close of business on the business day prior to the effective date of the applicable proposed merger.

Changes to Investment Objectives

Subject to obtaining unitholder approval, NCM Norrep Fund will change its investment objectives as indicated below and re-open Series A and Series F units.
 

Current Investment Objectives

Proposed Investment Objectives

The Fund is designed to achieve long-term capital appreciation by investing in equity securities of small and mid capitalization issuers. The portfolio may consist of all types of equity and debt obligations of issuers in Canada and the United States that may or may not be listed for trading upon the facilities of stock exchanges or other organized and regulated trading facilities in Canada and the United States. Assets of the Fund may also be invested in debt obligations or held in cash to the extent that economic, market, or other conditions make it appropriate.

The Fund is designed to achieve long-term capital appreciation and consistent income by investing in equity securities of all market capitalization issuers. The portfolio may consist of all types of equity and debt obligations of issuers in Canada and the United States that may or may not be listed for trading upon the facilities of stock exchanges or other organized and regulated trading facilities in Canada and the United States. Assets of the Fund may also be invested in debt obligations or held in cash to the extent that economic, market, or other conditions make it appropriate.


The IRC of the fund has reviewed the potential conflict of interest matters related to the proposed investment objectives change and provided NCM with a positive recommendation for the proposed investment objectives change after determining that the change, if implemented, would achieve a fair and reasonable result for the fund.

Please visit www.ncminvestments.com for more details about NCM and its investment products. For the complete disclosure record of the NCM Group of Funds, please visit www.sedar.com.

About NCM – NCM Asset Management Ltd.

For over 20 years, NCM has been one of Canada’s leaders in actively managed investment products. With a family of actively managed funds, NCM has earned multiple awards recognizing its investment success. NCM is an independent Canadian investment firm with offices in Calgary and Toronto, distributing retail mutual funds and related products and services to Canadian investors, through a third party distribution channel.  

For More Information:

Brad DimitroffInvestment Operations Manager

Brad is Investment Operations Manager at NCM Investments. Based in Toronto, he has been with the firm since 2015. His responsibilities include the management and oversight of NCM’s vendor relationships, as well as providing day-to-day operational support for all areas…

Notice to Reader:

Certain information set forth in this press release, including a discussion of future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond management’s control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. Actual results, performance or achievement could differ from those expressed in or implied by these forward-looking statements.