NCM Asset Management Ltd. announces proposed fee reduction and risk rating change

September 01, 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 plans to reduce the risk rating and management fees of NCM Norrep Fund in connection with the proposed change to its investment objectives.

The changes, as outlined below, are subject to regulatory and/or unitholder approval at a special meeting of unitholders (the “Meeting”) of the fund on October 28, 2020. If the requisite approvals are obtained, it is anticipated that the proposed investment objectives change and corresponding management and risk rating changes will be implemented on or about October 30, 2020.

In advance of the Meeting, 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 change. The notice-and-access document and management information circular will also be available on SEDAR at www.sedar.com.

Risk Rating Change

Subject to obtaining unitholder approval to change its investment objectives, NCM Norrep Fund will lower its risk rating as outlined below effective on or about October 30, 2020.

  Current Risk Rating New Risk Rating
NCM Norrep Fund Medium to High Medium

Risk Classification Methodology

The methodology used to determine the risk rating of the fund is based on the CSA's Risk Classification methodology. In accordance with the standardized Risk Classification Methodology mandated by the CSA, NCM reviews risk ratings annually, at a minimum, as well as when a fund undergoes a material change.

Fee Changes

Subject to obtaining unitholder approval to change its investment objectives, NCM will reduce the management fee on Series F by 25 basis points, from 1.25% to 1.00% and increase the trailer fee compensation on Series A by 25 basis points, from 0.75% to 1.00% effective on or about October 30, 2020. The management fee on Series A will be unchanged.

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.