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Press release from CNW Group

Scotia Asset Management L.P. announces upcoming fund mergers

Wednesday, July 03, 2013

Scotia Asset Management L.P. announces upcoming fund mergers

16:15 EDT Wednesday, July 03, 2013

TORONTO, July 3, 2013 /CNW/ - Scotia Asset Management L.P. ("SAM"), as the trustee and manager of the ScotiaFunds, Pinnacle Portfolios and Scotia Private Pools, announced today that it will seek regulatory and unitholder approval for the following mergers:

Terminating Fund   Continuing Fund
Pinnacle Balanced Growth Portfolio to merge
into
Pinnacle Conservative Balanced
Growth Portfolio
Pinnacle Growth Portfolio to merge
into
Pinnacle Conservative Growth
Portfolio
Scotia Global Climate Change Fund to merge
into
Scotia Global Growth Fund
Scotia Private Advantaged Income
Pool
to merge
into
Scotia  Income Advantage Fund
Scotia Vision Conservative 2010
Portfolio
Scotia Vision Aggressive 2010
Portfolio
to merge
into
Scotia Selected Income Portfolio
Scotia Vision Conservative 2015
Portfolio
Scotia Vision Aggressive 2015
Portfolio
Scotia Vision Conservative 2020
Portfolio
to merge
into
Scotia Selected Income &
Modest Growth Portfolio
Scotia Vision Aggressive 2020
Portfolio
Scotia Vision Conservative 2030
Portfolio
to merge
into
Scotia Selected Balanced
Income & Growth Portfolio
Scotia Vision Aggressive 2030
Portfolio
to merge
into
Scotia Selected Moderate
Growth Portfolio

Scotia Asset Management has received approval from its Independent Review Committee to proceed with the mergers. If approved by unitholders and regulators, the proposed mergers are expected to take effect after the close of business on September 13, 2013.

The Merger

For each merger that is approved, the applicable Terminating Fund will transfer all of its assets to the applicable Continuing Fund in exchange for units of the Continuing Fund on a series-by-series and dollar-for-dollar basis. In addition, the Continuing Fund will absorb all the liabilities of the Terminating Fund. The Terminating Fund will then be wound up as soon as possible following the mergers.

Each merger will require the approval by a majority of the votes cast by unitholders of the applicable Terminating Fund at a special meeting of such unitholders, expected to be held jointly on or about August 27, 2013 (the "Special Meetings"). The record date for the purpose of determining which unitholders are entitled to receive notice and vote at the Special Meetings will be the close of business on or about July 10, 2013. The information circular containing a complete description of the matters to be considered at the Special Meetings will be sent to unitholders shortly thereafter.

Each of the mergers will take place on a taxable basis, with the exception of Scotia Vision Conservative 2010 Portfolio and Scotia Private Advantage Income Pool, which will be conducted on a tax-deferred basis.

Suspension of New Purchases

Effective as of the close of business on July 10, 2013 purchases of units of a Terminating Fund will be suspended (except purchases under existing pre-authorized contribution plans). Unitholders will have the right to redeem units of the Terminating Fund up to the close of business on the business day preceding the effective date of each merger.

Following each merger, pre-authorized contribution plans and automatic withdrawal plans which have been established with respect to a Terminating Fund will be re-established with respect to the corresponding Continuing Fund unless otherwise informed by unitholders.

Rationale for the Mergers

The proposed mergers are the result of the Managers' ongoing review of the respective fund lineup and are believed to be in the best interest of unitholders of the Terminating Funds. Unitholders are expected to benefit from the increased scale and operational efficiencies of the Continuing Funds. In all instances, the MER of the Continuing Funds are lower than those of the Terminating Funds.

About Scotia Asset Management
Scotia Asset Management L.P. is a limited partnership the general partner of which is wholly owned by The Bank of Nova Scotia and is a manager of mutual funds and investment solutions for private clients, institutional clients and managed asset programs.

About Scotia Private Client Group
Scotia Private Client Group consists of private client services from The Bank of Nova Scotia, The Bank of Nova Scotia Trust Company, Scotia Asset Management L.P., Scotia Asset Management U.S. Inc., Scotia McLeod Financial Services Inc., WaterStreet Family Capital Counsel Inc., a division of Scotia Asset Management L.P., and ScotiaMcLeod, a division of Scotia Capital Inc.  Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

About Scotiabank
Scotiabank is a leading multinational financial services provider and Canada's most international bank. With more than 83,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $754 billion (as at April 30, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

 

SOURCE: Scotiabank

For further information:

Scotiabank - Media
Diana Hart
P: 416-866-7238
E: diana.hart@scotiabank.com

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