National Bank Investments Inc. announces a proposal to introduce a fixed-rate administration fee for National Bank AltaFund Investment Corp.
National Bank Investments Inc. (“NBI”) today announces that it proposes to pay most operating expenses for National Bank AltaFund Investment Corp. (the “Fund”) in return for the payment of a fixed-rate administration fee.
On or about July 1, 2015, NBI will begin paying certain operating expenses of the Fund in return for a new fixed-rate administration fee paid by the Fund to NBI. The fixed-rate administration fee will be less than or equal to the actual annualized operating expenses paid by the Fund during the twelve-month period ended December 31, 2014. By harmonizing its approach with the one used by most of the other National Bank Mutual Funds, NBI wants to improve and simplify its investors’ experience, aiming to provide enhanced clarity and greater predictability with regard to costs.
Fixed-Rate Administration Fee
Currently, the Fund bears all of its operating expenses. Beginning on or about July 1, 2015, the operating expenses payable by NBI will include, but are not limited to, transfer agency and recordkeeping costs, custodial costs, accounting and valuation fees, audit fees, legal fees, the costs of preparing and distributing financial reports, simplified prospectuses, annual information forms, fund facts, continuous disclosure documents and other investor communications and the costs of trustee services relating to registered tax plans, as applicable. NBI will pay these expenses, provided such expenses are incurred in the normal course of business of the Fund.
The Fund costs that will continue to be paid by the Fund will include taxes, the costs of complying with any change to existing regulatory requirements and/or with any new regulatory requirements, including any new fees introduced after February 13, 2015, interest and borrowing costs, fees and expenses related to external services that were not commonly charged in the Canadian mutual fund industry as at February 13, 2015, fees and expenses related to the board of directors of the Fund, fees and expenses of the IRC and operating expenses that are incurred outside the normal course of business of the Fund.
The fixed-rate administration fee will be subject to a transitional adjustment payment up to December 31, 2015. Similar fixed-rate administration fees have been introduced for other mutual funds managed by large Canadian mutual fund companies, including the Meritage Portfolios and other National Bank Mutual Funds.
Securityholders of record on or about March 20, 2015 in Investor Series securities will receive a written notice providing the details of the introduction of the fixed-rate administration fee at least 60 days prior to July 1, 2015, as required by securities regulations.
Advisor Series securities of the Fund require prior securityholder approval to implement this change. Securityholders of record on or about March 20, 2015 in Advisor Series securities will receive meeting materials in April. Meetings for these securityholders will be held on or about May 5, 2015.
Further information about the changes will be available in the amendment to the simplified prospectus for the National Bank Mutual Funds to be filed in connection with these changes, which will be posted at www.sedar.com and www.nbc.ca.
About National Bank Investments Inc.
National Bank Investments Inc. is a subsidiary specializing in designing and managing mutual funds and mutual fund portfolios. We are an investment fund management firm dedicated to providing a broad selection of investment solutions that meet an important variety of investment profiles. National Bank Investments’ role is not limited to administrative aspects of management; National Bank Investments Advisory Services and its registered mutual fund representatives form a team of specialists who provide information and advice to help you develop a portfolio adapted to your financial needs.
Products offered by National Bank Investments are distributed in the National Bank branch network, through National Bank Direct Brokerage, National Bank Financial and by authorized external brokers across Canada. As at October 31, 2014, the value of assets under management in National Bank Investments products amounts to $19 billion.
National Bank Mutual Funds (including National Bank AltaFund Investment Corp.) are offered by National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with investments in our funds. Please read the prospectus of the funds before investing. The funds’ securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. For money market funds, there can be no assurances that a fund will be able to maintain its net asset value per security at a constant amount or that the full amount of the investment in a fund will be returned. The funds are not guaranteed, their values change frequently and past performance may not be repeated.
About National Bank of Canada
With $205 billion in assets as at October 31, 2014, National Bank of Canada ( www.nbc.ca ) , together with its subsidiaries, forms one of Canada’s leading integrated financial groups. The Bank has close to 20,000 employees and is widely recognized as a top employer. The Bank's securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank’s activities via social media and learn more about its extensive community involvement at clearfacts.ca and commitment.nationalbank.ca .
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