Desjardins seeks changes to funds

The Fédération des caisses Desjardins du Québec, which manages the Desjardins family of mutual funds, is considering changes to the investment objective of the Desjardins Global Equity Value Fund and to the investment strategies and portfolio subadvisors of a handful of other funds.

The proposed revision of the investment objective of Desjardins Global Equity Value Fund aims to achieve income, notably in the form of dividends, as well as long-term capital appreciation by investing primarily in equity and equity-related securities of companies located anywhere in the world, including, when deemed appropriate, emerging markets, said a release from Desjardins.

The changes are intended to increase the potential of the fund for dividend income while offering a lower volatility risk than its benchmark, the MSCI World, as well as increased capital protection during bear market periods.

If approved, Desjardins Global Equity Value Fund will be renamed as Desjardins Global Dividend Fund to better reflect its new investment objective.

A meeting of unitholders to approve these changes is expected to be held on or about May 17, 2011 and, if approved, the changes will start to be implemented on or about May 17, 2011.

Effective on or about March 22, 2011, the group has decided to implement following changes in response to market conditions due to recent events in Japan:

Desjardins Canadian Balanced Fund – Fiera Sceptre remains the only portfolio subadvisor of the fund and the investment strategy pertaining to international equity securities is amended to allow the fund to invest in stock market securities, other than Canadian and American, through the acquisition of units of the Desjardins Overseas Equity Growth Fund;

Desjardins American Equity Value Fund – The portfolio advisor retains Wellington Management Company as sole portfolio subadvisor of the fund. The investment strategy of the fund is amended to reflect Wellington’s bottom up investment approach, based on an assessment of the quality and valuation of the corporations.

Desjardins Overseas Equity Value Fund – The portfolio advisor retains Aberdeen Asset Management as sole portfolio subadvisor of the fund. The investment strategy of the fund is amended to match Aberdeen’s bottom up style.

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