Scotia proposes changes to select funds

Scotia Global Asset Management (SGAM) has proposed changes to select ScotiaFunds and is terminating two others, said the business segment of Toronto-based 1832 Asset Management LP on Thursday.

The proposed changes include merging the Scotia CanAm Index Fund into the Scotia U.S. Equity Index Fund. If approved, the fixed administration fee of series A, F and D of the continuing fund would be reduced to 0.16% from 0.17%. 

Scotia also proposed changing the investment objectives of the Scotia Nasdaq Index Fund and Scotia International Equity Index Fund. Instead of using index-tracking futures contracts, the change would allow the funds to track their respective indexes through direct investments — the reference index of the Scotia International Equity Index Fund will likely change to the Solactive GBS Developed Markets ex North America Large & Mid Cap CAD Index.

Also, if approved, the fixed administration fee of the funds would be reduced to 0.22% from 0.23%, and to 0.24% from 0.32%, respectively.

The changes would streamline Scotia’s lineup and deliver cost savings to clients, Scotia said in its release, adding they would be effective on or about Nov. 8.

In addition, two Scotia T-Bill Funds will be terminated, effective on or about Dec. 3. 

Maddie Johnson

Maddie is a freelance writer and editor who has been reporting for Advisor.ca since 2019.