Caldwell Investment Management Ltd. Announces Proposal to Change the Investment Objective of the Caldwell Balanced Fund (the “Fund”)


TORONTO, Oct. 13, 2020 (GLOBE NEWSWIRE) — Caldwell Investment Management Ltd. (the “Manager”), the manager of the Fund, is pleased to announce that the board of directors of the Manager has approved a proposal to change the investment objective of the Fund (the “Proposal”), subject to unitholder approval. If approved, the change is expected to provide the potential for improved long‐term performance.

The proposed new investment objective of the Fund is:

The fundamental investment objective of the Fund is to generate long-term capital appreciation by investing primarily in the equity securities of Canadian and international companies.

The unitholder vote on the proposed investment objective change will take place on or about November 16, 2020 at 10am (EST) by conference call hosted by the Manager. If approved by unitholders of the Fund, the investment objective change will take effect immediately. In connection with the proposed investment objective change, the Fund will also undergo a name change to Caldwell North American Fund.

Corresponding changes will be made to the investment strategies to reflect the new investment objective. As part of the investment strategy changes, the Fund intends to commence the use of repurchase transactions and reverse repurchase transactions. As a result of the investment objective change, the fund type will also change from a balanced fund to a North American equity fund. The Fund’s risk rating is not expected to change as a result of the investment objective change.

A management information circular (the “Circular”) describing the Proposal is being prepared and will be mailed to unitholders of record as of October 16, 2020. The Circular will be available on SEDAR at and posted on the Manager’s website at All costs and expenses associated with the unitholder vote will be borne by the Manager.

The Manager believes that the Proposal should provide unitholders with several benefits. Specifically:

  • In the Manager’s view, the fixed income asset class historically was capable in generating favourable returns allowing portfolio managers to add value by shifting between asset classes. However, as the Manager expects yields to stay below 1% for the foreseeable future, the Manager believes the opportunity for the fixed income class to be strongly accretive to overall returns no longer exists. Therefore, in the Manager’s view, investors wishing to incorporate the fixed income asset class into the portfolio will find the direct purchase of such assets more economical.
  • The Manager believes that a focused equity strategy provides increased opportunity for improved long-term performance through broadened investment diversification opportunities and the ability to draw more assets to the strategy, thus increasing economies of scale for the Fund.

About Caldwell Investment Management Ltd.

Caldwell Investment Management Ltd. is a Toronto-based portfolio manager and investment fund manager that offers mutual fund and pooled fund products to Canadian investors.

For additional information, please contact:
Richard Faiella, Senior Vice President, at 1-800-256-2441