NEI Investments is to terminate two funds, NEI Income Corporate Class and NEI Northwest Specialty Global High Yield Bond Corporate Class, on or about 10 December 2014.
The funds have been closed to new purchases since 12 April 2013 as a result of the federal budget in March 2013 which eliminated the tax-related benefits associated with forward sale transactions.
These funds were designed to use forward contracts as part of their investment strategies in order to convert ordinary income into tax-efficient capital gains.
In accordance with securities legislation, existing investors of the funds will receive a notice setting out their option to switch their investments to another NEI mutual fund or redeem their investments on or prior to the termination date.
All investments not redeemed prior to the funds' closure will be automatically redeemed at fair market value on the termination date.