Investors Group announces fund mergers

WINNIPEG, April 25, 2012 /PRNewswire/ - Investors Group has announced two proposed fund mergers.

Investors Group intends to merge its IG FI International Equity Fund and Class into the corresponding IG Templeton International Equity Fund and Class, respectively, pending regulatory and required securityholder approvals.  This is expected to provide investors in the merging funds with the benefit of a larger asset base for more effective portfolio management, which in turn will provide the potential for more stable and improved performance.   These mergers will also result in a reduction of the annual management fee on the assets of the Merging Fund and Class.

These mergers are expected to take effect on or about the close of business on June 22, 2012, subject to the required approvals.

Both mergers have been reviewed by the IG Funds Independent Review Committee which has determined that the mergers achieve a fair and reasonable result for the funds.

Securityholders of record (as of May 4, 2012) holding units of IG FI International Equity Fund and shares of IG FI International Equity Class, as well as those holding shares of IG Templeton International Equity Class, will receive a Fund Facts, Notice of Meeting, Proxy and a Management Information Circular detailing the changes and will be asked to approve the mergers involving their mutual funds at meetings scheduled in Winnipeg for June 18, 2012.

Persons who become registered securityholders of any of these funds after the Record Date may request to receive the meeting materials and vote at the Meeting of their fund by contacting the Manager at least 10 days prior to the Meeting.  The costs associated with these mergers will be borne by Investors Group.

Securityholder approval for IG FI International Equity Fund is being sought because its merger will be effected on a taxable basis, whereas securityholder approval for the IG FI International Equity Class is sought because the fund into which it is proposed to merge does not have a substantially similar fundamental investment strategy.  The meeting for IG Templeton International Equity Class is being convened in accordance with corporate law requirements.

Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of approximately 4,500 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with $124 billion, in total assets under management as of March 31, 2012.

Prospectus amendments and revised Fund Facts documents for each retail series of the funds for which meetings are being convened above are expected to be filed shortly with the Canadian securities commissions or similar authorities.  A copy of the prospectus amendments will be sent to registered securityholders who have requested to receive them after the relevant securities commissions or similar authorities issue receipts for them.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual funds investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The Funds are distributed across Canada by Investors Group Financial Services Inc. (in Quebec, a financial services firm.).

IG FI International Equity Class and IG Templeton International Equity Class are separate classes of securities issued by Investors Group Corporate Class Inc™.

™ Trademarks are owned by IGM Financial Inc. and are used with permission.

SOURCE Investors Group Inc.