Desjardins Investments announces changes to certain Desjardins Funds

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MONTREAL, Dec. 4, 2019 /CNW/ – Desjardins Investments Inc. (“DI”), the manager of the Desjardins Funds, today announced changes to a number of its mutual funds. The changes, described in detail below, include fee reductions, distribution policy changes, portfolio Sub-Manager appointments, investment strategies changes and fund name changes.

Desjardins Global Balanced Strategic Income Fund

DI will reduce management fees by 5bps across all mentioned class units of this fund, effective January 2, 2020.

Class

Current

Management

Fee

New

Management

Fee

A / T6 / C / R6

1.85%

1.80%

F / S6

0.80%

0.75%

D

1.10%

1.05%

Regarding A-, C-, F- and D-Class Units, DI also reviewed the distribution policy from “Annual” to “Monthly” for these units in order to provide investors with a consistent and predictable income distribution. The fixed monthly payment will be determined and reset annually. The first monthly distribution will be made January 31, 2020.

The Desjardins Global Balanced Strategic Income Fund is sub-advised by Wellington Management, one of the largest independent investment management firms in the world. The fund aims to deliver consistent and regular income, while seeking long term capital appreciation by investing across a broad array of income-producing assets to provide diversifying sources of income.

Desjardins Global Corporate Bond Fund

DI will reduce management fees by 5bps across all mentioned class units of this fund, effective January 2, 2020.

Class

Current

Management

Fee

New

Management

Fee

A / C

1.25%

1.20%

F

0.65%

0.60%

D

0.85%

0.80%

Western Asset Management (“Western”) will become the fund’s new portfolio Sub-Manager effective January 14, 2020. With over $450B (USD) in assets under management, Western is a globally integrated fixed-income manager, sourcing ideas and investment solutions worldwide. With a focus on long-term fundamental value investing that employs a top-down and bottom-up approach, the firm has nine office around the globe and deep experience across the range fixed-income sectors. Founded in 1971, Western has been recognized for an approach emphasizing team management and intensive proprietary research, supported by robust risk management.

The investment strategy of the Desjardins Global Corporate Bond Fund will be amended to reflect the Western strategy. The Fund will employ an active, team-managed investment approach around a long-term, value-oriented investment philosophy. The strategy leverages Western’s best ideas and disciplined research program across all regions and subsectors of the global corporate bond markets to add value to unitholders portfolios while adhering to a disciplined risk control process.

“At Western, we are dedicated to active fixed-income. We believe that active, value-driven investing can add significant return and reduce portfolio volatility over a market cycle. We are very excited to partner with Desjardins for the opportunity to service Canadian investors seeking an active global fixed income strategy”, said Annabel Rudebeck, Portfolio Manager, Head of Non-US Credit at Western.

“Western is a highly respected fixed income manager in the world, and Desjardins is honoured and enthusiastic for this new partnership”, said Sébastien Vallée, General Manager, Investment Solutions Development and Management at Desjardins Investments. “These changes reflect DI’s commitment to offering competitively priced funds while providing access to world-class managers”.

Desjardins SocieTerra Environment Fund

Impax Asset Management (“Impax”) will become the fund’s new portfolio Sub-Manager effective March 9, 2020. Impax is well recognized worldwide for its expertise in understanding investment opportunities arising from the transition to a more sustainable economy.

The Desjardins SocieTerra Environment Fund is among the oldest existing ESG mutual fund in Canada launched in 1990. “We are honored to be chosen to manage this flagship fund”, said David Richardson Executive Director, Client Service & Business Development at Impax.

“With this new appointment, we are proud to extend our relationship with Impax who is also managing the Desjardins SocieTerra Cleantech Fund since 2016”, added Mr. Vallée.

The investment strategy of the Desjardins SocieTerra Environment Fund will be amended to reflect the Impax Global Opportunities strategy, an all cap global equity strategy, which invests in durable companies identified by the proprietary Impax Sustainability Lens.

Fund Name changes to the IBrix suite of funds

The following funds will change names effective January 20, 2020:

Current Fund Name

New Fund Name

Desjardins IBrix Global Bond Fund

Desjardins Global Bond Fund

Desjardins IBrix Low Volatility Global Equity Fund

Desjardins Low Volatility Global Equity Fund

Desjardins IBrix Low Volatility Emerging Markets Fund

Desjardins Low Volatility Emerging Markets Fund

About Desjardins Investments Inc.
Desjardins Investments Inc., manager of the Desjardins Funds, is one of Canada’s largest mutual fund manufacturers, with $ 32.1 billion in assets under management. DI offers a broad range of investment funds to Canadian investors and stands out in the industry, among others, through its world-renowned portfolio managers representing more than 20 asset management companies around the world. In addition, DI is one of the most committed actors in promoting and advancing responsible investment in Canada.

About Desjardins Group
Desjardins Group is the leading cooperative financial group in Canada and the fifth largest in the world, with assets of $312.7 billion. It has been rated one of Canada’s Top 100 Employers by Mediacorp. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, online platforms and subsidiaries across Canada. Ranked among the World’s Strongest Banks according to The Banker magazine, Desjardins has one of the highest capital ratios and credit ratings in the industry.

Desjardins Funds are not guaranteed, their value fluctuates frequently and their past performance is not indicative of their future returns. Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Please read the prospectus before investing. Desjardins Funds are offered by registered dealers.

SOURCE Desjardins Group

For further information: (media inquiries only) Jacques Bouchard, Public relations, Desjardins Group, 514 281-0844 or 1 866-866-7000, ext. 5557940, media@desjardins.com