Goodman & Company, Investment Counsel Ltd, manager of Dynamic Funds has announced a series consolidation for Dynamic Power Hedge Fund whereby Series A units and Series F units of the fund will be reclassified into Series C units and Series FC units, respectively. The reclassification is expected to take place on March 25, 2011.
Each Terminating Series (A and F) has the same characteristics as its replacement Continuing Series (C and FC). Effective, March 21, 2011, both Continuing Series, which are currently capped, will be opened to new purchases, while both Terminating Series will be capped to new purchases and will no longer be offered. The reclassifications will be automatic and will have no tax consequences to unitholders.
In 2009, in response to a decline in net asset values experienced as a result of the global financial crisis, the manager added high water marks to the performance fees of certain Dynamic investment funds, including the fund, to protect investors from paying twice for the same performance. At the same time, duplicate series of units of the affected funds were created for administrative purposes to track the different high water marks that would apply to purchases prior to and after January 1, 2009.
The net asset values of the fund's units have since returned to and surpassed the year end levels they achieved in December 2007 before the markets began their decline. As a result, all four series of the Fund have overcome their high water marks, eliminating the need for the duplicate series.