NEI Investments, which is co-owned by Desjardins Group, Canada's largest credit union, has received approval for a number of changes to its mutual fund lineup.

Security holders approved the merger of the NEI Ethical Growth Fund into the NEI Ethical Canadian Dividend Fund.

Following security holder approval on or around May 24, the NEI Northwest Specialty Growth Fund Inc. will be merged into a newly created NEI Corporate Class fund, which will have as its investment objectives to target a sustainable above market level of yield using a covered call options strategy, the Toronto-based NEI Investments said.

Security holders also approved changes to the fundamental investment objectives of the three continuing Canadian funds to relax the current Canadian content restrictions, according to NEI Investments.

In July 2013, the continuing funds will be renamed the NEI Ethical Select Balanced Portfolio, NEI Ethical Select Growth Portfolio, NEI Select Balanced Corporate Class and NEI Select Growth Corporate Class to more accurately reflect the portfolio objectives.

“All of these investment changes are great news stories for NEI's investors,” said Daniel Solomon, chief investment officer at NEI Investments. “In the case of the NEI Ethical Growth Fund merger, it allows NEI to streamline its Canadian equity solution within the Ethical lineup.”

Solomon said this particular merger creates the largest socially responsible investment fund in Canada and moves security holders into a Morningstar five-star fund that is performing near the top of the entire Canadian equity category as well as the SRI category.

Because of the various changes, the NEI Ethical Growth Fund and the NEI Northwest Specialty Growth Fund will be closed to new purchases on or around May 17, according to NEI Investments.

With approximately $5 billion in assets under management, NEI Investments is co-owned by the Provincial Credit Union Centrals and the Desjardins Group with each having a 50% ownership stake in the firm.

Based in Levis, Quebec, Desjardins Group serves 5.2 million members throughout Canada and has $200 billion in assets.

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