Desjardins Investments Makes Changes to Its Mutual Fund Lineup

Montreal, October 28, 2024 – Desjardins Investments Inc. ("DI"), as manager of the Desjardins Funds, announces changes to its mutual fund lineup. The changes, described in detail below, include the replacement of the portfolio sub-manager, and amendment to the investment strategies of the Desjardins Sustainable International Equity Fund (formerly known as Desjardins SocieTerra International Equity Fund). In addition, DI will modify the target distribution rate for T5-, R5- and S5-Class Units of Melodia Moderate Income Portfolio and the target distribution rate for T6-, R6- and S6-Class Units of Melodia Diversified Income Portfolio.

DI regularly reviews its mutual fund's offer to ensure they continue to meet the evolving investment needs of financial advisors and investors.

DI announces the replacement the portfolio sub-manager, Addenda Capital Inc. (“Addenda“), by Ninety One North America, Inc. (“Ninety One”), who will be responsible for the management of the portfolio assets of Desjardins Sustainable International Equity Fund.

DI anticipates that the replacement of Addenda by Ninety One will become effective on or around December 3^rd, 2024.

In addition, DI approved changes to the investment strategies of the Fund to better reflect the investment philosophy of Ninety One as the Sub-Portfolio Manager of the Fund. However, both the fundamental investment objective and the risk rating of the Fund remain unchanged.

The Fund’s investment strategy will be modified to better reflect the new mandate. The main features of the strategy are as follows:

• A systematic screening process combined with fundamental research to seek to identify companies that, according to the sub-manager, represent long-term investment opportunities considering the company’s quality, growth and valuation;
• A proprietary research framework that includes the assessment of material ESG (environmental, social and governance) issues and the assessment of the climate strategy to select companies that have the prerequisites for delivering long-term sustainable value;
• The sub-manager seeks to maintain a portfolio with a lower level of risk than the benchmark index.

DI announces an increase in the target distribution rate for T5-, R5- and S5-Class Units of the Melodia Moderate Income Portfolio to 6% and an increase in the target distribution rate for T6-, R6- and S6-Class Units of the Melodia Diversified Income Portfolio to 7%. These Class Units entitle their holders to current monthly cash distributions of non-taxable capital distributions and/or net income, and any income or capital gain not previously distributed is also distributed in December. The increase in the target distribution rate will become effective on January 20^th, 2025. The name of the units concerned will be changed on that date to reflect the new target distribution rate.

The above-mentioned changes will be made subject to approval from the regulatory authorities. DI reserves the right to suspend or defer the implementation of said changes to a later date.

For further information (media inquiries only):
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