Desjardins Investments Overhauls Mutual Fund Lineup with Mergers and Terminations
Event summary
- Desjardins Investments will merge the Dividend Growth Fund into the Canadian Equity Income Fund by November 13, 2026.
- Two funds (Target 2026 Investment Grade Bond and Sustainable Global Balanced) will terminate on November 27, 2026.
- Seven unit classes across multiple funds will also terminate by November 27, 2026.
- The Enhanced Bond Fund's high-yield bond investment threshold will drop from 30% to 5%.
The big picture
Desjardins Investments is streamlining its mutual fund offerings to better align with client needs, reflecting broader industry trends toward portfolio simplification. With $56.7 billion in AUM as of March 2026, these changes could signal a strategic pivot toward more focused investment products. The reduction in high-yield bond exposure for the Enhanced Bond Fund suggests a potential shift toward lower-risk strategies.
What we're watching
- Portfolio Consolidation
- How the merger and terminations will impact Desjardins' AUM concentration and investor retention.
- Regulatory Approvals
- Whether all proposed changes receive timely approval from regulatory authorities.
- Investor Reaction
- The pace at which unitholders redeem or switch units before termination dates.
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