Meritas Financial Inc. yesterday said it plans to protect investors in its mutual funds that hold troubled asset-backed commercial paper. The Cambridge, Ont.-based company intends to buy back all of the non-bank ABCP at 100 per cent of its purchase price plus accrued interest. It will buy just under $2-million in ABCP that face liquidity problems, and are in its money market and bond funds. "These measures are being undertaken despite having no legal or contractual obligation to do so," Meritas said. Its move follows on the heels of similar action by National Bank of Canada, Groupe Desjardins and Industrial Alliance Insurance and Financial Services Inc. to protect investors in their money market funds.
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