MD Emerging Markets Unitholders Approve a Unit Exchange Proposal

OTTAWA, ON, Dec. 15 /CNW/ - MD Funds Management Inc. announced today that the unitholders of its MD Emerging Markets Fund (MDEMF) have voted in favour of a proposal to combine MDEMF with Templeton Emerging Markets Fund (TEMF).

According to the proposal which was approved by 97.5% of units represented at a special meeting held today in Toronto, the net assets of MDEMF will be sold to TEMF in exchange for mutual fund units of TEMF. MDEMF will then distribute the units of TEMF to MDEMF unitholders in accordance with their beneficial interest in MDEMF following which MDEMF will be wound-up. The proposed unit exchange and wind-up of MDEMF, subject to satisfaction of closing conditions and regulatory approvals, is intended to be completed effective December 31, 1998.

MD Funds Management President and CEO Robert Hewett said he was pleased that MDEMF unitholders supported this initiative. ``The unit exchange proposal will bring them into the larger and more diversified TEMF in order to benefit from the stronger performance potential of a pre-eminent emerging markets fund.'' Both funds are already managed by the same investment team headed by Dr. Mark Mobius and they share the same investment objective and management style.

MD Funds Management Inc. is a subsidiary of the Canadian Medical Association and is Canada's 12th largest mutual fund company. It provides financial services and investment products exclusively to CMA members and their families.

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For further information: F. Robert Hewett, President and Chief Executive Officer, MD Funds Management Inc., (613) 731-4552, 1-800-663-7336

News release courtesy Canada NewsWire.

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