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CI Global Asset Management Announces Significant Fee Reductions on Money Market Fund Lineup

T.CIX | July 4, 2023

Firm plans to launch two money market ETFs later this month

CI Global Asset Management(“CI GAM”) today announced a series of changes designed to modernize its money market fund lineup, including significant reductions in management fees, fund name changes and two new money market ETFs.

“The increase in short-term interest rates over the past 16 months has generated strong investor interest in money market funds, as higher yields have made them much more effective as a source of income, in addition to their traditional role in preserving capital,” said Darie Urbanky, President and Chief Operating Officer of CI GAM and its parent company, CI Financial Corp.

“The significant management fee reductions we are announcing today will boost yields for CI GAM clients and ensure our funds remain competitive and relevant in today’s market environment. And by introducing two money market ETFs, we are creating additional choices for investors who prefer the ETF platform.

“These changes both simplify and strengthen our product lineup and are part of CI GAM’s ongoing strategy of modernizing its asset management business.”

Management fee reductions

Effective today, the management fees charged to CI Money Market Class, CI Money Market Fund, CI US Money Market Fund, CI Short-Term Corporate Class and CI Short-Term US$ Corporate Class (the “Funds”) have been reduced to 0.14% for Series F and Series P and to 0.39% for Series A. Previously, the management fees charged to the Funds ranged from 0.45% to 0.70% for Series F, from 0.25% to 0.75% for Series P and were 0.70% for Series A. CI GAM does not charge administration fees to the Funds.

The fee reductions will also enable CI GAM to simplify its lineup by discontinuing other series of the Funds with different pricing structures. Effective on or about July 28, 2023, Series E, EF, O, PP, X, Y and Z of the Funds, as applicable, will be redesignated Series A, F and P, as appropriate – ensuring all clients benefit from the new lower fee level. No client will pay a higher fee after the changes. The redesignations are not a taxable event for investors and no action is required by clients as a result of the changes.

Name changes

Effective on or about July 21, 2023, CI Short-Term Corporate Class will be renamed CI Money Market Corporate Class and CI Short-Term US$ Corporate Class will be renamed CI U.S. Money Market Corporate Class. The new names better reflect the mandates of the funds to invest primarily in money market instruments. Additionally, CI US Money Market Fund is being renamed CI U.S. Money Market Fund.

New money market ETFs

CI GAM has filed and obtained a receipt for a preliminary prospectus for CI Money Market ETF and CI U.S. Money Market ETF (the “ETFs”). CI GAM expects the ETFs to begin trading on the Toronto Stock Exchange (“TSX”) on or about July 25, 2023 under the ticker symbols CMNY and UMNY.U, respectively.

The investment objective of the ETFs is to seek to earn income at the highest rate of return that is consistent with preserving capital and maintaining liquidity. CMNY will invest primarily in money market instruments that mature in less than 365 days, while UMNY.U will invest primarily in money market instruments denominated in U.S. dollars that mature in less than 365 days. The management fee of the ETFs is 0.14%.

About CI Global Asset Management

CI Global Asset Management (“CI GAM”) is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX), an integrated global asset and wealth management company with approximately $400.9 billion in assets as at May 31, 2023.

Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer.

This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase mutual funds managed by CI Global Asset Management and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor.

The CI Exchange-Traded Funds are managed by CI Global Asset Management, a wholly owned subsidiary of CI Financial Corp. (TSX: CIX). CI Global Asset Management is a registered business name of CI Investments Inc.

A preliminary prospectus containing important information relating to the securities of the ETFs has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from CI Global Asset Management by calling 1-800-792-9355, by email at service@ci.com or at www.ci.com. There will not be any sale or acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.