CI Global Asset Management Completes Eight Mutual Fund and ETF Mergers

Two CI bond ETFs now have management fees of just 0.07%

CI Global Asset Management (“CI GAM”) announced today that it has completed the mergers of eight mutual funds and exchange-traded funds into other mandates. CI GAM also announced the exchange ratios and the final reinvested distributions related to these mergers.

Additionally, CI GAM confirmed it has implemented changes to CI Yield Enhanced Canada Aggregate Bond Index ETF and CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF, including changes to their investment objectives, names, and underlying indexes and reductions in their management fees to 0.07%.

The changes, which were implemented after the close of business on April 5, 2024, were first announced in December 2023 and approved by securityholders in March 2024. They are part of CI GAM’s strategy of modernizing its asset management business by streamlining and enhancing its product lineup.

Completed mergers

The completed mergers are listed below. CI DoubleLine Core Plus Fixed Income US$ Fund, CI DoubleLine Income US$ Fund and CI DoubleLine Total Return Bond US$ Fund (as defined below) are dual-class mandates, available in both Mutual Fund and ETF Series.

Mutual fund mergers

ETF mergers

Securityholders of each Terminating Fund have received the equivalent dollar value of units in the corresponding Mutual Fund Series of the Continuing Fund as at April 5, 2024.

Securityholders of each Terminating ETF or ETF Series of each Terminating Fund have received units of the corresponding Continuing ETF or ETF Series of the Continuing Fund based on the stated exchange ratio (the “Exchange Ratio”), as set out in the table below, for each security of the Terminating ETF or ETF Series of the Terminating Funds held as at April 5, 2024.

No fractional units of the Continuing ETF or ETF Series of the Continuing Fund, or cash in lieu thereof, were issued or paid pursuant to the mergers, except for Mutual Fund units of the Continuing Fund, where fractional units, or cash in lieu thereof, if applicable, were issued or paid pursuant to the mergers. The total number of units of the Continuing ETF or ETF Series of the Continuing Fund issued to each Terminating ETF or ETF Series of each Terminating Fund is also set out in the table below.

The Terminating Funds and ETFs have now been terminated and securities of the Terminating ETFs and ETF Series of Terminating Funds were delisted from the Toronto Stock Exchange at the close of business on April 5, 2024.

The mergers of CI DoubleLine Core Plus Fixed Income US$ Fund, CI DoubleLine Income US$ Fund and CI MSCI Canada Quality Index Class ETF were effected on a taxable basis, while the other mergers were effected on a tax-deferred basis. The costs and expenses associated with the mergers are being borne by CI GAM, not the Terminating Funds and ETFs.

Exchange ratios

Mutual Fund mergers

ETF mergers

Related distributions

The mergers resulted in the ETF series of certain mutual funds and ETFs paying distributions, as detailed below. The ETF and ETF Series distributions were not paid in cash but have been reinvested and the resulting securities immediately consolidated so that the number of securities held by each investor has not changed. The distributions were reinvested on April 5, 2024 to securityholders of record on April 4, 2024. If a series is not listed here, it did not pay a distribution as a result of the mergers.

Other ETF changes

CI GAM has revised the investment objectives of CI Yield Enhanced Canada Aggregate Bond Index ETF and CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF, resulting in changes to the ETFs’ underlying indexes and names, as described below. Their tickers have not changed. CI GAM has also reduced the management fees of the two ETFs by more than half, to 0.07% from 0.18%. The new management fee is among the lowest in the Canadian market for Canadian bond ETFs.

• CI Yield Enhanced Canada Aggregate Bond Index ETF (TSX: CAGG) has been renamed CI Canadian Aggregate Bond Index ETF and the new underlying index is the FTSE Canada Universe Bond Index™.
  
  The new investment objective seeks to track, to the extent reasonably possible, the price and yield performance of a Canadian investment grade bond index, before fees and expenses. Currently, the ETF seeks to track the FTSE Canada Universe Bond Index™ or any successor thereto.
  
  
• CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF (TSX: CAGS) has been renamed CI Canadian Short-Term Aggregate Bond Index ETF and the new underlying index is the FTSE Canada Short Term Overall Bond Index™.
  
  The new investment objective seeks to track, to the extent reasonably possible, the price and yield performance of a Canadian short-term investment grade bond index, before fees and expenses. Currently, the ETF seeks to track the FTSE Canada Short Term Overall Bond Index™ or any successor thereto.

About CI Global Asset Management

CI Global Asset Management 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 Global Asset Management is a subsidiary of CI Financial Corp. (TSX: CIX), an integrated global asset and wealth management company with approximately $465.9 billion in assets as at February 29, 2024.

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.

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.

Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what CI Global Asset Management believes to be reasonable assumptions, CI Global Asset Management cannot assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.

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.

Morningstar® is a registered trademark of Morningstar, Inc. (“Morningstar”). Morningstar® US Target Momentum Index™ and Morningstar® US Target Value Index™ (the “Indexes”) are service marks of Morningstar and have been licensed for use for certain purposes by CI Global Asset Management (“CI GAM”). The securities of CI Morningstar US Momentum Index ETF and CI Morningstar US Value Index ETF (the “ETFs”) are not in any way sponsored, endorsed, sold or promoted by Morningstar or any of its affiliates (collectively, ‘‘Morningstar’’), and Morningstar makes no representation or warranty, express or implied regarding the advisability of investing in securities generally or in the ETFs particularly or the ability of the Indexes to track general market performance.

Alerian, VettaFi, and VettaFi US Enhanced Momentum Index, VettaFi US Enhanced Momentum Index (CAD Hedged), VettaFi US Enhanced Value Index and VettaFi US Enhanced Value Index (CAD Hedged) (the “Indexes”) are service marks of VettaFi LLC (“VettaFi”) and have been licensed for use by CI Global Asset Management. CI U.S. Enhanced Value Index ETF and CI U.S. Enhanced Momentum Index ETF (the “ETFs”) are not issued, sponsored, endorsed, sold or promoted by VettaFi or its affiliates. VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the ETFs or any member of the public regarding the advisability of investing in securities generally or in the ETFs particularly or the ability of the Indexes to track general market performance. VettaFi’s only relationship to the ETFs is the licensing of the service marks and the Indexes, which is determined, composed and calculated by VettaFi without regard to CI Global Asset Management or the ETFs. VettaFi is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the ETFs issued by CI Global Asset Management. VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of the ETFs.

MSCI is a trademark of MSCI Inc. The MSCI Canada Quality Index has been licensed for use for certain purposes by CI Global Asset Management (“CI GAM”) in connection with the CI MSCI Canada Quality Index Class ETF (the “ETF”). The ETF and the securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. or any of its affiliates (collectively, “MSCI”) and MSCI bears no liability with respect to any such fund or securities or any index on which such fund or securities are based. The ETF’s prospectus contains a more detailed description of the limited relationship MSCI has with CI GAM and any related funds.

Certain trademarks of Canadian Imperial Bank of Commerce and/or certain of its affiliates (collectively "CIBC") have been licensed by CI Global Asset Management for use in connection with CI U.S. TrendLeaders Index ETF (the “ETF”). The securities of the ETF are not sponsored, promoted, sold or supported in any other manner by CIBC or by the index calculation agent, Solactive A.G. ("Solactive"), nor do CIBC or Solactive offer any express or implicit guarantee or assurance either with regard to the results of using the indexes on which the ETF is based, or the index prices at any time or in any other respect. The ETF’s prospectus contains a more detailed description of the limited relationship CIBC and Solactive have with CI GAM and the ETF.

The CI Yield Enhanced Canada Aggregate Bond Index ETF and CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF (the “Funds”) have been developed solely by CI Global Asset Management (“CI GAM”). The Funds are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies.

All rights in the FTSE Canada Universe Bond Index and FTSE Canada Short Term Overall Bond Index (the “Indexes”) vest in the relevant LSE Group company which owns the Indexes. FTSE®, FTSE Russell®, FT-SE®, FOOTSIE®, RUSSELL® and The Yield Book® are trademarks of the relevant LSE Group company and are used by any other LSE Group company under license.

The Indexes are calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Indexes or (b) investment in or operation of the Funds. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Funds or the suitability of the Indexes for the purpose to which it is being put by CI GAM.

“BLOOMBERG®” and the Bloomberg Canadian Aggregate Enhanced Yield Index and the Bloomberg Canadian Short Aggregate Enhanced Yield Index (the “Indexes”) are trademarks and service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited, the administrator of the Bloomberg Indexes (collectively, “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Indexes. Bloomberg is not affiliated with CI Global Asset Management (“CI GAM”), and neither approves, endorses, reviews, or recommends CI Yield Enhanced Canada Aggregate Bond Index ETF or the CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF (the “Products”). Bloomberg does not guarantee the timeliness, accuracy, or completeness of any data or information relating to the Products, and neither shall be liable in any way to CI GAM, investors in the Products or other third parties in respect of the use or accuracy of the Indexes or any data included therein.

CI Global Asset Management is licensed by WisdomTree, Inc. to use certain WisdomTree indexes (the “WisdomTree Indexes”) and WisdomTree marks. “WisdomTree®” and “Variably Hedged®” are registered trademarks of WisdomTree, Inc. and WisdomTree, Inc. has patent applications pending on the methodology and operation of its indexes. The ETFs referring to such indexes (the “WT Licensee Products”) are not sponsored, endorsed, sold, or promoted by WisdomTree, Inc., or its affiliates ("WisdomTree"). WisdomTree makes no representation or warranty, express or implied, and shall have no liability regarding the advisability, legality (including the accuracy or adequacy of descriptions and disclosures relating to the WT Licensee Products) or suitability of investing in or purchasing securities or other financial instruments or products generally, or of the WT Licensee Products in particular (including, without limitation, the failure of the WT Licensee Products to achieve their investment objectives) or regarding use of such indexes or any data included therein.

DoubleLine Capital LP is a portfolio sub-advisor to certain funds offered and managed by CI Global Asset Management.

©CI Investments Inc. 2024. All rights reserved.

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