CI Global Asset Management(“CI GAM”) today announced plans to merge six mutual funds and two ETFs into other mandates, as well as a risk rating change for CI Bio-Revolution Index ETF.
“At CI GAM, we are continually working to enhance our product offerings and provide Canadian investors with a diverse and innovative selection of effective investment solutions,” said Jennifer Sinopoli, Executive Vice-President and Head of Distribution for CI GAM. “The changes announced today are focused on streamlining our lineup and improving the client experience for advisors and investors.”
Mergers
CI GAM is proposing a series of mutual fund and ETF mergers (the “Mergers”) to reduce duplication and streamline its product offering. CI GAM believes investors will benefit from continuing funds with larger net asset values, allowing for increased portfolio diversification opportunities and a larger profile within the marketplace. The costs and expenses associated with the Mergers are being borne by CI GAM, not the funds.
In all cases, the combined management and administration fees with respect to each series of the continuing funds are the same as or lower than the combined management and administration fees that are currently payable by the corresponding series of the terminating funds. None of the Mergers will result in a change of portfolio management teams.
The Independent Review Committee for the terminating funds has reviewed the proposed Mergers with respect to potential conflict of interest matters and provided a positive recommendation or its approval, as applicable, having determined that the Mergers, if implemented, achieve a fair and reasonable result for each of the terminating funds.
Mutual fund mergers
CI GAM is proposing the following mutual fund mergers:
The mergers of CI Canadian Core Plus Bond Fund, CI Resource Opportunities Class and CI Short-Term Bond Fund are to be effected on a taxable basis, resulting in a taxable disposition if the funds are held in a non-registered account. These mergers also require the approval of securityholders of the terminating funds. CI GAM will hold securityholder meetings to vote on the proposals on or about March 19, 2025 and will mail meeting materials to securityholders in mid-February 2025. If approved, the mergers will take place on or about April 4, 2025.
The mergers of CI Global Equity & Income Fund, CI Mosaic ESG Balanced Growth ETF Portfolio and CI Mosaic ESG Balanced Income ETF Portfolio are being effected on a non-taxable basis and do not require securityholder approval. Securityholders of the terminating funds will be notified in early February of the mergers, which are also scheduled to occur on or about April 4, 2025.
ETF mergers
CI GAM is proposing the following ETF mergers. The ETFs trade on the Toronto Stock Exchange (the “TSX”), aside from CI Global Healthcare Leaders Index ETF, which trades on Cboe Canada Inc.
These mergers are to be effected on a taxable basis, resulting in a taxable disposition if the ETFs are held in a non-registered account. These mergers also require the approval of securityholders of the terminating ETFs. CI GAM will hold securityholder meetings to vote on the proposals on or about March 19, 2025 and will mail meeting materials to securityholders in mid-February 2025. If approved, the mergers will take place on or about April 4, 2025.
Risk rating change
The risk rating of CI Bio-Revolution Index ETF (TSX: CDNA) is being changed to “High” from “Medium-to-High,” effective immediately. The risk rating change is based on the risk classification methodology mandated by the Canadian Securities Administrators to determine the risk level of mutual funds, including ETFs. CI GAM reviews the risk rating for each of the funds it manages at least on an annual basis, as well as when a fund undergoes a material change. This change is the result of CI GAM’s ongoing internal reviews and is not related to the proposed merger nor is it the result of any changes to the investment objective, strategies or management of the ETF.
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 $518.1 billion in total assets as at September 30, 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.
Solactive AG ("Solactive") is the licensor of the Solactive Global Genomics Immunology and Medical Revolution CAD Hedged Index NTR and the Solactive Developed Markets Healthcare 150 CAD Index (CA NTR). The financial instruments that are based on the Indexes are not sponsored, endorsed, promoted or sold by Solactive in any way and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Indexes; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Indexes. Solactive reserves the right to change the methods of calculation or publication with respect to the Indexes. Solactive shall not be liable for any damages suffered or incurred as a result of the use (or inability to use) of the Indexes.
All rights in the FTSE 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.
CI Mosaic ETF Portfolios are managed and advised by CI GAM Multi-Asset, a division of CI Global Asset Management.
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.
©CI Investments Inc. 2024. All rights reserved.
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