CI Global Asset Management completes key fund mergers and significantly lowers ETF fees, modernizing its offerings
CI Global Asset Management (CI GAM) has completed the mergers involving eight mutual funds and exchange-traded funds (ETFs) into other mandates, along with the finalization of exchange ratios and reinvested distributions connected to these mergers.
In addition to these mergers, CI GAM has made significant changes to two of its ETFs, specifically the CI Yield Enhanced Canada Aggregate Bond Index ETF and the CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF.
These changes encompass modifications to their investment objectives, names, and underlying indexes, as well as a substantial reduction in their management fees to 0.07 percent.
These adjustments were enacted after the business day concluded on April 5, following their announcement in December 2023 and subsequent approval by securityholders in March. This move is a strategic effort by CI GAM to modernize and improve its asset management offerings.
The mergers involved the combination of certain mutual funds and ETFs into other funds, with details provided on the specific funds that merged, including those that are dual-class mandates, offering both Mutual Fund and ETF Series.
These mergers resulted in the termination of the original funds and ETFs, with their securities being delisted from the Toronto Stock Exchange at the close of business on the same day.
The mergers of three specific funds—CI DoubleLine Core Plus Fixed Income US$ Fund, CI DoubleLine Income US$ Fund, and CI MSCI Canada Quality Index Class ETF—were carried out on a taxable basis, while the others were done so on a tax-deferred basis.
CI GAM bore the costs associated with these mergers, ensuring that the expenses did not impact the terminated funds and ETFs.
Furthermore, detailed exchange ratios were provided for the mergers, indicating the specific number of units of the continuing funds issued in exchange for the units of the terminating funds.
This information includes both mutual fund mergers and ETF mergers, highlighting the exchange ratio and the total number of continuing ETF units issued as part of the merger.
The reinvested distributions for certain mutual funds and ETFs, specifying the amount to be reinvested and consolidated for each, based on the holdings as of April 4, with the actual reinvestment occurring on April 5.
In addition to the mergers, CI GAM revised the investment objectives of two of its ETFs, leading to changes in their names and underlying indexes, along with a significant reduction in management fees.
The CI Yield Enhanced Canada Aggregate Bond Index ETF was renamed to CI Canadian Aggregate Bond Index ETF, with the FTSE Canada Universe Bond Index™ serving as the new underlying index.
Similarly, the CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF was renamed to CI Canadian Short-Term Aggregate Bond Index ETF, with its new underlying index being the FTSE Canada Short Term Overall Bond Index™.
