Effective July 17, CLIML will introduce soft caps and reduce fees on select mutual fund series
Canada Life Investment Management Ltd. (CLIML) has announced significant changes to its mutual fund lineup, including the implementation of soft capping and fee reductions for specific funds, effective July 17.
Soft capping will affect certain series of the following funds, which will be closed to new investors from the specified date. However, existing investors will still be able to purchase, switch, and redeem securities in these funds:
- Canada Life Global Core Plus Bond Fund (Series A, QF, W, F, QFW, and N)
- Canada Life Unconstrained Fixed Income Fund (Series A, QF, W, F, QFW, and N)
- Canada Life Global Multi-Sector Fixed Income Fund (Series A, QF, W, F, QFW, and N)
Additionally, CLIML will reduce the management fees for certain series of the Canada Life Global Core Plus Bond Fund and the Canada Life Unconstrained Fixed Income Fund. The new fee structures are as follows:
For the Canada Life Global Core Plus Bond Fund:
- Series A: Reduced from 1.55 percent to 1.10 percent
- Series QF: Reduced from 1.05 percent to 0.60 percent
- Series W: Reduced from 1.35 percent to 1.05 percent
- Series F and QFW: Reduced from 0.85 percent to 0.55 percent
For the Canada Life Unconstrained Fixed Income Fund:
- Series A: Reduced from 1.40 percent to 1.10 percent
- Series W: Reduced from 1.20 percent to 0.95 percent
Furthermore, the management fee reduction for the A and QF series of the Canada Life Global Core Plus Bond Fund will see a further adjustment from 0.20 percent to 0.10 percent for investments exceeding $100,000.
These adjustments by CLIML are aimed at offering more favourable terms to existing investors while managing new inflows into these funds.
