It is hoped that the merger will allow for more efficient risk management
As part of its efforts to streamline its offerings and retain tax efficiencies for its funds, CI Investments is gunning to merge 11 of its funds into the ones within its G5|20 Series.
The said series of funds is designed to enable investors to receive guaranteed cash flow in retirement. Aside from consolidating its offering, the merger enables the continuing fund to benefit from the larger asset bases. This allows for a more efficient risk management due to economies of scale.
Meanwhile, the proposed mergers will result in unitholders of each terminating fund to receive an aggregate amount per guaranteed distribution that is equal to or higher than their current entitlement.
The firm assured that there will be no changes to the guaranteed distributions payable to the unitholders of the continuing funds. More so, the firm stressed that the costs and expenses associated with the mergers will be borne by CI, not the funds.
After analysing the proposed mergers with respect to potential interest matters, the CI Investments Board of Governors has provided a positive recommendation for the said proposal.
For more of Wealth Professional's latest industry news, click here.
Related stories:
Investment group ramps up high net worth offering
Active fund managers turning away from ETFs
The said series of funds is designed to enable investors to receive guaranteed cash flow in retirement. Aside from consolidating its offering, the merger enables the continuing fund to benefit from the larger asset bases. This allows for a more efficient risk management due to economies of scale.
Meanwhile, the proposed mergers will result in unitholders of each terminating fund to receive an aggregate amount per guaranteed distribution that is equal to or higher than their current entitlement.
The firm assured that there will be no changes to the guaranteed distributions payable to the unitholders of the continuing funds. More so, the firm stressed that the costs and expenses associated with the mergers will be borne by CI, not the funds.
After analysing the proposed mergers with respect to potential interest matters, the CI Investments Board of Governors has provided a positive recommendation for the said proposal.
For more of Wealth Professional's latest industry news, click here.
Related stories:
Investment group ramps up high net worth offering
Active fund managers turning away from ETFs
