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Press release from CNW Group

CI Investments announces fund mergers and other changes to the CI and Castlerock lineups

Monday, May 28, 2012

CI Investments announces fund mergers and other changes to the CI and Castlerock lineups14:09 EDT Monday, May 28, 2012TSX Symbol: CIXTORONTO, May 28, 2012 /CNW/ - CI Investments Inc. ("CI") today announced plans to integrate the Castlerock Investments mutual funds into the CI family of funds, along with other changes designed to enhance the efficiency of its overall lineup.The changes include:Moving the administration of the Castlerock mutual funds from a third-party service provider to CI's back office, effective on or about July 26, 2012.Changing the names of 17 Castlerock and other funds, effective on or about July 26, 2012.Merging 11 Castlerock funds into CI funds with similar mandates.Merging another eight CI, Signature and Lakeview-branded funds into other CI funds.The mergers will be effective at the opening of business on September 10, 2012, pending the required securityholder and regulatory approvals."With the merger of 19 funds, we are significantly reducing the duplication between the two fund families and streamlining our overall product offering," said Derek J. Green, CI President.After the mergers, CI will no longer be using the Castlerock brand name. Castlerock Investments was the name given to the former Hartford Investments Canada Corp., which CI's parent company, CI Financial Corp., acquired in December 2010. Castlerock has been operated separately from CI, given that the Castlerock funds were on a separate administrative platform."This is the final stage in integrating the acquisition," said Mr. Green. "Investors in the funds that are to be merged will benefit from the economies of scale provided by a larger investment company. Castlerock investors will be able to switch into a wide selection of funds within CI's lineup, including the tax-efficient CI Corporate Class structure."In addition, Castlerock investors are benefiting from CI's lower operating costs, as CI funds have fixed administration fees that are lower than the Castlerock funds' variable operating expenses. For those Castlerock funds that are not being merged into other funds, the fixed administration fees will be implemented on December 31, 2012, as approved by the funds' unitholders in April 2011. CI is also reducing the management fees on those funds' Series B units to the same level as their Series A units, effective December 31, 2012.Fund MergersCI is proposing the following fund mergers:Terminating FundContinuing FundCastlerock Balanced Growth PortfolioPortfolio Series Balanced Growth FundCastlerock Balanced PortfolioPortfolio Series Conservative Balanced FundCastlerock Canadian Balanced FundSignature Canadian Balanced FundCastlerock Canadian Bond FundSignature Canadian Bond FundCastlerock Canadian Stock FundCambridge Canadian Equity Corporate ClassCastlerock Canadian Value FundCI Canadian Investment Corporate ClassCastlerock Canadian Money Market FundCI Money Market FundCastlerock Conservative PortfolioPortfolio Series Conservative FundCastlerock Global High Income FundSignature Corporate Bond FundCastlerock Growth PortfolioPortfolio Series Growth FundCastlerock Total Return FundSignature Income & Growth FundCI European Corporate ClassCI International Corporate ClassCI European FundCI International Corporate ClassCI International Balanced Corporate ClassSignature Global Income & Growth Corporate ClassCI International Balanced FundSignature Global Income & Growth FundCI Japanese Corporate ClassCI Pacific Corporate ClassCI Value Trust Corporate ClassCambridge American Equity Corporate ClassLakeview Disciplined Leadership U.S. Equity FundCambridge American Equity Corporate ClassSignature Mortgage FundSignature Short-Term Bond FundThe CI Investments Board of Governors, acting in its capacity as the independent review committee for the funds, has reviewed all of the proposed mergers with respect to conflict of interest issues and has determined that the mergers achieve a fair and reasonable result for the funds.In all cases, the corresponding terminating and continuing funds are managed by the same portfolio management teams and, in most cases, the funds have similar mandates. Furthermore, in all cases, investors will be placed in classes of the continuing funds with management fees that are the same or lower than those of the corresponding classes of the terminating funds.The following mergers do not require the approval of the funds' securityholders: Castlerock Balanced Growth Portfolio, Castlerock Balanced Portfolio, Castlerock Canadian Balanced Fund, Castlerock Canadian Money Market Fund, Castlerock Global High Income Fund, Castlerock Growth Portfolio, Castlerock Total Return Fund, CI International Balanced Fund, CI International Balanced Corporate Class and CI Value Trust Corporate Class. Investors in those funds will be notified in June of the mergers.Approval is required from securityholders of the remaining terminating funds, as well as four continuing funds: Cambridge American Equity Corporate Class, CI International Corporate Class, CI Pacific Corporate Class and Signature Global Income & Growth Corporate Class. Meetings of securityholders have been scheduled for August 31, 2012 and investors will be sent a notice of meeting, management information circular and proxy form in July or early August.The mergers will indirectly affect 22 segregated funds that invest in units or shares of the terminating funds. Following the mergers, the segregated funds will invest in units or shares of the respective continuing funds, and may have their names changed. The affected segregated funds are part of the Clarica MVP, Clarica Portfolio, SunWise, SunWise Elite including SunWise Elite Plus, SunWise Essential Series and CI Guaranteed Investment Funds programs. Investors in the affected segregated funds will be notified of the changes by July 10, 2012.Name changesThe names of the following mutual funds will be changed to reflect their appropriate fund families:Current Fund NameNew Fund NameCastlerock Canadian Dividend FundCI Canadian Dividend FundCastlerock Canadian Dividend Growth FundCI Canadian Dividend Growth FundCastlerock Canadian Growth Companies FundCambridge Canadian Growth Companies FundCastlerock Capital Appreciation FundCI U.S. Equity Plus FundCastlerock Enhanced Yield FundSignature Enhanced Yield FundCastlerock Global Balanced FundBlack Creek Global Balanced FundCastlerock Global Leaders FundBlack Creek Global Leaders FundCastlerock International Equity FundBlack Creek International Equity FundCastlerock Pure Canadian Equity FundCambridge Pure Canadian Equity FundCastlerock U.S. Dividend Growth FundCI U.S. Dividend Growth FundCI Emerging Markets Corporate ClassSignature Emerging Markets Corporate ClassCI Emerging Markets FundSignature Emerging Markets FundCI Global Bond Corporate ClassSignature Global Bond Corporate ClassCI Global Bond FundSignature Global Bond FundCI Global Science & Technology Corporate ClassSignature Global Science & Technology Corporate ClassCI International Corporate ClassSignature International Corporate ClassCI International FundSignature International FundCI is one of Canada's largest investment management companies. It offers a broad range of investment products and services, including an industry-leading selection of investment funds, and is on the Web at www.ci.com. CI is a subsidiary of CI Financial Corp. (TSX: CIX), an independent, Canadian-owned wealth management firm with approximately $96 billion in assets as of April 30, 2012.For further information: Murray Oxby Director, Communications CI Investments (416) 681-3254