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CI Investments announces fund mergers, portfolio management changes

Canada Newswire - Mon Apr 27, 2020

TORONTO , April 27, 2020 /CNW/ - CI Investments Inc. ("CI") today announced that it is merging three investment funds into other funds with identical mandates, continuing an initiative to streamline and modernize CI's product lineup. The mergers will result in continuing funds with a dual-class structure in which each fund offers both mutual fund and exchange-traded fund (ETF) series.

CI also announced that Harbour Advisors, a division of CI, has been appointed portfolio advisor to Canadian Equity Alpha Pool and Canadian Equity Alpha Corporate Class, effective on or about May 15, 2020 . Peter Hofstra , Harbour's Chief Investment Officer, will be Lead Portfolio Manager.

Fund mergers

The mergers, which will be effected at the close of business on or about July 17, 2020 , are as follows:

Terminating fund

Continuing fund

CI High Interest Savings Fund

CI First Asset High Interest Savings ETF (to be renamed
CI High Interest Savings Fund) (TSX:CSAV.TO)

CI First Asset Global Asset Allocation ETF (TSX:CGAA.TO)

CI Global Asset Allocation Private Pool

CI First Asset MSCI World ESG Impact ETF (TSX:CESG.TO)

CI MSCI World ESG Impact Fund

Following the mergers, securityholders of the terminating funds will receive the equivalent dollar amount in units of the appropriate series of the continuing fund – mutual fund or ETF. The investment objectives and the portfolio management team for each terminating fund are identical to those of the respective continuing fund and will not change due to the mergers. The ticker symbol of each ETF will carry over to the ETF series of the continuing funds.

There will be no changes to the fees and expenses payable and no taxable disposition for securityholders as a result of the mergers. The costs and expenses associated with the mergers are being borne by CI, not the funds.

The mergers and the introduction of a dual-class structure offer the following benefits: reducing duplication of funds, simplifying CI's lineup; creating larger funds with greater economies of scale and portfolio diversification opportunities; and increasing the consistency of fund performance between different fund structures with the same mandates.

Portfolio management changes

CI selected Harbour Advisors to manage the Canadian Equity Alpha mandate because of Mr. Hofstra's experience and track record at CI as lead manager of Canadian Equity Value Pool, Canadian Equity Value Corporate Class and CI North American Dividend Fund, and as Chief Investment Officer at another investment firm prior to joining CI. He has over 18 years of experience investing in North American equities.

Harbour follows a well-defined, consistent and repeatable investment process focused on identifying high-quality, resilient businesses while managing risk and protecting capital. Mr. Hofstra is supported by an experienced team of investment analysts.

"Peter's strong track record and Harbour's disciplined investment approach make the team an excellent fit for the Canadian equity alpha portfolios," said Roy Ratnavel , Executive Vice-President and Head of Distribution for CI.

The selection of Harbour was a result of a diligent internal and external search. Harbour is replacing QV Investors Inc. ("QV") on Canadian Equity Alpha Pool and Canadian Equity Alpha Corporate Class. After the change, QV will continue to manage several small-cap equity portfolios for CI.

The Independent Review Committee of the funds has reviewed both the proposed fund mergers and the portfolio management changes with respect to potential conflict of interest matters and provided its approval, having determined that they achieve a fair and reasonable result for each of the funds.

About CI Investments
CI Investments 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 is a subsidiary of CI Financial Corp. (TSX:CIX.TO), an independent company offering global asset management and wealth management advisory services with $156 billion in fee-earning assets as of March 31, 2020 .

This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase CI Funds or CI First Asset ETFs and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Commissions, management fees and expenses all may be associated with investments in mutual funds, including exchange-traded funds (ETFs). Please read the prospectus before investing. Mutual funds 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 the TSX or the NEO Exchange. If the units are purchased or sold on the TSX or the NEO Exchange, 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. The CI First Asset ETFs are managed by CI Investments Inc., a subsidiary of CI Financial Corp., which is listed on the Toronto Stock Exchange under the symbol "CIX". CI Investments, the CI Investments design and Harbour Advisors are registered trademarks of CI Investments Inc.  © CI Investments Inc. 2020. All rights reserved.  

SOURCE CI Investments Inc.

Cision View original content: http://www.newswire.ca/en/releases/archive/April2020/27/c6510.html