TORONTO, July 30, 2018 - CI Investments Inc. ("CI") today announced management fee reductions to 33 mutual funds, along with enhancements to CI Preferred Pricing™ that will allow more investors to benefit from the program's tiered fee structure.
The changes include:
- Management fee reductions ranging from five to 55 basis points (0.05-0.55%) on 33 CI mutual funds, effective August 1, 2018.
- A reduction in the minimum investment requirement to qualify for the CI Preferred Pricing program to $100,000 from $150,000, effective October 1, 2018. As a result, clients with eligible investments at CI of $100,000 or more will automatically receive fee reductions offered by the program.
- A reduction in the minimum investment requirement to $100,000 from $250,000 to qualify for Family Group pricing under CI Preferred Pricing, effective October 1, 2018. As a result, Family Groups with eligible investments of $100,000 or more will qualify for preferred pricing.
"These are significant fee changes that will benefit hundreds of thousands of our investors," said Roy Ratnavel, Executive Vice-President and Head of Sales for CI Investments. "Investors will be accessing our actively managed investment solutions and the expertise of our leading portfolio management teams at a lower cost. CI is committed to continually enhancing our product lineup and to providing Canadian investors with effective investments that will help them meet their financial goals."
Fund management fee reductions
CI is reducing management fees for Class A, F and P securities and certain CI Preferred Pricing tiers of selected funds, and for Series A, B and F securities of selected Sentry-branded funds. The reductions focus on fixed-income and global specialty equity mandates.
The funds with fee reductions are listed below. For a list of the changes affecting base management fees, please visit www.ci.com/pricing/.
CI Canadian Investment Corporate Class
CI Canadian Investment Fund
CI Global Health Sciences Corporate Class
Lawrence Park Strategic Income Fund
Marret High Yield Bond Fund
Marret Short Duration High Yield Fund
Select Income Managed Corporate Class
Sentry Energy Fund
Sentry Global Infrastructure Fund
Sentry Global REIT Class
Sentry Global REIT Fund
Sentry Precious Metals Class
Sentry Precious Metals Fund
Sentry Resource Opportunities Class
Signature Canadian Bond Corporate Class
Signature Canadian Bond Fund
Signature Corporate Bond Corporate Class
Signature Corporate Bond Fund
Signature Emerging Markets Corporate Class
Signature Emerging Markets Fund
Signature Global Bond Corporate Class
Signature Global Bond Fund
Signature Global Energy Corporate Class
Signature Global Resource Corporate Class
Signature Global Resource Fund
Signature Global Technology Corporate Class*
Signature Gold Corporate Class
Signature High Yield Bond Corporate Class
Signature High Yield Bond II Fund
Signature Preferred Share Pool
Signature Real Estate Pool
Signature Short-Term Bond Fund
Signature Tactical Bond Pool.
* Formerly Signature Global Science & Technology Corporate Class.
CI Preferred Pricing
CI's Preferred Pricing program is a tiered pricing model under which management and/or administration fees are automatically reduced as an investor's eligible Class A (ISC), Class F and Class P assets reach certain thresholds, with the first threshold being $100,000 (as of October 1, 2018). The discounts are applied back to dollar one and high watermark protection ensures that investors will not move to another fee tier due to negative performance.
With Family Group pricing, multiple eligible accounts of family members can be linked together for the purposes of achieving the aggregate asset levels to qualify for fee reductions under CI Preferred Pricing, even if the family members are at different addresses. Family Groups can be comprised of parents, children and/or siblings, grandparents, grandchildren, great-grandchildren, the spouses of each of these persons, and a member's company.
In addition, the entry point for family group pricing for the Sentry-branded funds will also be reduced to $100,000 from $250,000 as of October 1, 2018.
"CI Preferred Pricing offers clients transparency and simplicity as the fee reductions are applied automatically," Mr. Ratnavel said. "Furthermore, our innovative Family Group pricing feature allows advisors to work with clients to ensure their entire family is receiving the maximum fee reductions available to them."
It is expected that the fund management fee reductions and changes to CI Preferred Pricing will have an annualized revenue impact amounting to approximately one basis point on CI Investments' assets under management.
About CI Investments – Canada's Investment Company
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), an independent, Canadian-owned wealth management firm with $182.7 billion in assets as of June 30, 2018.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the CI simplified prospectuses for more details, including eligibility requirements for CI Preferred Pricing, and consult with your financial advisor before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ®CI Investments and the CI Investments design are registered trademarks of CI Investments Inc. CI Preferred Pricing™ is a trademark of CI Investments Inc. ™Signature Funds and Sentry are trademarks of CI Investments Inc.
SOURCE CI Financial Corp.
Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (www.sedar.com).