Changes include management fee reductions on
core fixed-income mandates
CI Global Asset Management (“CI GAM”) announces enhancements to
its mutual fund lineup, including management fee reductions on
several fixed-income funds and changes to the investment strategies
of a key Canadian balanced mandate.
The changes, which are effective today, are:
- Management fee reductions to CI Corporate Bond Fund, CI
Corporate Bond Class, CI Corporate Bond Corporate Class, CI High
Yield Bond Fund and CI High Yield Bond Corporate Class.
- Revisions to the investment strategies of CI Canadian Balanced
Fund and CI Canadian Balanced Corporate Class to allow for up to
10% of their portfolios to be invested in private, non-traditional
investments, with the goal of further diversifying their portfolios
and providing the potential for enhanced risk-adjusted
returns.
“These moves reflect the ongoing modernization of our product
lineup, ensuring that CI GAM continues to provide a broad selection
of effective solutions that meet the needs of Canadian investors in
a challenging environment,” said Jennifer Sinopoli, Executive
Vice-President and Head of Distribution for CI GAM.
“In addition to building out our mutual fund and ETF lineup with
relevant new products, including private markets and other
alternative investments, we continue to enhance our existing
product lineup. Pricing changes and expanding our presence in
alternative investments are just two examples of these
improvements.”
Management fee reductions
The base management fees for CI Corporate Bond Fund, CI
Corporate Bond Class, CI Corporate Bond Corporate Class (the “CI
Corporate Bond funds”) have been reduced by 15 basis points to
0.55% for Series F and P and to 1.05% for Series A. The base
management fees for CI High Yield Bond Fund and CI High Yield Bond
Corporate Class (the “CI High Yield Bond funds”) have been reduced
by 20 basis points to 0.60% for Series F and P and to 1.35% for
Series A.
Management fee reductions for these funds have also been applied
to certain tiers of the CI Prestige preferred pricing program,
which provides discounted pricing as eligible assets invested with
CI GAM reach certain thresholds, starting at $100,000. (See table
below.)
“These are strong core fixed-income funds with solid track
records and a management team with decades of experience investing
in corporate credit,” said Ms. Sinopoli. “The management fee
reductions announced today make our funds even more competitive in
these key bond fund categories.”
CI GAM is one of Canada’s largest fixed-income investment
managers, with approximately $23.8 billion (as at September 30,
2023) in fixed-income assets under management across a broad range
of asset classes and fund mandates.
The CI Corporate Bond funds invest primarily in a mix of
investment-grade and high-yield corporate bonds. The funds benefit
from the CI GAM team’s active management of the asset mix, as well
as its research and analysis into individual corporate issuers. CI
Corporate Bond Fund (Series F) holds an overall four-star rating
from Morningstar Canada and is first quartile over the one, three,
and 10-year periods ending September 30, 2023.1
The CI High Yield Bond funds invest primarily in high-yield
corporate bonds, and benefit from the CI GAM team’s credit analysis
of individual holdings, as well as its macroeconomic insights that
guide security selection. CI High Yield Bond Fund (Series F) holds
an overall four-star rating from Morningstar Canada and is first
quartile over the one, three, five and 10-year periods ending
September 30, 2023.1
The new effective management fees are as follows:
New Fee*
Previous fee*
Asset Range**
Asset Range**
$0 -
$99,999.99
$100,000 -
$499,999.99
$500,000 -
$999,999.99
$0 -
$99,999.99
$100,000 -
$499,999.99
$500,000 -
$999,999.99
CI Corporate Bond Fund,
CI Corporate Bond Class,
CI Corporate Bond Corporate
Class
Series A/B
1.05%
1.05%
1.04%
1.20%
1.15%
1.04%
Series F
0.55%
0.55%
0.54%
0.70%
0.65%
0.54%
Series P
0.55%
0.55%
0.54%
0.70%
0.65%
0.54%
CI High Yield Bond Fund,
CI High Yield Bond Corporate
Class
Series A
1.35%
1.35%
1.35%
1.55%
1.50%
1.39%
Series F
0.60%
0.60%
0.60%
0.80%
0.75%
0.64%
Series P
0.60%
0.60%
0.60%
0.80%
0.75%
0.64%
* Includes T series as applicable ** There are no changes to the
net management fees currently applicable to asset ranges of 1
million or greater.
The changes follow significant reductions to the management fees
of CI GAM money market funds earlier this year.
Changes to the CI Canadian Balanced mandate
CI Canadian Balanced Fund and CI Canadian Balanced Corporate
Class (the “CI Canadian Balanced funds”) currently invest primarily
in a mix of Canadian equity, equity-related and fixed-income
securities. Under the revised investment strategies, they may
invest up to 10% of their portfolios in private, non-traditional
investments, which are those that are not publicly listed or
traded. These may include investments in private equity, private
credit, private real estate, private infrastructure and venture
capital.
“The addition of a private markets component to a balanced
portfolio can deliver a number of potential benefits,” said
Marc-André Lewis, Executive Vice-President and Chief Investment
Officer of CI GAM. “Private markets offer access to a
differentiated set of investment opportunities, and their
risk-return profile is uncorrelated to public markets. This
provides the potential for increased portfolio diversification,
lower realized volatility and enhanced risk-adjusted returns.”
CI GAM intends for the CI Canadian Balanced funds to make their
allocation to private investments through existing private markets
solutions managed by CI GAM. CI GAM has enlisted leading
alternative asset managers to participate in its private markets
solutions, which include a growth mandate and an income
mandate.
The CI Canadian Balanced funds’ revised investment strategies
set out a neutral asset mix of approximately 55% equity securities,
40% fixed-income securities and 5% private, non-traditional
investments. Generally, their asset mix will be within the
following ranges: 50%-60% equity securities; 30%-50% fixed-income
securities; and 0-10% private, non-traditional investments. Note
that CI Canadian Balanced Corporate Class currently gains exposure
to these asset classes indirectly by investing in CI Canadian
Balanced Fund. The funds’ investment objectives are not
changing.
The investment strategy changes do not apply to CI Canadian
Balanced Pooled Fund, a mandate offered to institutional
investors.
About CI Global Asset Management
CI Global Asset Management (“CI GAM”) 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 GAM is a subsidiary of CI Financial Corp. (TSX: CIX), an
integrated global asset and wealth management company with
approximately $421.0 billion in assets as at September 30,
2023.
1) Performance and rankings
1 yr
3 yr
5 yr
10 yr
CI Corporate Bond Fund (Series
F)
4.2%
0.2%
2.0%
3.5%
Quartile
1
1
2
1
Morningstar Rating (Overall: 4 stars)
n/a
4 stars
4 stars
3 stars
Number of funds in category (Global
corporate fixed income)
128
111
99
37
CI High Yield Bond Fund (Series
F)
9.4%
2.9%
2.8%
4.7%
Quartile
1
1
1
1
Morningstar Rating
(Overall: 4 stars)
n/a
4 stars
4 stars
4 stars
Number of funds in category (High yield
fixed income)
266
243
223
148
Source: Morningstar Research Inc., as of
September 30, 2023.
Commissions, trailing commissions, management fees and expenses
all may be associated with mutual fund investments. Please read the
prospectus before investing. The indicated rates of return are the
historical annual compounded total returns net of fees and expenses
payable by the fund (except for figures of one year or less, which
are simple total returns) including changes in security value and
reinvestment of all dividends/distributions and do not take into
account sales, redemption, distribution or optional charges or
income taxes payable by any securityholder that would have reduced
returns. Mutual funds are not guaranteed, their values change
frequently, and past performance may not be repeated.
This communication is intended for informational purposes only
and does not constitute an offer to sell or the solicitation of an
offer to purchase mutual funds managed by CI Global Asset
Management and is not, and should not be construed as, investment,
tax, legal or accounting advice, and should not be relied upon in
that regard. Every effort has been made to ensure that the material
contained in this document is accurate at the time of publication.
Individuals should seek the advice of professionals, as
appropriate, regarding any particular investment. Investors should
consult their professional advisors prior to implementing any
changes to their investment strategies. These investments may not
be suitable to the circumstances of an investor.
©2023 Morningstar Research Inc. All Rights Reserved. The
information contained herein: (1) is proprietary to Morningstar
and/or its content providers; (2) may not be copied or distributed;
and (3) is not warranted to be accurate, complete or timely.
Neither Morningstar nor its content providers are responsible for
any damages or losses arising from any use of this information.
Past performance is no guarantee of future results.
Morningstar Rating is for Series F only; other
series may have different performance characteristics.
The Morningstar Absolute Quartile Rankings are compiled by
sorting the funds by returns relative to the mutual funds within
the same peer group and range from 1 to 4 for all time periods
covered and can change monthly. The top performing 25% of funds in
each fund category are assigned a ranking of 1, the next 25% a 2,
etc.
Morningstar Ratings reflect performance as of September 30, 2023
and are subject to change monthly. The ratings are calculated from
a fund’s 3, 5 and 10-year returns measured against 91-day Treasury
bill and peer group returns. For each time period the top 10% of
the funds in a category get five stars. The Overall Rating is a
weighted combination of the 3, 5 and 10-year ratings. For greater
detail, see www.morningstar.ca.
CI Global Asset Management is a registered business name of CI
Investments Inc.
©CI Investments Inc. 2023. All rights reserved.
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version on businesswire.com: https://www.businesswire.com/news/home/20231101427948/en/
Murray Oxby Vice-President, Corporate Communications CI Global
Asset Management 416-681-3254 moxby@ci.com
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