CI Global Asset Management Announces Securityholder Approval of Proposed Mutual Fund and ETF Mergers

Rhea-AI Summary

CI Global Asset Management has received securityholder approval to merge 21 mutual funds and six exchange-traded funds (ETFs), effective after April 8, 2022. This initiative aims to streamline its product offerings and enhance operational efficiency. The mergers are part of CI GAM's ongoing strategy to modernize its asset management business, aligning with its global investment platform. Notably, costs related to the mergers will be borne by CI GAM, ensuring no financial burden on the mutual funds or ETFs involved.

Positive

• Streamlining of investment fund lineup enhances operational efficiency.
• The initiative aligns with CI GAM’s integrated global investment platform.
• Cost of mergers will not impact the mutual funds or ETFs.

Negative

• The failure to merge CI Global Equity Income Private Pool may indicate challenges in product consolidation.

TORONTO--(BUSINESS WIRE)-- CI Global Asset Management (“CI GAM”) announced today that it has received the required securityholder approval to merge 21 mutual funds and six exchange-traded funds.

The mergers were approved at securityholder meetings held this month and will be implemented after the close of business on or about April 8, 2022. Five of the mergers did not require the approval of securityholders.

The mergers, which were first announced in November and December 2021, are part of CI GAM’s strategy to modernize its asset management business. They will result in a streamlined investment fund lineup that aligns with CI GAM’s integrated global investment platform. CI GAM began integrating its former in-house portfolio management boutiques into one team operating under the GI GAM brand in late 2020. The changes ensure that the funds benefit from the full spectrum of resources and global investment expertise at CI GAM, while simplifying CI GAM’s structure and product offering, making it easier for advisors and investors to do business with the company.

Mutual fund mergers

Having obtained the required securityholder approvals, CI GAM will proceed with the following mutual fund mergers:

Terminating Fund	Continuing Fund
CI American Managers® Corporate Class*	CI U.S. Stock Selection Corporate Class*
CI Balanced Yield Private Pool Class*	CI Global Asset Allocation Private Pool
CI Canadian All Cap Equity Income Class*	CI Canadian Equity Income Class* (to be renamed CI Canadian All Cap Equity Income Class)
CI Canadian Equity Income Fund	CI Canadian All Cap Equity Income Fund
CI Canadian Equity Income Private Pool Class*	CI Canadian Equity Private Pool
CI Canadian Small/Mid Cap Managed Fund*	CI Canadian Small/Mid Cap Equity Income Fund
CI Conservative Balanced Income Class*	CI Canadian Balanced Corporate Class
CI Conservative Balanced Income Fund	CI Canadian Balanced Fund
CI Global Balanced Yield Private Pool	CI Global Asset Allocation Private Pool
CI Global Balanced Yield Private Pool Class*	CI Global Asset Allocation Private Pool
CI Global Dividend Opportunities Class*	CI Global Dividend Opportunities Corporate Class
CI Global Equity Momentum Private Pool*	CI Global Concentrated Equity Private Pool
CI Global Value Balanced Fund	CI Global Income & Growth Fund
CI High Yield Bond Class*	CI High Yield Bond Corporate Class
CI International Equity Income Private Pool Class*	CI International Equity Growth Private Pool
CI International Equity Value Private Pool*	CI International Equity Growth Private Pool
CI Marret Short Duration High Yield Fund*	CI Enhanced Short Duration Bond Fund
CI North American Small/Mid Cap Equity Private Pool*	CI Global Smaller Companies Private Pool
CI U.S. Equity Corporate Class*	CI U.S. Equity Class
CI U.S. Equity Private Pool Class*	CI U.S. Equity Private Pool
CI U.S. Equity Currency Neutral Private Pool Class*	CI U.S. Equity Private Pool
*Required securityholder approval.

CI GAM will not be proceeding with the merger of CI Global Equity Income Private Pool Class into CI Global Concentrated Equity Private Pool, and CI Global Equity Income Private Pool Class will continue to be offered to investors.

ETF mergers

CI GAM has also obtained the required securityholder approvals for the following ETF mergers:

Terminating ETF	Ticker	Continuing ETF	Ticker
CI Active Canadian Dividend ETF* (Common Units)	FDV	CI WisdomTree Canada Quality Dividend Growth Index ETF (Non-Hedged Units)	DGRC
CI Core Canadian Equity Income Class ETF (ETF Shares)*	CSY
CI MSCI Canada Low Risk Weighted ETF* (Common Units)	RWC
CI Active Credit ETF* (Common Units)   CI Active Credit ETF* (US$ Common Units)	FAO   FAO.U	CI Global High Yield Credit Private Pool (ETF C$ Series) CI Global High Yield Credit Private Pool (ETF US$ Hedged Series)	CGHY   CGHY.U
CI Active Utility & Infrastructure ETF (Common Units)	FAI	CI Global Infrastructure Private Pool (ETF C$ Series)	CINF
CI MSCI USA Low Risk Weighted ETF* (Common Units) CI MSCI USA Low Risk Weighted ETF* (Unhedged Common Units)	RWU   RWU.B	CI WisdomTree U.S. Quality Dividend Growth Index ETF (Hedged Units) CI WisdomTree U.S. Quality Dividend Growth Index ETF (Non-Hedged Units)	DGR   DGR.B
*Required securityholder approval.

To facilitate the merger of CI Active Credit ETF into CI Global High Yield Credit Private Pool, CI GAM is launching ETF C$ Series and ETF US$ Hedged Series units of CI Global High Yield Credit Private Pool. As previously announced, these units will be listed on the Toronto Stock Exchange and commence trading under the ticker symbols CGHY and CGHY.U, respectively, on or about April 8, 2022.

The costs and expenses associated with all mergers are being borne by CI GAM, not the mutual funds or ETFs. The management and administration fees or operating expenses, as applicable, of the continuing funds are the same as or lower than the management fees and administration fees or operating expenses, as applicable, of the corresponding terminating fund.

The Independent Review Committee of the funds reviewed the proposed mergers with respect to potential conflict of interest matters and provided its positive recommendation or approval, as applicable, having determined that the changes achieve a fair and reasonable result for each of the funds.

About CI Global Asset Management

CI Global Asset Management 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, NYSE: CIXX), an integrated global asset and wealth management company with approximately $370.2 billion in total assets as at February 28, 2022.

Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds, including exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about the mutual fund is contained in its prospectus. 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 recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, 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.

This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase exchange-traded funds (ETFs) 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. 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. Some conditions apply.

CI Global Asset Management is a registered business name of CI Investments Inc. ©CI Investments Inc. 2022. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220322005295/en/

Murray Oxby

Vice-President, Corporate Communications

CI Global Asset Management

416-681-3254

moxby@ci.com

Source: CI Global Asset Management

FAQ

What mutual funds and ETFs are merging under CI Global Asset Management?

CI Global Asset Management is merging 21 mutual funds and six ETFs as part of their strategy to modernize their offerings.

When will the mergers of CI Global Asset Management take effect?

The mergers will be implemented after the close of business on or about April 8, 2022.

What is the purpose of the fund mergers by CI Global Asset Management?

The mergers aim to streamline the investment fund lineup and align with CI GAM's global investment platform.

Will the costs of the mergers affect the mutual funds or ETFs?

No, CI Global Asset Management will bear all costs related to the mergers, ensuring no financial impact to the funds.

What is the significance of obtaining securityholder approval for CI GAM's mergers?

Obtaining securityholder approval is essential as it legitimizes the merger process and ensures stakeholder support.