CI Global Asset Management Completes 27 Mutual Fund and ETF Mergers

Rhea-AI Summary

CI Global Asset Management has successfully merged 21 mutual funds and six exchange-traded funds (ETFs) into other investment funds, effective after the close of business on April 8, 2022. As part of this initiative, the CI Global High Yield Credit Private Pool will commence trading today on the Toronto Stock Exchange (TSX) under the ticker symbols CGHY and CGHY.U. The mergers aim to streamline CI GAM’s fund lineup and enhance business efficiency, with all merger costs absorbed by CI GAM. The investment strategy focuses on higher-yielding fixed-income securities worldwide.

Positive

• Streamlined fund lineup aimed at improving efficiency.
• CI Global High Yield Credit Private Pool begins trading, enhancing market presence.
• No costs passed on to mutual funds or ETFs, ensuring protection for investors.

Negative

• None.

ETF Series of CI Global High Yield Credit Private Pool begin trading today on TSX

TORONTO--(BUSINESS WIRE)-- CI Global Asset Management (“CI GAM”) announced today it has completed the merger of 21 mutual funds and six exchange-traded funds into other investment funds. The mergers were implemented after the close of business on April 8, 2022.

Related to the mergers, CI GAM also announced:

• The exchange ratios for the ETF mergers
• The reinvested distributions for certain series of a continuing mutual fund and certain ETFs
• The ETF C$ Series and ETF US$ Hedged Series units of CI Global High Yield Credit Private Pool will begin trading today on the Toronto Stock Exchange (“TSX”) under the ticker symbols CGHY and CGHY.U, respectively. The pool’s investment objective is to generate income and the potential for long-term capital appreciation by investing primarily in higher-yielding fixed-income securities and other debt instruments of issuers located anywhere in the world.

The mergers align with CI GAM’s strategy of modernizing its asset management business by streamlining its investment fund lineup and making it easier for advisors and investors to do business with the company. They follow CI GAM’s decisions to integrate its former in-house portfolio management boutiques into one global investment team and to rename its funds so that its investment professionals and funds operate under a unified brand. The costs and expenses associated with the mergers, which were first announced in late 2021, are being borne by CI GAM, not the mutual funds or ETFs.

Completed mutual fund mergers

Terminating Mutual Fund	Continuing Mutual 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 All Cap Equity Income Class (formerly CI Canadian 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

Securityholders of each Terminating Mutual Fund have received the equivalent dollar value of securities in the corresponding series of the corresponding Continuing Mutual Fund as at April 8, 2022. Each Terminating Mutual Fund has now been terminated.

Completed 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

Securityholders of each Terminating ETF have received units of the Continuing ETF based on the stated exchange ratio (the “Exchange Ratio”), as set out in the table below, for each security of the Terminating ETF held as at April 8, 2022. No fractional units of the Continuing ETF, or cash in lieu thereof, were issued or paid pursuant to the mergers. The total number of units of the Continuing ETF issued to each Terminating ETF is also set out in the table below.

Terminating ETF	Continuing ETF	Exchange Ratio	Total Number of Continuing ETF Units Issued in Respect of the Merger
CI Active Canadian Dividend ETF (Common Units)	CI WisdomTree Canada Quality Dividend Growth Index ETF (Non-Hedged Units)	0.328950:1	263,149
CI Core Canadian Equity Income Class ETF (ETF Shares)	CI WisdomTree Canada Quality Dividend Growth Index ETF (Non-Hedged Units)	0.704653:1	350,180
CI MSCI Canada Low Risk Weighted ETF (ETF Common Units)	CI WisdomTree Canada Quality Dividend Growth Index ETF (Non-Hedged Units)	0.409272:1	42,971
CI Active Credit ETF (Common Units)	CI Global High Yield Credit Private Pool (ETF C$ Series Units)	0.801356:1	1,232,136
CI Active Credit ETF (US$ Common Units)	CI Global High Yield Credit Private Pool (ETF US$ Hedged Series Units)	0.829976:1	214,329
CI Active Utility & Infrastructure ETF (Common Units)	CI Global Infrastructure Private Pool (ETF C$ Series Units)	0.608535:1	1,485,551
CI MSCI USA Low Risk Weighted ETF (Common Units)	CI WisdomTree U.S. Quality Dividend Growth Index ETF (Hedged Units)	0.560916:1	317,982
CI MSCI USA Low Risk Weighted ETF (Unhedged Common Units)	CI WisdomTree U.S. Quality Dividend Growth Index ETF (Non-Hedged Units)	0.669538:1	200,858

Securities of the Terminating ETFs were delisted from the Toronto Stock Exchange at the close of business on April 8, 2022.

Related distributions

The mergers resulted in the ETF series of one Continuing Mutual Fund and certain ETFs paying distributions, as detailed below. The ETF distributions were not paid in cash but have been reinvested and the resulting units immediately consolidated so that the number of units held by each investor has not changed. The distributions were reinvested on April 8, 2022 to unitholders of record on April 7, 2022. If a series is not listed here, it did not pay a distribution as a result of the mergers.

	Ticker	Reinvested Distribution Amount (reinvested and consolidated)
CI Active Utility & Infrastructure ETF	FAI	$1.378652
CI Active Canadian Dividend ETF	FDV	$0.42171
CI MSCI Canada Low Risk Weighted ETF	RWC	$0.203243
CI MSCI USA Low Risk Weighted ETF	RWU	$3.381996
	RWU.B	$3.449711
CI Global Asset Allocation Private Pool (ETF C$ Series)	CGAA	$0.035176
CI WisdomTree U.S. Quality Dividend Growth Index ETF	DGR	$1.192226
	DGR.B	$0.294698
CI WisdomTree Canada Quality Dividend Growth Index ETF	DGRC	$0.226163

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/20220411005274/en/

Murray Oxby

Vice-President, Corporate Communications

CI Global Asset Management

416-681-3254

moxby@ci.com

Source: CI Global Asset Management

FAQ

What was the date when the mutual fund and ETF mergers were completed for CIXX?

The mergers were completed after business on April 8, 2022.

What new ETFs are available for trading under CIXX?

The CI Global High Yield Credit Private Pool will trade under the ticker symbols CGHY and CGHY.U.

What was the purpose of the CIXX fund mergers?

The purpose was to streamline the investment fund lineup and improve business efficiency.

Did any costs from the CIXX mergers affect the mutual funds or ETFs?

No, all merger costs are borne by CI GAM and do not affect the mutual funds or ETFs.

What is the investment objective of the CI Global High Yield Credit Private Pool?

The objective is to generate income and potential long-term capital appreciation by investing in higher-yielding fixed-income securities.