CIBC Asset Management Lowers Fees and Simplifies Product Lineup for Canadian Investors
Changes made across its mutual funds and private pools to enhance investor offering, including new suite of lower-cost passive portfolios
To improve value and accessibility for Canadian investors, CIBC Asset Management Inc. (CAM) is introducing a suite of new, lower-cost CIBC Passive Portfolios. CAM is also making changes to its investment lineup that include management fee reductions, lower investment minimums and a simplified product offering across its mutual funds lineup.
"Canadians are looking for value and choice when it comes to investment solutions, which is why we made a number of enhancements to our product lineup to improve cost and accessibility," says David Scandiffio, President and CEO, CIBC Asset Management. "The changes announced today are driven by our clients' changing needs."
CIBC Passive Portfolios
As part of its commitment to offer diversified solutions to Canadian investors, CAM is launching CIBC Passive Portfolios on July 31, 2017. This new suite of portfolios is competitively priced and has been designed to meet a range of investor risk profiles. These portfolios will be available to regular and fee-based investment accounts, and to self-directed investors with accounts at CIBC Investor's Edge, a division of CIBC Investor Services Inc.
Management fee reductions
To provide additional value to Canadian investors, CAM is implementing management fee reductions of up to 40 basis points (bps) on 18 funds across its mutual fund and private pool lineup effective September 1, 2017. These changes follow management fee reductions implemented in September 2016.
In addition, CAM will waive a portion of its management fee or absorb certain expenses, or both, on an additional 48 funds (ranging from 5 - 40 bps) beginning September 1, 2017. The decision to continue to waive management fees or absorb operating expenses is at the discretion of CAM.
Lower initial investment minimums
CAM is reducing the minimum initial investment on certain investment solutions.
- The Renaissance Private Investment Program (RPIP) will have a new minimum requirement of $100,000, lowered from $150,000.
- Families with at least $250,000, previously $500,000, in one or more Renaissance Private Pools will be exempted from the minimum requirement of $100,000 per pool.
- The minimum initial investment for Axiom Portfolios will be reduced significantly from $25,000 to $500. There are eight Axiom Portfolios, and each managed solution provides diversification by asset class, geographical region, investment style and market capitalization.
The full details of the management fee reductions, and the minimum investment and RPIP changes effective September 1, 2017, can be found here.
Termination of several mutual fund classes
To simplify its product offer, CAM is terminating several mutual fund classes with relatively small asset size and a limited number of unitholders.
- Effective end of business day today, classes designated for termination will be closed to new purchases, including purchases through regular investment plans. These classes will subsequently be terminated on or about October 13, 2017.
- All investors of the terminating classes will be sent a written notice of the termination at least 60 days prior to October 13, 2017.
- Investors have the right to redeem or switch out of an affected mutual fund class up to the close of business prior to the effective date of termination and will not be required to pay any redemption fees, sales charges or other fees associated with the class termination.
CAM is also capping several mutual fund classes, which will be closed to new purchases, including through regular investment plans, effective September 1, 2017.
The full details of all mutual fund classes to be terminated and capped can be found here.