CI Investments announces fund mergers and other changes to the CI and Castlerock lineups
TSX Symbol: CIX
TORONTO, May 28, 2012 /CNW/ - CI Investments Inc. ("CI") today announced plans to integrate the Castlerock Investments mutual funds into the CI family of funds, along with other changes designed to enhance the efficiency of its overall lineup.
The changes include:
- Moving the administration of the Castlerock mutual funds from a third-party service provider to CI's back office, effective on or about July 26, 2012.
- Changing the names of 17 Castlerock and other funds, effective on or about July 26, 2012.
- Merging 11 Castlerock funds into CI funds with similar mandates.
- Merging another eight CI, Signature and Lakeview-branded funds into other CI funds.
The mergers will be effective at the opening of business on September 10, 2012, pending the required securityholder and regulatory approvals.
"With the merger of 19 funds, we are significantly reducing the duplication between the two fund families and streamlining our overall product offering," said Derek J. Green, CI President.
After the mergers, CI will no longer be using the Castlerock brand name. Castlerock Investments was the name given to the former Hartford Investments Canada Corp., which CI's parent company, CI Financial Corp., acquired in December 2010. Castlerock has been operated separately from CI, given that the Castlerock funds were on a separate administrative platform.
"This is the final stage in integrating the acquisition," said Mr. Green. "Investors in the funds that are to be merged will benefit from the economies of scale provided by a larger investment company. Castlerock investors will be able to switch into a wide selection of funds within CI's lineup, including the tax-efficient CI Corporate Class structure."
In addition, Castlerock investors are benefiting from CI's lower operating costs, as CI funds have fixed administration fees that are lower than the Castlerock funds' variable operating expenses. For those Castlerock funds that are not being merged into other funds, the fixed administration fees will be implemented on December 31, 2012, as approved by the funds' unitholders in April 2011. CI is also reducing the management fees on those funds' Series B units to the same level as their Series A units, effective December 31, 2012.
CI is proposing the following fund mergers:
|Terminating Fund||Continuing Fund|
|Castlerock Balanced Growth Portfolio||Portfolio Series Balanced Growth Fund|
|Castlerock Balanced Portfolio||Portfolio Series Conservative Balanced Fund|
|Castlerock Canadian Balanced Fund||Signature Canadian Balanced Fund|
|Castlerock Canadian Bond Fund||Signature Canadian Bond Fund|
|Castlerock Canadian Stock Fund||Cambridge Canadian Equity Corporate Class|
|Castlerock Canadian Value Fund||CI Canadian Investment Corporate Class|
|Castlerock Canadian Money Market Fund||CI Money Market Fund|
|Castlerock Conservative Portfolio||Portfolio Series Conservative Fund|
|Castlerock Global High Income Fund||Signature Corporate Bond Fund|
|Castlerock Growth Portfolio||Portfolio Series Growth Fund|
|Castlerock Total Return Fund||Signature Income & Growth Fund|
|CI European Corporate Class||CI International Corporate Class|
|CI European Fund||CI International Corporate Class|
|CI International Balanced Corporate Class||Signature Global Income & Growth Corporate Class|
|CI International Balanced Fund||Signature Global Income & Growth Fund|
|CI Japanese Corporate Class||CI Pacific Corporate Class|
|CI Value Trust Corporate Class||Cambridge American Equity Corporate Class|
|Lakeview Disciplined Leadership U.S. Equity Fund||Cambridge American Equity Corporate Class|
|Signature Mortgage Fund||Signature Short-Term Bond Fund|
The CI Investments Board of Governors, acting in its capacity as the independent review committee for the funds, has reviewed all of the proposed mergers with respect to conflict of interest issues and has determined that the mergers achieve a fair and reasonable result for the funds.
In all cases, the corresponding terminating and continuing funds are managed by the same portfolio management teams and, in most cases, the funds have similar mandates. Furthermore, in all cases, investors will be placed in classes of the continuing funds with management fees that are the same or lower than those of the corresponding classes of the terminating funds.
The following mergers do not require the approval of the funds' securityholders: Castlerock Balanced Growth Portfolio, Castlerock Balanced Portfolio, Castlerock Canadian Balanced Fund, Castlerock Canadian Money Market Fund, Castlerock Global High Income Fund, Castlerock Growth Portfolio, Castlerock Total Return Fund, CI International Balanced Fund, CI International Balanced Corporate Class and CI Value Trust Corporate Class. Investors in those funds will be notified in June of the mergers.
Approval is required from securityholders of the remaining terminating funds, as well as four continuing funds: Cambridge American Equity Corporate Class, CI International Corporate Class, CI Pacific Corporate Class and Signature Global Income & Growth Corporate Class. Meetings of securityholders have been scheduled for August 31, 2012 and investors will be sent a notice of meeting, management information circular and proxy form in July or early August.
The mergers will indirectly affect 22 segregated funds that invest in units or shares of the terminating funds. Following the mergers, the segregated funds will invest in units or shares of the respective continuing funds, and may have their names changed. The affected segregated funds are part of the Clarica MVP, Clarica Portfolio, SunWise, SunWise Elite including SunWise Elite Plus, SunWise Essential Series and CI Guaranteed Investment Funds programs. Investors in the affected segregated funds will be notified of the changes by July 10, 2012.
The names of the following mutual funds will be changed to reflect their appropriate fund families:
|Current Fund Name||New Fund Name|
|Castlerock Canadian Dividend Fund||CI Canadian Dividend Fund|
|Castlerock Canadian Dividend Growth Fund||CI Canadian Dividend Growth Fund|
|Castlerock Canadian Growth Companies Fund||Cambridge Canadian Growth Companies Fund|
|Castlerock Capital Appreciation Fund||CI U.S. Equity Plus Fund|
|Castlerock Enhanced Yield Fund||Signature Enhanced Yield Fund|
|Castlerock Global Balanced Fund||Black Creek Global Balanced Fund|
|Castlerock Global Leaders Fund||Black Creek Global Leaders Fund|
|Castlerock International Equity Fund||Black Creek International Equity Fund|
|Castlerock Pure Canadian Equity Fund||Cambridge Pure Canadian Equity Fund|
|Castlerock U.S. Dividend Growth Fund||CI U.S. Dividend Growth Fund|
|CI Emerging Markets Corporate Class||Signature Emerging Markets Corporate Class|
|CI Emerging Markets Fund||Signature Emerging Markets Fund|
|CI Global Bond Corporate Class||Signature Global Bond Corporate Class|
|CI Global Bond Fund||Signature Global Bond Fund|
|CI Global Science & Technology Corporate Class||Signature Global Science & Technology Corporate Class|
|CI International Corporate Class||Signature International Corporate Class|
|CI International Fund||Signature International Fund|
CI is one of Canada's largest investment management companies. It offers a broad range of investment products and services, including an industry-leading selection of investment funds, 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 approximately $96 billion in assets as of April 30, 2012.For further information: