TORONTO, Sept. 19, 2014 /CNW/ - CIBC Asset Management Inc. (CAM), the
manager of the Renaissance Investments family of mutual funds, today
announced plans to merge the Renaissance Corporate Bond Fund (the
"Terminating Fund") with the Renaissance Corporate Bond Capital Yield
Fund (the "Continuing Fund"). Following the proposed merger, the name
of the Continuing Fund will be changed to Renaissance Corporate Bond
Fund. The changes are expected to be effective on or about December 5,
The proposed merger is a result of changes announced in the 2013 federal
budget that included provisions to eliminate the tax benefits
associated with forward agreements. Forwards are used by certain
investment funds to achieve capital gains treatment on investment
returns that would otherwise be treated as income. The Renaissance
Corporate Bond Capital Yield Fund was designed to include exposure to
forward agreements as part of its investment strategy. Due to the
change in tax treatment, the Continuing Fund will cease to use forward
agreements and CAM has proposed that it is in the best interests of
unitholders to merge the Funds. Under the proposed merger, unitholders
of the Terminating Fund will receive units in the same class of the
As part of the proposed merger, it is the intention that the investment
objective of the Continuing Fund change to remove reference to the
generation of tax-efficient returns that utilize forward agreements.
CAM has applied to the relevant securities regulators for exemptive
relief to permit the investment objective to be changed without seeking
The Independent Review Committee of the Funds has considered and
approved the proposed merger and provided a positive recommendation on
the proposed investment objective change.
The Continuing Fund was closed to new purchases and switches effective
August 23, 2013 in connection with the changes announced in the 2013
Federal Budget. Following the merger, the Continuing Fund will be open
to new purchases and switches.
The Terminating Fund will be wound-up as soon as reasonably possible
following the merger.
About CIBC Asset Management
CIBC Asset Management (CAM), the asset management subsidiary of CIBC,
provides a range of high-quality investment management services and
solutions to retail and institutional investors. CAM's offerings
include: a comprehensive platform of mutual funds, strategic managed
portfolio solutions, discretionary investment management services for
high-net-worth individuals, and institutional portfolio management. CAM
is one of Canada's largest asset management firms, with over $100
billion in assets under management as of June 30, 2014.
SOURCE: Canadian Imperial Bank of Commerce
For further information:
Media contact: Caroline Van Hasselt, Director, External Communications and Media Relations, at 416-784-6699 or e-mail: email@example.com.