CI Investments Inc. has proposed moves to merge six of its funds into six other funds with significantly similar mandates. The terminating funds and continuing funds, as indicated in a recent release, are below:
|CI Short-Term Advantage Corporate Class
||CI Short-Term Corporate Class
|CI U.S. Equity Plus Fund
||Cambridge American Equity Fund
|Red Sky Canadian Equity Corporate Class
||Cambridge Canadian Growth Companies Fund
|Signature Diversified Yield Fund
||Signature Diversified Yield II Fund
|Signature Select Global Corporate Class
||CI Global Corporate Class
(to be renamed Signature Global Equity Corporate Class)
|Signature Select Global Fund
||CI Global Fund
(to be renamed Signature Global Equity Fund)
The mergers have been proposed to reduce duplication, thus helping streamline and simplify CI Investments’ fund lineup. The continuing funds would also enjoy larger asset bases, opening up increased opportunities for portfolio diversification.
The proposed mergers have been referred to the CI Investments Board of Governors. They have given the proposals a positive recommendation, finding that they would achieve a fair and reasonable result for each of the funds if enacted.
The Signature Diversified Yield Fund’s merger into Signature Diversified Yield II Fund does not require the approval of securityholders, and will therefore be implemented at the close of business on or around Dec. 2.
The remaining proposed mergers require approval from the securityholders of the terminating funds, as well as the securityholders of CI Short-Term Corporate Class and CI Global Corporate Class. Meeting materials are expected to be mailed to security holders in October, and meetings to vote on the proposals are scheduled for Nov. 24. Pending applicable regulatory and securityholder approvals, the mergers will take effect at the close of business on or about Dec 2.
Furthermore, effective Dec. 5 or thereabouts, CI Global Fund and CI Global Corporate Class will be renamed Signature Global Equity Fund and Signature Global Equity Corporate Class, respectively, to reflect Signature Global Asset Management’s action as portfolio advisor to the funds.
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