Investment firm completes ETF mergers, eyes terminations and fixed administration fees for certain other funds
After finalizing the mergers of three liquid-alt ETFs into other funds with identical mandates, CI Global Asset Management (CI GAM) is proposing mergers and other changes to its First Asset-branded mutual funds.
After the close of business on January 15, 2021, CI GAM completed the following mergers of three liquid-alt ETFs into liquid-alternative mutual funds:
- CI Lawrence Park Alternative Investment Grade Credit ETF was merged into CI Lawrence Park Alternative Investment Grade Credit Fund, which will have Canadian dollar-denominated and US dollar-denominated ETF units trading under the existing tickers CRED, and CRED.U, respective;
- CI Marret Alternative Absolute Return Bond ETF was merged into CI Marret Alternative Absolute Return Bond Fund, for which Canadian dollar and US dollar ETF units will trade under the existing tickers CMAR and CMAR.U, respectively; and
- CI Munro Alternative Global Growth ETF was merged into CI Munro Alternative Global Growth Fund, with Canadian dollar ETF series for the continuing fund trading under the existing ticker CMAG.
CI GAM also announced plans to merge two First Asset mutual funds into other funds it manages.
The firm is proposing to merge First Asset Utility Plus Fund into Signature Global Infrastructure Fund, and merge First Asset Canadian Dividend Opportunity Fund into CI North American Dividend Fund. In each case, the terminating and continuing funds have the same CI GAM portfolio management team, and the continuing funds have lower management and administration fees than the corresponding terminating funds.
CI GAM is also proposing to replace the variable operating expenses being charged to First Asset Canadian Convertible Bond Fund and First Asset REIT Income Fund, and instead implement fixed administration fees for each series of the funds.
Both proposed changes are subject to unit approval, with the proposed mergers of ETFs being further subject to approval from regulators. If approved, the proposals will be implemented on or about April 19.