Investors Group makes sweeping changes to mutual funds

Investors Group makes sweeping changes to mutual funds

Investors Group makes sweeping changes to mutual funds Investors Group has announced numerous fund changes that it says would allow quicker response to changing market conditions, as well as slight fee reductions for selected funds.

Pending necessary approvals, 14 funds are expected to be merged into other existing funds on or about Sep. 8:
 
Existing Fund
To be merged into
Investors Canadian Balanced Fund
Investors Mutual of Canada
Investors Core Canadian Equity Fund
IG Franklin Bissett Canadian Equity Fund
IG Templeton International Equity Fund
IG Mackenzie Ivy European Fund
Investors International Equity Fund
IG Mackenzie Ivy European Fund
Investors Greater China Fund
Investors Pan Asian Equity Fund
Alto Conservative Portfolio
Allegro Conservative Portfolio
Alto Moderate Conservative Portfolio
Allegro Moderate Conservative Portfolio
Alto Moderate Portfolio
Allegro Moderate Portfolio
Alto Moderate Aggressive Portfolio
Allegro Moderate Aggressive Portfolio
Alto Moderate Aggressive Canada Focus Portfolio
Allegro Moderate Aggressive Portfolio
Allegro Moderate Aggressive Canada Focus Portfolio
Allegro Moderate Aggressive Portfolio
Alto Aggressive Portfolio
Allegro Aggressive Portfolio
Alto Aggressive Canada Focus Portfolio
Allegro Aggressive Portfolio
Allegro Aggressive Canada Focus Portfolio
Allegro Aggressive Portfolio

In relation to the mergers, the firm seeks to make continuing Allegro portfolio funds more responsive to market changes by allowing them to invest in fixed income, equity, and other asset classes. The changes are expected to take place on or about Sep. 6. In anticipation of the changes, the following funds will be renamed as of July 14:
 
Fund
Fund name as of July 14
Allegro Conservative Portfolio
Allegro Income Portfolio
Allegro Moderate Conservative Portfolio
Allegro Income Balanced Portfolio
Allegro Moderate Portfolio
Allegro Balanced Portfolio
Allegro Moderate Aggressive Portfolio
Allegro Balanced Growth Portfolio
Allegro Aggressive Portfolio
Allegro Growth Portfolio

Specific corporate-class funds — including the IG Franklin Bissett Canadian Equity Class, the Investors International Equity Class, and the Investors Pan Asian Equity Class — are also being changed so they can invest in corresponding unit trust fund versions. These changes, which are to take place on or about Sep. 8, are anticipated to result in more efficient portfolio management and reduced trading costs.

The objectives for the Allegro Balanced Growth Canada Focus Portfolio Class and Allegro Growth Canada Focus Class funds will also be changed, effective on or about Sep. 6, to increase their geographic diversification. At the same date, they will be renamed as the Allegro Balanced Growth Portfolio Class II and the Allegro Growth Portfolio Class II, respectively.

Finally, several funds will be undergoing fee reductions between 0.25 and 8.6 basis points on an annualized basis as of Sep. 1. The funds affected include selected Allegro funds, the IG Templeton International Equity Class, and the Investors Greater China Class.

The types of fees impacted — which include management, service, administration, and trustee fees — vary for the different funds.


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