Realignment of trailing commissions and reduction in management fees, a portfolio sub-advisor change and amendments to the risk rating of select funds announced
CIBC Asset Management Inc. today announced a number of changes across its mutual fund lineup.
Reductions in annual trailing commissions and management fees
CIBC Asset Management will implement reductions in annual trailing commissions and management fees across select series of its mutual fund lineup to achieve greater consistency across its product platform. The changes will be effective on September 1, 2016 for Renaissance Investments fund families and September 6, 2016 for CIBC Family of Funds.
For full details of the fee changes, please see the attached document.
"We are adjusting fees in order to offer a simpler and more consistent pricing approach for our clients and our advisor partners," says David Scandiffio, President of CIBC Asset Management. "With a number of pricing options to support advice for clients under various models, our commitment is to be flexible, competitive and consistent when it comes to the cost of owning actively managed investment solutions."
Portfolio sub-advisor change
Wasatch Advisors Inc. (Wasatch) has been appointed as portfolio sub-advisor for the Renaissance Global Small-Cap Fund, effective on or about August 1, 2016. Based in Salt Lake City, Utah, Wasatch is a dedicated small-cap boutique with more than 30 years of history managing across the spectrum of micro and small-cap strategies.
Renaissance Global Small-Cap Fund is an underlying investment of Renaissance Optimal Global Equity Portfolio and Renaissance Optimal Global Equity Currency Neutral Portfolio.
Risk rating changes
Based on an annual review, the risk rating associated with five funds has been adjusted:
|Fund||Current Risk Rating||New Rating|
|Axiom Canadian Growth Portfolio||Medium||Low to Medium|
|Axiom Foreign Growth Portfolio||Medium||Low to Medium|
|Renaissance Canadian Monthly Income Fund||Medium||Low to Medium|
|Renaissance High Income Fund||Low to Medium||Medium|
|CIBC Global Monthly Income Fund||Medium||Low to Medium|
These risk rating changes will be reflected in an amendment to the Renaissance Investments family of funds and Axiom Portfolios Simplified Prospectus and in the renewal of the simplified prospectus of the CIBC Mutual Funds and CIBC Family of Managed Portfolios, which are both scheduled to be filed on or about June 29, 2016.
CIBC Asset Management follows a risk classification methodology based on the approach recommended by the Investment Funds Institute of Canada. Each fund's risk rating is reviewed on an annual basis, or when the fund undergoes a material change. No material changes have been made to the investment objectives, strategies or management of the affected funds.