April 11, 2022
CI Global Asset Management Completes 27 Mutual Fund and ETF Mergers
ETF Series of CI Global High Yield Credit Private Pool begin trading today on TSX
TORONTO (April 11, 2022) – CI Global Asset Management (“CI GAM”) announced today it has completed the merger of 21 mutual funds and six exchange-traded funds into other investment funds. The mergers were implemented after the close of business on April 8, 2022.
Related to the mergers, CI GAM also announced:
- The exchange ratios for the ETF mergers
- The reinvested distributions for certain series of a continuing mutual fund and certain ETFs
- The ETF C$ Series and ETF US$ Hedged Series units of CI Global High Yield Credit Private Pool will begin trading today on the Toronto Stock Exchange (“TSX”) under the ticker symbols CGHY and CGHY.U, respectively. The pool’s investment objective is to generate income and the potential for long-term capital appreciation by investing primarily in higher-yielding fixed-income securities and other debt instruments of issuers located anywhere in the world.
The mergers align with CI GAM’s strategy of modernizing its asset management business by streamlining its investment fund lineup and making it easier for advisors and investors to do business with the company. They follow CI GAM’s decisions to integrate its former in-house portfolio management boutiques into one global investment team and to rename its funds so that its investment professionals and funds operate under a unified brand. The costs and expenses associated with the mergers, which were first announced in late 2021, are being borne by CI GAM, not the mutual funds or ETFs.
Completed mutual fund mergers
Terminating Mutual Fund | Continuing Mutual Fund |
CI American Managers® Corporate Class | CI U.S. Stock Selection Corporate Class |
CI Balanced Yield Private Pool Class | CI Global Asset Allocation Private Pool |
CI Canadian All Cap Equity Income Class | CI Canadian All Cap Equity Income Class (formerly CI Canadian Equity Income Class) |
CI Canadian Equity Income Fund | CI Canadian All Cap Equity Income Fund |
CI Canadian Equity Income Private Pool Class | CI Canadian Equity Private Pool |
CI Canadian Small/Mid Cap Managed Fund | CI Canadian Small/Mid Cap Equity Income Fund |
CI Conservative Balanced Income Class | CI Canadian Balanced Corporate Class |
CI Conservative Balanced Income Fund | CI Canadian Balanced Fund |
CI Global Balanced Yield Private Pool | CI Global Asset Allocation Private Pool |
CI Global Balanced Yield Private Pool Class | CI Global Asset Allocation Private Pool |
CI Global Dividend Opportunities Class | CI Global Dividend Opportunities Corporate Class |
CI Global Equity Momentum Private Pool | CI Global Concentrated Equity Private Pool |
CI Global Value Balanced Fund | CI Global Income & Growth Fund |
CI High Yield Bond Class | CI High Yield Bond Corporate Class |
CI International Equity Income Private Pool Class | CI International Equity Growth Private Pool |
CI International Equity Value Private Pool | CI International Equity Growth Private Pool |
CI Marret Short Duration High Yield Fund | CI Enhanced Short Duration Bond Fund |
CI North American Small/Mid Cap Equity Private Pool | CI Global Smaller Companies Private Pool |
CI U.S. Equity Corporate Class | CI U.S. Equity Class |
CI U.S. Equity Private Pool Class | CI U.S. Equity Private Pool |
CI U.S. Equity Currency Neutral Private Pool Class | CI U.S. Equity Private Pool |
Securityholders of each Terminating Mutual Fund have received the equivalent dollar value of securities in the corresponding series of the corresponding Continuing Mutual Fund as at April 8, 2022. Each Terminating Mutual Fund has now been terminated.
Completed ETF mergers
Terminating ETF | Ticker | Continuing ETF | Ticker |
CI Active Canadian Dividend ETF (Common Units) | FDV | CI WisdomTree Canada Quality Dividend Growth Index ETF (Non-Hedged Units) | DGRC |
CI Core Canadian Equity Income Class ETF (ETF Shares) | CSY | ||
CI MSCI Canada Low Risk Weighted ETF (Common Units) | RWC | ||
CI Active Credit ETF (Common Units) CI Active Credit ETF (US$ Common Units) | FAO FAO.U | CI Global High Yield Credit Private Pool (ETF C$ Series) CI Global High Yield Credit Private Pool (ETF US$ Hedged Series) | CGHY CGHY.U |
CI Active Utility & Infrastructure ETF (Common Units) | FAI | CI Global Infrastructure Private Pool (ETF C$ Series) | CINF |
CI MSCI USA Low Risk Weighted ETF (Common Units) CI MSCI USA Low Risk Weighted ETF (Unhedged Common Units) | RWU RWU.B | CI WisdomTree U.S. Quality Dividend Growth Index ETF (Hedged Units) CI WisdomTree U.S. Quality Dividend Growth Index ETF (Non-Hedged Units) | DGR DGR.B |
Securityholders of each Terminating ETF have received units of the Continuing ETF based on the stated exchange ratio (the “Exchange Ratio”), as set out in the table below, for each security of the Terminating ETF held as at April 8, 2022. No fractional units of the Continuing ETF, or cash in lieu thereof, were issued or paid pursuant to the mergers. The total number of units of the Continuing ETF issued to each Terminating ETF is also set out in the table below.
Terminating ETF | Continuing ETF | Exchange Ratio | Total Number of Continuing ETF Units Issued in Respect of the Merger |
CI Active Canadian Dividend ETF (Common Units) | CI WisdomTree Canada Quality Dividend Growth Index ETF (Non-Hedged Units) | 0.328950:1 | 263,149 |
CI Core Canadian Equity Income Class ETF (ETF Shares) | CI WisdomTree Canada Quality Dividend Growth Index ETF (Non-Hedged Units) | 0.704653:1 | 350,180 |
CI MSCI Canada Low Risk Weighted ETF (ETF Common Units) | CI WisdomTree Canada Quality Dividend Growth Index ETF (Non-Hedged Units) | 0.409272:1 | 42,971 |
CI Active Credit ETF (Common Units) | CI Global High Yield Credit Private Pool (ETF C$ Series Units) | 0.801356:1 | 1,232,136 |
CI Active Credit ETF (US$ Common Units) | CI Global High Yield Credit Private Pool (ETF US$ Hedged Series Units) | 0.829976:1 | 214,329 |
CI Active Utility & Infrastructure ETF (Common Units) | CI Global Infrastructure Private Pool (ETF C$ Series Units) | 0.608535:1 | 1,485,551 |
CI MSCI USA Low Risk Weighted ETF (Common Units) | CI WisdomTree U.S. Quality Dividend Growth Index ETF (Hedged Units) | 0.560916:1 | 317,982 |
CI MSCI USA Low Risk Weighted ETF (Unhedged Common Units) | CI WisdomTree U.S. Quality Dividend Growth Index ETF (Non-Hedged Units) | 0.669538:1 | 200,858 |
Securities of the Terminating ETFs were delisted from the Toronto Stock Exchange at the close of business on April 8, 2022.
Related distributions
The mergers resulted in the ETF series of one Continuing Mutual Fund and certain ETFs paying distributions, as detailed below. The ETF distributions were not paid in cash but have been reinvested and the resulting units immediately consolidated so that the number of units held by each investor has not changed. The distributions were reinvested on April 8, 2022 to unitholders of record on April 7, 2022. If a series is not listed here, it did not pay a distribution as a result of the mergers.
| Ticker | Reinvested Distribution Amount (reinvested and consolidated) |
CI Active Utility & Infrastructure ETF | FAI | $1.378652 |
CI Active Canadian Dividend ETF | FDV | $0.42171 |
CI MSCI Canada Low Risk Weighted ETF | RWC | $0.203243 |
CI MSCI USA Low Risk Weighted ETF | RWU | $3.381996 |
RWU.B | $3.449711 | |
CI Global Asset Allocation Private Pool (ETF C$ Series) | CGAA | $0.035176 |
CI WisdomTree U.S. Quality Dividend Growth Index ETF | DGR | $1.192226 |
DGR.B | $0.294698 | |
CI WisdomTree Canada Quality Dividend Growth Index ETF | DGRC | $0.226163 |
About CI Global Asset Management
CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an integrated global asset and wealth management company with approximately $370.2 billion in total assets as at February 28, 2022.
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds, including exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about the mutual fund is contained in its prospectus. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.
This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase exchange-traded funds (ETFs) managed by CI Global Asset Management and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor. Some conditions apply.
CI Global Asset Management is a registered business name of CI Investments Inc. ©CI Investments Inc. 2022. All rights reserved.
Contact:
Murray Oxby
Vice-President, Corporate Communications
CI Global Asset Management
416-681-3254
Contact
CI Global Asset Management is a registered business name of CI Investments Inc. © CI Investments Inc. 2024. All rights reserved.