TORONTO (December 4, 2020) – CI Global Asset Management (“CI GAM”) today provided an update on its proposal (the “Proposal”) to implement fixed administration fees for each series of 19 CI GAM exchange-traded funds (the “ETFs”).
Under the Proposal, first announced on September 25, 2020, fixed administration fees will replace the current variable operating expenses being charged to the ETFs effective on or before January 1, 2021. It is expected that investors will realize several benefits with the change to a fixed administration fee structure, including greater predictability and transparency of the management expense ratio (“MER”) for each ETF, as well as protection from potential increases in future operating expenses.
Once the Proposal is implemented, CI Investments Inc., as manager of the ETFs, will be responsible for the operating expenses of each ETF, other than certain expenses (“Certain Expenses”), in exchange for the payment by the ETF of a fixed administration fee. The MER of each series of an ETF will consist of the management fee, the fixed administration fee, Certain Expenses and applicable taxes.
The approval of securityholders of an ETF is required to implement the Proposal for a particular ETF. At the special meetings of the ETFs held on December 3, 2020, securityholders of the following ETFs approved the respective Proposal.
|CI First Asset Active Canadian Dividend ETF
|CI First Asset Global Financial Sector ETF
|CI First Asset Active Credit ETF
|CI First Asset Investment Grade Bond ETF
|CI First Asset Active Utility & Infrastructure ETF
|CI First Asset Long Duration Fixed Income ETF
|CI First Asset Canadian Buyback Index ETF
|CI First Asset Preferred Share ETF
|CI First Asset Canadian REIT ETF
|CI First Asset Short Term Government Bond Index Class ETF
|CI First Asset Enhanced Government Bond ETF
|CI First Asset U.S. & Canada Lifeco Income ETF
|CI First Asset Enhanced Short Duration Bond Fund*
|CI First Asset U.S. Buyback Index ETF
|CI First Asset European Bank ETF
|CI First Asset U.S. TrendLeaders Index ETF
*Formerly CI First Asset Enhanced Short Duration Bond ETF
Meetings of securityholders of the following ETFs have been adjourned to December 10, 2020:
|CI First Asset CanBanc Income Class ETF
|CI First Asset Core Canadian Equity Income Class ETF
|CI First Asset MSCI Canada Quality Index Class ETF
More information about CI GAM’s ETF lineup is available at www.firstasset.com.