By James Langton

(January 3 – 13:15 ET) – AIM Funds Management Inc. has cut its segregated fund lineup to five. The move is in anticipation of regulatory changes that will boost the insurance costs of seg funds.

The firm says, “We have been notified that the insurance costs associated with providing the maturity and death benefit guarantees for the Trimark Seg Funds will increase as of Jan. 1, 2001.” This will in turn increase the costs charged to these funds, effective January 1.

AIM says that in response to the insurance cost changes, it and AIG Life of Canada worked together to provide options to seg fund unitholders. “As a result, we have determined that the most effective strategy to achieve these goals is to reduce the number of Trimark Seg Funds in existence to a small core group and to eliminate any redemption fees where applicable.”

As a result, the lineup has been cut to five core funds, one representing each core asset class:

  • Trimark Select Growth Seg Fund;
  • Trimark Select Canadian Growth Seg Fund;
  • Trimark Select Balanced Seg Fund;
  • Trimark Canadian Bond Seg Fund; and
  • Trimark Interest Seg Fund.