Toronto-based CI Investments Inc. on Thursday announced a proposal to merge 11 funds into other funds within its G5|20 Series.
The G5|20 funds are designed to provide investors with a guaranteed cash flow in retirement.
CI is proposing the mergers to streamline the lineup and retain certain tax efficiencies for the funds, the company’s announcement says.
In addition, the continuing funds will benefit from larger asset bases, thereby allowing more efficient risk management due to economies of scale.
The proposed mergers will result in unitholders of each terminating fund receiving an aggregate amount per guaranteed distribution that is equal to or higher than their current entitlement. There will be no changes to the guaranteed distributions payable to the unitholders of the continuing funds.
The CI Investments board of governors, acting in its capacity as the independent review committee for the funds, has reviewed the proposed mergers and provided a positive recommendation.
The costs and expenses associated with the mergers are being borne by CI, not the funds.
The proposed mergers require the approval of unitholders of the terminating funds. Meetings to vote on the proposals have been scheduled for Nov. 21. Pending unitholder and other required approvals, the mergers will take place at the close of business on or about Nov. 24.
The entire list of affected mutual funds is available on the firm’s news release.