(November 9 – 14:50 ET) – CIBC has introduced management fee rebates for its money market funds.

The rebates are intended to reward large investors in the bank’s money market funds, in consideration of the increased efficiency associated with larger accounts. These rebates follow on others that CIBC already offers to index fund investors.

The new rebates will reduce management expense ratios for investors with balances of more than $500,000 in the Premium Canadian T-Bill Fund, Money Market Fund, U.S. Dollar Money Market Fund and the High-Yield Cash Fund.

The rebates are offered on a tiered basis and will be delivered in the form of additional units of the funds. Rebates range from 0.16% on a balance of more than $500,000 in the Premium Canadian T-Bill Fund to 0.74% on balances greater than $1 million in the Money Market Fund and High-Yield Cash Fund.

“CIBC already offers some of the lowest MERs in the industry,” says Ted Cadsby, president and chief executive officer of CIBC Securities Inc. “With these new rebates, we’re allowing investors with high balances to benefit from lower fees, because our costs for servicing the larger accounts are lower.”
-IE Staff