Changes made across its mutual funds and private pools to
enhance investor offering, including new suite of lower-cost
passive portfolios
TORONTO, July 21, 2017 /CNW/ - CIBC (TSX: CM) (NYSE:
CM) -- To improve value and accessibility for Canadian
investors, CIBC Asset Management Inc. (CAM) is introducing a
suite of new, lower-cost CIBC Passive Portfolios. CAM is also
making changes to its investment lineup that include management fee
reductions, lower investment minimums and a simplified product
offering across its mutual funds lineup.
"Canadians are looking for value and choice when it comes to
investment solutions, which is why we made a number of enhancements
to our product lineup to improve cost and accessibility," says
David Scandiffio, President and CEO,
CIBC Asset Management. "The changes announced today are driven by
our clients' changing needs."
CIBC Passive Portfolios
As part of its commitment to offer diversified solutions to
Canadian investors, CAM is launching CIBC Passive Portfolios on
July 31, 2017. This new suite of
portfolios is competitively priced and has been designed to meet a
range of investor risk profiles. These portfolios will be available
to regular and fee-based investment accounts, and to self-directed
investors with accounts at CIBC Investor's Edge, a division of CIBC
Investor Services Inc.
Management fee reductions
To provide additional value to Canadian investors, CAM is
implementing management fee reductions of up to 40 basis points
(bps) on 18 funds across its mutual fund and private pool lineup
effective September 1, 2017. These
changes follow management fee reductions implemented in
September 2016.
In addition, CAM will waive a portion of its management fee or
absorb certain expenses, or both, on an additional 48 funds
(ranging from 5—40 bps) beginning September
1, 2017. The decision to continue to waive management fees
or absorb operating expenses is at the discretion of CAM.
Lower initial investment minimums
CAM is reducing the minimum initial investment on certain
investment solutions.
- The Renaissance Private Investment Program (RPIP) will have a
new minimum requirement of $100,000,
lowered from $150,000.
- Families with at least $250,000,
previously $500,000, in one or more
Renaissance Private Pools will be exempted from the minimum
requirement of $100,000 per pool.
- The minimum initial investment for Axiom Portfolios will be
reduced significantly from $25,000 to
$500. There are eight Axiom
Portfolios, and each managed solution provides diversification by
asset class, geographical region, investment style and market
capitalization.
The full details of the management fee reductions, and the
minimum investment and RPIP changes effective September 1, 2017, can be found here.
Termination of several mutual fund classes
To simplify its product offer, CAM is terminating several mutual
fund classes with relatively small asset size and a limited number
of unitholders.
- Effective end of business day today, classes designated for
termination will be closed to new purchases, including purchases
through regular investment plans. These classes will subsequently
be terminated on or about October 13,
2017.
- All investors of the terminating classes will be sent a written
notice of the termination at least 60 days prior to
October 13, 2017.
- Investors have the right to redeem or switch out of an affected
mutual fund class up to the close of business prior to the
effective date of termination and will not be required to pay any
redemption fees, sales charges or other fees associated with the
class termination.
CAM is also capping several mutual fund classes, which will be
closed to new purchases, including through regular investment
plans, effective September 1,
2017.
The full details of all mutual fund classes to be terminated and
capped can be found here.
About CIBC
CIBC is a leading Canadian-based global financial institution
with 11 million personal banking and business clients. Through our
three major business units—Retail and Business Banking, Wealth
Management and Wholesale Banking—CIBC offers a full range of
products and services through its comprehensive electronic banking
network, branches and offices across Canada with offices in the United States and around the world. You
can find other news releases and information about CIBC on our
corporate website at www.cibc.com/ca/media-centre/.
About CIBC Asset Management Inc.
CIBC Asset Management Inc., the asset management subsidiary of
CIBC, provides a range of high-quality investment management
services and solutions to retail and institutional investors.
Offerings include: a comprehensive platform of mutual funds,
strategic managed portfolio solutions, discretionary investment
management services for high-net-worth individuals and portfolio
management for institutional clients. CIBC Asset Management Inc. is
one of Canada's largest asset
management firms, with over $127
billion in assets under management as of May 31, 2017.
SOURCE CIBC