Realignment of trailing commissions and reduction in
management fees, a portfolio sub-advisor change and amendments to
the risk rating of select funds announced
TORONTO, June 27, 2016 /CNW/ - CIBC (TSX: CM)
(NYSE: CM) -- CIBC Asset Management Inc. today announced a
number of changes across its mutual fund lineup.
Reductions in annual trailing commissions and management
fees
CIBC Asset Management will implement reductions in annual
trailing commissions and management fees across select series of
its mutual fund lineup to achieve greater consistency across its
product platform. The changes will be effective on September 1, 2016 for Renaissance Investments
fund families and September 6, 2016
for CIBC Family of Funds.
For full details of the fee changes, please see the attached
document.
"We are adjusting fees in order to offer a simpler and more
consistent pricing approach for our clients and our advisor
partners," says David Scandiffio,
President of CIBC Asset Management. "With a number of pricing
options to support advice for clients under various models, our
commitment is to be flexible, competitive and consistent when it
comes to the cost of owning actively managed investment
solutions."
Portfolio sub-advisor change
Wasatch Advisors Inc. (Wasatch)
has been appointed as portfolio sub-advisor for the Renaissance
Global Small-Cap Fund, effective on or about August 1, 2016. Based in Salt Lake City, Utah, Wasatch is a
dedicated small-cap boutique with more than 30 years of history
managing across the spectrum of micro and small-cap strategies.
Renaissance Global Small-Cap Fund is an underlying investment of
Renaissance Optimal Global Equity Portfolio and Renaissance Optimal
Global Equity Currency Neutral Portfolio.
Risk rating changes
Based on an annual review, the risk rating associated with five
funds has been adjusted:
Fund
|
Current Risk
Rating
|
New
Rating
|
Axiom Canadian Growth
Portfolio
|
Medium
|
Low to
Medium
|
Axiom Foreign Growth
Portfolio
|
Medium
|
Low to
Medium
|
Renaissance Canadian
Monthly Income Fund
|
Medium
|
Low to
Medium
|
Renaissance High
Income Fund
|
Low to
Medium
|
Medium
|
CIBC Global Monthly
Income Fund
|
Medium
|
Low to
Medium
|
These risk rating changes will be reflected in an amendment to
the Renaissance Investments family of funds and Axiom Portfolios
Simplified Prospectus and in the renewal of the simplified
prospectus of the CIBC Mutual Funds and CIBC Family of Managed
Portfolios, which are both scheduled to be filed on or about
June 29, 2016.
CIBC Asset Management follows a risk classification methodology
based on the approach recommended by the Investment Funds Institute
of Canada. Each fund's risk rating
is reviewed on an annual basis, or when the fund undergoes a
material change. No material changes have been made to the
investment objectives, strategies or management of the affected
funds.
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 Capital Markets – 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
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 is one
of Canada's largest asset management firms, with
over $110 billion in assets under management as of March
31, 2016.
SOURCE CIBC World Markets