CI Fund Management Inc. today announced plans to reorganize its lineup. The changes include a proposal to merge 16 mutual funds, changes of underlying mutual funds for 16 segregated funds, name changes for a number of mutual and segregated funds, and a change of portfolio management for one mutual fund.

“These plans are consistent with CI’s ongoing commitment to providing an industry-leading selection of high-quality funds operating as efficiently as possible,” says Peter Anderson, CI president and CEO.

“With these moves, we are streamlining our lineup while completing the integration of the Clarica-branded mutual funds into the CI lineup. Altogether, we will be offering Canadian investors a clearer, stronger set of investment options.”

CI is proposing to merge 16 mutual funds into other CI funds, as follows:

  • Clarica Premier Bond Fund merged with CI Canadian Bond Fund;
  • Clarica Summit Dividend Growth Fund merged with Signature Select Growth Fund;
  • Clarica Canadian Blue Chip Fund merged with Signature Select Canadian Fund;
  • Clarica Canadian Diversified Fund megered with Signature Canadia Balanced Fund;
  • Clarica Summit Canadian Equity Fund meged with Harbour Fund;
  • Clarica Summit Growth and Income Fund merged with Harbour Growth & Income Fund;
  • Clarica Summit Foreign Equity Fund merged with Harbour Foreign Equity Fund;
  • Clarica Canadian Equity Fund merged with CI Canadian Fund;
  • Clarica Premier International Fund merged with CI International Value Fund;
  • Clarica US Small Cap Fund merged with CI American Small Cos. Fund;
  • CI Canadian Small Cap Fund merged with Clarica Canadian Small/Mid Cap Fund. The fund is to be renamed CI Canadian Small/Mid Cap Fund on or about June 21;
  • CI Asian Dynasty Fund merged with CI Pacific Fund;
  • BPI Global Equity Corp. Class merged with CI Global Corp. Class;
  • BPI International Equity Funds merged with CI International Fund;
  • BPI International Equity RSP Fund merged with CI International RSP Fund; and;
  • BPI International Equity Corp. Class merged with CI International Equity Corp. Class.

CI says that under the proposal, all of the funds being merged have similar investment objectives and strategies to the funds into which they are being merged.

In addition, each terminating fund has the same portfolio advisor as its continuing fund, with one exception. Currently, UBS Global Asset Management (Canada) Co. is the portfolio advisor to Clarica Canadian Small/Mid Cap Fund, a continuing fund, and Sionna Investment Managers Inc. is the portfolio advisor to CI Canadian Small Cap Fund, its terminating fund. CI has appointed Sionna to replace UBS as portfolio advisor to Clarica Canadian Small/Mid Cap Fund on June 12, with Kim Shannon and Teresa Lee as lead portfolio managers. As a result, prior to the proposed merger, Sionna will be the portfolio advisor to both Clarica Canadian Small/Mid Cap Fund and CI Canadian Small Cap Fund.

CI says it has structured the mutual fund mergers to ensure that the management fee of each continuing fund is the same as or lower than its terminating fund.

Special meetings of the terminating funds will be held in Toronto on or about July 28, at which investors in the terminating funds will vote on the proposed mergers. If the mergers are approved at the special meetings, they will take effect on or about August 2.

CI also plans to rename the remaining three Clarica-branded mutual funds as CI funds:

  • Clarica Premier Mortgage Fund will be renamed CI Mortgage Fund;
  • Clarica Alpine Growth Equity Fund will be renamed CI Alpine Growth Equity Fund;
  • and Clarica Canadian Small/Mid Cap Fund will be renamed CI Canadian Small/Mid Cap Fund.

As part of the rebranding, these three funds will become available for purchase through all advisors, on or about June 21. Previously, Clarica-branded funds were offered only through Clarica advisors.

As a result of the mergers outlined above and the three name changes, CI will no longer use the Clarica brand name on any of its mutual funds. It has been CI’s intention to gradually phase out the use of the Clarica brand on its mutual funds since it purchased Clarica Diversico Ltd. in 2002.

The mutual fund mergers will result in changes to the underlying funds of 11 Clarica Portfolio Segregated Funds, one CI Guaranteed Investment Fund (BPI International Equity Guaranteed Investment Fund) and one BPI Legacy Fund (BPI International Equity Segregated Fund). The names of the segregated funds also will be changed following the mergers to reflect the new underlying funds.

There will also be a change in the underlying funds for three Clarica Portfolio segregated funds from Fidelity mutual funds to substantially similar CI mutual funds.