Lakeview Asset Management Inc. announced Tuesday that it plans to follow parent company CI Financial Income Fund in adopting fixed administration fees.
Lakeview proposed several changes to its mutual funds, including the establishment of fixed administration fees, which will result in more predictable expenses for the funds’ investors. Under the proposal, Lakeview will bear all of the future operating expenses of the funds, other than certain taxes, brokerage and borrowing costs and certain new governmental fees, in return for the fixed annual administration fees. Overall, the administration fees are being set at levels that are lower than the funds’ comparable expense ratios in 2006, the firm said.
“With this change, the costs to investors in the Lakeview funds will become more predictable and transparent. Currently, the operating expenses paid by the mutual funds are variable and not known to investors until their financial statements are released,” it added.
Lakeview became part of the CI Financial group of companies when CI acquired its parent company, Rockwater Capital Corp., in April. Fixed administration fees were pioneered by CI in September 2005.
“We believe that CI has achieved the industry’s lowest overall operating expenses and we have moved quickly to ensure that Lakeview investors will benefit from CI’s efficiency,” said Peter Anderson, CEO of Lakeview and executive vice-president of CI., in a news release.
Lakeview is also proposing to:
- discontinue charging performance fees on Lakeview KBSH Large Cap Explorer Fund and Lakeview KBSH Small Cap Explorer Fund; and
- change the investment objectives of Lakeview KBSH Large Cap Explorer Fund and Lakeview KBSH Equity Income Explorer Fund.
The changes are subject to the approval of unitholders at special meetings on July 13 in Toronto. If approved, all changes will take effect on August 1.