Toronto-based CI Investments Inc. will be reducing management fees for 33 mutual funds and enhancing its CI preferred pricing program, under which management and/or administration fees are reduced automatically as an investor’s eligible assets reach certain thresholds.
Specifically, CI will reduce management fees ranging from five basis points (bps) to 55 bps on the 33 mutual funds, effective Aug. 1. Meanwhile, the minimum investment requirement to qualify for the CI preferred pricing program will be reduced to $100,000 from $150,000 for individuals and to $100,000 from $250,000 for family groups, effective Oct. 1.
“These are significant fee changes that will benefit hundreds of thousands of our investors,” says Roy Ratnavel, executive vice president and head of sales for CI, in a statement. “Investors will be accessing our actively managed investment solutions and the expertise of our leading portfolio management teams at a lower cost.”
CI is reducing management fees for Class A, F and P securities and certain CI preferred pricing tiers of selected funds, and for Series A, B and F securities of selected Sentry-branded funds. The reductions focus on fixed-income and global specialty equity mandates.
CI expects that the fund management fee reductions and changes to the CI preferred pricing program will have an annualized revenue impact amounting to approximately one basis point on the firm’s assets under management.
For a list of the changes affecting base management fees, please visit CI’s website.