CIBC Mellon today announced that it has entered into a referral arrangement with Donaldson & Co., to launch a commission recapture program in Canada that will recapture a portion of trading commissions directly back to investment funds through a global broker network.

As part of the commission recapture program to be created under this referral arrangement, CIBC Mellon is pleased to introduce our clients to Donaldson & Co., a leading provider of specialized programs. Donaldson & Co. will establish and maintain the broker network, negotiate all commission recapture rates, collect and reconcile all recaptured commissions, prepare consolidated activity reports and provide a single point of contact for program service.

“Canadian equity returns over the last five years have materially increased the amount of money invested by Canadian investment managers on behalf of their clients,” said John Withers, managing director at Donaldson & Co. “Along with this higher level of investment activity comes higher commission charges because of the increased volume of shares purchased. Our commission recapture program can help institutional investors lower their trading costs – with the opportunity to achieve higher rates of return.”

“This program can help institutional investors potentially reclaim up to 70% of the trading costs associated with commission recapture directed trades,” said James Slater, CIBC Mellon’s senior vice president, capital markets. “ In addition to enhancing the transparency of trading costs and cost containment structures, the commission recapture product can assist institutional investors in improving fund governance.”

Donaldson & Co., a division of Knight Equity Markets, L.P., is a leading provider of commission recapture programs. Founded in 1984, Donaldson & Co. offers an extensive global network of brokers allowing investment managers flexibility in execution.

CIBC Mellon is a 50-50 joint venture between Canadian Imperial Bank of Commerce and Mellon Financial Corp.