Toronto-based Capital International Asset Management (Canada), Inc. is streamlining its lineup of mutual fund series and reducing fess for its embedded-commission offerings, the company announced Wednesday.
“Offering fewer series makes it easier for both advisors and unitholders to select and hold the most appropriate series,” the company says in a news release.
Capital Group plans to reduce the administration fee for Series A, AH and T4 units of its mutual funds, and redesignate Series E and EH units into corresponding Series A and AH units, subject to receiving a positive recommendation from its funds’ independent review committee.
The administration fee for Series A, T4, and AH will be reduced by up to 6 basis points to match the current administration fee for Series E or Series EH units. The new fees from 0.05% to 0.20%. This change is effective Oct. 1.
These lower administration fees are expected to result in lower management expense ratios for Series A, AH and T4 over time, the company says.
The redesignation of Series E and EH units will take place on or about Jan. 4, 2019. The two series will no longer be offered after the close of business on Dec. 31. The units will automatically change, at no cost, into corresponding Series A and AH units of the same fund. This change is not considered a disposition for tax purposes, the company says.
“We’re continuing efforts to streamline and pass along efficiencies to investors,” says Mark Tiffin, president and director of Capital Group in Canada, in a statement. “We remain committed to offering investors access to extensive global research at a low cost.”
Full details on these changes are available in the company’s news release.