CI Mutual Funds Inc. today announced portfolio management changes to six funds and a proposal to merge five Clarica-branded mutual funds.

“These changes reflect CI’s ongoing commitment to streamlining its lineup of funds and portfolio managers,” said Peter Anderson, resident and CEO of CI. “We are creating stronger, more efficient funds and putting them in the hands of the best available investment managers.”

The portfolio management changes are effective immediately. First, CI’s Harbour Funds Group has been named portfolio advisor to Clarica Balanced Fund, Clarica Canadian Large Cap Value Fund and Clarica Global Large Cap Value Fund, replacing AIM Funds Management Inc. Gerald Coleman, Chief Investment Officer of Harbour, is lead manager of the three funds, while Stephen Jenkins is co-manager of Clarica Global Large Cap Value Fund.

CI says it is making the change because it is proposing to merge the three funds, which have total assets of just $98 million, into other Clarica-branded funds that are already managed by Harbour using its proven value-oriented approach.

Second, Sionna Investment Managers Inc. has been named portfolio advisor to CI Canadian Small Cap Fund, with $244 million in assets, as well as the Canadian small-cap value portions of Synergy Canadian Style Management Class and Synergy Tactical Asset Allocation Fund. Kim Shannon, Chief Investment Officer of Sionna, and Teresa Lee are the portfolio managers. Sionna replaces Robert Tattersall of Howson Tattersall Investment Counsel Ltd., which has resigned from these mandates. The overall investment style of the funds will not change, as Sionna uses a disciplined value approach.

Meanwhile, CI is proposing to merge five smaller funds sold under the Clarica banner into larger funds with similar mandates. Furthermore, each fund has the same portfolio manager as the fund into which it is being merged. The proposed mergers are as follows:

  • Clarica Balanced Fund merged with Clarica Summit Growth and Income Fund;
  • Clarica Canadian Large Cap Value Fund merged with Clarica Summit Canadian Equity Fund;
  • Clarica Global Large Cap Value Fund merged with Clarica Summit Foreign Equity Fund;
  • Clarica Global Bond Fund merged with CI Global Bond Fund;
  • Clarica Alpine Canadian Resources Fund merged with Signature Canadian Resource Fund.

The mergers are subject to regulatory and unitholder approval. If approved, the mergers will be completed November 29, 2004.

In addition, the mergers will result in changes to the names and underlying funds of two Clarica segregated funds, effective November 29, 2004:

  • Clarica SF Global Bond Fund will have its name changed to Clarica SF CI Global Bond Fund and its underlying fund will be CI Global Bond Fund;
  • Clarica SF Alpine Canadian Resources Fund will have its name changed to Clarica SF CI Signature Canadian Resource Fund and its underlying fund will be Signature Canadian Resource Fund.

The investment mandates of the segregated funds will not change and policyholders’ contracts will not be affected.