CI Mutual Funds Inc. is proposing to lower costs and increase transparency for investors by instituting a fixed administration fee for its mutual funds.

CI says it will take on the operating expenses–excepting taxes and new governmental fees–in exchange for fixed administration fees, which will be lower than the funds’ operating expenses.

If the changes are approved, the management expense ratio for each class of units or shares of each fund ought to be quite unchanging. The MER is the sum of each class’ management fee, administration fee and taxes.

The proposal states administration fees will be set at 0.20% for Canadian equity funds, 0.21% for U.S. equity funds, 0.22% for global equity and specialty funds, 0.17% to 0.20% for income funds, and 0.17% to 0.22% for balanced and portfolio funds. The projected administration fees will be 36% lower than funds’ operational expenses in 2004.

The proposal also highlights the amount of governmental sales tax Canadians pay on their retirement savings by the federal government. CI also hopes its new method will allow for investors to more easily compare the cost of CI funds with others’.

The proposal has already been approved by CI Mutual Funds Board of Governors, but it intends to send out a circular and proxy to securityholders of all of its public mutual funds for the proposal in August seeking their approval. If approved the new fees will take effect on September 1, 2005.