Toronto-based CI Investments Inc. is proposing to merge six funds into other funds with substantially similar mandates.
The aim of the fund mergers is to reduce duplication and to help streamline and simplify CI’s fund lineup, the firm says in a news release. In addition, the continuing funds will benefit from larger asset bases, allowing for increased portfolio diversification opportunities.
The list of the six funds being merged is available on CI’s website.
CI’s board of governors, acting in its capacity as the independent review committee for the funds, has reviewed the proposed mergers with respect to potential conflicts of interest and provided a positive recommendation, having determined that the mergers, if implemented, achieve a fair and reasonable result for each of the funds. CI will assume the costs and expenses associated with the mergers.
The merger of Signature Diversified Yield Fund into Signature Diversified Yield II Fund does not require securityholder approval and will be effected at the close of business on or about Dec. 2.
The remaining proposed mergers require the approval of the securityholders of the terminating funds. The approval of securityholders of two continuing funds – CI Short-Term Corporate Class and CI Global Corporate Class – is also required.
CI expects to mail meeting materials to securityholders in October and meetings to vote on the proposal have been scheduled for Nov. 24. Pending the applicable securityholder and regulatory approvals, the mergers will be effected at the close of business on or about Dec. 2.
In addition, CI Global Fund will be renamed Signature Global Equity Fund and CI Global Corporate Class will be renamed Signature Global Equity Corporate Class effective on or about Dec. 5 to reflect the fact that Signature Global Asset Management is the portfolio advisor to the funds.
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