CI Investments Inc. says that unitholders in its mutual funds today voted overwhelmingly in favour of its proposal to set the operating expenses of the funds at a fixed level.

The change will result in lower and more predictable costs for investors.

Under the new system, which takes effect September 1, CI is fixing the operating expenses at a new lower level. This fixed amount is called an administration fee. As a result of this change, the management expense ratio or MER for each class of units or shares will remain stable for future years, and will consist of the sum of each fund’s management fee, administration fee and taxes.

“This is a ground-breaking initiative that brings a new level of transparency to our industry,” said Peter Anderson, CI president and CEO, in a release.

The typical practice in the fund industry is that investors do not know the operating expenses of a fund until it releases financial statements.

The plan effectively creates a cap on MERs, as CI will absorb any operating costs that exceed the published administration fee, with the exception of any new taxes or fees introduced by regulators or governments.

The new administration fees have been set, on average, 36% lower than the funds’ actual operating expenses for 2004.

“CI has achieved what we believe are the industry’s lowest overall operating expenses, thanks to our efficient administration,” said Anderson. “We are now committed to achieving additional savings for investors and locking in those savings for future years.”

The new administration fees are set at 0.20% of assets 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.

In a releated move, United Financial Corp. announced that unitholders in its Artisan Portfolios and United Pools today voted overwhelmingly in favour of its proposal to set the operating expenses of the Artisan Portfolios and the United Pools at fixed levels.

Effective September 1, the operating expenses will be set at 0.17% to 0.22%, depending on the pool or portfolio.

“Along with our parent company, CI Financial, we are introducing transparent pricing and consistency into the marketplace,” said Steven Donald, president and COO of United Financial.