Toronto-based CIBC Asset Management Inc. (CIBC AM) announced on Friday plans to launch a set of new, low-cost CIBC Passive Portfolios and shaking up its investment line up.
CIBC Passive Portfolios are designed to accommodate a range of investor risk levels and will be accessible to regular and fee-based investment accounts as well as self-directed investors with accounts at CIBC’s Investor’s Edge, a division of CIBC Investor Services Inc. The portfolios will be available to investors starting July 31.
Furthermore, CIBC AM will reduce certain management fees, lower several investment minimums and terminate multiple mutual fund classes.
“Canadians are looking for value and choice when it comes to investment solutions, which is why we made a number of enhancements to our product line up to improve cost and accessibility,” says David Scandiffio, president and CEO, CIBC AM, in a statement.
The management fee reductions of up to 40 basis points on 18 funds across the firm’s mutual fund and private pool roster will take effect Sept. 1.
The following changes to investment minimums will also be implemented Sept.:
- Renaissance Private Investment Program will have a new minimum requirement of $100,000, down from $150,000.
- Families with at least $250,000, formerly $500,000, in at least one of the Renaissance Private Pools will be exempted from the minimum requirement of $100,000 per pool.
- The minimum initial investment for Axiom Portfolios will be lowered significantly to $500from $25,000.
Lastly, the firm hopes to simplify its product shelf by closing multiple mutual fund classes with a small asset size and a limited number of unitholders. Investors will receive a written notice of the termination at least 60 days prior to the termination date of Oct. 13.
An entire list of details regarding investment changes is available on the firm’s news release.