CIBC Asset Management today announced that, effective July 6, 2005, it will reduce management expense ratios on its RSP clone funds by absorbing certain expenses payable by these funds. In addition, foreign content rebalancing will no longer take place on clients’ registered plans.
CIBC says it will also take steps to unwind derivatives of the RSP clone funds. The changes are a result of the federal budget’s elimination of foreign content limits for registered plans in Canada.
“The removal of the foreign property limit presents excellent opportunities for Canadian investors,” said Murray Douglas, senior vp, CIBC Asset Management, in a release. “Unwinding the derivatives and reducing MERs on clone funds is the right thing to do for our clients. We are moving quickly to implement these changes.”
With the reduction of MERs, an investment in an RSP clone fund will closely match the performance of the underlying fund. MERs will be reduced on the following funds:
- Renaissance Global Growth RSP Fund;
- Renaissance Global Opportunities RSP Fund;
- Renaissance Global Sectors RSP Fund;
- Renaissance Global Technology RSP Fund;
- Renaissance International Growth RSP Fund;
- Renaissance Tactical Allocation RSP Fund;
- Talvest China Plus RSP Fund;
- Talvest Global Equity RSP Fund;
- Talvest Global Health Care RSP Fund;
- Talvest Global Multi-Management RSP Fund;
- Talvest Global Science & Technology RSP Fund;
- Talvest Global Small Cap RSP Fund;
- Talvest International Equity RSP Fund;
- Talvest U.S. Equity RSP Fund.