CIBC to offer Renaissance Corporate Bond Fund to investors

The fund benefits from the research-driven approach of the experienced CIBC Global Asset Management Fixed Income Team, CIBC says.

CIBC AM also announced that, effective the close of business August 23, it will cease to allow new purchases and switches into Renaissance Corporate Bond Capital Yield Fund.

This is in response to the July 11 announcement by the Department of Finance on proposed transitional rules for the character conversion transactions announced in the 2013 Federal Budget. (See Investment Executive, Mutual funds: Character conversion, August 2013.)

The March 2013 federal budget proposed changes to eliminate “character conversion transactions” that use forward contracts to convert ordinary income to capital gains for tax purposes. The July 11, 2013 announcement proposed to extend the transition period in respect of forward agreements that were entered into before March 21, 2013 until the end of 2014. Given the proposed extension, CIBC Asset Management has determined it is in the best interest of existing unitholders to cap the Renaissance Corporate Bond Capital Yield Fund at this time.

CIBC Asset Management is responsible for the CIBC and Renaissance Investments families of mutual funds, Imperial Pools, Frontiers Pools and the CIBC family of managed portfolio solutions. It manages more than $60 billion in assets.