Investors Group announces mutual fund changes

Investors Group announces mutual fund changes

Winnipeg, MB – June 15, 2017: Investors Group has announced a number of proposed changes to its mutual fund offering that will allow quicker response to changing market conditions and help ensure client investments continue to be well positioned for growth.

“These changes will improve our ability to ensure client portfolios are best aligned to address their unique needs,” said Todd Asman, Executive Vice-President, Products and Financial Planning. “Our pursuit of excellence in investment and portfolio management is fuelled by our strong commitment to putting clients first.”

In addition, Investors Group will be making slight fee reductions on a number of funds.

Proposed Fund Mergers

The following proposed mergers are expected to take effect on or about the close of business on September 8, 2017, subject to all necessary approvals.

Existing Fund (Merging Fund)

To be merged into (Continuing Fund)

Investors Canadian Balanced Fund

Investors Mutual of Canada

Investors Core Canadian Equity Fund

IG Franklin Bissett Canadian Equity Fund

IG Templeton International Equity Fund

IG Mackenzie Ivy European Fund

Investors International Equity Fund

IG Mackenzie Ivy European Fund

Investors Greater China Fund

Investors Pan Asian Equity Fund

Alto Conservative Portfolio

Allegro Conservative Portfolio

Alto Moderate Conservative Portfolio

Allegro Moderate Conservative Portfolio1

Alto Moderate Portfolio

Allegro Moderate Portfolio1

Alto Moderate Aggressive Portfolio

Allegro Moderate Aggressive Portfolio1

Alto Moderate Aggressive Canada Focus Portfolio

Allegro Moderate Aggressive Portfolio1

Allegro Moderate Aggressive Canada Focus Portfolio

Allegro Moderate Aggressive Portfolio1

Alto Aggressive Portfolio

Allegro Aggressive Portfolio1

Alto Aggressive Canada Focus Portfolio

Allegro Aggressive Portfolio1

Allegro Aggressive Canada Focus Portfolio

Allegro Aggressive Portfolio1

Proposed Investment Objective Changes

  1. Investors Group proposes to change the investment objectives and strategies of specific funds by allowing them to invest in fixed income, equity and/or other asset classes within disclosed ranges. This is expected to allow quicker response to changing market conditions. The changes, effective on or about September 6, 2017, subject to all necessary approvals, affect the following funds:

     

    Fund

    Fund name as of July 14

    Allegro Conservative Portfolio

    Allegro Income Portfolio

    Allegro Moderate Conservative Portfolio

    Allegro Income Balanced Portfolio

    Allegro Moderate Portfolio

    Allegro Balanced Portfolio

    Allegro Moderate Aggressive Portfolio

    Allegro Balanced Growth Portfolio

    Allegro Aggressive Portfolio

    Allegro Growth Portfolio

    Alto Monthly Income Portfolio

    No change

    Alto Monthly Income & Growth Portfolio

    No change

    Alto Monthly Income & Enhanced Growth Portfolio

    No change

  2. Investment objective and/or strategy changes are also proposed for specific Corporate Classes so that they may invest in the corresponding unit trust fund versions.  This is expected to result in more efficient portfolio management and reduced trading costs in most instances. These changes are expected to be effective on or about September 6, 2017, subject to all necessary approvals.

    Class

     

    Fund

    IG Franklin Bissett Canadian Equity Class

    To invest into

    IG Franklin Bissett Canadian Equity Fund

    Investors Core Canadian Equity Class

    To invest into

    IG Franklin Bissett Canadian Equity Fund

    IG Mackenzie Ivy European Class

    To invest into

    IG Mackenzie Ivy European Fund

    Investors International Equity Class

    To invest into

    IG Mackenzie Ivy European Fund

    IG Templeton International Equity Class

    To invest into

    IG Mackenzie Ivy European Fund

    Investors Pan Asian Equity Class

    To invest into

    Investors Pan Asian Equity Fund

    Investors Greater China Class

    To invest into

    Investors Pan Asian Equity Fund

    Some of the Corporate Classes named above are undergoing name changes effective on or about September 6, 2017.  These Classes will be closed to new investments other than reinvested distributions and dividends, and existing pre-authorized contribution (PAC) arrangements at that time with the exception of Investors Core Canadian Equity Class, which will be closed on or about September 8.

    Current fund name

    Fund name as of September 6

    Investors Core Canadian Equity Class

    IG Franklin Bissett Canadian Equity Class II

    Investors International Equity Class

    IG Mackenzie Ivy European Class II

    IG Templeton International Equity Class

    IG Mackenzie Ivy European Class III

    Investors Greater China Class

    Investors Pan Asian Equity Class II

  3. Effective on or about September 6, 2017, subject to all necessary approvals, Investors Group is also proposing to change the investment objectives for Allegro Balanced Growth Canada Focus Portfolio Class and Allegro Growth Canada Focus Class to increase the geographic diversification.

    To reflect this shift in focus, the Corporate Classes are undergoing name changes. These Classes will also be closed to new investments other than reinvested distributions and dividends, and for existing pre-authorized contribution (PAC) arrangements at that time. 

    Fund

    Fund name as of September 6

    Allegro Balanced Growth Canada Focus Portfolio Class

    Allegro Balanced Growth Portfolio Class II

    Allegro Growth Canada Focus Portfolio Class

    Allegro Growth Portfolio Class II

Fee Reductions

As of September 1, 2017, several funds will have fee reductions totalling between 0.25 and 8.6 basis points on an annualized basis. Additional details are available in the accompanying Appendix.

Securityholder meetings

The above mergers and investment objective and strategy changes are subject to securityholder approval.  Securityholders of record as at July 7, 2017, will be asked to approve the changes involving their funds at meetings scheduled for 10:00 a.m. on August 31 at Investors Group’s head office in Winnipeg.

This is not a solicitation to purchase securities of these funds.  Commissions, trailing commissions, management fees and expenses all may be associated with mutual funds investments.  Please read the prospectus of the mutual funds, including mutual funds in which investment may be made under the iProfile Managed Asset Program (if applicable) before investing.  Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer.  There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you.  Past performance may not be repeated.  These funds are distributed across Canada by Investors Group Financial Services Inc., (in Quebec, a financial services firm) and Investors Group Securities Inc. (in Quebec, a firm in financial planning).

Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of over 5,100 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with over $145 billion in total assets under management as of January 31, 2015.

TM This trademark is owned by IGM Financial Inc. and licensed to its subsidiary corporations.

1 Allegro Portfolio funds are undergoing name changes effective on or about July 14, 2017. See Proposed Investment Objective Changes (1) for details.

For more information contact:

Ron Arnst
Investors Group
(204) 956-3364
ron.arnst@investorsgroup.com

Appendix

Effective September 1, 2017, the following Investor Group funds will have annualized fee reductions as indicated:

Fund

Total fee reduction
(basis points)

Types of fees affected

Allegro Aggressive Portfolio
(all retail series)

8.6

Management fee
Trustee fee
Administration fee

Allegro Conservative Portfolio
(all retail series)

1.8

Management fee

Allegro Moderate Aggressive Portfolio
(all retail series)

2.7

Management fee
Administration fee

Allegro Moderate Conservative Portfolio
(all retail series)

4.3

Management fee

Allegro Moderate Portfolio
(all retail series)

0.25

Trustee fee

Allegro Balanced Growth Portfolio Class – Series U and Tu

Allegro Balanced Growth Portfolio Class (all other retail series)

7.8

 

8.0

Management fee
Administration fee

Management fee
Administration fee
Service fee

Allegro Balanced Growth Canada Focus Portfolio Class – Series U and TU

Allegro Balanced Growth Canada Focus Portfolio Class (all other retail series)

6.8

 

7.0

Management fee
Administration fee

 

Management fee
Administration fee
Service fee

Allegro Balanced Portfolio Class
(all retail series)

2.0

Management fee
Administration fee

Allegro Growth Portfolio Class
(all retail series)

1.0

Administration fee

Allegro Income Balanced Portfolio Class – Series U and Tu

Allegro Income Balanced Portfolio Class (all other retail series)

4.7

 

5.0

Management fee

 

Management fee
Service fee

IG Templeton International Equity Class (all retail series)

5.0

Management fee

Investors Greater China Class (all retail series)

5.0

Management fee

Effective June 30, 2017, the following fees will be reduced for all series (except iProfile) of Investors Canadian Money Market Class:

  • Annual management fee from 1.05% to 1.00%
  • Annual administration fee from 0.10% to 0.06%