Deferred sales charge purchase option to be discontinued
Winnipeg MB – September 19, 2016: Investors Group will be discontinuing the deferred sales charge (DSC) purchase option for its mutual funds effective January 1, 2017. At the same time, fees on no-load (NL) funds will be reduced.
“DSC was created to provide discipline to long term investing but the marketplace has evolved,” said Investors Group President and CEO Jeffrey R. Carney. “We remain confident that our comprehensive approach to financial planning will continue to encourage positive outcomes for clients.”
Beginning in 2017, consumers will be able to purchase no-load funds at an annualized fee reduction of between 4 and 10 basis points on the majority of Investors Group mutual funds. This will be an annualized weighted average annual fee reduction of approximately 8 bps on the $11.4 billion in assets under management currently residing within the affected no-load series.
Additional details are available in the accompanying background document.
Effective January 1, 2017, the DSC purchase option of Investors Group’s funds will be closed to all new lump sum investments. (N.B. this option refers to the payment of a redemption fee on a declining basis if the client redeems their investments within a certain number of years).
- The DSC purchase option will continue to be available for pre-authorized contribution plans established before January 1, 2017 until on or about June 30, 2017. DSC fees will not apply to purchases under pre-authorized contribution arrangements after December 31, 2016.
Beginning in 2017, consumers will be able to purchase no-load funds at an annualized fee reduction of between 4 and 10 basis points on the majority of Investors Group Funds. This will be an annualized weighted average annual fee reduction of approximately 8 bps on the $11.4 billion in assets under management currently residing within the affected no load series.
- This change represents a reduction of 4 - 10 bps in service fees on balanced and equity products and 5 bps in administration fees on fixed income.
- For Series U equity and balanced products the reduction of 4 – 10 bps applies to the management fee.
- The no-load purchase option changes apply to Series B, B-RDSP, TNL, JNL, TJNL, U, and TU.
- Series U units of Investors Real Property Fund will remain open, but purchases of Series U units made after December 31, 2016 will no longer be subject to DSC fees, unless the investment was switched into Series U from an investment that was subject to a DSC schedule.
- For the no-load purchase option of Series C and TC, eligibility for service fee refunds will be aligned with the DSC purchase option of those series.
The DSC purchase option will still be available for reinvested distributions, switches from existing assets acquired under the DSC purchase option and for Management fee and expense reductions that are reinvested into shares of the classes. DSC purchase option changes apply to Series A, A- RDSP, TDSC, JDSC, and TJDSC, as well as the DSC purchase options available for Series C , Tc, Investors Canadian Money Market Fund, or any single series Investors Group Fund.
September 19, 2016