Investors Group has proposed product changes, including fund mergers and investment objective and strategy changes, in an effort to streamline its offering.

Proposed fund mergers

The following proposed mergers are expected to take effect on or about the close of business on June 16, 2017, subject to all necessary approvals:

Merging fund Continuing fund
Investors Canadian Balanced Fund Investors Mutual of Canada
Investors Core Canadian Equity Fund IG Franklin Bissett Canadian Equity Fund
Investors Core Canadian Equity Class IG Franklin Bissett Canadian Equity Class
IG Templeton International Equity Fund IG Mackenzie Ivy European Fund
IG Templeton International Equity Class IG Mackenzie Ivy European Class
Investors International Equity Fund IG Mackenzie Ivy European Fund
Investors International Equity Class IG Mackenzie Ivy European Class
Investors Greater China Fund Investors Pan Asian Equity Fund
Investors Greater China Class Investors Pan Asian Equity Class
Alto Conservative Portfolio Allegro Conservative Portfolio
Alto Moderate Conservative Portfolio Allegro Moderate Conservative Portfolio
Alto Moderate Portfolio Allegro Moderate Portfolio
Alto Moderate Aggressive Portfolio Allegro Moderate Aggressive Portfolio
Alto Moderate Aggressive Canada Focus Portfolio Allegro Moderate Aggressive Portfolio
Allegro Moderate Aggressive Canada Focus Portfolio Allegro Moderate Aggressive Portfolio
Alto Aggressive Portfolio Allegro Aggressive Portfolio
Alto Aggressive Canada Focus Portfolio Allegro Aggressive Portfolio
Allegro Aggressive Canada Focus Portfolio Allegro Aggressive Portfolio
Allegro Balanced Growth Canada Focus Portfolio Class Allegro Balanced Growth Portfolio Class
Allegro Growth Canada Focus Portfolio Class Allegro Growth Portfolio Class

Fee reductions

To ensure clients won’t experience any increase in fees as a result of the mergers, Investors Group will reduce fees on a number of continuing funds. As of June 1, several of the Allegro Portfolios and Allegro Portfolio Classes, below, will have annualized fee reductions of between 0.25 and 8.6 basis points, regardless of whether the mergers are approved.

Fund Total fee reduction (basis points) Types of fees affected
Allegro Aggressive Portfolio (all series) 8.6 Management fee

Trustee fee

Administration fee

Allegro Conservative Portfolio (all series) 1.8 Management fee
Allegro Moderate Aggressive Portfolio (all series) 2.7 Management fee

Administration fee

Allegro Moderate Conservative Portfolio (all series) 4.3 Management fee
Allegro Moderate Portfolio (all series) 0.25 Trustee fee
Fund Total fee reduction (basis points) Types of fees affected
Allegro Balanced Growth Portfolio Class – Series U and Tu

Allegro Balanced Growth Portfolio Class (all other series)

7.8

8.0

Management fee

Administration fee

Service fee

Allegro Balanced Portfolio Class (all series) 2.0 Management fee

Administration fee

Allegro Growth Portfolio Class (all series) 1.0 Administration fee
Allegro Income Balanced Portfolio Class – Series U and Tu

Allegro Income Balanced Portfolio Class (all other series)

4.7

5.0

Management fee

Service fee

Proposed investment objective changes

Effective on or about the close of business on May 23, 2017, subject to all necessary approvals, Investors Group proposes to change the investment objectives and strategies for the funds listed below to incorporate a more flexible asset allocation capability.

Fund
Allegro Conservative Portfolio
Allegro Moderate Conservative Portfolio
Allegro Moderate Portfolio
Allegro Moderate Aggressive Portfolio
Allegro Aggressive Portfolio
Alto Monthly Income Portfolio
Alto Monthly Income & Growth Portfolio
Alto Monthly Income & Enhanced Growth Portfolio

Investment objective changes are also proposed for the classes listed below so that they may invest in their corresponding funds. This is expected to result in more efficient portfolio management and reduced trading costs in some instances. These changes are expected to be effective after the close of business on or about May 29, 2017, subject to all necessary approvals.

Class                                                                                        Corresponding fund
Allegro Income Balanced Portfolio Class Allegro Moderate Conservative Portfolio
Allegro Balanced Portfolio Class Allegro Moderate  Portfolio
Allegro Balanced Growth Portfolio Class Allegro Moderate Aggressive Portfolio
Allegro Growth Portfolio Class Allegro Aggressive Portfolio
IG Franklin Bissett Canadian Equity Class IG Franklin Bissett Canadian Equity Fund
IG Mackenzie Ivy European Class IG Mackenzie Ivy European Fund
Investors Pan Asian Equity Class Investors Pan Asian Equity Fund

Also read:

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Originally published on Advisor.ca

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