Briefly: ‘CI proposes fund mergers’ and more news

By Staff | June 11, 2010 | Last updated on June 11, 2010
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CI Investments has announced the merger of several mandates within the United Financial Artisan Portfolios, as well as several more under the Institutional Managed Portfolios brand.

“The mergers will streamline and simplify our lineup while putting investors into funds that offer enhanced tax efficiency through CI’s Corporate Class structure,” said Derek J. Green, president and CEO of CI Investments. “Our clients’ overall market exposure will continue to be consistent with their individual preferences.”

The merger would see the following funds terminated, with assets merged into the corresponding fund:

Terminating fund Continuing fund
Artisan Most Conservative Portfolio Portfolio Series Conservative Fund
Artisan Conservative Portfolio Portfolio Series Conservative Balanced Fund
Artisan Moderate Portfolio Portfolio Series Balanced Fund
Artisan Growth Portfolio Portfolio Series Balanced Growth Fund
Artisan High Growth Portfolio Portfolio Series Growth Fund
Artisan Maximum Growth Portfolio Portfolio Series Maximum Growth Fund
Artisan Canadian T-Bill Portfolio CI Money Market Fund
Artisan New Economy Portfolio Portfolio Series Maximum Growth Fund

The following Institutional Managed Portfolios will be merged with Portfolio Select Series:

Terminating fund Continuing fund
Institutional Managed Income Pool Select Income Advantage Managed Corporate Class
Institutional Managed Canadian Equity Pool Select Canadian Equity Managed Corporate Class
Institutional Managed US Equity Pool Select US Equity Managed Corporate Class
Institutional Managed International Equity Pool Select International Equity Managed Corporate Class

The assets of the terminating fund will be sold in return for units or shares (as applicable) of the respective continuing CI funds. Each investor will receive their proportionate number of units or shares of the equivalent market value in the continuing CI funds.

CI is also proposing the mergers of Select Income Managed Corporate Class into Select 100i Managed Portfolio Corporate Class, with the resulting fund renamed as the Select Income Advantage Managed Corporate Class. The portfolio will be managed primarily by Signature Global Advisors and by Trilogy Global Advisors, LLC.

Each merger is subject to the approval of securityholders of the terminating funds, regulators, and of the CI Board of Governors, which acts as the Independent Review Committee for the United and CI funds. An investor meeting will be held on August 12, 2010.

• • •

Russell report: Feds cover almost 70% of retirement costs

According to the ‘Spending Patterns in Retirement’ report by Russell Investments Canada, 70% of retirement income comes from government transfers.

The report also states that average annual income of retirees aged 65 to 74 is $35,200. Government transfers such as Canada Pension Plan and Old Age Security make up $18,300 of that annual income. In comparison, higher net worth retirees aged 65 to 74 with average annual incomes of $82, 800 received $19,900 in government transfers. These government transfers are generally not sufficient to cover all of the essentials of retirement – almost 70% coverage for the average retiree, and 39% for higher-income retirees.

Dining-out and vacationing are the two largest lifestyle expenditures among retirees aged 65 to 74.

Russell research also unveiled that 58% of Canadians are “very or somewhat” concerned about outliving their money 10 years leading up to retirement. However, once they actually reach their retirement date, that figure drops to 38% of those who are concerned. Furthermore, only 29% of retirees are overly concerned about outliving their money after the first and second year of retirement. That number drops to 18% after 10 years into retirement.

(06/10/11) staff


The staff of have been covering news for financial advisors since 1998.