Investors Group has announced proposed changes involving a number of mutual funds products, including fund mergers and investment objective and strategy changes.
In an announcement on March 15, Todd Asman, executive vice-president, products and financial planning, Investors Group, stated, "The proposed fund mergers will streamline our offering making it easier for clients to find appropriate products while the investment objective and strategy changes will help make risk management more responsive to market volatility."
Proposed fund mergers
Below are the proposed fund mergers, expected to take effect June 16, 2017, subject to receiving the required approvals:
Fee reductions
To ensure clients do not experience fee increases following the mergers, Investors Group says it will be reducing fees on several continuing funds. Many Allegro Portfolios and Allegro Portfolio Classes will have annualized fee reductions, ranging from a reduction of 0.25 to 8.6 basis points, as of June 1.
Investment objective changes
Investors Group also intends to change investment objectives and strategies for the following funds, as of May 23, to incorporate a more flexible asset allocation capability:
- 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. Investors Group says this is expected to result in more efficient portfolio management and reduced trading costs in some cases. These changes are expected to be effective May 29, 2017:
