CI proposes fixed administration fees
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CI Investments announced Sept. 25 a proposal to implement fixed administration fees for each series of 19 CI exchange-traded funds. This would replace the current variable operating expenses being charged to the ETFs.
If approved by securityholders, CI, as manager, will be responsible for the operating expenses of each ETF, other than certain expenses, in exchange for the payment by the ETF of a fixed administration fee.
Under the Proposal, the management expense ratio (MER) of each ETF series will consist of the management fee, the fixed administration fee, certain expenses and applicable taxes, says the company.
CI Investments says that “fixed administration fees have become a more common investment industry practice in recent years and offer several benefits to investors, including greater predictability and transparency of the MER for each ETF, as well as protection from potential increases in future operating expenses.”
The following is a list of the ETFs included in the proposal:
Meetings of securityholders will be held on Dec. 3, 2020, and if required, adjourned meeting(s) will be held on Dec. 10, 2020. If approved, the change to fixed administration fees will take effect on or before Jan. 1, 2021.