Canada Life Investment Management (CLIM) will no longer offer the redemption charge and low-load purchase options, effective August 19, 2021. This change affects all applicable series of the Canada Life Funds.
CLIM says the removal of these options also applies to purchases of funds under systematic plans, such as pre-authorized contribution plans or dollar-cost averaging.
“Securities purchased under the redemption charge and low-load purchase options prior to the effective date may continue to be held in investor accounts and will continue to receive applicable distributions according to each Canada Life Fund's distribution policy,” CLIM says in a media release.
Clients who purchase a fund with an RC or LL option before the deadline will be able to switch to securities in another Canada Life fund, the mutual fund manager points out.
As of June 1, 2022, Canadian Securities Administrators (CSA) prohibits mutual fund manufacturers from paying trailing commissions to dealers. In fact, some insurers have decided to eliminate these fees before the new rules take effect.
New names and new sub-advisor
Canada Life Investment Management is also changing the names of several of its mutual funds and fund series. In addition, Mackenzie Financial Corporation will sub-advise the Canada Life Floating Rate Income Fund on or about August 19, 2021.
Here is the list of name changes, provided by Canada Life:
