TORONTO, March 25, 2022 /CNW/ - CIBC (TSX: CM) (NYSE: CM), as manager, today announced the introduction of a fixed administration fee for the CIBC Mutual Funds and CIBC Family of Portfolios* (each, a "fund" and collectively, the "funds") listed in Appendix A of this release, replacing the variable operating expenses currently being charged to these funds (the "administration fee").
Effective July 1, 2022, CIBC will be responsible for the operating expenses of each fund, other than certain expenses, in exchange for the payment by the fund of a fixed administration fee. The administration fee will apply to all classes of each fund, with the exception of Class O, as applicable.
The benefits to unitholders of the administration fee include greater predictability and transparency of the management expense ratio ("MER") of each class of the funds, which will consist of the management fee, the administration fee, certain expenses and applicable taxes. Prior to applicable taxes, the MER of each class of each fund is also expected to be less than or equal to the most recently published MER. Unitholders will also gain a protection from potential increases in future operating expenses. The Independent Review Committee of the funds has reviewed the introduction of a fixed administration fee with respect to the potential conflict of interest matters and provided its positive recommendation, having determined that the fixed administration fee achieves a fair and reasonable result for each fund.
Unitholders in the following classes of the funds do not need to approve the administration fee. They will be provided with at least 60 days' notice before the implementation of the change, in accordance with applicable securities law:
Funds | Classes |
CIBC Mutual Funds and CIBC Family of Portfolios* | Class A, Class T4, Class T6, Class T8, Premium Class, Class F, Class FT4, Class FT6, Class FT8, and Class F-Premium units. |
* excluding the CIBC Sustainable Investment Strategies, CIBC Smart Investment Solutions and CIBC Passive Portfolios which already have fixed administration fees.
Appendix A
CIBC Mutual Funds CIBC Canadian T-Bill Fund CIBC Money Market Fund CIBC U.S. Dollar Money Market Fund CIBC Short-Term Income Fund CIBC Canadian Bond Fund CIBC Monthly Income Fund CIBC Global Bond Fund CIBC Global Monthly Income Fund CIBC Balanced Fund CIBC Dividend Income Fund CIBC Dividend Growth Fund CIBC Canadian Equity Fund CIBC Canadian Equity Value Fund CIBC Canadian Small-Cap Fund CIBC U.S. Equity Fund CIBC U.S. Small Companies Fund CIBC Global Equity Fund CIBC International Equity Fund CIBC European Equity Fund CIBC Emerging Markets Fund CIBC Asia Pacific Fund CIBC International Small Companies Fund CIBC Financial Companies Fund CIBC Canadian Resources Fund CIBC Energy Fund CIBC Canadian Real Estate Fund | CIBC Precious Metals Fund CIBC Global Technology Fund CIBC Canadian Short-Term Bond Index Fund CIBC Canadian Bond Index Fund CIBC Global Bond Index Fund CIBC Balanced Index Fund CIBC Canadian Index Fund CIBC U.S. Broad Market Index Fund CIBC U.S. Index Fund CIBC International Index Fund CIBC European Index Fund CIBC Emerging Markets Index Fund CIBC Asia Pacific Index Fund CIBC Nasdaq Index Fund CIBC Family of Portfolios CIBC Managed Income Portfolio CIBC Managed Income Plus Portfolio CIBC Managed Balanced Portfolio CIBC Managed Monthly Income Balanced Portfolio CIBC Managed Balanced Growth Portfolio CIBC Managed Growth Portfolio CIBC Managed Aggressive Growth Portfolio CIBC U.S. Dollar Managed Income Portfolio CIBC U.S. Dollar Managed Balanced Portfolio CIBC U.S. Dollar Managed Growth Portfolio |
About CIBC
CIBC is a leading North American financial institution with 11 million personal banking, business, public sector and institutional clients. Across Personal and Small Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at https://cibc.mediaroom.com/
SOURCE CIBC
