News provided by
IG Wealth Management
Mar 11, 2020, 15:15 ET
Firm also announces management fee reductions and streamlines mutual fund lineup
WINNIPEG, March 11, 2020 /CNW/ -IG Wealth Management today announced the introduction of four new iProfile Portfolios and two liquid alternative pools. The firm also put forward the following proposed changes to its mutual fund lineup:
- Management fee reductions for certain Funds and Classes
- Fund mergers
- Changes to investment objectives, investment strategies, sub-advisors and name changes for certain Funds and Classes
"The iProfile Portfolios we're introducing today are a new suite of managed solutions with low pool advisory fees and are well diversified to meet the needs of different investor profiles and preferences," said Jon Kilfoyle, Senior Vice-President Investments, IG Wealth Management. "They will engage the investment expertise and talent of several leading global asset managers and will also include exposure to passive ETFs, liquid alternatives and real assets."
"Additionally, the management fee reductions and proposed fund changes announced today will deliver lower costs and further simplify our mutual fund lineup for our clients."
iProfile Portfolios
The following four portfolio funds are anticipated to be available for purchase on or about May 4, 2020:
iProfile Portfolios | Fund Advisory Fees |
iProfile Portfolio – Global Fixed Income Balanced | Up to 0.15% |
iProfile Portfolio – Global Neutral Balanced | Up to 0.19% |
iProfile Portfolio – Global Equity Balanced | Up to 0.21% |
iProfile Portfolio – Global Equity | Up to 0.24% |
Global asset managers within the above portfolio funds are expected to include:
- Aristotle Capital Boston, LLC (Aristotle Boston)
- BlackRock Asset Management Canada Limited
- China Asset Management Co., Ltd. (ChinaAMC)
- Jarislowsky, Fraser Limited
- JPMorgan Asset Management (Canada) Inc.
- Mackenzie Financial Corporation
- Mackenzie International Europe Limited (MIEL)
- PanAgora Asset Management, Inc.
- PIMCO Canada Corp.
- Putnam Investments Canada ULC
- Wellington Management Canada ULC
New Liquid Alternative Pools
The iProfile Portfolios will invest in liquid alternative strategies. This will initially include Mackenzie Global Macro Fund, which is focused on an absolute return target of 5% - 9% above cash and an annualized expected volatility of 7% - 11% over a five-year rolling period. Additionally, two new non-retail pools will be added:
JP Morgan – IG U.S. Equity Long/Short Pool
The pool, sub-advised by JPMorgan Asset Management (Canada) Inc., aims to provide long-term capital appreciation with lower volatility than the market. The Fund seeks to participate in the market's upside while attempting to limit losses in declining markets by taking long and short exposures, primarily to U.S. companies, investing in equity securities that are expected to increase in value (long) and simultaneously selling equity securities that are expected to decrease in value (short). Fundamental research is conducted, following a bottom-up approach, to select and value securities.
Wellington – IG Global Equity Hedge Pool
The pool, sub-advised by Wellington Management Canada ULC, combines a primarily long equity approach with risk management strategies in pursuit of its investment objective. The equity approach consists of multiple independent equity strategies which are actively managed with the goal of maintaining equity exposure to benefit in up markets, while the hedging strategies are designed to help dampen downside volatility in adverse market environments.
Management Fee Reductions
Effective on or about April 1, 2020 or June 1, 2020, as applicable, the annual management fee rates for the following Funds/Classes will be reduced, as indicated in the chart below:
Fund name | Series | Existing management fee | New management fee |
IG Putnam U.S. Growth Fund1 | C | 2.00% | 1.90% |
IG AGF U.S. Growth Class1 | A and B | 1.90% | 1.85% |
JDSC and JNL | 1.65% | 1.60% | |
U | 0.80% | 0.75% | |
IG Fiera Canadian Small Cap Fund & Class2 | A, B and C | 2.15% | 2.00% |
JDSC and JNL | 1.90% | 1.75% | |
U | 1.05% | 0.90% | |
IG AGF Global Equity Fund & Class1 | A, B and C | 2.00% | 1.95% |
JDSC and JNL | 1.75% | 1.70% | |
U | 0.90% | 0.85% |
Fund Mergers
IG Wealth Management is proposing the following fund mergers, which are expected to provide investors with a streamlined and simplified product line-up, and the potential for broader investment management diversification opportunities with the aim of improved long-term performance.
The fund merger described below was reviewed and approved by the Investors Group Funds Independent Review Committee (IRC)3, and will take effect as of the close of business on or about June 19, 2020:
Existing fund (merging fund) | To be merged into (continuing Fund) | Continuing Fund Performance (Series U)4 |
IG AGF U.S. Growth Fund | IG Putnam U.S. Growth Fund | Five star 1 yr: 19.91%, 3 yr: 18.1%, 5 yr: 14.29%, |
The fund mergers described below are expected to be effective on or about the close of business on June 19, 2020, subject to regulatory approval and approval by securityholders:
Existing fund (merging fund) | To be merged into (continuing Fund) | Continuing Fund Performance (Series U)4 |
IG Mackenzie Low Volatility | IG FI Canadian Equity Fund | Four star 1 yr: 8.96%, 3 yr: 6.49%, 5 yr: 5%, |
IG Irish Life Low Volatility Global Equity Fund | IG Mackenzie Global Fund | Four star 1 yr: 10%, 3 yr: 7.63%, 5 yr: 6.24%, |
Investment Objective, Investment Strategy, Sub-Advisor and Class Name Changes
IG Wealth Management is proposing to change the investment objectives, investment strategies, sub-advisors and names of the following Classes. They are expected to be effective on or about the close of business on June 19, 2020, subject to regulatory approval and approval by securityholders:
Class | Fund | Fund name change | New sub-advisor | |
IG Mackenzie Low | To | IG FI Canadian | IG FI Canadian | Fidelity |
IG Irish Life Low | To | IG Mackenzie | IG Mackenzie | Mackenzie |
Further, to leverage existing relationships and the investment management capabilities of Mackenzie Financial Corporation and Putnam Investments Canada ULC, changes to the investment strategies, names and sub-advisors of the Funds/Classes listed below are being proposed. They are expected to be effective on or about the close of business on April 9 or June 8, 2020, as indicated:
Fund | New fund name | New sub-advisor |
IG Fiera Canadian Small Cap Fund | IG Mackenzie Canadian Small/Mid Cap Fund II5 | Mackenzie Financial Corporation |
IG Fiera Canadian Small Cap Class | IG Mackenzie Canadian Small/Mid Cap Class III5 | Mackenzie Financial Corporation |
IG AGF U.S. Growth Class | IG Putnam U.S. Growth Class II6 | Putnam Investments Canada ULC |
IG AGF Global Equity Class | IG Mackenzie Global Class III6 | Mackenzie Financial Corporation |
IG AGF Global Equity Fund | IG Mackenzie Global Fund II6 | Mackenzie Financial Corporation |
The Funds/Classes listed above will be closed to new investments (effective on the dates of their investment objective changes), other than for reinvested distributions and dividends, investments through existing pre-authorized contribution arrangements, and switches between series within the same Fund/Class. All of these will be allowed to continue subject to the usual eligibility requirements.
Securityholder Meetings:
Some of the above fund mergers and investment objective changes are subject to securityholder approval and/or regulatory approval. Where applicable, securityholders of record as at April 2, 2020 will be asked to approve the merger or objective change involving their Funds at meetings scheduled at 10 a.m. (CDT) on June 1, 2020 at IG Wealth Management's head office in Winnipeg.
About IG Wealth Management
Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of Consultants located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has over $90 billion in assets under management as of February 29, 2020 and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's leading diversified wealth and asset management companies with approximately $162 billion in total assets under management as of February 29, 2020.
Commissions, fees and expenses may be associated with mutual fund investments and the use of an asset allocation service. Read the prospectus and speak to an IG Consultant before investing. Recommendations relate only to IG Wealth Management mutual funds. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated |
1Changes effective on or about June 1, 2020 |
2Changes effective on or about April 1, 2020 |
3In considering the merger, the IRC determined that the merger: |
• Represents the business judgment of IG Wealth Management, uninfluenced by considerations other than the best interests of the merging funds and continuing fund |
• Complies with IG Wealth Management' s written policies and procedures |
• Achieves a fair and reasonable result for the merging funds and continuing fund |
This merger qualifies as a 'pre-approved' merger under securities regulations because it does not involve a substantive change in investment objectives or investment strategies for securityholders of the merging fund; the continuing fund will have a reduced maximum management fee as compared to the merging fund; and the merger will occur on a tax-deferred basis |
Accordingly, as permitted by securities regulations, and as mentioned in the simplified prospectus of the merging fund and continuing fund, it is not necessary to seek approval from the securityholders of the merging fund, as the IRC has approved this merger based on certain conditions being met (including that securityholders receive written notice about the merger at least 60 days in advance) |
4 Morningstar Star Ratings reflect performance of Series U as of February 29, 2020 and are subject to change monthly. The ratings are an objective, quantitative measure of a fund's historical risk-adjusted performance relative to other funds in its category. Only funds with at least a three-year track record are considered. The overall star rating for a fund is a weighted combination calculated from a fund's 3, 5, and 10-year returns, as available, measured against the 91-day treasury bill and peer group returns. A fund can only be rated if there are a sufficient number of funds in its peer group to allow comparison for at least three years. If a fund scores in the top 10% of its fund category, it gets 5 stars; if it falls in the next 22.5%, it receives 4 stars; a place in the middle 35% earns a fund 3 stars; those in the next 22.5% receive 2 stars; and the lowest 10% receive 1 star. Ratings are just one factor to consider when investing. For more information about this rating, contact Morningstar at 1-800-531 4725/www.morningstar.ca or your IG Wealth Management Consultant. Quartile rankings and peers beaten are calculated by IG Wealth Management based on the fund series-level data Morningstar provides. The CIFSC categories, Star Ratings and number of funds in each category, for the standard periods, respectively, are IG Putnam U.S. Growth Fund Series U, U.S. Equity category: 1 year – n/a stars (1,595 funds) 19.91%, 3 years - 5 stars (1,268 funds) 18.10%, 5 years - 5 stars (817 funds) 14.29%. IG FI Canadian Equity Fund Series U, Canadian Equity category: 1 year – n/a stars (741 funds) 8.96%, 3 years - 5 stars (607 funds) 6.49%, 5 years - 4 stars (410 funds) 5.00%. IG Mackenzie Global Fund Series U, Global Equity category: 1 year – n/a stars (2,130 funds) 10.00%, 3 years - 4 stars (1,470 funds) 7.63%, 5 years - 4 stars (987 funds) 6.24%. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns as of February 29, 2020 including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. © Investors Group Inc. 2020 |
5Changes effective on or about April 9, 2020 |
6Changes effective on or about June 8, 2020 |
SOURCE IG Wealth Management
For further information: Media Contact: Nini Krishnappa, IGM Financial, 647-828-2553, [emailprotected]
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Now, let's dive into the article about IG Wealth Management from March 11, 2020. The key concepts covered in the article include:
-
Introduction of New iProfile Portfolios:
- Four new iProfile Portfolios with low pool advisory fees.
- Diversified to meet the needs of different investor profiles and preferences.
- Engages the expertise of leading global asset managers.
- Includes exposure to passive ETFs, liquid alternatives, and real assets.
-
Liquid Alternative Pools:
- iProfile Portfolios to invest in liquid alternative strategies.
- Initial inclusion of Mackenzie Global Macro Fund.
- Focus on an absolute return target and expected volatility over a five-year period.
- Introduction of two new non-retail pools: JP Morgan – IG U.S. Equity Long/Short Pool and Wellington – IG Global Equity Hedge Pool.
-
Management Fee Reductions:
- Reduction in annual management fee rates for certain funds/classes, effective April 1, 2020, or June 1, 2020.
- Examples of fund names and corresponding fee reductions provided.
-
Fund Mergers:
- Proposal for fund mergers to streamline and simplify the product lineup.
- Review and approval by Investors Group Funds Independent Review Committee.
- Expected effective date on or about June 19, 2020.
-
Changes to Investment Objectives, Strategies, and Sub-Advisors:
- Proposed changes to investment objectives, strategies, sub-advisors, and names for certain classes/funds.
- Expected effective date on or about June 19, 2020, subject to regulatory and securityholder approval.
- Examples of fund name changes and related modifications provided.
-
Securityholder Meetings:
- Some changes, mergers, and objective changes subject to securityholder approval.
- Meetings scheduled on June 1, 2020, at IG Wealth Management's head office in Winnipeg.
-
About IG Wealth Management:
- Founded in 1926, a national leader in delivering personalized financial solutions.
- Over $90 billion in assets under management as of February 29, 2020.
- Member of the IGM Financial Inc. group of companies.
This information provides a comprehensive overview of the key developments and changes within IG Wealth Management as of March 11, 2020. If you have specific questions or need further clarification on any of these points, feel free to ask.
