IG Wealth Management Announces Changes to Mutual Fund Transactions

Firm modifies certain transactions previously announced on March 11, 2020

 

Winnipeg, MB – April 21, 2020: IG Wealth Management has announced changes in direction to certain  mutual fund transactions that were previously announced on March 11, 2020.

“As a result of the unique operating environment we find ourselves in due to the current global health situation we’ve decided to modify or delay some of our previously announced mutual fund transactions,” said Jon Kilfoyle, Senior Vice-President Investments, IG Wealth Management. “However, we are pleased to still be able to provide our clients with access to the strong investment performance of our sub-advisors and previously announced management fee reductions.”

For details on those previously announced changes, please see the March 11 news release “IG Wealth Management Introduces New iProfile Portfolios and Liquid Alternatives Pools”.

Change in Direction of Fund Merger

IG Wealth Management had previously announced the fund merger described below that was reviewed and approved by the Investors Group Funds Independent Review Committee (IRC)1, and was to 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)2

 

IG AGF U.S. Growth Fund

 

IG Putnam U.S. Growth Fund

★★★★★

1 yr: 9.80%, 3 yr: 15.86%, 5 yr: 13.37%, Since inception: 18.17%

Revised direction:

On or about the close of business on June 8, 2020, instead of a merger, IG Wealth Management will proceed with revisions to the investment strategies of the fund, as well as a fund name and sub-advisor change (to Putnam Investments Canada ULC), as indicated in the chart below:

Fund

Fund name change

New sub-advisor

IG AGF U.S. Growth Fund

IG Putnam U.S. Growth Fund II

Putnam Investments Canada ULC


IG Putnam U.S. Growth Fund II will be closed to new investments effective June 8, 2020, other than for reinvested distributions and dividends, investments through existing pre-authorized contribution arrangements, and switches between series within the same Fund. All of these will be allowed to continue subject to the usual eligibility requirements

Effective June 1, 2020 the annual management fee rate for IG AGF U.S. Growth Fund will be reduced as indicated in the chart below:

Fund name

Series

Existing

management fee

New

management fee

 

IG AGF U.S. Growth Fund

A and B

1.90%

1.85%

JDSC and JNL

1.65%

1.60%

U

0.80%

0.75%


Deferral of Fund Mergers

IG Wealth Management is deferring two mergers indefinitely.  The fund mergers described below had been 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)

IG Mackenzie Low Volatility Canadian Equity Fund

IG FI Canadian Equity Fund

IG Irish Life Low Volatility Global Equity Fund

IG Mackenzie Global Fund


Deferral of Investment Objective, Investment Strategy, Sub-Advisor and Class Name Changes

Also deferred indefinitely is the proposal to change the investment objectives, investment strategies, sub-advisors and names of the following Classes. They were also 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 Volatility Canadian Equity Class

To invest into

IG FI Canadian Equity Fund

IG FI Canadian Equity Class II

Fidelity Investments Canada ULC

IG Irish Life Low Volatility Global Equity Class

To invest into

IG Mackenzie Global Fund

 

IG Mackenzie Global Class IV

Mackenzie Financial Corporation

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 $81 billion in assets under management as of March 31, 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 $147 billion in total assets under management as of March 31, 2020.

1 In 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.

2 Morningstar Star Ratings reflect performance of Series U as of March 31, 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 (1,584 funds) 9.80%, 3 years - 5 stars (1,262 funds) 15.86%, 5 years - 5 stars (824 funds) 13.37%. 

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 March 31, 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.

Media Contact:

Nini Krishnappa

IGM Financial

647-828-2553

Nini.Krishnappa@igmfinancial.com