UK: CIBC Asset Management Lowers Fees for Canadian Investors

CIBC Asset Management (CAM) is implementing a range of changes to its investment products and services. The changes will include a reduction in asset management fees, the launch of a new low-cost CIBC Passive Portfolio, reducing minimum investment requirements, and simplifying the mutual fund offering. The changes are hoped to facilitate accessibility and affordability for Canadian Investors.

Management fees will be reduced across 18 mutual funds by up to 40 basis points, while a selection of management fees will also be waived across a further 48 funds, with reductions ranging from 5 to 40 basis points. The changes are expected to be effective from September 2017. RFi Group data shows that 57% of Canadian investment product holders feel that fees and charges are the biggest driver when selecting an investment provider. Therefore, the move by CIBC to reduce fees may attract new customers that are looking for the most cost-effective investment products in the market.

CIBC has also released new ‘Passive Portfolios’, which will be made available for both regular and fee based investment accounts as well as self-directed accounts with CIBC Investor’s Edge. The portfolio will come with a range of risk profiles and aims to provide affordable and accessible investment options to a range of investors.

CIBC is also reducing the minimum initial investment required on some products, including the Renaissance Private Investment Program and the Axiom Portfolios. CIBC will also cease to offer several mutual fund classes that have relatively small asset size and a small number of holders, with the reduction designed to simplify the product offering.

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