Canada Life Investment Management Ltd. announces changes to its mutual fund lineup

LONDON, ON, Nov. 9, 2023 /CNW/ – Canada Life Investment Management Ltd. (CLIML), the manager of Canada Life mutual funds, announced today that it is seeking to make changes to its mutual fund lineup. This includes proposed fund mergers, proposed fund terminations, sub-advisory changes, management fee reductions, a fund name change and investment strategy changes. These changes aim to offer a more streamlined and competitive mutual fund lineup for advisors and their clients.

Fund Mergers

CLIML is seeking to merge 20 Canada Life mutual funds on or about January 26, 2024. These mergers will make it easier for advisors and investors to navigate the Canada Life mutual fund lineup. All mergers will be affected on a tax-deferred basis for investors.

Mergers to be voted on

A special meeting will be held on or about January 15, 2024, where unitholders will be asked to approve the mergers described below:

Terminating Fund 

Continuing Fund 

Canada Life U.S. Mid Cap Growth Fund

Canada Life U.S. Small-Mid Cap Growth Fund

Canada Life Global Growth Balanced Fund

Canada Life Global Strategic Income Fund

Canada Life Global Growth Opportunities Balanced Fund

Canada Life Global Balanced Fund

Canada Life Global Value Balanced Fund

Canada Life Global Balanced Fund

Canada Life U.S. Growth Fund

Canada Life U.S. All Cap Growth Fund

Canada Life American Value Fund

Canada Life U.S. Value Fund

Canada Life European Equity Fund

Canada Life International Equity Fund

Canada Life Global Dividend Fund

Canada Life Global All Cap Equity Fund

Canada Life Global Founders Fund

Canada Life Global All Cap Equity Fund

Canada Life International Growth Fund

Canada Life International Equity Fund

Canada Life North American Specialty Fund

Canada Life U.S. Small-Mid Cap Growth Fund

Canada Life Global Infrastructure Fund

Canada Life Diversified Real Assets Fund

Canada Life Global Real Estate Fund

Canada Life Diversified Real Assets Fund

Canada Life Science and Technology Fund

Canada Life Global Growth Opportunities Fund

A notice-and-access document will be mailed on or about November 30, 2023 to all investors of record as of November 17, 2023.

Mergers not requiring a vote

The fund mergers described below were reviewed and approved by the Canada Life Mutual Funds Independent Review Committee after determining that the mergers, if implemented, achieve a fair and reasonable result for each of the Terminating Funds:

Terminating Fund 

Continuing Fund 

Canada Life Canadian Fixed Income Balanced Fund II

Canada Life Canadian Fixed Income Balanced Fund

Canada Life Strategic Income Fund II

Canada Life Strategic Income Fund

Canada Life Canadian Growth Balanced Fund II

Canada Life Canadian Growth Balanced Fund

Canada Life Canadian Equity Fund

Canada Life Canadian Growth Fund

Canada Life Canadian Focused Dividend Fund

Canada Life Canadian Dividend Fund

Canada Life Canadian Core Dividend Fund

Canada Life Canadian Dividend Fund

Unitholders of the Terminating Funds will be sent a written notice detailing changes related to the mergers at least 60 days prior to the effective date.

Fund Terminations

A special meeting of unitholders is to be held on or about January 15, 2024, where unitholders will be asked to approve the liquidation and termination of the Canada Life Short-Term Bond Fund and Canada Life Canadian Tactical Bond Fund.

If approved, the liquidation and termination of the funds is expected to be executed on or about January 26, 2024. A notice-and-access document will be mailed on or about November 30, 2023 to all investors of record as of November 17, 2023.

Sub-advisor change, investment strategies changes and management fee reductions to Canada Life Global Multi-Sector Fixed Income Fund

Effective on or about January 26, 2024, the sub-advisor of Canada Life Global Multi-Sector Fixed Income Fund will change to Brandywine Global Investments. The Independent Review Committee of the Canada Life Mutual Funds has provided its positive recommendation for this change.

As a result of this change, CLIML will be making investment strategies changes to reflect how the Fund will be managed as the Fund will now invest 100% of its assets in the Canada Life Global Multi-Sector Bond Fund (The “Underlying Fund”). There will be no change to the investment objectives of this Fund resulting from this change.

In addition, management fees are reduced by 5 basis points for the following series of the Fund.

Series

Current Management Fee

New Management Fee

A

1.60 %

1.55 %

QF

1.10 %

1.05 %

W

1.40 %

1.35 %

F/QFW

0.90 %

0.85 %

Sub-advisor change, investment strategies and name change to Canada Life Canadian Concentrated Equity Fund

Effective on or about November 27, 2023, the sub-advisor of Canada Life Canadian Concentrated Equity Fund will change to Connor, Clark & Lunn Investment Management. As a result of this change, CLIML will be changing the name of this fund to Canada Life Canadian Fundamental Equity Fund. In addition, CLIML will be making investment strategies changes to reflect how the Fund will be managed. The current investment strategies focus on selecting stocks based on an in-depth analysis of each company and transacting when market prices offer opportunities, whereas the new investment strategies will also incorporate in-depth analysis of each stock while also combining a macro-economic research approach to help guide decisions on how to allocate across sectors. The Fund will also move from a concentrated portfolio approach to holding more securities and may allow up to 10% of its investments outside of Canada in foreign equity securities.

There will be no change to the investment objectives or risk rating of this Fund resulting from this change.

Management fee reductions to Canada Life Money Market Fund

Effective November 9, 2023, management fees are reduced for the following series of the Canada Life Money Market Fund:

Series

Current Management Fee

New Management Fee

A/RB

0.75 %

0.60 %

QF

0.50 %

0.35 %

W

0.60 %

0.50 %

F/QFW

0.35 %

0.25 %

Investment strategies changes to Canada Life Canadian Small-Mid Cap Fund

Effective November 9, 2023, the investment strategies of the Fund are amended to provide additional clarity in how the Fund is managed from a regional perspective and to allow greater diversification potential by increasing the asset allocation range for U.S. stocks. There are no changes to the investment objectives or risk rating of this Fund resulting from these changes.

About Canada Life Investment Management Ltd. (CLIML) Canada Life Investment Management is an investment management firm offering wealth management products and services for individuals, families and business owners. The funds are sub-advised by leading asset managers, providing access to specialized investment expertise from around the world. CLIML is a subsidiary of The Canada Life Assurance Company. Learn more.

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These funds are managed by Canada Life Investment Management Ltd. offered exclusively through Quadrus Investment Services Ltd. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Canada Life and design, and Canada Life Investment Management Ltd. are trademarks of The Canada Life Assurance Company.

SOURCE Canada Life

For further information: Liz Kulyk, AVP, Media Relations & Public Affairs, Canada Life, 204-391-8515, [email protected]