March 24, 2022
Winnipeg, MB, March 24, 2022. . . Canada Life Investment Management Ltd. (CLIML) announced today that it will be making changes to six balanced funds. Depending on the fund, these changes may impact fund names, investment strategies, management fee and trailing commissions for certain series, as well as the availability of select funds.
The funds will continue to be sub-advised by Mackenzie Financial Corporation (Mackenzie Investments).
CLIML regularly reviews its mutual fund offering to ensure the product shelf continues to meet the evolving investment needs of financial advisors and investors.
The changes are effective on or about April 25, 2022.
Summary of changes:
1. Fund name changes
| Current fund name | New fund name on effective date |
|---|---|
| Canada Life Canadian Income Fund | Canada Life Canadian Fixed Income Balanced Fund II |
|
Canada Life Monthly Income Fund |
Canada Life Strategic Income Fund II |
| Canada Life Canadian Stock Balanced Fund | Canada Life Canadian Growth Balanced Fund II |
| Canada Life Global Monthly Income Fund | Canada Life Global Strategic Income Fund |
2. Management fee reductions
The annual management fee of certain series of Canada Life Canadian Income Fund,Canada Life Canadian Fixed Income Balanced Fund, Canada Life Canadian Stock Balanced Fund, and Canada Life Canadian Growth Balanced Fund will be reduced as indicated below:
| Canada Life Canadian Income Fund | Current management fee | New management fee effective on or about April 25, 2022 |
|---|---|---|
| A/T5 Series | 1.45% | 1.45% (No Change) |
| F/F5 Series | 0.95% | 0.80% |
| QF/QF5 Series | 0.95% | 0.75% |
| W/W5 Series | 1.25% | 1.25% (No Change) |
| FW/FW5/QFW/QFW5 Series | 0.65% | 0.60% |
|
Canada Life Canadian Fixed Income Balanced Fund |
Current management fee | New management fee effective on or about April 25, 2022 |
|---|---|---|
| A/T5 Series | 1.80% | 1.45% |
| F/F5 Series | 0.80% | 0.80% (No Change) |
| QF/QF5 Series | 0.80% | 0.75% |
| W/W5 Series | 1.60% | 1.25% |
| FW/FW5/QFW/QFW5 Series | 0.60% | 0.60% (No Change) |
|
Canada Life Canadian Stock Balanced Fund |
Current management fee |
New management fee effective on or about April 25, 2022 |
|---|---|---|
| A/T5 Series |
2.00% |
1.85% |
| F/F5 Series |
1.00% |
0.90% |
| QF/QF5 Series |
1.00% |
0.85% |
| W/W5 Series |
1.80% |
1.70% |
| FW/FW5/QFW/QFW5 Series |
0.80% |
0.70% |
|
Canada Life Canadian Growth Balanced Fund |
Current management fee | New management fee effective on or about April 25, 2022 |
|---|---|---|
| A/T5 Series |
1.90% |
1.85% |
| F/F5 Series |
0.90% |
0.90% (No Change) |
| QF/QF5 Series |
0.90% |
0.85% |
| W/W5 Series |
1.70% |
1.70% (No Change) |
| FW/FW5/QFW/QFW5 Series |
0.70% |
0.70% (No Change) |
3. Trailing commission rate reductions
The trailing commission rate of certain series of Canada Life Canadian Fixed Income Balanced Fund will be reduced as indicated below:
| Fund |
Sales Charge Purchase Option A Series, T5 Series, W Series, and W5 Series |
Low-load Purchase Option A Series, T5 Series, W Series, and W5 Series |
Redemption Charge Purchase Option A Series, T5 Series, W Series, and W5 Series |
|---|---|---|---|
| Canada Life Canadian Fixed Income Balanced Fund | 0.50% |
Year 1 – 0.00% Year 2 – 0.25% Year 3 – 0.25% Thereafter – 0.50% |
0.25% |
4. Soft-Capping
Canada Life Monthly Income Fund and Canada Life Canadian Stock Balanced Fund will be soft-capped. This means each Fund will be closed to purchases from new unitholders but existing unitholders may continue to purchase, switch and redeem securities of the Funds.
5. Investment Strategies Changes
The investment strategies of Canada Life Canadian Fixed Income Balanced Fund, Canada Life Canadian Income Fund, Canada Life Monthly Income Fund, Canada Life Canadian Growth Balanced Fund, Canada Life Canadian Stock Balanced Fund and Canada Life Global Monthly Income Fund will be amended.
The changes of strategies aim to provide investors stronger return potential and better risk management through broadly diversified exposure across asset classes, regions, and sectors.
Segregated fund policies
Similar changes will also be made to certain segregated funds held in segregated fund policies issued by The Canada Life Assurance Company. The segregated fund changes will be effective on or about May 27, 2022.
About Canada Life Investment Management Ltd. (CLIML)
CLIML is the investment fund management subsidiary of The Canada Life Assurance Company, a leading insurance, wealth management and benefits provider focused on improving the financial, physical and mental well-being of Canadians. For more than 170 years, individuals, families and business owners across Canada have trusted us to provide sound guidance and deliver on the promises we’ve made.
On January 1, 2020, Great-West Life, London Life and Canada Life became one company – Canada Life, and today, we proudly serve more than 12 million customer relationships from coast to coast to coast.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Important information about mutual funds is found in the prospectus and Fund Facts document. Please read these carefully before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
A description of the key features of the segregated fund policy is contained in the information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.
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For more information, contact:
Liz Kulyk
AVP, Media Relations & Public Affairs
Canada Life
204-391-8515
Media.Relations@canadalife.com
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