Completion of Fund Merger
National Bank Investments Inc. ("NBI" or the "Manager") has put into action a significant change, recently finalizing a fund merger that impacts investors. At the close of business on October 24, 2025, units of the NBI Global Real Assets Income ETF, referred to as the "Merging ETF," were exchanged for equivalent units in the NBI Global Real Assets Income Fund (the "Continuing Fund"). Following this exchange, the ETF units of the Merging ETF have been delisted from the Toronto Stock Exchange ("TSX").
As of October 27, 2025, the ETF units originally held in the Merging ETF will continue as ETF series units of the Continuing Fund, maintaining the NREA ticker symbol on the TSX. This seamless transition ensures that unitholders receive an equivalent number of units in the Continuing Fund as they previously held, marking a successful exchange process that was also executed on a tax-deferred basis.
Implications of the Fund Merger
The Continuing Fund now provides both mutual fund series units and ETF series units, with the investment objectives remaining unchanged despite the merger. This adjustment is designed to enhance the offerings available to investors while retaining the integrity of the fund's structure and investment strategy.
Each unitholder of the Merging ETF will have received a final distribution on October 24, 2025. Notably, instead of cash, this distribution amount of $1.094004 per ETF unit was reinvested, leading to an immediate consolidation of ETF units. This means that the total number of units a unitholder possesses remains consistent, though it will lead to a taxable amount reported if held outside of registered plans.
Management Fee Reduction Plan Update
In addition to the merger, NBI is set to implement modifications to its management fee reduction plan, effective December 24, 2025. This change involves discontinuing the reduction plan applicable to the NBI SmartData U.S. Equity Fund and the NBI SmartData International Equity Fund. However, recent reductions to management and administration fees for these funds took place on August 8, 2025.
Understanding the Fee Adjustments
A deeper analysis of the fee reductions showcases how they aim to support high net worth investors, aligning well with NBI's commitment to providing effective investment strategies. Active management of such funds can lead to considerable savings, allowing clients to optimize their investment outcomes further.
The Role of NBI in Investment Management
National Bank Investments is well-positioned as a leading player in investment fund management. They offer a range of ETFs, catering to diverse investment strategies and objectives. As of September 30, 2025, the assets managed in NBI products were valued at over $105 billion, indicating a robust portfolio strength.
NBI prioritizes an open architecture strategy to meet clients' evolving needs, ensuring they remain a trusted partner in investment management. Their team of specialists supports advisors in crafting personalized investment portfolios, building towards their clients’ financial aspirations.
Frequently Asked Questions
What is the NBI fund merger?
The NBI fund merger refers to the exchange of units between the NBI Global Real Assets Income ETF and the NBI Global Real Assets Income Fund, ensuring a smooth transition for investors.
How does the fund merger affect investors?
Investors will receive equivalent ETF series units in the Continuing Fund based on the number of unitholder units previously held in the Merging ETF, maintaining tax benefits.
What changes are happening to the management fee reduction plan?
NBI will discontinue the management fee reduction plan for the NBI SmartData U.S. and International Equity Funds as of December 24, 2025.
Are NBI ETFs guaranteed?
No, NBI ETFs are not guaranteed, and their values can fluctuate. Investors should be aware of the risks before making investment decisions.
How can I find out more about NBI?
For more information about NBI's investment products and offerings, visit their official website or consult with authorized dealers.
