National Bank Investments Implements Fund Merger
National Bank Investments Inc. ("NBI" or the "Manager") has taken a significant step by announcing a merger of its funds along with a reduction in management and administration fees for select funds. This strategic move aims to streamline the fund lineup, providing enhanced offerings to its clients.
Details of the Fund Merger
Scheduled on or about October 24, 2025, the NBI Global Real Assets Income ETF, identified as the "Terminating Fund," will merge into the NBI Global Real Assets Income Fund, referred to as the "Continuing Fund". Both funds share an identical mandate and are managed by NBI. Following the merger, unitholders of the Terminating Fund will transition to holding ETF series units of the Continuing Fund instead of the former ETF units.
Rationale Behind the Merger
This merger aligns with NBI's ongoing strategy to optimize their mutual fund and ETF offerings. By combining both funds, NBI aims to provide investors with a more straightforward investment experience and greater flexibility in managing their assets. The Continuing Fund will be available in both mutual fund and ETF series units after the merger is complete.
Regulatory Aspects and Investor Impact
Importantly, this merger does not demand approval from unitholders or regulatory bodies, as it complies with the provisions outlined in National Instrument 81-102. All expenses related to this merger will be borne by the Manager, showcasing their commitment to facilitating a smooth transition for investors.
Asset Transfer Process
Under the terms of the merger, the Terminating Fund will transfer all its net assets to the Continuing Fund. In return, unitholders will receive ETF series units equivalent to their previous holdings. This structure ensures that all investors will retain the value of their investments through the transition. After the merger, the Terminating Fund will be dissolved as soon as feasible.
Management Fee Reductions Announced
Alongside the fund merger, NBI also announced that effective from August 8, 2025, management and administration fees for various fund series will experience reductions. This move aims to directly benefit investors by lowering their costs and enhancing their potential returns.
Specific Fee Changes
In detail, the management fee for the NBI SmartData International Equity Fund - Advisor series, for instance, will decrease from 1.70% to 1.40%, while the administration fee will drop from 0.19% to 0.10%. Such adjustments reflect NBI's dedication to offering competitive pricing in the marketplace, thereby providing more value for their clients.
Further Information and Transparency
All these changes will be documented and communicated to clients through an updated simplified prospectus for the NBI Funds and ETFs. This document will be filed with the appropriate regulatory authorities and published on the NBI website, ensuring transparency and easy access to all pertinent details for investors.
Exploring NBI ETFs and Funds
National Bank Investments Inc. is committed to providing a variety of investment solutions including mutual funds, investment strategies, and management services to aid Canadian investors in achieving their financial aspirations. As of June 30, 2025, NBI has managed assets exceeding $102 billion.
Investment Strategy and Future Plans
Guided by an open architecture approach, NBI emphasizes innovation and excellence in their offerings. By focusing on tailored financial solutions, NBI seeks to be a trusted partner for its clients, providing well-informed recommendations and a personalized investment experience. The firm's expertise also extends to advisory services through knowledgeable representatives who assist clients in refining their investment portfolios.
Frequently Asked Questions
What is the main reason for the fund merger?
The fund merger aims to streamline NBI's offerings, providing investors with a simplified and optimized investment experience.
When will the fee reductions take effect?
The management and administration fee reductions are set to take effect on August 8, 2025.
Do unitholders need to approve the merger?
No, the merger does not require unitholder approval as it complies with National Instrument 81-102 Investment Funds.
How will the merging process affect my investment?
Investors will receive ETF series units equivalent in value to their previous holdings, ensuring no loss of investment value during the transition.
Where can I find more information about NBI's funds?
Further details can be found on the NBI Investments website and in the updated simplified prospectus that will be filed with regulatory authorities.
