WINNIPEG,
May 18, 2012 /CNW/ - Investors Group
is announcing a number of changes in the pricing of its mutual
funds and product enhancements designed to expand its services to
clients.
Investors Group will reduce the management fees of
many of its mutual funds when their prospectuses renew in early
July, 2012. The reductions in management fees will range from
.05 to .40% per annum of the asset value of the selected funds.
These changes will impact approximately two-thirds of Investors
Group's funds and over two-thirds of its managed assets.
Lower management fees will attract lower GST/HST, resulting in
greater reductions to Management Expense Ratios (MERs).
Additional investment solutions for clients with
household account balances in excess of $500,000 will also be available in stages,
beginning in July. These additions will provide Investors
Group Consultants with a greater number of solutions to enhance
client value and will contribute to the growth of assets under
management at Investors Group.
The impact of the fee changes to the corporation is
expected to be offset by improved future sales and asset growth
opportunities. Coincident with the introduction of these
changes, certain refinements to our Consultants' compensation will
occur over the next year.
"These announcements today build on our strong
client relationships with more competitive pricing and increased
product flexibility," said Murray
Taylor, President and Chief Executive Officer, Investors
Group. "We anticipate improved levels of sales activity, stronger
presence in the high net worth market, enhanced asset growth and
stronger business expansion".
These changes are subject to regulatory and other
approvals.
Investors Group, founded in 1926, is a national
leader in delivering personalized financial solutions to Canadians
through a network of approximately 4,500 Consultants located
throughout Canada. In addition to
an exclusive family of mutual funds and other investment vehicles,
Investors Group offers a wide range of insurance, securities,
mortgage and other financial services. Investors Group is a member
of the IGM Financial Inc. (TSX: IGM) group of companies. IGM
Financial is one of Canada's
premier financial services companies with over $122 billion in total assets under management as
of April 30, 2012.
FORWARD-LOOKING STATEMENTS: Certain statements
in this Release are forward-looking statements based on certain
assumptions and reflect Investors Group's current expectations. By
its nature, this information is subject to inherent risks and
uncertainties which may cause expectations to not be realized. Many
of such risks and uncertainties are beyond Investors Group's
control. The reader is cautioned to not place undue reliance on
forward-looking statements. Other than as specifically required by
law, Investors Group undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after
the date on which such statements are made.
Media Note: A teleconference will be held
Friday May 18, 2012 at 10:30 am (ET). Media and interested parties may
listen to the call by dialing: 416-695-7806 or 888-789-9572. Please
use passcode 2431951.
SOURCE Investors Group Inc.