Questions
- Why did CIBC Asset Management make these changes?
- How will it benefit me?
- What notification did you issue regarding the fund changes?
- What are the tax implications of the mergers?
- In the Continuing Fund, do I have the same number of units?
- Why did CIBC Asset Management terminate Talvest Cdn. Multi Management Fund?
- What were the tax implications of the termination of Talvest Cdn. Multi Management Fund?
Answers
1. Why did CIBC Asset Management make these changes?
We are committed to meeting your needs. This is a major step in the integration of our business operations into a single unified brand, Renaissance Investments, which combines the strengths of the former Renaissance and Talvest fund families into a single stronger offering of high-quality investments and enhanced client support. We believe that by simplifying our fund line-up, we are moving in the right direction in terms of making it easy for you and your advisor to do business with us.
The integration of the Talvest and Renaissance fund families simplifies our line-up, while maintaining a comprehensive range of investment solutions, from stand-alone mutual funds to portfolio solutions, which we believe will meet your investment needs. Our investment solutions continue to be supported by the strength of world-class managers and a rigorous due diligence risk oversight process.
The fund mergers eliminated fund duplication. As well, in some situations, you may benefit from reduced management expense ratios.
3. What notification did you issue regarding the fund changes?
All clients holding assets in the Terminating Funds received a 60-day notice of the changes. Further communication will be sent to unitholders of the former Talvest and Renaissance funds the week of August 27th announcing the launch of Renaissance Investments. In addition, we issued two news releases: on June 8, 2007, detailing all the changes and one on August 20, 2007 confirming the occurrence of the fund mergers.
- News release (June 8)
- News Release (August 20)
4. What are the tax implications of the mergers?
The fund mergers did not trigger capital gains or losses on units of the Funds, and the average cost of your units in the Terminating Fund was carried over to the Continuing Fund.
Terminating Funds and Continuing Funds may have declared a distribution on August 20 that reflected any taxable income or gains in the Funds since their last taxation year-end. Please note that this distribution did not have a tax impact if your Fund was held within a registered account.
5. In the Continuing Fund, do I have the same number of units?
The number of units that you hold of the Continuing Fund may have changed, but the total dollar value is the same. You now have the same total dollar value and average cost in your investment, but you may potentially see a different number of units in the Continuing Fund.
6. Why did CIBC Asset Management terminate Talvest Cdn. Multi Management Fund?
Talvest Cdn. Multi Management Fund was a fund-of-funds portfolio, which invested in four specific Underlying Funds, three of which were merged and terminated due to the announced mergers. As such, we terminated Talvest Cdn. Multi Management Fund prior to the individual fund mergers.
On August 10, 2007, Talvest Cdn. Multi Management Fund was terminated and assets were transferred in kind to the Underlying Funds, in proportion to their weights:
- Talvest Cdn. Equity Value Fund (40%)
- Talvest Cdn. Equity Growth Fund (40%)
- Talvest Small Cap Cdn. Equity Fund (10%)
- Talvest Millennium Next Generation Fund (10%)
On August 17, 2007, three of the four Underlying Funds were merged and renamed, as indicated below. The fourth Underlying Fund, Talvest Millennium Next Generation Fund, changed its name to Renaissance Millennium Next Generation Fund.
| This fund... (Terminating Fund) |
...merged with this fund... (Continuing Fund) |
...and continues under this name. (New Name) |
||
|---|---|---|---|---|
| Talvest Cdn. Equity Value Fund | Renaissance Canadian Core Value Fund | Renaissance Canadian Core Value Fund | ||
| Talvest Cdn. Equity Growth Fund | Renaissance Canadian Growth Fund | Renaissance Canadian Growth Fund | ||
| Talvest Small Cap Cdn. Equity Fund | Renaissance Canadian Small Cap Fund | Renaissance Canadian Small-Cap Fund | ||
7. What were the tax implications of the termination of Talvest Cdn. Multi Management Fund?
- The termination of Talvest Cdn. Multi Management Fund resulted in a disposition of units held in the Fund. Investors with non-registered accounts realized any capital gains/capital losses on their units since the purchase of the Fund. Please note that the Fund had no accumulated net income or gains and so there was no income distribution upon its termination.
- The subsequent fund mergers of the three Underlying Funds did not trigger capital gains or losses on units of the Funds, and the average cost of units in the Terminating Fund was carried over to the Continuing Fund. However, Terminating Funds and Continuing Funds may have declared a distribution on the merger date that reflected any taxable income or gains in the Funds since their last taxation year-end.
- Please note that these distributions did not have a tax impact if the Funds were held within a registered account.
- Units in the Terminating Fund were exchanged for units of the corresponding Continuing Fund of equal total value.