National Bank Investments announces changes to select NBI Funds
Montreal, May 4, 2022 – National Bank Investments Inc. (“NBI”) announced today some changes to select NBI Funds. These changes include the discontinuation of the purchase offering of deferred sales charge and low sales charge purchase options, restrictions of payment regarding trailing commissions to dealers that do not make suitability determination, changes related to the payment of the trailing commission, a reduction in management fees and revised risk ratings for certain funds.
Discontinuation of the offering of deferred sales charge and low sales charge purchase options
NBI intends to discontinue the purchase offering of deferred sales charge and low sales charge purchase options for all new investments, including purchases made through systematic plans in all Canadian jurisdictions, on or around May 20, 2022 (the “Effective Date”).
Investors who purchased units under these sales charge options will continue to be subject to the redemption fee schedules under which they were purchased. Switching from units of an NBI Fund previously purchased under these options will continue to be available after the Effective Date, under the same purchase option. All purchase of units made after, on, or around the Effective Date, under the Systematic investment plans managed by NBI will be automatically carried forward from the deferred sales charge and/or low sales charge purchase options to the initial sales charge option.
Restrictions regarding payments of trailing commission payment to dealers that do not make suitability determination
No later than May 31, 2022, NBI will comply with the restrictions implemented by the Canadian Securities Administrators on the payment of any trailing commission to dealers that do not make suitability determination.
Trailing commission payment changes
On or around June 1st, 2022, once an investor’s redemption fee schedule for their deferred sales charge securities has expired, the amount of the trailing commission payable to their dealer for the matured deferred sales charge securities will increase to be equal to the trailing commission payable for securities of the same fund under the front-end sales charge option.
Management fee reductions
The management fees of the F Series of the NBI Canadian Equity Index Fund, the NBI U.S. Equity Index Fund and the NBI International Equity Index Fund will be reduced as indicated below (effective immediately):
| Series |
Current management fee | New management fee |
| F |
0.30% | 0.20% |
Risk rating changes
The risk rating of certain NBI Funds will be changed as indicated below (effective immediately):
| Fund |
Current risk level | New risk level |
| NBI Global Equity Fund |
Low to medium |
Medium |
| Meritage Tactical ETF moderate Portfolio |
Low |
Low to medium |
The above changes will be reflected in the upcoming amendment to the simplified prospectus for the NBI Funds, which will be available on the SEDAR website (www.sedar.com) as well as on the National Bank Investments website (www.nbinvestments.ca).
About NBI ETFs
NBI Funds (the “Funds”) are offered by National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with investments in the Funds. Please read the prospectus of the Funds before investing. The Funds’ securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The Funds are not guaranteed, their values change frequently, and past performance may not be repeated.
About National Bank Investments Inc.
National Bank Investments Inc. (NBI) is an investment funds management firm committed to manufacturing and offering mutual funds, investment solutions and services designed to help Canadian investors pursue their financial goals. As at March 31, 2021, assets under management in NBI products were valued at over $79 billion.
Guided by an open architecture strategy, NBI is dedicated to providing diverse solutions to meet the evolving needs of its clients. NBI consistently strives to be recognized as a key partner by combining innovation and excellence. NBI’s role is not limited to administrative aspects of management; NBI Advisory Services and its registered representatives form a team of specialists who provide information and advice to help advisors build portfolios adapted to their clients’ financial needs. Follow NBI’s activities at nbinvestments.ca or via social media such as YouTube and LinkedIn.
National Bank Investments is a member of Canada’s Responsible Investment Association and a signatory of the United Nations-supported Principles for Responsible Investment.
About National Bank of Canada
With $367 billion in assets as at January 31, 2022, National Bank of Canada, together with its subsidiaries, forms one of Canada’s leading integrated financial groups. National Bank has more than 27,000 employees in knowledge-intensive positions and has been recognized numerous times as a top employer and for its commitment to diversity. Its securities are listed on the Toronto Stock Exchange (TSX: NA). Follow National Bank’s activities at nbc.ca or via social media such as Facebook, LinkedIn and Twitter.
Information:
Andreia Furtado
Advisor, Public Affairs and Corporate Social Responsibility
National Bank ofCanada
Tel.: 514-394-4074
andreia.furtado@nbc.ca