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):