NEI Investments Announces Changes to its Mutual Fund Lineup


TORONTO, June 19, 2018 (GLOBE NEWSWIRE) -- NEI Investments (“NEI” or the “Manager”) today announced a number of changes to its mutual fund lineup. In an effort to streamline and improve the experience of investors and advisors, NEI proposes to:

  • change the names of certain funds
  • close Series T units to all purchases
  • adjust the distribution policy for certain funds
  • reduce the management fees and/or fixed administration fees for certain funds

Fund Name Changes & Rebranding

In an effort to simplify fund names and focus brand awareness on NEI’s leadership and differentiation around responsible investing, NEI is renaming a number of its funds effective on or about June 18, 2018. Specifically, NEI has retired the use of both the Ethical Funds and Northwest Funds sub-brand names. While the mandates of each fund lineup have had different focuses in the past, over time NEI has adopted Responsible Investment (“RI”) approaches across the fund lineup making these sub-brand names and distinctions less important. As a result of this decision, all funds that previously used the Ethical sub-brand name will instead include a new designation – “RS”, which stands for Responsible Screens, and is used to denote funds that automatically exclude companies in the areas of tobacco, illegal weapons and nuclear power as the predominant RI approach.

Current Fund NameNew Fund Name
NEI Northwest Speciality Global High Yield Bond FundNEI Global High Yield Bond Fund
NEI Northwest Tactical Yield FundNEI Tactical Yield Portfolio
NEI Global Strategic Yield FundNEI Balanced Yield Portfolio
NEI Northwest Growth and Income FundNEI Growth & Income Fund
NEI Ethical Balanced FundNEI Balanced RS Fund
NEI Northwest Canadian Dividend FundNEI Canadian Dividend Fund
NEI Ethical Canadian Equity FundNEI Canadian Equity RS Fund
NEI Northwest Canadian Equity FundNEI Canadian Equity Fund
NEI Northwest U.S. Dividend FundNEI U.S. Dividend Fund
NEI Ethical U.S. Equity FundNEI U.S. Equity RS Fund
NEI Ethical Special Equity FundNEI Canadian Small Cap Equity RS Fund
NEI Northwest Specialty Equity FundNEI Canadian Small Cap Equity Fund
NEI Ethical Global Dividend FundNEI Global Dividend RS Fund
NEI Ethical Global Equity FundNEI Global Equity RS Fund
NEI Northwest Global Equity FundNEI Global Equity Fund
NEI Ethical International Equity FundNEI International Equity RS Fund
NEI Northwest Emerging Markets FundNEI Emerging Markets Fund
NEI Ethical Select Income PortfolioNEI Select Income RS Portfolio
NEI Ethical Select Conservative PortfolioNEI Select Income & Growth RS Portfolio
NEI Select Conservative PortfolioNEI Select Income & Growth Portfolio
NEI Ethical Select Balanced PortfolioNEI Select Balanced RS Portfolio
NEI Ethical Select Growth PortfolioNEI Select Growth RS Portfolio
NEI Select Global Maximum Growth PortfolioNEI Select Maximum Growth Portfolio

Series T Closure

As of June 18, 2018, Series T units of the funds will be closed to new investors.  Investors with pre-authorized payment plans for Series T units will have their plans automatically re-established to purchase Series A units of the same fund. Investors are not required to take any action in regards to these changes and will not experience any change to the fees or distribution policy relating to their investment. The Manager will reclassify all Series T units of a fund into Series A units of the same fund and expects to do so on or about the second quarter of 2019.

Distribution Policy Changes

NEI undertook a review of the distribution policy for each of its funds in order to provide investors with a consistent income distribution experience across its product lineup by applying a “monthly-fixed” policy to all fixed income funds, equity income (dividend) funds, Select portfolios and Yield portfolios.  In addition, updates were made to implement a fixed percentage of net asset value distribution policy methodology that will reset annually and is more in line with industry practice. It should be noted that a change in distribution policy has no impact on the performance of a fund.

Fee Reductions

The following management fee (“MF”) and fixed administration fee (“FAF”) reductions will be effective after the close of business on June 18, 2018.

Management Fees:

NEI FundsOld MF (bps)New MF (bps)Difference (bps)
NEI Canadian Equity Fund, Series F90855
NEI Canadian Equity RS Fund, Series F90855
NEI Emerging Markets Fund, Series A21520015
NEI Emerging Markets Fund, Series F11510015
NEI Select Growth Portfolio, Series A20019010
NEI Select Growth Portfolio, Series F1009010
NEI Select Growth RS Portfolio, Series A20019010
NEI Select Growth RS Portfolio, Series F1009010
NEI Select Income & Growth Portfolio, Series A17516510
NEI Select Income & Growth Portfolio, Series F756510
NEI Select Income & Growth RS Portfolio, Series A17516510
NEI Select Income & Growth RS Portfolio, Series F756510
NEI Select Maximum Growth Portfolio, Series A21019020
NEI Select Maximum Growth Portfolio, Series F1109020

Fixed Administration Fees:

NEI FundsOld FAF (bps)New FAF (bps)Difference (bps)
NEI Balanced Yield Portfolio, Series P302010
NEI Balanced Yield Portfolio, Series PF251510
NEI Canadian Equity RS Fund, Series A40355
NEI Canadian Equity RS Fund, Series F30255
NEI Conservative Yield Portfolio, Series P302010
NEI Conservative Yield Portfolio, Series PF251510
NEI Emerging Markets Fund, Series A554510
NEI Emerging Markets Fund, Series F453510
NEI Environmental Leaders Fund, Series F403010
NEI Generational Leaders Fund, Series F403010
NEI Global Dividend RS Fund, Series F403010
NEI Global Dividend RS Fund, Series P403010
NEI Global Dividend RS Fund, Series PF402515
NEI Global Equity Fund, Series A504010
NEI Global Equity Fund, Series F453015
NEI Global Equity RS Fund, Series A504010
NEI Global Equity RS Fund, Series F453015
NEI Global Value Fund, Series F403010
NEI International Equity RS Fund, Series A50455
NEI International Equity RS Fund, Series F453510
NEI Select Balanced RS Portfolio, Series A403010
NEI Select Balanced RS Portfolio, Series F352510
NEI Select Growth RS Portfolio, Series F35305
NEI Select Maximum Growth Portfolio, Series A504010
NEI Select Maximum Growth Portfolio, Series F453510
NEI U.S. Dividend Fund, Series A504010
NEI U.S. Dividend Fund, Series F403010
NEI U.S. Dividend Fund, Series P503020
NEI U.S. Dividend Fund, Series PF402515
NEI U.S. Equity RS Fund, Series A504010
NEI U.S. Equity RS Fund, Series F403010

ABOUT NEI INVESTMENTS
NEI Investments is a national investment firm with approximately $6 billion in assets under management. It offers Canadian retail investors access to experienced money managers through a wide range of investment solutions across its fund family. Its products provide investors with a full range of investment management styles and a focus on responsible investment solutions.

The general partner of the Manager, Northwest & Ethical Investments Inc., is a wholly-owned subsidiary of Aviso Wealth Inc. (“Aviso”). Aviso is a wholly-owned subsidiary of Aviso Wealth LP, which in turn is owned 50% by Desjardins Financial Holding Inc. and 50% by a limited partnership owned by the five Provincial Credit Union Centrals and The CUMIS Group Limited.

NEI Investments has offices in Toronto, Vancouver and Montreal.

Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to the future outlook of the NEI Funds and anticipated events or results and may include statements regarding the future financial performance of the NEI Funds. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.

Media contact:
ConnieBurke
infinitycomm
connie@infinitycomm.ca 
Office: 9052575555