CI Global Asset Management Announces Completion of ETF and Mutual Fund Mergers and Related ETF Distributions

CI Global Asset Management (“CI GAM”) today announced that it has completed the mergers of two mutual funds and five exchange-traded funds.

The previously announced mergers, which followed the receipt of the required unitholder and regulatory approvals, were completed after the close of business on April 16, 2021 and are described below.

Mutual Fund Mergers

Terminating Mutual Fund

Continuing Mutual Fund

First Asset Canadian Dividend Opportunity Fund

CI North American Dividend Fund

First Asset Utility Plus Fund

Signature Global Infrastructure Fund

Unitholders of each Terminating Mutual Fund have received the equivalent dollar value of units in the corresponding class or series of the corresponding Continuing Mutual Fund as at April 16, 2021. Each Terminating Mutual Fund has now been terminated.

ETF Mergers

Terminating ETF

Continuing ETF

CI First Asset Morningstar Canada Dividend Target 30 Index ETF (TSX: DXM)

CI WisdomTree Canada Quality Dividend Growth Index ETF (TSX: DGRC)

CI First Asset Canadian Buyback Index ETF

(TSX: FBE)

CI WisdomTree Canada Quality Dividend Growth Index ETF (TSX: DGRC)

CI First Asset U.S. Buyback Index ETF

(TSX: FBU)

CI WisdomTree U.S. Quality Dividend Growth Index ETF (TSX: DGR)

CI First Asset European Bank ETF (TSX: FHB)

CI First Asset Global Financial Sector ETF

(TSX: FSF)

CI First Asset Morningstar US Dividend Target 50 Index ETF (TSX: UXM, UXM.B)

CI WisdomTree U.S. Quality Dividend Growth Index ETF (TSX: DGR, DGR.B)

Unitholders of each Terminating ETF have received units of the Continuing ETF based on the stated exchange ratio (the “Exchange Ratio”), as set out in the table below, for each unit of the Terminating ETF held as at April 16, 2021. No fractional units of the Continuing ETF, or cash in lieu thereof, were issued or paid pursuant to the mergers. The total number of units of the Continuing ETF issued to each Terminating ETF is also set out in the table below.

Terminating ETF

Continuing ETF

Exchange Ratio

Total Number of Continuing ETF Units Issued in respect of the Merger

CI First Asset Morningstar Canada Dividend Target 30 Index ETF (TSX: DXM)

CI WisdomTree Canada Quality Dividend Growth Index ETF

(TSX: DGRC)

0.368473:1

361,184

CI First Asset Canadian Buyback Index ETF (TSX: FBE)

CI WisdomTree Canada Quality Dividend Growth Index ETF

(TSX: DGRC)

0.873024:1

218,256

CI First Asset U.S. Buyback Index ETF (TSX: FBU)

CI WisdomTree U.S. Quality Dividend Growth Index ETF

(TSX: DGR)

1.13478:1

453,912

CI First Asset European Bank ETF (TSX: FHB)

CI First Asset Global Financial Sector ETF (TSX: FSF)

0.316643:1

538,161

CI First Asset Morningstar US Dividend Target 50 Index ETF

(TSX: UXM)

CI WisdomTree U.S. Quality Dividend Growth Index ETF

(TSX: DGR)

0.515426:1

759,921

CI First Asset Morningstar US Dividend Target 50 Index ETF

(TSX: UXM.B)

CI WisdomTree U.S. Quality Dividend Growth Index ETF

(TSX: DGR.B)

0.572133:1

213,865

Units of the Terminating ETFs were delisted from the Toronto Stock Exchange at the close of business on April 16, 2021.

Related ETF Distributions The mergers, other than the merger of CI First Asset European Bank ETF, did not result in a taxable disposition for unitholders; however, the mergers resulted in certain ETFs paying distributions, as detailed below. The merger of CI First Asset European Bank ETF took place on a taxable basis and would be considered a disposition for tax purposes. The ETF distributions were not paid in cash but have been reinvested and the resulting units immediately consolidated so that the number of units held by each investor has not changed.

ETF

TSX Ticker

Reinvested Distribution Amount (reinvested and consolidated)

CI WisdomTree U.S. Quality Dividend Growth Index ETF

DGR DGR.B

$2.268341 $1.259147

CI WisdomTree Canada Quality Dividend Growth Index ETF

DGRC

$1.587223

CI First Asset Morningstar Canada Dividend Target 30 Index ETF

DXM

$0.054140 

CI First Asset Canadian Buyback Index ETF

FBE

$0.994556

CI First Asset U.S. Buyback Index ETF

FBU

$0.822978

CI First Asset European Bank ETF

FHB

$0.000000

CI First Asset Global Financial Sector ETF

FSF

$0.000000

CI First Asset Morningstar US Dividend Target 50 Index ETF

UXM UXM.B

$0.061608 $0.053172

CI GAM undertook the mergers to reduce duplication in its fund lineup and to create larger, more efficient funds with increased potential for diversification opportunities. The costs and expenses associated with the mergers were being borne by CI GAM and not the funds.

About CI Global Asset Management CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an independent company offering global asset management and wealth management advisory services with approximately $240.6 billion in total assets as at March 31, 2021.

Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds, including exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about the mutual fund is contained in its prospectus. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.

This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase exchange-traded funds (ETFs) managed by CI Global Asset Management and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor. Some conditions apply.

CI Global Asset Management is a registered business name of CI Investments Inc. ©CI Investments Inc. 2021. All rights reserved.

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Murray Oxby Vice-President, Corporate Communications CI Global Asset Management 416-681-3254 [e-mail]