SEI Investments Canada (SEI Canada) announced July 10 that it will be lowering management fees on Class F Units on a selection of its funds. In addition, there will be changes to some embedded fee purchase options for certain other classes, as well as changes to some funds’ risk ratings.
"SEI Canada has been leading the way with managed, fee-based investing since 1994, and our unit class changes represent the next phase of our evolution as we continue to support fee transparency," said Andy Mitchell, managing director of SEI Canada. "In the face of unfolding regulatory changes, we continue to provide our head office and advisor partners options to offer their clients comprehensive portfolio solutions with competitive all-in fees."
P and D class units being phased out
In addition, all Class P, P(H), D, and D(H) units of all SEI Canada Fundsare being phased out in two phases. The first is a soft cap, which means the units will not be available for purchase by new investors, but current unitholders can purchase additional units of the same classes until about Nov. 30, 2017. This phase begins Sept. 15, 2017.
The second phase consists of a hard cap, which means units are no longer available for purchase by any investors. Outstanding P and D units will be reclassified as E units and P(H) and D(H) units will be reclassified as E(H) units.
Minimum initial investment reduction
Also, the minimum initial investment of class E units will be reduced to $5,000 as of Sept. 15, 2017, and the minimums will then be reduced to $1,000 as of Nov. 30, 2017.
To stay competitive in today’s regulatory environment, SEI Canada will be changing the risk ratings of certain of their funds.