Ms. Jennifer Sinopoli reports

CI GLOBAL ASSET MANAGEMENT ANNOUNCES MUTUAL FUND AND ETF MERGERS AND A RISK RATING CHANGE

CI Financial Corp.'s CI Global Asset Management (CI GAM) plans to merge six mutual funds and two exchange-traded funds into other mandates, and has made a risk-rating change for CI Bio-Revolution Index ETF.

"At CI GAM, we are continually working to enhance our product offerings and provide Canadian investors with a diverse and innovative selection of effective investment solutions," said Jennifer Sinopoli, executive vice-president and head of distribution for CI GAM. "The changes announced today are focused on streamlining our lineup and improving the client experience for advisers and investors."

Mergers

CI GAM is proposing a series of mutual fund and ETF mergers to reduce duplication and streamline its product offering. CI GAM believes investors will benefit from continuing funds with larger net asset values, allowing for increased portfolio diversification opportunities and a larger profile within the marketplace. The costs and expenses associated with the mergers are being borne by CI GAM, not the funds.

In all cases, the combined management and administration fees with respect to each series of the continuing funds are the same as or lower than the combined management and administration fees that are currently payable by the corresponding series of the terminating funds. None of the mergers will result in a change of portfolio management teams.

The independent review committee for the terminating funds has reviewed the proposed mergers with respect to potential conflict of interest matters and provided a positive recommendation or its approval, as applicable, having determined that the mergers, if implemented, achieve a fair and reasonable result for each of the terminating funds.

Mutual fund mergers

CI GAM is proposing the mutual fund mergers outlined in an attached table.

The mergers of CI Canadian Core Plus Bond Fund, CI Resource Opportunities Class and CI Short-Term Bond Fund are to be effected on a taxable basis, resulting in a taxable disposition if the funds are held in a non-registered account. These mergers also require the approval of securityholders of the terminating funds. CI GAM will hold securityholder meetings to vote on the proposals on or about March 19, 2025, and will mail meeting materials to securityholders in mid-February, 2025. If approved, the mergers will take place on or about April 4, 2025.

The mergers of CI Global Equity & Income Fund, CI Mosaic ESG Balanced Growth ETF Portfolio and CI Mosaic ESG Balanced Income ETF Portfolio are being effected on a non-taxable basis and do not require securityholder approval. Securityholders of the terminating funds will be notified in early February of the mergers, which are also scheduled to occur on or about April 4, 2025.

ETF mergers

CI GAM is proposing the ETF mergers outlined in an attached table. The ETFs trade on the Toronto Stock Exchange, aside from CI Global Healthcare Leaders Index ETF, which trades on Cboe Canada.

These mergers are to be effected on a taxable basis, resulting in a taxable disposition if the ETFs are held in a non-registered account. These mergers also require the approval of securityholders of the terminating ETFs. CI GAM will hold securityholder meetings to vote on the proposals on or about March 19, 2025, and will mail meeting materials to securityholders in mid-February, 2025. If approved, the mergers will take place on or about April 4, 2025.

Risk-rating change

The risk rating of CI Bio-Revolution is being changed to "high" from "medium to high," effective immediately. The risk-rating change is based on the risk classification methodology mandated by the Canadian Securities Administrators to determine the risk level of mutual funds, including ETFs. CI GAM reviews the risk rating for each of the funds it manages at least on an annual basis, as well as when a fund undergoes a material change. This change is the result of CI GAM's continuing internal reviews and is not related to the proposed merger, nor is it the result of any changes to the investment objective, strategies or management of the ETF.