CIBC makes manager moves on balanced and foreign equity funds

Rudy Luukko 22 May, 2014 | 2:46AM
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CIBC Asset Management Inc. is adding new foreign expertise in June to its largest mutual fund and making portfolio-manager changes for several foreign equity funds.

The $6.3-billion CIBC Monthly Income, as well as the $145-million Renaissance Canadian Monthly Income which has the same CIBC management team, will add American Century Investment Management Inc. as a portfolio advisor for their foreign-securities portions.

The new roles for American Century, which is 41% owned by CIBC Asset Management's parent CIBC CM, will take effect on June 12. Based in Kansas City, American Century manages an estimated US$150 billion.

"We believe the addition of American Century's expertise will improve overall diversification and risk-adjusted return potential for our clients," said CIBC Asset Management president Steve Geist in a May 20 release announcing the appointment.

Both funds have 3-star Morningstar Ratings in the Canadian Neutral Balanced category and have been below-average performers over the past one, three and five years ended April 30.

In other changes, Amundi Canada Inc. is scheduled to become the portfolio manager of the $91-million Renaissance China Plus and the $3-million Renaissance Asian, effective June 20. Amundi Canada is the Canadian arm of a global investment giant that manages close to $1.2 trillion.

Amundi will replace Hamon Investment Management, which has managed both funds since May 2007. During the past seven years, Renaissance China Plus has been the best performer in the Greater China Equity category, while Renaissance Asian has been one of the worst Asia-Pacific Equity performers over the same period.

The other fund getting a new portfolio manager, also effective June 20, is the $19-million Renaissance Global Value. Taking over is Pzena Investment Management LLC, a deep-value manager based in New York which manages about US$27 billion. Pzena will replace del Ray Global Investors, whose brief tenure dates back only to August 2013.

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About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to Morningstar.ca on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.

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