National Bank Investments Announces the Completion of a Fund Merger and a Change to the Management Fee Reduction Plan for High Net Worth Investors
MWN-AI** Summary
National Bank Investments Inc. (NBI) announced the successful completion of a fund merger and a modification to its management fee reduction plan aimed at high net worth investors as of October 27, 2025. The merger involved the NBI Global Real Assets Income ETF (the "Merging ETF") being absorbed into the NBI Global Real Assets Income Fund (the "Continuing Fund"). As of October 24, 2025, ETF units of the Merging ETF were exchanged for corresponding units in the Continuing Fund, which has retained its investment objectives. The transaction was executed on a tax-deferred basis, allowing unitholders to receive equivalent units without financial penalties.
Additionally, each unitholder of the Merging ETF received a final distribution of $1.094 per unit, which was reinvested rather than paid out in cash. This adjustment maintained the number of ETF units held by investors but potentially resulted in tax implications for those with units outside registered plans, increasing their adjusted cost base.
NBI also announced changes to its management fee reduction plan, set to take effect on December 24, 2025. The Reduction Plan will be discontinued for the NBI SmartData U.S. Equity Fund and the NBI SmartData International Equity Fund, despite previous management fee reductions initiated on August 8, 2025.
For further details regarding these changes, including reductions in management and administration fees, investors are encouraged to consult NBI's press release or its amended prospectus available on the SEDAR+ website. Established as a significant player in the Canadian investment landscape, NBI manages over $105 billion in assets, offering a diverse range of mutual funds and investment solutions to meet client needs.
MWN-AI** Analysis
National Bank Investments (NBI) recently completed a fund merger involving the NBI Global Real Assets Income ETF, now integrated into the NBI Global Real Assets Income Fund, while also modifying its management fee reduction plan for high net worth investors. This strategic move indicates NBI’s proactive approach to streamline their offerings and enhance investor value.
Investors should consider the implications of this merger and fee adjustment. The merger was executed on a tax-deferred basis, representing a tax-efficient transition for investors in the Merging ETF. Those holding units do not lose value; they simply trade one set of units for another at equivalent rates. This could be a favorable scenario for current unitholders, as the Continuing Fund maintains the same investment objective, potentially offering broader and more diversified asset exposure.
However, the decision to discontinue the management fee reduction for the NBI SmartData U.S. Equity and International Equity Funds, effective December 24, 2025, may raise concerns, particularly for investors attracted to lower fee structures. For high net worth investors, the previous fee reductions sought to provide competitive advantages; their removal could affect the overall attractiveness of these funds.
Going forward, investors should take stock of their portfolios and consider reallocating or diversifying investments to mitigate potential effects from these management fee changes. Evaluating the performance and cost structures of competing funds may offer better alternatives, especially as efficiency in expense ratios becomes more critical in maintaining investment returns.
In summary, while NBI’s fund merger signifies potential long-term benefits, the fee changes might necessitate a reassessment of investment strategies among high net worth clients. Monitoring market responses and fund performance in the wake of these changes will be crucial for optimizing investment outcomes.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
MONTREAL, Oct. 27, 2025 /CNW/ - National Bank Investments Inc. ("NBI" or the "Manager") announced today the completion of a fund merger (the "Merger") and a change to the management fee reduction plan for high net worth investors (the "Reduction Plan").
Completion of a Fund Merger
At the close of business on October 24, 2025, the exchange-traded fund units of the NBI Global Real Assets Income ETF (the "Merging ETF") were exchanged for equivalent ETF series units of the NBI Global Real Assets Income Fund (the "Continuing Fund"), and the ETF units of the Merging ETF were delisted from the Toronto Stock Exchange ("TSX"). As of October 27, 2025, the ETF units of the Merging ETF will be substituted for ETF series units of the Continuing Fund and listed on the TSX under the same NREA ticker symbol.
In the Merger, the Merging ETF transferred all of its net assets to the Continuing Fund in return for ETF series units of the latter with an aggregate net asset value equal to the value of the assets transferred. Immediately thereafter, all outstanding securities of the Merging ETF were redeemed in exchange for ETF series units of the Continuing Fund on a one-for-one basis. As a result, unitholders of the Merging ETF received the exact same number of equivalent ETF series units of the Continuing Fund as they held in the Merging ETF prior to the Merger. The Merger was carried out on a tax-deferred basis.
Following the Merger, the Continuing Fund now offers both mutual fund series units and ETF series units. The investment objective of the Continuing Fund remains unchanged.
In addition, the Manager confirms that, on October 24, 2025, each unitholder of record in the Merging ETF received the final distribution shown in the table below (the "Distribution"). This is an update to the estimated final distribution amount announced October 17, 2025.
Merging ETF | TSX Ticker | Final Distribution Amount |
NBI Global Real Assets Income ETF | NREA | $1.094004 |
The Distribution was not paid in cash. Instead, the amount was reinvested and the resulting ETF units immediately consolidated so that the number of ETF units held by each unitholder stayed the same. Unitholders who held their ETF units outside of registered plans will have taxable amounts to report and will see an increase in the adjusted cost base of their investment.
Change to the Reduction Plan
Effective as of December 24, 2025, NBI will discontinue the Reduction Plan applicable to the NBI SmartData U.S. Equity Fund and the NBI SmartData International Equity Fund. Please note that, on August 8, 2025, the management and administration fees for the Advisor, F, F5, FH, H, Investor, T5, ETF and ETFH Series of both funds were reduced.
To find out about the management and administration fee reductions applicable to these two funds since August 8, 2025, please consult the press release at the following address: https://www.nbinvestments.ca/about-us/press-releases/nbi-announces-fund-merger-fee-reductions-certain-funds.html or the Amendment no. 1 to the Simplified Prospectus of the NBI Funds and ETFs. For further details regarding the Reduction Plan, please consult the "Management fee reduction plan for high net worth investors" section in the Simplified Prospectus of the NBI Funds and ETFs.
The aforementioned change will be included in an amendment to the simplified prospectus for the NBI Funds and ETFs which will be filed on the SEDAR+ website and on the NBI website.
About NBI ETFs
NBI ETFs are offered by National Bank Investments Inc., an indirect wholly owned subsidiary of National Bank of Canada and sold by authorized dealers. Management fees, brokerage fees and expenses all may be associated with investments in exchange-traded funds ("ETFs"). Please read the prospectus or ETF Facts document before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns.
About the NBI Funds
The NBI Funds (the "Funds") are offered by National Bank Investments Inc., an indirect wholly owned subsidiary of National Bank of Canada and sold by authorized dealers. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the Funds before investing. Securities of the Funds are not insured by the Canada Deposit Insurance Corporation or any other government deposit insurer. The Funds are not guaranteed, their values change frequently, and past performance may not be repeated. ETF Series units of the Funds are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. ETF Series of the Funds do not seek to return any predetermined amount at maturity.
About National Bank Investments Inc.
National Bank Investments Inc. ("NBI") is an investment funds management firm committed to manufacturing and offering mutual funds, investment solutions and services designed to help Canadian investors pursue their financial goals. As at September 30, 2025, assets under management in NBI products were valued at over $105 billion.
Guided by an open architecture strategy, NBI is dedicated to providing diverse solutions to meet the evolving needs of its clients. NBI consistently strives to be recognized as a key partner by combining innovation and excellence. NBI's role is not limited to administrative aspects of management; NBI Advisory Services and its registered representatives form a team of specialists who provide information and advice to help advisors build portfolios adapted to their clients' financial needs. Follow NBI's activities at nbinvestments.ca or via social media.
National Bank Investments is a signatory of the United Nations-supported Principles for Responsible Investment, a member of Canada's Responsible Investment Association, and a founding participant in the Climate Engagement Canada initiative.
About National Bank of Canada
With $553 billion in assets as at July 31, 2025, National Bank of Canada is one of Canada's six systemically important banks. The Bank has approximately 34,000 employees in knowledge-intensive positions and operates through three business segments in Canada: Personal and Commercial Banking, Wealth Management and Financial Markets. A fourth segment, U.S. Specialty Finance and International, complements the growth of its domestic operations. Its securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank's activities at nbc.ca or via social media.
SOURCE National Bank of Canada
View original content: http://www.newswire.ca/en/releases/archive/October2025/27/c9374.html
FAQ**
How will the completion of the fund merger between the NBI Global Real Assets Income ETF (NREA:CC) and the NBI Global Real Assets Income Fund impact the overall investment strategy for unitholders of the Merging ETF?
What factors led to the decision to discontinue the management fee reduction plan for high net worth investors in the NBI SmartData U.S. Equity Fund and NBI SmartData International Equity Fund?
For unitholders of the MBI Global Real Assets Income ETF (NREA:CC) who received their final distribution in ETF units, how will this affect their adjusted cost base for tax reporting purposes?
Can you explain the rationale behind keeping the investment objective of the Continuing Fund unchanged post-merger, particularly for unitholders of the NBI Global Real Assets Income ETF (NREA:CC)?
**MWN-AI FAQ is based on asking OpenAI questions about Nbi Global Real Assets Income Etf (TSXC: NREA:CC).
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