CIBC Closet Indexing Class Action
Investigation Counsel P.C. and Paul Bates, Barrister (collectively, “Class Counsel”) have filed a class action in Vancouver, British Columbia against Canadian Imperial Bank of Commerce (“CIBC”) and CIBC Trust Corporation (“CIBC Trust”) regarding the CIBC Canadian Equity Fund (the “Equity Fund”), the Renaissance Canadian Growth Fund (the “Growth Fund”), the Renaissance Canadian Core Value Fund (the “Value Fund”), and the following CIBC Portfolio Funds:
- CIBC Managed Aggressive Growth Portfolio
- CIBC Managed Growth Portfolio
- CIBC Managed Balanced Growth Portfolio
- CIBC Managed Balanced Portfolio
- CIBC Smart Income Solution
- CIBC Smart Balanced Income Solution
- CIBC Smart Balanced Solution
- CIBC Smart Balanced Growth Solution
- CIBC Smart Growth Solution
Court approval will be sought to add CIBC Asset Management Inc. (“CIBC AM”) as a third defendant in this action.
This action is being brought on behalf of the following classes:
- All persons who held one or more units of the Equity Fund since January 1, 2005
- All persons who held one or more units of the Value Fund at any time since January 1, 2010
- All persons who held one or more units of the Growth Fund at any time since January 1, 2014
- All persons who held one or more units of a Portfolio Fund since January 1, 2005
The plaintiff alleges that assets of the Equity Fund, the Growth Fund, the Value Fund, and the Portfolio Funds have been depleted by excessive fees that CIBC Trust and CIBC AM, as trustees, paid to CIBC, the manager of the Equity Fund, and CIBC AM, the manager of the Growth Fund and the Value Fund.
CIBC and CIBC AM received fees for conducting an investment strategy based on active management when, it is alleged, the investment strategy used at the material times was “closet indexing”, which closely tracks or replicates the S&P/TSX Composite Index. The plaintiff alleges that the true investment objective and strategies of the Equity Fund (since 2005), the Growth Fund (since 2014), and the Value Fund (since 2010) were not adequately disclosed to investors.
The class action alleges that the excessive fees paid to the CIBC defendants over many years has significantly reduced the returns of investors and that investors are entitled to damages including restitution of excessive management fees.
Inquiries regarding these proposed class proceedings can be directed to Investigation Counsel at 1-800-887-5611 or email@example.com
In order for Investigation Counsel P.C. to notify you of important developments in this action when permitted or required to do so by the Court, please fill out the Contact Form below.