CWB Onyx Funds Overhauled in Post-Acquisition Integration

EDMONTON, AB – March 09, 2026 – CWB Wealth Management Ltd. (CWB WM) has announced a significant overhaul of its CWB Onyx Mutual Funds, a direct consequence of the ongoing integration with National Bank of Canada following its acquisition of Canadian Western Bank in 2025. The changes include the complete termination of three solution funds and a fundamental shift in the management and regulatory status of four other funds, prompting a crucial decision point for investors.

Effective this summer, the CWB Onyx Conservative Solution, CWB Onyx Balanced Solution, and CWB Onyx Growth Solution will be liquidated. Concurrently, the CWB Onyx Diversified Income Fund, Canadian Equity Fund, North American Equity Fund, and Global Equity Fund will transition to new management under the National Bank umbrella and will seek to exit the public reporting system. These moves signal a strategic consolidation by National Bank, aiming to streamline its new subsidiary's offerings and align them with its broader wealth management ecosystem.

Terminations Force Investor Action

For investors holding units in the CWB Onyx Conservative, Balanced, and Growth Solution funds, the clock is ticking. CWB WM has set a termination date of on or about June 1, 2026. In preparation, the company will halt all new purchases of Series O units in these funds, including pre-authorized contributions, as of May 22, 2026.

Investors in these "Terminating Funds" face a clear choice: redeem their units before the termination date or do nothing and receive a cash payout of their proportionate share of the fund's net assets. While the cash payout may seem straightforward, it triggers a taxable event for any units held in non-registered accounts. The sale will result in a capital gain or loss, which must be reported for tax purposes. A capital gain is realized if the redemption proceeds are higher than the investor's adjusted cost base, with 50% of that gain being taxable in Canada. Conversely, a capital loss can be used to offset other capital gains.

CWB WM has explicitly encouraged all affected investors to consult with their financial advisors to navigate the financial and tax implications of this liquidation. While the company has not publicly recommended specific replacement products, National Bank of Canada offers a comprehensive suite of investment solutions, including its own NBI Funds, Exchange-Traded Funds (ETFs), and managed portfolios. Displaced investors will need to work with their advisors to find suitable alternatives that align with their risk tolerance and financial goals, whether within the National Bank family of products or elsewhere.

A Strategic Shift for Continuing Funds

While one set of funds is being wound down, another is being fundamentally transformed. The CWB Onyx Diversified Income Fund, CWB Onyx Canadian Equity Fund, CWB Onyx North American Equity Fund, and CWB Onyx Global Equity Fund—referred to as the "Continuing Funds"—are not being terminated. Instead, they are being pulled deeper into the National Bank apparatus.

Effective around June 15, 2026, CWB WM will step down as the trustee and investment fund manager. These roles will be filled by National Bank subsidiaries, with Natcan Trust Company becoming the new trustee and National Bank Trust Inc. taking over as the investment fund manager. This move centralizes control and governance, placing the funds squarely under the operational oversight of the parent company. This transition follows an earlier change in October 2025, when National Bank Financial Inc. was appointed as the portfolio manager for all CWB Onyx funds, marking the first step in this operational integration.

The Move Away from Public Scrutiny

Perhaps the most significant change for the Continuing Funds is CWB WM's plan to apply for an order to have them cease being "reporting issuers" in any Canadian jurisdiction. If approved by securities regulators, this would fundamentally alter the nature of these funds, shifting them from the public retail market to a model more akin to a private fund.

Ceasing to be a reporting issuer means the funds would no longer be subject to the same rigorous public disclosure requirements. The continuous and detailed reporting of financial performance, portfolio holdings, and other operational data that is mandatory for public mutual funds would be significantly reduced. Consequently, Series O units of these funds would only be offered under prospectus exemptions, which typically limits access to accredited investors or other specific categories of buyers who meet high-net-worth or income thresholds.

This move toward a private model raises critical questions about transparency and accessibility for existing retail investors. More importantly, it introduces a potential and significant risk for those holding these funds within registered accounts like RRSPs, RRIFs, and TFSAs. For a fund to be held in these accounts, it must be a "qualified investment." If a fund loses its reporting issuer status, it may also lose its status as a qualified investment. Holding a non-qualified asset in a registered plan can trigger severe tax penalties, including a tax equal to 50% of the asset's fair market value.

The press release issued by CWB WM does not address whether the Continuing Funds will maintain their status as qualified investments after ceasing to be reporting issuers, leaving a critical question unanswered for investors and their advisors.

National Bank's Post-Acquisition Blueprint

These wide-ranging changes are the tangible result of National Bank of Canada's strategic playbook for integrating its 2025 acquisition of Canadian Western Bank. The moves align with a broader trend of consolidation in Canada's financial sector, where large institutions acquire smaller players to gain market share, achieve economies of scale, and rationalize product lineups.

By terminating the CWB Onyx solution funds, National Bank eliminates potential overlap with its own extensive range of diversified products. By transitioning the remaining equity and income funds to new management and a non-reporting status, it appears to be carving out a specific, perhaps more exclusive, role for these products within its massive wealth management platform.

This consolidation strengthens National Bank's competitive position, particularly in Western Canada, where Canadian Western Bank has deep roots. For investors, however, it marks the end of an era for the CWB Onyx brand as a publicly available fund family. The current overhaul underscores the need for vigilance and proactive consultation with financial professionals to navigate the evolving landscape and ensure their investment portfolios remain aligned with their long-term objectives.