National Bank Investments Overhauls Fund Management, Slashing Fees
Event summary
- National Bank Investments (NBI) is transitioning portfolio sub-advisory responsibilities for the NBI Active International Equity Fund from Montrusco Bolton to Franklin Templeton Investments (FTIC), effective May 1, 2026.
- NBI is replacing Mackenzie Financial Corporation as portfolio manager of the NBI Canadian Equity Growth Fund, appointing Picton Mahoney Asset Management as sub-advisor, also effective May 8, 2026.
- NBI is reducing management and administration fees across several fund series, including the U.S. Equity Index Fund, Canadian Equity Index Fund, and Meritage Tactical ETF portfolios, effective May 12, 2026.
- The NBI Active International Equity Fund will be renamed the NBI International Value Fund, effective May 1, 2026.
- NBI is discontinuing a management fee reduction plan for high-net-worth investors for specific Meritage Tactical ETF portfolios, effective May 12, 2026.
The big picture
NBI's changes reflect a broader trend among asset managers to embrace open architecture and optimize fund costs. The shift in advisors and fee reductions suggest a strategic realignment aimed at enhancing competitiveness and appealing to a wider range of investors. The move also highlights the ongoing scrutiny of fund fees and the pressure on managers to deliver value for investors, particularly in a low-interest-rate environment.
What we're watching
- Performance Impact
- The shift to new advisors at both the International Equity and Canadian Equity Growth funds will require close monitoring to assess the impact on performance and investor sentiment.
- Fee Pressure
- The fee reductions signal increased pressure on asset managers to lower costs, potentially impacting profitability across the industry.
- Client Retention
- The discontinuation of the high-net-worth reduction plan could lead to client attrition if not managed effectively, requiring NBI to demonstrate value through other means.
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