CI Mutual Funds, Canada's third-largest fund company, on Thursday announced that it plans to establish a fixed administration fee for its mutual funds that would result in lower costs and greater transparency for investors.

Under the terms of the proposal, CI will bear all the operating expenses of the funds with the exception of taxes and new governmental fees in exchange for a fixed administration fee. As a result, all of its funds will have predictable expense ratios that would essentially be the sum of their management fees, administration fee and taxes. The plan would effectively put a cap on the funds' expense ratios with CI absorbing costs than exceed the fixed fee.

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