TORONTO (January 28, 2020) – CI Investments Inc. (“CI”), today announced that CI Liquid Alternatives™ are now available in an ETF structure and listed directly on the Toronto Stock Exchange. The new ETFs are:
- CI Lawrence Park Alternative Investment Grade Credit ETF (common units, TSX: CRED; US$ common units, TSX: CRED.U)
- CI Marret Alternative Absolute Return Bond ETF (common units, TSX: CMAR; US$ common units, TSX: CMAR.U), and
- CI Munro Alternative Global Growth ETF (TSX: CMAG).
The ETFs mirror the strategies of CI’s liquid alternative mutual funds, which were launched in November 2018 following the adoption of the Canadian Securities Administrators’ “alternative mutual funds” proposals. The funds have been well received, attracting over $1.1 billion in assets under management (as of December 31, 2019).
“Our liquid alts are sophisticated and innovative strategies that offer distinct benefits for investor portfolios, including the potential for enhanced returns, capital preservation and reduced correlation to traditional asset classes,” said Kurt MacAlpine, Chief Executive Officer of CI Financial Corp., parent company of CI. “In launching these ETFs, we are making these unique mandates and our investment management expertise available to a wider range of investors, who can choose the investment structure they prefer.”
“At CI, we are very excited about the potential for alternative investments, and we intend to build on our leadership in liquid alts as we continue to enhance our product lineup and modernize our asset management business.”
CI Financial announced a new strategic direction in November 2019 in which the firm is focusing on three priorities: modernizing its asset management business; expanding its wealth management platform; and globalizing the firm. In addition to liquid alternatives, CI has recently launched an environmental, social and governance (ESG) mandate and a high-interest savings mandate, both in mutual fund and ETF structures.
Liquid alternatives incorporate certain hedge fund investment strategies such as short-selling, leverage and derivatives. “Liquid” refers to the investment vehicle itself – a security that can be bought and sold on a daily basis, while “alternative” relates to non-traditional investment strategies.
Portfolio managers and mandates
CI Lawrence Park Alternative Investment Grade Credit ETF (“CRED”) is managed by Lawrence Park Asset Management Ltd., which uses a disciplined investment approach focused on offering a consistent return profile and low correlation to traditional equity and fixed income markets.
CRED maintains a high degree of liquidity by investing primarily in securities which are widely traded by multiple dealers and in investment-grade debt of corporations and financial institutions in the developed world.
CI Marret Alternative Absolute Return Bond ETF (“CMAR”) is managed by Marret Asset Management Inc. using a combination of top-down macroeconomic analysis involving the assessment of economic, political and market trends, complemented by a bottom-up company and security-level analysis to assess a company’s ability to generate cash and meet interest and principal payment obligations on its debt securities. The fund seeks to generate attractive risk-adjusted returns, regardless of stage in the economic cycle.
CMAR invests primarily in debt instruments across the credit spectrum, including cash, government debt, investment-grade corporate debt, convertible bonds, high-yield debt, government agency securities, credit derivatives and other income-producing securities throughout the world.
CI Munro Alternative Global Growth ETF (“CMAG”) is managed by Munro Partners (“Munro”) and invests primarily in listed international equities, deploying a long/short equities strategy with a long bias. It seeks to generate strong risk-adjusted absolute returns through exposure to global growth equities over the medium to long term, while maintaining a capital preservation mindset. Munro focuses on identifying sustainable growth trends that are under-appreciated and mispriced by the market, and the resulting winning and losing stocks.
For information about CI’s ETFs, as well as a complete list of ETFs available from CI, please visit: http://www.firstasset.com/solutions or call CI at 416-642-1289 or 1-877-642-1289. Information about CI’s liquid alternative mutual funds is available here.
CI Investments Inc. – Trusted Partner in WealthTM
CI Investments Inc. is one of Canada's largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI is a subsidiary of CI Financial Corp. (TSX: CIX), an independent, Canadian-owned wealth management firm with $182 billion in fee-earning assets as of December 31, 2019.
Commissions, trailing commissions, management fees and expenses may be associated with an investment in mutual funds and exchange traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in its respective prospectus. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on the Toronto Stock Exchange (the “TSX”). If the units are purchased or sold on the TSX, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.
Lawrence Park Asset Management Ltd., Marret Asset Management Inc., and Munro Partners are portfolio sub-advisors to certain funds offered and managed by CI Investments Inc. Marret Asset Management Inc. is a majority owned subsidiary of CI Financial Corp. and an affiliate of CI Investments Inc. CI Financial Corp. holds a minority interest in Lawrence Park Asset Management.
CI Investments® and the CI Investments design are registered trademarks of CI Investments Inc. “Trusted Partner in WealthTM” and CI Liquid Alternatives are trademarks of CI Investments Inc.
©CI Investments Inc. 2020. All rights reserved.