CI Global Asset Management Announces Two New ETFs, Fund Mergers and Other Changes to Enhance Product Lineup

New ETFs target U.S. value and momentum stocks

CI GAM to significantly reduce fees on several funds and ETFs

TORONTO–(BUSINESS WIRE)–$CIX #CIFinancialCI Global Asset Management (“CI GAM”) announces a series of changes to streamline and enhance its product lineup, including the launch of two U.S. equity ETFs, the mergers of 19 mutual funds and ETFs into other mandates, modifications to the CI Personal Portfolios and two ETFs, and management fee reductions.


“These changes are driven by the ongoing modernization of our product lineup, which is focused on helping our clients succeed in a challenging market environment,” said Jennifer Sinopoli, Executive Vice-President and Head of Distribution for CI GAM.

“Our approach incorporates three broad strategies – introducing new and innovative investment solutions to meet investors’ changing needs, making enhancements to our existing solutions, and simplifying our overall product lineup to improve the client experience. Overall, we continue to build a product lineup that is one of the most diverse and innovative in the Canadian investment fund industry.”

Ms. Sinopoli noted that the modernization of the company’s product suite has been supported by the strong performance achieved by the CI GAM investment team.

“CI GAM mutual funds and ETFs recently received 19 individual LSEG Lipper Fund Awards for 2023 – more than any other company in Canada,” said Ms. Sinopoli. “These results are fostered by CI GAM’s integrated global investment platform and its focus on in-depth research, a rigorous approach to portfolio construction and an emphasis on risk and performance management.”

New ETFs

CI GAM announces it has filed and obtained a receipt for a preliminary prospectus for CI U.S. Enhanced Momentum Index ETF and CI U.S. Enhanced Value Index ETF and the securities for these ETFs have been conditionally approved for listing on the Toronto Stock Exchange (“TSX”). CI GAM expects the new ETFs to begin trading on the TSX on or after January 16, 2024, subject to TSX approval. The tickers for CI U.S. Enhanced Momentum Index ETF will be CMOM (Hedged Common Units) and CMOM.B (Unhedged Common Units), and the tickers for CI U.S. Enhanced Value Index ETF will be CVLU (Hedged Common Units) and CVLU.B (Unhedged Common Units).

These smart beta ETFs are designed to provide investors with targeted, lower-cost access to quality U.S. companies displaying strong momentum and value characteristics, respectively. CI GAM believes the new underlying indexes will provide broader diversification and reduced risk in gaining exposure to these two key U.S. equity factors. The ETFs have a management fee of 0.30% and use newly developed underlying indexes by index provider VettaFi, LLC.

CI U.S. Enhanced Momentum Index ETF seeks to track, to the extent reasonably possible, the performance of a portfolio of U.S. equity securities on the basis of risk-adjusted time-weighted price performance during the specified measurement periods that exhibit higher-quality characteristics, net of expenses. Currently, CMOM (Hedged Common Units) seeks to track the VettaFi US Enhanced Momentum Index (CAD Hedged) or any successor thereto. CMOM.B (Unhedged Common Units) seeks to track the VettaFi US Enhanced Momentum Index or any successor thereto, which is unhedged.

CI U.S. Enhanced Value Index ETF seeks to track, to the extent reasonably possible, the performance of a portfolio of large and mid-cap U.S. equity securities that exhibit high value characteristics, net of expenses. Currently, CVLU (Common Hedged Units) seeks to track the VettaFi US Enhanced Value Index (CAD Hedged) or any successor thereto. CVLU.B (Common Unhedged Units) seeks to track the VettaFi US Enhanced Value Index or any successor thereto, which is unhedged.

A preliminary prospectus dated November 17, 2023 containing important information relating to the securities of CI U.S. Enhanced Momentum Index ETF and CI U.S. Enhanced Value Index ETF has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. A copy of the preliminary prospectus is available on www.sedarplus.ca. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

Fund mergers

CI GAM is proposing a series of fund mergers (the “Mergers”) to reduce duplication and streamline its product offering. CI GAM believes investors will benefit from continuing funds with larger net asset values, allowing for increased portfolio diversification opportunities and a larger profile within the marketplace.

In all cases, the combined management and administration fees with respect to each series of the continuing funds are the same as or lower than the combined management and administration fees that are currently payable by the corresponding series of the terminating funds. The costs and expenses associated with the mergers are being borne by CI GAM, not the funds. None of the Mergers will result in a change of portfolio management teams.

The Independent Review Committee (“IRC”) for the terminating funds has reviewed the proposed Mergers with respect to potential conflict of interest matters and provided a positive recommendation or its approval, as applicable, having determined that the Mergers, if implemented, achieve a fair and reasonable result for each of the terminating funds.

ETF mergers

CI GAM is proposing the following ETF mergers. All of the ETFs trade on the TSX.

Terminating ETF

Tickers

Continuing ETF

Tickers

CI DoubleLine Core Plus Fixed Income US$ Fund

CCOR, CCOR.B, CCOR.U

CI DoubleLine Total Return Bond US$ Fund

CDLB, CDLB.B, CDLB.U

CI DoubleLine Income US$ Fund

CINC, CINC.B, CINC.U

CI DoubleLine Total Return Bond US$ Fund

CDLB, CDLB.B, CDLB.U

CI Morningstar US Momentum Index ETF

YXM, YXM.B

CI U.S. Enhanced Momentum Index ETF*

CMOM, CMOM.B

CI Morningstar US Value Index ETF

XXM, XXM.B

CI U.S. Enhanced Value Index ETF*

CVLU, CVLU.B

CI MSCI Canada Quality Index Class ETF

FQC

CI WisdomTree Canada Quality Dividend Growth Index ETF

DGRC

CI U.S. TrendLeaders Index ETF

SID

CI U.S. Enhanced Momentum Index ETF*

CMOM

CI WisdomTree International Quality Dividend Growth Variably Hedged Index ETF

DQI

CI WisdomTree International Quality Dividend Growth Index ETF

IQD

CI WisdomTree U.S. Quality Dividend Growth Variably Hedged Index ETF

DQD

CI WisdomTree U.S. Quality Dividend Growth Index ETF

DGR

* New ETF expected to begin trading on or after January 16, 2024.

The Mergers of CI DoubleLine Core Plus Fixed Income US$ Fund, CI DoubleLine Income US$ Fund and CI MSCI Canada Quality Index Class ETF are to be effected on a taxable basis, resulting in a taxable disposition if the Funds are held in a non-registered account. The other Mergers will be effected on a non-taxable basis.

The Mergers require the approval of securityholders of the terminating ETFs. CI GAM will hold securityholder meetings to vote on the proposals on or about March 5, 2024, and will mail meeting materials to securityholders in early February 2024. If approved, the Mergers will take place on or after April 5, 2024.

Mutual fund mergers

CI GAM is proposing the following mutual fund Mergers:

Terminating Fund

Continuing Fund

CI Asian Opportunities Fund

CI Emerging Markets Fund

CI Asian Opportunities Corporate Class

CI Emerging Markets Corporate Class*

CI DoubleLine Core Plus Fixed Income US$ Fund**

CI DoubleLine Total Return Bond US$ Fund

CI DoubleLine Income US$ Fund**

CI DoubleLine Total Return Bond US$ Fund

CI Global Quality Dividend Managed Corporate Class

CI Global Dividend Corporate Class*

CI Global Quality Dividend Managed Fund

CI Global Dividend Fund

CI Real Income 1941-45 Class

CI Select Income Managed Corporate Class

CI Real Income 1946-50 Class

CI Select Income Managed Corporate Class

CI Real Income 1951-55 Class

CI Select Income Managed Corporate Class

CI Real Growth Pool Class

CI Select Global Equity Corporate Class

CI Real Long Term Income Pool Class

CI Canadian Bond Corporate Class

CI Real Mid Term Income Pool Class

CI Canadian Bond Corporate Class

CI Real Short Term Income Pool Class

CI Canadian Bond Corporate Class

All of the Mergers will be effected on a taxable basis, with the exception of the CI Asian Opportunities Fund and CI Global Quality Dividend Managed Fund Mergers, which are non-taxable. The Mergers require the approval of securityholders of the terminating funds and the continuing funds denotated with an asterisk (*), with the exception of the CI Global Quality Dividend Managed Fund Merger, which will proceed following its approval by the IRC.

Other than with respect to the terminating funds denoted with two asterisks (**), CI GAM will hold securityholder meetings to vote on the proposals on or about March 20, 2024, and will mail meeting materials to securityholders in February 2024. Securityholders of CI Global Quality Dividend Managed Fund will receive a separate communication by February 2024 notifying them of the Merger. If approved, the Mergers will take place on or after April 12, 2024. Details with respect to securityholder meetings, meeting materials and Merger implementation with respect to CI DoubleLine Core Plus Fixed Income US$ Fund** and CI DoubleLine Income US$ Fund** are set out in the section above under “ETF mergers,” as these funds offer both mutual fund series and ETF series units.

ETF index changes

CI GAM is proposing to change the investment objectives, as well as the underlying indexes and names of CI Yield Enhanced Canada Aggregate Bond Index ETF and CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF (the “Index Change ETFs”), as described below. CI GAM believes the switch to broader, more diversified indexes will lead to better risk-adjusted returns.

If the changes to the investment objectives are approved, CI GAM will also reduce the management fees of the two ETFs by more than half, to 0.07% from 0.18%. The 0.07% management fee is among the lowest in the Canadian market for Canadian bond ETFs.

The investment objective changes require the approval of each of the Index Change ETFs’ securityholders. CI GAM will hold securityholder meetings to vote on the proposals on or about March 5, 2024 and will mail meeting materials to securityholders in early February 2024. If approved, the investment objective changes (and consequently the name, index and management fee changes) will take place on or after April 5, 2024. The TSX tickers of the ETFs will not change.

CI Yield Enhanced Canada Aggregate Bond Index ETF (to be renamed CI Canadian Aggregate Bond Index ETF)

Current Investment Objective

New Investment Objective

To track, to the extent reasonably possible, the price and yield performance of the Bloomberg Canadian Aggregate Enhanced Yield Index, before fees and expenses.

To track, to the extent reasonably possible, the price and yield performance of a Canadian investment grade bond index, before fees and expenses. Currently, the ETF seeks to track the FTSE Canada Universe Bond IndexTM or any successor thereto.

CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF (to be renamed CI Canadian Short-Term Aggregate Bond Index ETF)

Current Investment Objective

New Investment Objective

To track, to the extent reasonably possible, the price and yield performance of the Bloomberg Canadian Short Aggregate Enhanced Yield Index, before fees and expenses.

To track, to the extent reasonably possible, the price and yield performance of a Canadian short-term investment grade bond index, before fees and expenses. Currently, the ETF seeks to track the FTSE Canada Short Term Overall Bond IndexTM or any successor thereto.

The proposed names and indexes of the Index Change ETFs are as follows:

Ticker

Current ETF Name

New ETF Name

Current Index

New Index

CAGG

CI Yield Enhanced Canada Aggregate Bond Index ETF

CI Canadian Aggregate Bond Index ETF

Bloomberg Canadian Aggregate Enhanced Yield Index

FTSE Canada Universe Bond Index™

CAGS

CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF

CI Canadian Short-Term Aggregate Bond Index ETF

Bloomberg Canadian Short Aggregate Enhanced Yield Index

FTSE Canada Short Term Overall Bond Index™

Changes to the CI Personal Portfolios

The CI Personal Portfolios are a family of five corporate class funds designed to meet a spectrum of investor profiles ranging from defensive income to growth. CI GAM is proposing to reposition the funds so that they effectively become corporate class versions of the CI Mosaic ETF Portfolios, a family of asset allocation mutual funds that invest in ETFs to achieve similar investor profiles.

The names and investment objectives of each CI Personal Portfolio will be changed to align with the appropriate CI Mosaic ETF Portfolio, as listed below. Pending approval of the changes to the investment objectives, CI GAM will also reduce the combined management and administration fees payable by investors in the CI Personal Portfolios. The maximum reduction will be 32 basis points for CI Defensive Income Personal Portfolio, 39 basis points for CI Conservative Income Personal Portfolio and CI Balanced Income Personal Portfolio and 47 basis points for CI Growth & Income Personal Portfolio and CI Growth Personal Portfolio.

CI GAM is proposing these changes to reduce costs for investors, achieve improved risk-adjusted returns for the funds and simplify its lineup.

The investment objective changes require the approval of the funds’ securityholders. CI GAM will hold securityholder meetings to vote on the proposals on or about March 20, 2024 and will mail meeting materials to securityholders in February 2024. If approved, the changes will take place on or about April 12, 2024.

Current Name / Investment Objective

New Name / Investment Objective

CI Defensive Income Personal Portfolio

CI Mosaic Income ETF Portfolio Class

To provide current income and capital preservation with the potential for capital appreciation by investing prudently in an actively managed, diversified portfolio consisting primarily of global fixed-income and equity securities.

To provide a balance between income and capital growth, with a focus on capital preservation over the medium to long-term, by investing primarily in a diversified portfolio of fixed income and equity exchange-traded funds.

 

CI Conservative Income Personal Portfolio

CI Mosaic Balanced Income ETF Portfolio Class

To provide current income and capital preservation with the potential for capital appreciation by investing prudently in an actively managed, diversified portfolio of global equity and fixed-income securities.

To provide a balance between income and long-term capital growth, with a bias towards income, by investing primarily in a diversified portfolio of fixed income and equity exchange-traded funds.

CI Balanced Income Personal Portfolio

CI Mosaic Balanced ETF Portfolio Class

To provide current income with the potential for long-term capital appreciation by investing in an actively managed, diversified portfolio of global equity and fixed-income securities.

To provide a balance between income and long-term capital growth, by investing primarily in a diversified portfolio of equity and fixed income exchange-traded funds.

CI Growth & Income Personal Portfolio

CI Mosaic Balanced Growth ETF Portfolio Class

To provide a balance of long-term capital appreciation and current income by investing in an actively managed, diversified portfolio of global equity and fixed-income securities.

To provide long-term capital growth, by investing primarily in a diversified portfolio of equity and fixed income exchange-traded funds.

CI Growth Personal Portfolio

CI Mosaic Growth ETF Portfolio Class

To provide long-term capital appreciation and the potential for current income by investing in an actively managed, diversified portfolio of primarily global equity and, to a lesser extent, fixed-income securities.

To provide long-term capital growth, by investing primarily in a diversified portfolio of equity exchange-traded funds.

About CI Global Asset Management

CI Global Asset Management (“CI GAM”) 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 GAM is a subsidiary of CI Financial Corp. (TSX: CIX), an integrated global asset and wealth management company with approximately $420.7 billion in assets as at October 31, 2023.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund and exchange-traded fund (ETF) investments. Please read the prospectus before investing. 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 recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, 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.

This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase mutual funds managed by CI Global Asset Management and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor.

The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by LSEG Lipper.

The CI Exchange-Traded Funds are managed by CI Global Asset Management, a wholly owned subsidiary of CI Financial Corp. (TSX: CIX). CI Global Asset Management is a registered business name of CI Investments Inc.

Morningstar® is a registered trademark of Morningstar, Inc. (“Morningstar”). Morningstar® US Target Momentum Index™ and Morningstar® US Target Value Index™ (the “Indexes”) are service marks of Morningstar and have been licensed for use for certain purposes by CI Global Asset Management (“CI GAM”). The securities of CI Morningstar US Momentum Index ETF and CI Morningstar US Value Index ETF (the “ETFs”) are not in any way sponsored, endorsed, sold or promoted by Morningstar or any of its affiliates (collectively, ‘‘Morningstar’’), and Morningstar makes no representation or warranty, express or implied regarding the advisability of investing in securities generally or in the ETFs particularly or the ability of the Indexes to track general market performance.

Alerian, VettaFi and the VettaFi Indexes are service marks of VettaFi LLC (“VettaFi”) and have been licensed for use by CI Global Asset Management. The VettaFi Indexes are not issued, sponsored, endorsed, sold or promoted by VettaFi or its affiliates. VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the VettaFi Indexes or any member of the public regarding the advisability of investing in securities generally or in the VettaFi Indexes particularly or the ability of the VettaFi Indexes to track general market performance. VettaFi’s only relationship to the VettaFi Indexes is the licensing of the service marks and the VettaFi Indexes, which is determined, composed and calculated by VettaFi without regard to CI Global Asset Management or the VettaFi Indexes. VettaFi is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Indexes issued by CI Global Asset Management. VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of the VettaFi Indexes.

MSCI is a trademark of MSCI Inc. The MSCI Canada Quality Index has been licensed for use for certain purposes by CI Global Asset Management (“CI GAM”) in connection with the CI MSCI Canada Quality Index Class ETF (the “ETF”). The ETF and the securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. or any of its affiliates (collectively, “MSCI”) and MSCI bears no liability with respect to any such fund or securities or any index on which such fund or securities are based. The ETF’s prospectus contains a more detailed description of the limited relationship MSCI has with CI GAM and any related funds.

Certain trademarks of Canadian Imperial Bank of Commerce and/or certain of its affiliates (collectively “CIBC”) have been licensed by CI Global Asset Management for use in connection with CI U.S. TrendLeaders Index ETF (the “ETF”). The securities of the ETF are not sponsored, promoted, sold or supported in any other manner by CIBC or by the index calculation agent, Solactive A.G. (“Solactive”), nor do CIBC or Solactive offer any express or implicit guarantee or assurance either with regard to the results of using the indexes on which the ETF is based, or the index prices at any time or in any other respect. The ETF’s prospectus contains a more detailed description of the limited relationship CIBC and Solactive have with CI GAM and the ETF.

CI Global Asset Management is licensed by WisdomTree, Inc. to use certain WisdomTree indexes (the “WisdomTree Indexes”) and WisdomTree marks. “WisdomTree®” is a registered trademark of WisdomTree, Inc. and WisdomTree, Inc. has patent applications pending on the methodology and operation of its indexes. The ETFs referring to such indexes (the “WT Licensee Products”) are not sponsored, endorsed, sold, or promoted by WisdomTree, Inc., or its affiliates (“WisdomTree”). WisdomTree makes no representation or warranty, express or implied, and shall have no liability regarding the advisability, legality (including the accuracy or adequacy of descriptions and disclosures relating to the WT Licensee Products) or suitability of investing in or purchasing securities or other financial instruments or products generally, or of the WT Licensee Products in particular (including, without limitation, the failure of the WT Licensee Products to achieve their investment objectives) or regarding use of such indexes or any data included therein.

The CI Yield Enhanced Canada Aggregate Bond Index ETF and CI Yield Enhanced Canada Short-Term Aggregate Bond Index ETF (the “Funds”) have been developed solely by CI Global Asset Management (“CI GAM”). The Funds are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies.

All rights in the FTSE Canada Universe Bond Index and FTSE Canada Short Term Overall Bond Index (the “Indexes”) vest in the relevant LSE Group company which owns the Indexes.

Contacts

Murray Oxby

Vice-President, Corporate Communications

416-681-3254

[email protected]

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