Liquid Alternatives: CI Investments Floats Three Liquid Alt ETFs in Modernization Drive
The ETFs will trade on the Toronto Stock Exchange.
The new ETFs from CI Investments are a take on the strategies followed in the fund manager’s liquid alternative mutual funds launched in November 2018. These funds have scooped up inflows above US$1.1 billion as of December 31, 2019.
The three funds are:
- CI Lawrence Park Alternative Investment Grade Credit ETF (common units, TSX: CRED; US$ 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).
|Name of ETF||Ticker||Objective||Investments|
|CI Lawrence Park Alternative Investment Grade Credit ETF (U.S. Dollars)||CRED.U||To generate consistent positive total returns with an emphasis on capital preservation and low correlation to traditional equity and fixed income markets||Investment-grade debt of corporations and financial institutions in the developed world. Liquidity is offered because multiple dealers widely trade these instruments.|
|CI Marret Alternative Absolute Return Bond ETF||CMAR||To provide positive absolute returns with low volatility over a market cycle regardless of market conditions or general market direction. 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.||Debt instruments across the credit spectrum including cash, government debt, investment-grade corporate debt, high yield debt, credit derivatives, and other income-producing securities throughout the world.|
|CI Munro Alternative Global Growth ETF||CMAG||To generate risk-adjusted, absolute returns over the medium to long term, while maintaining a capital preservation mindset. The ETF will use leverage. The leverage will be created generally through the use of short sales and derivative contracts. Focuses on identifying sustainable growth trends that are under-appreciated and mispriced by the market, and the resulting winning and losing stocks.||Listed international equities, deploying a long/short equities strategy with a long bias.|
Alternative products for investors
“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,” said Kurt MacAlpine, Chief Executive Officer of CI Financial Corp., the parent company of CI.
“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,” he added.
CI Investments is amid a re-orientation of its business through globalization. Also, it is expanding the scope of its wealth management platform and revamping its asset management.
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