•  
• Tweet
•  
•  
•        Print
•  
•        Email
•  
•         Track Keywords

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 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 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 is managed by Munro Partners 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.