CI Global Asset Management Announces Lower Management Fees and Launch of ETF Series for CI Floating Rate Income Fund

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The fund is a leader in its category in terms of cost and performance

TORONTO, February 22, 2022–(BUSINESS WIRE)–CI Global Asset Management (“CI GAM”) today announced a significant reduction in management fees for top performers CI Floating Rate Income Fund (the “Fund”), as well as plans to launch a series of ETFs from the Fund – two timely moves designed to help Canadians manage the investment risks of inflation and rising interest rates .

Effective today, the maximum management fees for Series F and Series A of the Fund have been reduced by 40 basis points to a fixed fee of 0.35% and 0.85%, respectively. CI GAM believes this change will result in the CI Floating Rate Income Fund having the lowest Series F management fees in the class.

The Fund has shown an exceptional performance, being the best performing fund in its category since its inception on June 1, 2017 until January 31, 2022. In addition, it holds a five-star rating from Morningstar Canada and has earned a FundGrade 2021 A+® Award.1

CI GAM has filed a prospectus amendment to offer ETF Series C$ units of the Fund, which are expected to begin trading on the Toronto Stock Exchange (“TSX”) on or about April 19, 2022 under the symbol CFRT, subject to TSX approval. CAD$ETF Series Units will have a management fee of 0.35%.

“This combination of yield and lower costs makes the CI Floating Rate Income Fund a compelling choice for income investors in today’s environment,” said Marc-André Lewis, Chief Investment Officer at CI GAM.

“Floating rate investments can diversify fixed income portfolios and help mitigate the impact of rising interest rates. Investors in the Fund also benefit from the deep expertise across CI Global Asset Management. bond teamas our portfolio managers actively manage asset class allocations and exercise thorough due diligence in the selection of individual holdings, which is crucial in managing high yield securities.”

The CI Floating Rate Income Fund is designed to provide a steady stream of income by investing in higher yielding floating rate debt securities, such as bonds and loans, as well as high yield and investment grade bonds short-term premium and floating rate preferred shares. Since the interest rates paid by floating rate loans and bonds are typically reset quarterly, these securities provide a hedge against rising interest rates. In comparison, the prices of fixed income securities such as government bonds tend to fall when interest rates rise.

Financial markets currently expect the US Federal Reserve and the Bank of Canada to each raise their key rates about six times this year, starting next month, to counter higher inflation rates.

The management fees for these series of CI Floating Rate Income Fund have changed as follows:

Series of funds

Previous high
Management fees

New apartment
Management fees

Administration fees

A

1.25%

0.85%*

0.17%

F

0.75%

0.35%*

0.17%

P

0.75%

0.35%

0.17%

E

1.20%

0.85%

0.15%

EF

0.70%

0.35%

0.15%

O

0.70%

0.35%

0.15%

ETF Series CAD (new)

0.35%

0.17%

*Under the new fixed fee model, CI Prestige management and administration fee reductions/distributions are no longer applicable.

About CI Global Asset Management

CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and has a web presence at www.ci.com. CI Global Asset Management is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an integrated global asset and wealth management company with approximately $384.1 billion in assets as of December 31, 2021.

1) Performances and rankings

1 year

3 years

Since the creation
(June 1, 2017)

CI Floating Rate Income Fund (Series F)

5.3%

5.1%

4.0%

Morningstar rating (overall: 5 stars)

n / A

5 stars

n / A

Ranking of funds in the category

#2

#1

#1

Number of funds in category

95

89

77

The category is Variable Rate Loans; Source: Morningstar Research Inc., as of January 31, 2022. Category fund ranking excludes USD virtual class fund series and represents absolute return ranking relative to category peers. Being ranked number one means that no other fund has outperformed it in terms of absolute return over the past period.

™2022 Morningstar and the Morningstar Rating are registered trademarks of Morningstar Research Inc. All rights reserved.

©2022 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is the property of Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) are not guaranteed to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not indicative of future results.

Morningstar Absolute Quartile Rankings are compiled by sorting funds based on returns relative to mutual funds within the same peer group and range from 1 to 4 for all time periods covered and are subject to change monthly. The top 25% of funds in each fund category are assigned a ranking of 1, the next 25% a 2, and so on.

Morningstar Ratings reflect performance as of January 31, 2022 and are subject to change monthly. Ratings are calculated from a fund’s 3-, 5-, and 10-year returns measured against 91-day treasury bill and peer group returns. For each period, the top 10% funds in a category get five stars. The overall rating is a weighted combination of the 3, 5 and 10 year ratings. For more details see www.morningstar.ca.

CI Floating Rate Income Fund received a FundGrade A+ award for 2021 in CIFSC’s Floating Rate Lending category, which included 57 funds. The period used to calculate the award was from 01/31/2018 to 12/31/21.

Fund category A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® The awards are presented by Fundata Canada Inc. to recognize “the best of the best” among Canadian investment funds. The FundGrade A+® This calculation is in addition to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by the Sharpe ratio, Sortino ratio and information ratio. The score for each ratio is calculated individually, covering all periods from 2 to 10 years. The scores are then weighted equally in the calculation of a monthly FundGrade. The top 10% funds get an A rating; the next 20% of funds get a B rating; the next 40% of funds get a C rating; the next 20% of funds receive a D rating; and the lowest 10% of funds receive an E rating. To be eligible, a fund must have received a FundGrade rating each month of the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score of 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or higher receives a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata strives to ensure the accuracy and reliability of the data contained herein, accuracy is not guaranteed by Fundata.

Commissions, trailing commissions, management fees and expenses all may be associated with investing in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. The rates of return shown are the historical annual compound total returns net of fees and expenses payable by the fund (except for figures one year or less, which are simple total returns), including changes in value securities and the reinvestment of all distributions and without taking into account any sales, redemption, distribution or optional charges or income taxes payable by any holder of securities which would have the effect of reducing returns. 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 buy or sell units of an ETF on recognized Canadian exchanges. If Units are bought 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 for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy 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 this regard. Every effort has been made to ensure that the contents of this document are accurate at the time of publication. Individuals should seek professional advice, where available, regarding any particular investment. Investors should consult their professional advisers before implementing any changes to their investment strategies. These investments may not be suitable for an investor’s circumstances.

Forward-looking statements are not historical facts, but reflect CI GAM’s current expectations regarding future results or events and are based on information currently available to them. Certain important factors and assumptions were applied in providing these forward-looking statements. All forward-looking statements contained in this press release are qualified by these cautionary statements. CI GAM believes that the expectations reflected in the forward-looking statements are based on reasonable assumptions; however, CI GAM cannot guarantee that actual results or developments will materialize. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Accordingly, readers should not place undue reliance on these forward-looking statements. Further, a forward-looking statement speaks only as of the date such statement is made. CI GAM undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances, except as required by securities laws. These forward-looking statements are made as of the date of this press release.

CI Global Asset Management is a registered business name of CI Investments Inc.

©CI Investments Inc. 2022. All rights reserved.

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contacts

Murray Oxby
Vice President, Corporate Communications
CI Global Asset Management
416-681-3254
[email protected]

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