CI Investments launches mutual fund series of CI First Asset Enhanced Short Duration Bond ETF (FSB)

CI also adds U.S. dollar hedged series for two CI Liquid AlternativesTM funds

 

TORONTO (November 2, 2020) – CI Investments Inc. (“CI”) today announced the launch of mutual fund series of CI First Asset Enhanced Short Duration Bond ETF (TSX: FSB, FSB.U), an actively managed, low-volatility income strategy that focuses primarily on short-dated U.S. and Canadian corporate bonds.

 

This fund has been offered as CI First Asset Enhanced Short Duration Bond ETF since September 2017 and is now available in mutual fund Series A, F, I and P, as well as U.S. dollar hedged versions for each series, namely AH, FH, IH and PH. Also effective today, the fund will be renamed CI First Asset Enhanced Short Duration Bond Fund with a dual-class structure offering both mutual fund series and ETF series.

 

CI First Asset Enhanced Short Duration Bond ETF is managed by Marret Asset Management Inc., a Toronto-based investment manager specializing in Canadian and global income investments. By utilizing short-dated investment-grade and high-yield bonds, the mandate aims to offer investors a return above traditional cash alternatives such as GICs, while maintaining a low volatility profile.* Since inception (September 7, 2017), this ETF has delivered strong average annual returns of nearly 2.7%.

 

“In an ultra-low rate environment, many traditional short-term income investments are offering inadequate returns,” said Roy Ratnavel, CI Executive Vice-President and Head of Distribution. “As a result, investors who are wary of market volatility are looking for new options. This mandate, managed by a proven and experienced investment team, can offer investors real yield while protecting their capital.”

 

CI introduced its dual-class fund structure, which includes both mutual fund series and ETF series, earlier this year as part of a continuing effort to streamline and modernize its product lineup. Benefits of the structure include less duplication of funds, larger funds with greater economies of scale and portfolio diversification opportunities, and greater consistency of fund performance between different fund structures with the same mandates.

 

U.S. dollar hedged series for CI Liquid AlternativesTM

 

CI also announced the launch of U.S. dollar hedged series for two funds in its popular CI Liquid Alternatives lineup. Currency hedging is a strategy that can help to mitigate the effects of currency fluctuations on fund returns over time. 

 

The new series to be launched on November 9, 2020 are:

  • U.S. dollar hedged series of CI Lawrence Park Alternative Investment Grade Credit Fund (Series AH, FH, IH and PH);

  • U.S. dollar hedged series of CI Munro Alternative Global Growth Fund (Series AH, FH, IH, and PH).

 

More information about CI Liquid Alternatives can be found at www.ci.com/liquidalts.

 

About CI Investments

 

CI Investments 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 company offering global asset management and wealth management advisory services with $194 billion in assets as of September 30, 2020.

 

Standard deviation of 1.70 since inception to September 30, 2020, vs. 2.08 for FTSE Canada Short Term Corporate Bond Index.

 

Standard Performance as at

September 30, 2020 (%)

1 Year

3 Years

Since Inception

Inception Date

CI First Asset Enhanced Short Duration Bond ETF (TSX: FSB)

3.53

2.69

2.67

09/07/2017

CI First Asset Enhanced Short Duration Bond ETF, USD (TSX: FSB.U)

3.34

 

3.06

10/02/2017

 

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. The indicated rates of return are the historical annual compound total returns net of fees and expenses payable by the fund (except for figures of one year or less, which are simple total returns) including changes in security value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced 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 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 provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. 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.

 

The CI Funds are managed by CI Investments Inc., a subsidiary of CI Financial Corp., which is listed on the Toronto Stock Exchange under the symbol "CIX”.

 

CI Investments and the CI Investments design are registered trademarks of CI Investments Inc. CI Liquid Alternatives is a trademark of CI Investments Inc.

 

©CI Investments Inc. 2020. All rights reserved.

 

For further information:
Murray Oxby
Vice-President, Corporate Communications
CI Investments
416-681-3254
moxby@ci.com

     

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