February 21, 2024
CI Global Asset Management Expands Alternative Funds Lineup with Launch of CI Auspice Alternative Diversified Corporate Class
Fund aims to deliver crisis alpha, inflation protection
TORONTO (February 21, 2024) – CI Global Asset Management (“CI GAM”) announces the launch of CI Auspice Alternative Diversified Corporate Class (“the Fund”), a systematic, trend-following, multi-strategy mandate designed to deliver returns that are uncorrelated with traditional asset classes.
The Fund uses a disciplined, rules-based approach to invest in commodities and other financial interests and can take both long and short positions. It seeks to provide returns that are uncorrelated with other alternative strategies and fixed income, while also being negatively correlated to equities. This results in increased diversification and the potential for “crisis alpha” – delivering outperformance during market downturns. The Fund’s trend-following strategy and emphasis on commodities can also provide a hedge against inflation.
“CI Auspice Alternative Diversified Corporate Class is a unique mandate that offers investors enhanced diversification benefits and potential downside protection in volatile markets,” said Jennifer Sinopoli, Executive Vice-President and Head of Distribution for CI GAM. “It can help to strengthen portfolios in an uncertain investment landscape that, following spikes in inflation and interest rates, is vastly changed from previous years.”
The Fund invests substantially all of its assets in units of Auspice Diversified Trust, a fund managed by Auspice Capital Advisors Ltd. (“Auspice”), which has been named sub-advisor to the Fund. Auspice is Canada’s largest active commodity and Commodity Trading Advisor (CTA) fund manager.
“With a 17-year history of delivering commodity and crisis alpha to investors, Auspice Diversified Trust has the longest track record in its category in Canada, and we’re pleased to partner with CI GAM to provide expanded access to this successful strategy,” said Tim Pickering, Chief Investment Officer and Co-Founder of Auspice.
“We are in a volatile era marked by a structural shift in inflation, rising global conflict, and a narrowly focused stock market rally alongside a potential commodity supercycle. The result is increasing demand for non-correlated returns and this mandate fills that need.”
The team at Auspice, which was founded in 2006, has extensive experience in commodities, trading, risk management and quantitative investment strategies. Auspice is also sub-advisor to CI Auspice Broad Commodity Fund, which is available as a mutual fund and ETF (TSX: CCOM).
“CI GAM continues to expand and diversify its lineup of alternative investment solutions by leveraging the expertise of our own investment team as well as engaging specialized third-party managers such as Auspice,” said Ms. Sinopoli. “We strongly believe that individual investors can benefit from an allocation to alternatives and we remain committed to providing them with access to sophisticated, institutional-style solutions.”
CI GAM is a leader in the alternative investment segment in Canada with a strong lineup of liquid alternatives mandates with approximately $3.8 billion in total assets (as at December 31, 2023; excluding cryptocurrency funds). CI GAM also offer offers a diverse selection of private markets solutions.
CI Auspice Alternative Diversified Corporate Class can be purchased for an initial minimum investment of $500. It has a risk rating of medium and a Series F management fee of 1.00%. The Fund also charges a performance fee, which is subject to a hurdle rate and a high-water mark. For further details, please see the simplified prospectus.
About Auspice Capital Advisors
Auspice is an innovative alternative asset manager that focuses on applying rules-based investment strategies across a broad range of commodity and financial markets. Auspice offers liquid alternative and commodity strategies that provide the benefits of active management and the efficiency of indexing. Auspice works with a wide range of clients and develops solutions to improve their portfolio or product suite. Auspice strategies are available directly to institutions, financial professionals and high-net-worth individual investors as well as retail investors through the Auspice brand along with sub-advisory and licensing arrangements. www.auspicecapital.com.
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 $450.8 billion in assets as at January 31, 2024.
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.
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.
CI Auspice Alternative Diversified Corporate Class is an alternative mutual fund. It has the ability to invest in asset classes or use investment strategies that are not permitted for conventional mutual funds. The specific strategies that differentiate this fund from conventional mutual funds include: increased use of derivatives for hedging and non-hedging purposes; increased ability to sell securities short; and the ability to borrow cash to use for investment purposes. While these strategies will be used in accordance with the fund’s investment objectives and strategies, during certain market conditions they may accelerate the pace at which your investment decreases in value.
CI Auspice Alternative Diversified Corporate Class is not sponsored, endorsed, sold or promoted by Auspice and Auspice makes no representation regarding the advisability of investing in CI Auspice Alternative Diversified Corporate Class.
Auspice Capital Advisors Ltd. is a portfolio sub-advisor to certain funds offered and managed by CI Global Asset Management.
CI Global Asset Management is a registered business name of CI Investments Inc.
©CI Investments Inc. 2024. All rights reserved.
Contact
Murray Oxby
Vice-President, Corporate Communications
CI Global Asset Management
416-681-3254
moxby@ci.com
Contact
CI Global Asset Management is a registered business name of CI Investments Inc. © CI Investments Inc. 2024. All rights reserved.