CI Global Asset Management Announces Risk Rating Changes, Fund Name Changes and the Completion of Two Fund Mergers
CI Global Asset Management (CI GAM) has announced immediate changes to the risk ratings of certain investment funds, following their annual review. The risk level adjustments are based on regulatory guidelines and do not affect the investment strategies. The firm is also rebranding several funds to unify them under the CI name and reflect their investment mandates better. Additionally, two fund mergers have been completed, consolidating assets into the Cambridge Global High Income Fund, which will be renamed CI Global Equity & Income Fund.
- Risk ratings were proactively reviewed and updated for funds, suggesting compliance and enhancement of portfolio management.
- Completion of fund mergers may streamline operations and potentially enhance efficiency and investor returns.
- Strategic rebranding under a unified CI name can simplify portfolio options for investors.
- Changes in risk ratings could lead to investor concerns regarding risk exposure.
- The merger process may involve complexities and integration challenges that could affect fund performance.
CI Global Asset Management (“CI GAM”) today announced risk rating and name changes to certain investment funds, and confirmed the completion of two fund mergers.
Risk rating changes
The following risk rating changes are effective immediately and are based on the risk classification methodology mandated by the Canadian Securities Administrators to determine the risk level of mutual funds. CI GAM reviews the risk rating for each of the funds it manages at least on an annual basis, as well as when a fund undergoes a material change. These changes are the result of an annual review and are not the result of any changes to the investment objectives, strategies or management of the funds.
CI Funds |
New risk rating |
Previous risk rating |
Cambridge Canadian Dividend Corporate Class (to be renamed CI Canadian Dividend Corporate Class) |
Medium |
Low-to-Medium |
Cambridge Canadian Dividend Fund (to be renamed CI Canadian Dividend Fund) |
Medium |
Low-to-Medium |
Assante Private Pools (formerly United Funds) |
||
Enhanced Income Pool (to be renamed Global Income Allocation Pool) |
Low |
Low-to-Medium |
Enhanced Income Corporate Class (to be renamed Global Income Allocation Corporate Class) |
Low |
Low-to-Medium |
Canadian Equity Alpha Pool |
Medium |
Low-to-Medium |
Canadian Equity Alpha Corporate Class |
Medium |
Low-to-Medium |
US Equity Small Cap Corporate Class |
Medium-to-High |
Medium |
US Equity Small Cap Pool |
Medium-to-High |
Medium |
Name changes
As announced on June 24, 2021, CI GAM is rebranding many of its funds as part of a strategic initiative to modernize its business and product lineup. The changes follow CI GAM’s integration of its in-house investment boutiques into a single investment team operating under the CI Global Asset Management name. With the fund name changes, the legacy boutique brands will be retired and the funds will be unified under the CI brand. CI GAM is making other changes so that fund names better reflect their investment mandates.
In addition to the changes announced previously, CI GAM is making the following name changes effective July 29, 2021:
Current name |
New name |
Enhanced Income Corporate Class |
Global Income Allocation Corporate Class |
Enhanced Income Pool |
Global Income Allocation Pool |
CI Global High Dividend Advantage Corporate Class |
CI Global Quality Dividend Managed Corporate Class |
CI Global High Dividend Advantage Fund |
CI Global Quality Dividend Managed Fund |
Additionally, the names of seven funds have been revised from what was previously announced. The following name changes were effective June 25, 2021, with the exception of Sentry U.S. Growth and Income Corporate Class, which will be changed effective July 29, 2021:
Previous name |
New name |
Sentry U.S. Equity Income Currency Neutral Private Pool Class |
CI U.S. Equity Currency Neutral Private Pool Class |
Sentry U.S. Equity Income Private Pool Class |
CI U.S. Equity Private Pool Class |
Sentry U.S. Equity Income Private Trust |
CI U.S. Equity Private Trust |
Sentry U.S. Growth and Income Class |
CI U.S. Equity Class |
Sentry U.S. Growth and Income Corporate Class |
CI U.S. Equity Corporate Class |
Sentry U.S. Growth and Income Currency Neutral Class |
CI U.S. Equity Currency Neutral Class |
Sentry U.S. Growth and Income Fund |
CI U.S. Equity Fund |
Fund mergers completed
Following the receipt of the required securityholder and regulatory approvals, as applicable, the previously announced mergers of Cambridge Monthly Income Corporate Class and Cambridge Monthly Income Fund into Cambridge Global High Income Fund (each, a “Merger”, and collectively, the “Mergers”) were completed after the close of business on July 23, 2021. As a result, Cambridge Monthly Income Fund and Cambridge Monthly Income Corporate Class have been terminated.
Securityholders of each of Cambridge Monthly Income Fund and Cambridge Monthly Income Corporate Class have received the equivalent dollar value of securities in the corresponding series of Cambridge Global High Income Fund as at July 23, 2021.
The Merger of Cambridge Monthly Income Fund into Cambridge Global High Income Fund was effected on a tax-deferred basis. The Merger of Cambridge Monthly Income Corporate Class into Cambridge Global High Income Fund was effected on a taxable basis; however, Cambridge Monthly Income Corporate Class did not pay a dividend as result of the merger.
Cambridge Global High Income Fund is being renamed CI Global Equity & Income Fund effective July 29, 2021.
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 is on the Web at www.ci.com. CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an independent company offering global asset management and wealth management advisory services with approximately
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
This document 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. 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.
Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what CI Global Asset Management believes to be reasonable assumptions, CI Global Asset Management cannot assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.
CI Global Asset Management is a registered business name of CI Investments Inc. ©CI Investments Inc. 2021. All rights reserved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210727005886/en/
FAQ
What are the recent risk rating changes for CIXX funds?
What is the significance of the fund mergers announced by CI GAM?
When will the name changes for CIXX funds take effect?
How does the rebranding impact CI GAM's investment products?
Are there any tax implications from the fund mergers for CIXX investors?
