CI Global Asset Management Files Preliminary Prospectus for CI Auspice Broad Commodity ETF

Rhea-AI Summary

CI Global Asset Management has filed a preliminary prospectus for the CI Auspice Broad Commodity ETF (CCOM), highlighting its focus on providing portfolio diversification and inflation protection through commodity exposure. CCOM aims to replicate the performance of the Auspice Broad Commodity Excess Return Index, investing in futures contracts across agriculture, energy, and metals sectors. The index is developed by Auspice Capital Advisors, based in Calgary. The prospectus, dated August 19, 2022, is available for review, and the ETF's launch is pending the final prospectus receipt.

Positive

• A potential for portfolio diversification and inflation protection through commodity exposure.
• Focus on sectors like agriculture, energy, and metals which may benefit from increased infrastructure spending and the transition to a greener economy.

Negative

• The preliminary prospectus is still subject to completion or amendment, introducing uncertainty regarding the ETF's final structure.

TORONTO--(BUSINESS WIRE)-- CI Global Asset Management (“CI GAM”) announces it has filed and obtained a receipt for a preliminary prospectus for CI Auspice Broad Commodity ETF (“CCOM”).

“In today’s environment, exposure to commodities can provide powerful portfolio diversification benefits and protection against inflation, given that commodity prices have historically performed well during inflationary periods,” said Geraldo Ferreira, Senior Vice-President, Head of Investment Products and Manager Oversight at CI GAM.

“Commodities also offer the potential to benefit from increased infrastructure spending, as governments seek to ‘build back better,’ and from the transition to a greener economy, which will require extensive use of commodities.”

CCOM seeks to replicate the performance of the Auspice Broad Commodity Excess Return Index (the “Index”) by investing in financial instruments, including futures contracts and derivatives. The Index currently uses a quantitative methodology to track a diversified portfolio of commodity futures contracts, or components, across three sectors: agriculture, energy and metals.

The Index was developed by Auspice Capital Advisors Ltd. (“Auspice”), which has been appointed sub-advisor to CCOM. Auspice is a Calgary-based alternative asset manager that focuses on applying rules-based investment strategies across a broad range of financial and commodity markets.

A preliminary prospectus dated August 19, 2022 containing important information relating to the securities of CCOM has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. A copy of the preliminary prospectus is available on www.sedar.com. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

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 Global Asset Management is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an integrated global asset and wealth management company with approximately $348.5 billion in assets as of July 31, 2022.

Commissions, management fees and expenses all may be associated with an investment in exchange-traded funds (ETFs). 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. Please read the prospectus before investing. Important information about an exchange-traded fund is contained in its prospectus. ETFs are not guaranteed; their values change frequently, and past performance may not be repeated.

The CI Auspice Broad Commodity ETF 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.

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.

Auspice is a trade name of Auspice Capital Advisors Ltd. (“Auspice”) The CI Auspice Broad Commodity ETF is not sponsored, endorsed, sold or promoted by Auspice and Auspice makes no representation regarding the advisability of investing in the CI Auspice Broad Commodity ETF.

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

©CI Investments Inc. 2022. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220901005236/en/

Murray Oxby

Vice-President, Corporate Communications

CI Global Asset Management

416-681-3254

moxby@ci.com

Source: CI Global Asset Management

FAQ

What is the CI Auspice Broad Commodity ETF (CIXX) and its investment strategy?

The CI Auspice Broad Commodity ETF (CCOM) seeks to replicate the performance of the Auspice Broad Commodity Excess Return Index by investing in futures contracts and derivatives across agriculture, energy, and metals.

When was the preliminary prospectus for CI Auspice Broad Commodity ETF filed?

The preliminary prospectus for the CI Auspice Broad Commodity ETF was filed on August 19, 2022.

Who developed the index that the CI Auspice Broad Commodity ETF will track?

The index for the CI Auspice Broad Commodity ETF is developed by Auspice Capital Advisors Ltd.

What are the expected benefits of investing in the CI Auspice Broad Commodity ETF?

Investors may benefit from portfolio diversification and inflation protection, with potential gains from increased infrastructure spending and the transition to a greener economy.

Is there any risk associated with investing in the CI Auspice Broad Commodity ETF?

Yes, the ETF's preliminary prospectus is subject to completion or amendment, which introduces uncertainty regarding its final structure and investment strategy.