CI Global Asset Management to Launch Global and U.S. ETFs Focused on Managing Downside Volatility

Rhea-AI Summary

CI Global Asset Management (CI GAM) has received approval for the final prospectus of two new ETFs: CI Global Minimum Downside Volatility Index ETF and CI U.S. Minimum Downside Volatility Index ETF, expected to trade on the TSX from January 24, 2023. These ETFs aim to minimize downside volatility while allowing for potential gains. Additionally, CI GAM plans to merge three existing ETFs into the new CI Global Minimum Downside Volatility Index ETF, offering a lower management fee of 0.35%. Securityholder meetings for the mergers are set for March 7, 2023.

Positive

• Launch of two new ETFs aimed at reducing downside volatility.
• Lower management fee (0.35%) for the new ETF compared to previous ETFs (0.60%).
• ETFs are designed to offer better risk-adjusted returns.

Negative

• None.

CI GAM also announces proposal to merge three existing ETFs into new ETF

TORONTO--(BUSINESS WIRE)-- CI Global Asset Management (“CI GAM”) today announced that it has received a receipt for the final prospectus of CI Global Minimum Downside Volatility Index ETF and CI U.S. Minimum Downside Volatility Index ETF.

CI GAM expects the new ETFs to begin trading on the Toronto Stock Exchange (“TSX”) on or after January 24, 2023, subject to TSX approval. The tickers for CI Global Minimum Downside Volatility Index ETF will be CGDV (Hedged Common Units) and CGDV.B (Unhedged Common Units), and the tickers for CI U.S. Minimum Downside Volatility Index ETF will be CUDV (Hedged Common Units) and CUDV.B (Unhedged Common Units).

“At a time of heightened market volatility, these ETFs will provide a well-designed defensive component to investors’ portfolios,” said Roy Ratnavel, Executive Vice-President and Head of Distribution for CI GAM. “Unlike many other low-volatility funds, these mandates focus on managing downside volatility, with the goal of minimizing negative returns while still benefiting from rising share prices.”

The ETFs are designed to replicate the performance of Solactive indexes that track the performance of portfolios of companies that exhibit lower downside volatility than the broader developed equity markets. The portfolios are constructed to avoid excessive sector concentration and turnover. CI Global Minimum Downside Volatility Index ETF will represent a portfolio of global companies and CI U.S. Minimum Downside Volatility Index ETF will represent a portfolio of U.S. companies.

CGDV will seek to replicate the performance of the Solactive DM Minimum Downside Volatility Hedged to CAD Index NTR, which is hedged to the Canadian dollar, while CGDV.B will seek to replicate the performance of the Solactive DM Minimum Downside Volatility CAD Index NTR, which is unhedged.

CUDV will seek to replicate the performance of the Solactive US Minimum Downside Volatility Hedged to CAD Index NTR, which is hedged to the Canadian dollar, while CUDV.B will seek to replicate the performance of the Solactive US Minimum Downside Volatility CAD Index NTR, which is unhedged.

ETF mergers
CI GAM also announced today a proposal to merge three existing ETFs – CI MSCI World Low Risk Weighted ETF, CI MSCI International Low Risk Weighted ETF and CI MSCI Europe Low Risk Weighted ETF – into the new CI Global Minimum Downside Volatility Index ETF.

CI GAM believes securityholders will benefit from the mergers given that the continuing ETF is designed to generate lower volatility and better risk-adjusted returns than the terminating ETFs. Additionally, CI Global Minimum Downside Volatility Index ETF has a lower management fee (0.35%) than the terminating ETFs (0.60%). The mergers will be effected on a non-taxable basis.

The mergers require the approval of securityholders of the terminating ETFs. Special meetings of securityholders of the terminating ETFs will be held on March 7, 2023 and securityholders will receive meeting materials in February 2023. If approved, the mergers will take place on or after March 31, 2023.

The details of the proposed mergers are listed below. All of the ETFs trade on the TSX.

Terminating ETF	Ticker	Continuing ETF	Ticker
CI MSCI World Low Risk Weighted ETF (Hedged Common Units)	RWW	CI Global Minimum Downside Volatility Index ETF (Hedged Common Units)	CGDV
CI MSCI World Low Risk Weighted ETF (Unhedged Common Units)	RWW.B	CI Global Minimum Downside Volatility Index ETF (Unhedged Common Units)	CGDV.B
CI MSCI International Low Risk Weighted ETF (Hedged Common Units)	RWX	CI Global Minimum Downside Volatility Index ETF (Hedged Common Units)	CGDV
CI MSCI International Low Risk Weighted ETF (Unhedged Common Units)	RWX.B	CI Global Minimum Downside Volatility Index ETF (Unhedged Common Units)	CGDV.B
CI MSCI Europe Low Risk Weighted ETF (Hedged Common Units)	RWE	CI Global Minimum Downside Volatility Index ETF (Hedged Common Units)	CGDV
CI MSCI Europe Low Risk Weighted ETF (Unhedged Common Units)	RWE.B	CI Global Minimum Downside Volatility Index ETF (Unhedged Common Units)	CGDV.B

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 $364.3 billion in assets as of October 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 Exchange-Traded Funds (ETFs) are managed by CI Global Asset Management, a wholly-owned subsidiary of CI Financial Corp. (TSX: CIX; NYSE: CIXX). CI Global Asset Management is a registered business name of CI Investments Inc.

MSCI is a trademark of MSCI Inc. The MSCI indexes have been licensed for use for certain purposes by CI Global Asset Management (“CI GAM”) in connection with the CI ETFs (the “ETFs”). The ETF and the securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. or any of its affiliates (collectively, “MSCI”) and MSCI bears no liability with respect to any such fund or securities or any index on which such fund or securities are based. The ETF’s prospectus contains a more detailed description of the limited relationship MSCI has with CI GAM and any related funds.

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.

©CI Investments Inc. 2022. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221221005087/en/

Murray Oxby

Vice-President, Corporate Communications

CI Global Asset Management

416-681-3254

moxby@ci.com

Source: CI Global Asset Management

FAQ

What are the new ETFs launched by CI Global Asset Management (CI GAM)?

CI GAM announced the launch of CI Global Minimum Downside Volatility Index ETF and CI U.S. Minimum Downside Volatility Index ETF.

When will the new ETFs start trading?

The new ETFs are expected to begin trading on the Toronto Stock Exchange on or after January 24, 2023, pending TSX approval.

What is the management fee for the new ETFs by CI GAM?

The management fee for the new CI Global Minimum Downside Volatility Index ETF is set at 0.35%.

What is the purpose of merging existing ETFs into the new CI Global Minimum Downside Volatility Index ETF?

The merger aims to provide lower volatility and better risk-adjusted returns for securityholders.

When are the securityholder meetings for the ETF mergers scheduled?

Special meetings of securityholders for the ETF mergers will be held on March 7, 2023.