May 16, 2023
TORONTO (May 16, 2023) – CI Global Asset Management (“CI GAM”) today announced the launch of a liquid alternatives mutual fund series that provides exposure to a diverse portfolio of commodities in the energy, metals and agriculture sectors.
CI Auspice Broad Commodity Fund (the “Fund”) is now available in Series A, F, I and P in addition to the existing ETF Series units. The mutual fund units have been introduced with the adoption of dual-class structure for CI Auspice Broad Commodity ETF (the “ETF”), which was launched in September 2022. As a result, the name of the ETF was changed to CI Auspice Broad Commodity Fund effective May 5, 2023. The ticker symbol (TSX: CCOM) and CUSIP number of the Fund’s ETF Series (Hedged Common Units) have not changed.
“Commodities can provide valuable benefits to investors’ portfolios, including inflation protection and diversification from traditional stocks and bonds,” said Roy Ratnavel, Executive Vice-President and Head of Distribution for CI GAM. “We’re pleased to make the unique Auspice approach to commodities accessible to a broader audience of Canadian investors.”
The Fund uses a rules-based, “long/flat” investment approach in which it dynamically manages allocations to individual commodities, including moving to cash. This approach is designed to participate in each commodity’s gains while minimizing volatility and drawdowns.
“Commodities are particularly compelling investments today because supply is constrained while demand is increasing,” said Tim Pickering, Founder, President and Chief Investment Officer of Auspice Capital Advisors Ltd. (“Auspice”), sub-advisor to the Fund. “Supply has been limited by a decade of underinvestment in critical mining sectors, while war in Ukraine and the resulting sanctions have disrupted global trade in agricultural goods and oil and gas. Along with rising demand due to the green transition and increased infrastructure spending, these factors have the potential to drive an extended commodity supercycle.“
The Fund seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Auspice Broad Commodity Excess Return Index (the “Index”) by investing in financial instruments, including futures contracts and derivatives to gain exposure to the Index. The Index, which was developed by Auspice, currently uses a quantitative methodology to track a diversified portfolio of commodity futures contracts, or components, across three sectors: agriculture, energy and metals.
The Fund is classified as an alternative mutual fund and has a low to medium risk rating.
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. For more information, visit its website at www.auspicecapital.com.
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), an integrated global asset and wealth management company with approximately $391.1 billion in assets as at March 31, 2023.
Commissions, management fees and expenses all may be associated with an investment in mutual funds and 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 mutual funds exchange-traded funds is contained in its prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. Returns of the Index do not represent the ETF’s returns. An investor cannot invest directly in the Index. Performance of the ETF is expected to be lower than the performance of the Index.
CI Auspice Broad Commodity Fund 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. Market conditions may change which may impact the information contained in this document. All charts and illustrations in this document are for illustrative purposes only. They are not intended to predict or project investment results. 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 Capital Advisors Ltd. is portfolio sub-advisor to certain funds offered and managed by CI Global Asset Management. Auspice Capital Advisors Ltd. (“Auspice”) has been licensed for use by CI Global Asset Management. CI Auspice Broad Commodity Fund is not sponsored, endorsed, sold or promoted by Auspice and Auspice makes no representation regarding the advisability of investing in CI Auspice Broad Commodity Fund.
The CI Exchange-Traded Funds (ETFs) are managed by CI Global Asset Management, a wholly owned subsidiary of CI Financial Corp. (TSX: CIX). CI Global Asset Management is a registered business name of CI Investments Inc.
Vice-President, Corporate Communications
CI Global Asset Management