February 26, 2021
The proposed merger will deliver lower fees, better market pricing mechanics and greater convenience, for unitholders of the closed-end fund.
TORONTO (February 26, 2021) – CI Global Asset Management (“CI GAM”) today announced proposed changes to CI Galaxy Bitcoin Fund (TSX: BTCG), a closed-end investment fund.
As previously announced, CI GAM has filed and obtained a receipt for a preliminary prospectus for CI Galaxy Bitcoin ETF (“BTCX” or the “ETF”). After the ETF is issued a receipt for its final prospectus, CI GAM is proposing to merge the closed-end fund (“BTCG”) into the ETF, so that unitholders of BTCG will be issued ETF units having an aggregate net asset value equal to the net asset value of BTCG units exchanged pursuant to the merger. Upon receiving a receipt for the final prospectus of the ETF, BTCG’s management fee will be aligned to match the management fee of the ETF.
“We believe that our ETF is the preferred way for investors to access bitcoin versus a closed-end fund as our ETF will better reflect changes in the value of bitcoin while delivering greater convenience and cost-efficiency,” said Kurt MacAlpine, CEO of CI Financial, parent company of CI GAM. “As part of our strategy to modernize our asset management business, we’re committed to offering investors access to alternative asset classes including digital currencies.”
Like the closed-end fund, CI GAM will be the manager of the ETF and Galaxy Digital Capital Management LP (“Galaxy Digital”) will act as the Bitcoin sub-advisor for the ETF.
“As we continue our work to institutionalize the digital assets sector, CI and Galaxy are aligned in our commitment to offering investors what we believe are the most efficient and secure access points to the space,” said Steve Kurz, Partner and Head of Asset Management at Galaxy Digital.
The proposed ETF, like the closed-end fund, will invest directly in bitcoin with its holdings of bitcoin priced using the Bloomberg Galaxy Bitcoin Index (the “BTC”), which is designed to measure the performance of a single bitcoin traded in U.S. dollars. The BTC is owned and administered by Bloomberg Index Services Limited.
CI GAM believes this merger to be in the best interest of unitholders of BTCG. It will be subject to the review of the Independent Review Committee of BTCG, and the approvals of securities regulators, as applicable, and the unitholders of BTCG. The costs and expenses associated with the merger will be borne by CI GAM and not the merging funds.
CI GAM will provide more details about the merger upon receiving final receipt for the ETF prospectus and after review by the Independent Review Committee. Unitholders of BTCG do not need to take any action at this time.
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 C$231.8 billion in total assets as at January 31, 2021.
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. 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.
This communication 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. 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.
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Senior Manager, Corporate Communications
CI Global Asset Management