CI also adds U.S. dollar hedged series for two CI Liquid Alternatives™ funds
TORONTO (November 2, 2020) – CI Investments Inc. (“CI”) today announced the launch of mutual fund series of CI First Asset Enhanced Short Duration Bond ETF (TSX: FSB, FSB.U), an actively managed, low-volatility income strategy that focuses primarily on short-dated U.S. and Canadian corporate bonds.
This fund has been offered as CI First Asset Enhanced Short Duration Bond ETF since September 2017 and is now available in mutual fund Series A, F, I and P, as well as U.S. dollar hedged versions for each series, namely AH, FH, IH and PH. Also effective today, the fund will be renamed CI First Asset Enhanced Short Duration Bond Fund with a dual-class structure offering both mutual fund series and ETF series.
CI First Asset Enhanced Short Duration Bond ETF is managed by Marret Asset Management Inc., a Toronto-based investment manager specializing in Canadian and global income investments. By utilizing short-dated investment-grade and high-yield bonds, the mandate aims to offer investors a return above traditional cash alternatives such as GICs, while maintaining a low volatility profile.* Since inception (September 7, 2017), this ETF has delivered strong average annual returns of nearly 2.7%.
“In an ultra-low rate environment, many traditional short-term income investments are offering inadequate returns,” said Roy Ratnavel, CI Executive Vice-President and Head of Distribution. “As a result, investors who are wary of market volatility are looking for new options. This mandate, managed by a proven and experienced investment team, can offer investors real yield while protecting their capital.”
CI introduced its dual-class fund structure, which includes both mutual fund series and ETF series, earlier this year as part of a continuing effort to streamline and modernize its product lineup. Benefits of the structure include less duplication of funds, larger funds with greater economies of scale and portfolio diversification opportunities, and greater consistency of fund performance between different fund structures with the same mandates.
U.S. dollar hedged series for CI Liquid AlternativesTM
CI also announced the launch of U.S. dollar hedged series for two funds in its popular CI Liquid Alternatives lineup. Currency hedging is a strategy that can help to mitigate the effects of currency fluctuations on fund returns over time.
The new series to be launched on November 9, 2020 are:
- U.S. dollar hedged series of CI Lawrence Park Alternative Investment Grade Credit Fund (Series AH, FH, IH and PH);
- U.S. dollar hedged series of CI Munro Alternative Global Growth Fund (Series AH, FH, IH, and PH).
More information about CI Liquid Alternatives can be found at www.ci.com/liquidalts.