TORONTO, Sept. 17, 2020 /CNW/ - CI Financial Corp.
("CI") (TSX: CIX) is pleased to announce that its U.S. affiliate
Cabana Asset Management ("Cabana") today launched a US$1 billion lineup of exchange-traded funds
using Cabana's innovative and proven target drawdown investment
strategy.
The Target Drawdown ETFs, which are listed on the New York Stock
Exchange, are designed to maintain and grow wealth over the long
term by clearly defining risk in terms of the maximum expected
percentage loss or "target drawdown." The five ETFs have target
drawdown percentages ranging from 5% to 16%.
The new ETFs build on the proven track record of Cabana's Target
Drawdown Professional Series of separately managed accounts
("SMAs"), which have been available in the United States since 2012 exclusively
through Cabana's financial professionals and partner firms. The
Cabana SMAs have achieved strong results and been well received by
advisors and investors across the U.S.
"We congratulate Cabana on a successful launch and are pleased
to support the company as it makes this unique strategy available
to an even broader spectrum of investors through an accessible ETF
structure," said Kurt MacAlpine, CI
Chief Executive Officer. "There is tremendous potential for these
ETFs given the proven success of the Target Drawdown strategy and
investor demand for effective risk-managed solutions for retirement
and to navigate through market volatility."
CI owns a strategic interest in Cabana's parent company, The
Cabana Group, LLC, a wealth management and financial services firm
based in Fayetteville, Arkansas.
Cabana has launched the Target Drawdown ETFs in partnership with
private label ETF advisor Exchange Traded Concepts.
"What we've experienced this year underscores the necessity of
proper hedging, transparency, and risk mitigation as key parts of
investor portfolios," said Chadd
Mason, Chief Executive Officer of The Cabana Group.
"It also makes clear the need to ensure that any strategy being
put to use has a real-world track record and is backed by an
experienced team that has lived and worked through times of
significant market turbulence. We've built our firm and the
strategy behind these ETFs seeking to do the two things necessary
to be a successful investor: avoid large losses and stay
invested."
Cabana is one of the fastest-growing registered investment
advisor ("RIA") firms in the U.S., driven in part by the success of
the Target Drawdown Professional Portfolios. Cabana's assets under
management have grown by approximately 50% for the year-to-date to
US$1.48 billion (as at September 11, 2020).
The Target Drawdown ETFs seek to limit downside risk and
position for upside growth. The ETFs offer targeted risk parameters
of 5% to 16% from peak to trough to meet investor risk
tolerances from conservative to aggressive. They include (with
tickers):
- Cabana Target Drawdown 5 (TDSA)
- Cabana Target Drawdown 7 (TDSB)
- Cabana Target Drawdown 10 (TDSC)
- Cabana Target Drawdown 13 (TDSD)
- Cabana Target Drawdown 16 (TDSE).
CI purchased a stake in The Cabana Group in June 2020 as part of its strategy to build a
significant U.S. wealth management business through the acquisition
of select RIAs. This initiative supports CI's strategic priorities
of globalizing the company and expanding its wealth management
platform. CI hold interests in RIAs with combined assets of
approximately US$11 billion (as at
August 31, 2020).
About The Cabana Group
The Cabana Group,
LLC is the parent company of Cabana LLC (doing business as
"Cabana Asset Management"). It provides a comprehensive suite of
services to clients and advisor partners from offices in
Arkansas, Texas and Colorado, including wealth management,
portfolio construction, retirement plan solutions, tax and estate
planning, business development, insurance, annuities and
sub-advisory money management. The company was ranked the
No. 1 fastest-growing company in Arkansas by Inc. magazine in 2019,
while Cabana Asset Management ranked in the top 20 fastest-growing
registered investment advisers by Financial Advisor magazine
in 2018, 2019 and 2020. The Target Drawdown Series is
available to individual investors, advisors and businesses as
separately managed accounts, collective investment trusts and ETFs.
For more information about The Cabana Group,
visit www.thecabanagroup.com.
About CI Financial
CI Financial Corp. (TSX: CIX) is an
independent company offering global asset management and wealth
management advisory services. CI held approximately $189 billion in total assets as of August 31, 2020. CI's primary asset management
businesses are CI Investments Inc. and GSFM Pty Ltd., and it
operates in wealth management through Assante Wealth Management
(Canada) Ltd., CI Private Counsel
LP, CI Direct Investing (WealthBar Financial Services Inc.), BBS
Securities Inc., The Cabana Group, LLC, Congress Wealth Management,
One Capital Management, LLC and Surevest LLC. Further information
is available at www.cifinancial.com.
Investors should consider the investment objectives, risks,
charges and expenses carefully before investing. For a prospectus
or summary prospectus with this and other information about the
Funds, please call (866) 239-9536 or visit www.cabanaetfs.com. Read
the prospectus or summary prospectus carefully before
investing.
Distributed by Foreside Fund Services, LLC
Investing involves risk including possible loss of principal.
There is no guarantee the Funds will maintain the target drawdown
or meet their objective.
The principal risks of the Funds include: The Funds may purchase
ETFs at prices that exceed the net asset value of their underlying
investments and may sell at prices below such net asset value,
which will likely incur brokerage costs. Commodity-related
companies may subject the ETFs to greater volatility than
investments in traditional securities. Investments in foreign
securities may involve risks such as social and political
instability, market illiquidity, exchange-rate fluctuations, a high
level of volatility and limited regulation. Investing in emerging
markets involves different and greater risks, as these countries
are substantially smaller, less liquid and more volatile than
securities markets in more developed markets.
The market value of fixed income investments may change in
response to interest rate changes. During periods of rising
interest rates, the value of fixed income securities generally
decline. The market price of a security or instrument could
decline, sometimes rapidly or unpredictably, due to general market
conditions that are not specifically related to a particular
company, such as real or perceived adverse economic or political
conditions throughout the world, changes in the general outlook for
corporate earnings, changes in interest or currency rates or
adverse investor sentiment generally. Risks include declines in the
real estate market, decreases in property revenues, increases in
interest rates, increases in property taxes and operating expenses,
legal and regulatory changes, a lack of credit or capital, defaults
by borrowers or tenants, environmental problems and natural
disasters.
An ETF may invest a significant portion of its assets in one or
more sectors and thus will be more susceptible to the risks
affecting those sectors. The small- and mid-capitalization
companies in which an ETF invests may be more vulnerable to adverse
business or economic events than larger, more established
companies. The Sub-Adviser's judgments about the markets, the
economy, or companies may not anticipate actual market movements,
economic conditions or company performance, and these judgments may
affect the return on your investment. The quantitative model used
by the Sub-Adviser may not perform as expected, particularly in
volatile markets.
In addition to the risks listed above, the Funds also include
Early Close/Trading Halt Risk, Credit Risk, Equity Risk,
Issuer-Specific Risk, Large-Capitalization Risk, U.S. Government
Securities Risk, Limited Authorized Participants, Market Makers and
Liquidity Providers Risk, Model and Data Risk, Operational Risk,
Trading Risk and New/Smaller Fund Risk.
Shares of the Funds trade on the Exchange at market prices that
may be below, at or above the Funds' NAV. The market prices of the
shares generally will fluctuate in accordance with changes in NAV,
as well as the relative supply of and demand for shares on the
Exchange. Brokerage commission will reduce returns.
This material is for informational purposes only. It is not a
recommendation, offer or solicitation to buy or sell any
securities. Past performance is no guarantee of future results. All
investment strategies have different degrees of risk and the
corresponding potential for profit or loss. Asset allocation
and diversification will not necessarily improve returns and cannot
eliminate the risk of investment losses. "Target
Drawdown" is merely a descriptive term used to describe
the general strategy and objective of the portfolio, it is
not a guarantee, nor should it be construed to suggest
safety or protection from loss. There is no guarantee that
portfolio performance will remain consistent with the targeted
drawdown parameter. While risk tolerance and
targeted "drawdown" are identified on the front end for each
portfolio, Cabana's algorithm does not take any one client's
situation into account and there is
no guarantee that Cabana's strategies will
be suitable for any investor. Investors and advisors
should not simply rely on the name of any portfolio to determine
what is suitable.
Investment advisory services provided by Cabana LLC, an SEC
registered investment adviser. The firm only transacts business in
states where it is properly registered, or is excluded or exempted
from registration requirements. Registration as an investment
adviser is not an endorsement of the firm by securities regulators
and does not mean the adviser has achieved a specific level of
skill or ability. Cabana claims compliance with the Global
Investment Performance Standards (GIPS®). To receive a GIPS Report
and/or a list of composite descriptions please email your request
to info@thecabanagroup.com. GIPS® is a registered trademark of CFA
Institute. CFA Institute does not endorse or promote this
organization, nor does it warrant the accuracy or quality of the
content contained herein. For additional disclaimers about
Cabana, including awards and rankings, please visit
https://thecabanagroup.com/disclaimers/.
This press release contains forward-looking statements
concerning anticipated future events, results, circumstances,
performance or expectations with respect to CI Financial Corp.
("CI") and its products and services, including its business
operations, strategy and financial performance and condition.
Forward-looking statements are typically identified by words such
as "believe", "expect", "foresee", "forecast", "anticipate",
"intend", "estimate", "goal", "plan" and "project" and similar
references to future periods, or conditional verbs such as "will",
"may", "should", "could" or "would". These statements are not
historical facts but instead represent management beliefs regarding
future events, many of which by their nature are inherently
uncertain and beyond management's control. Although
management believes that the expectations reflected in such
forward-looking statements are based on reasonable assumptions,
such statements involve risks and uncertainties. The material
factors and assumptions applied in reaching the conclusions
contained in these forward-looking statements include that the
investment fund industry will remain stable and that interest rates
will remain relatively stable. Factors that could cause
actual results to differ materially from expectations include,
among other things, general economic and market conditions,
including interest and foreign exchange rates, global financial
markets, changes in government regulations or in tax laws, industry
competition, technological developments and other factors described
or discussed in CI's disclosure materials filed with applicable
securities regulatory authorities from time to time. The foregoing
list is not exhaustive and the reader is cautioned to consider
these and other factors carefully and not to place undue reliance
on forward-looking statements. Other than as specifically required
by applicable law, CI undertakes no obligation to update or alter
any forward-looking statement after the date on which it is made,
whether to reflect new information, future events or otherwise.
SOURCE CI Financial Corp.
