In a world of structurally low interest rates, earning sufficient income from traditional investment sources such as government bonds has become ever more difficult. For many investors, including large institutions and pension plans1, the solution has been found in real assets.
There are many types of real asset investments that have the ability to generate income. At CI Investments, we focus on real assets that are backed by tangible, cash-flow generating assets with long-duration contracts, visible cash flows and strong business models with high barriers to entry. Here are a few examples :
Source: Bloomberg, as of July 31, 2020.
U.S. Equities = S&P 500 TR estimated dividend yield; Canadian Bonds = FTSE Canada Universe Bond Index yield to maturity; Global Equities = MSCI World TR estimated dividend yield; U.S. Investment Grade Bonds = Bloomberg Barclays U.S. Aggregate USD Hedged Index yield to maturity; Canadian Equities = S&P/TSX Composite TR estimated dividend yield; Real Estate = FTSE EPRA NAREIT Developed TR estimated dividend yield; Infrastructure = S&P Global Infrastructure TR estimated dividend yield.
1Large institutional investors have allocated an increasing percentage of their portfolios to real assets to fund their long-term pension obligations. For example, The Canada Pension Plan Investment Board annual report shows that nearly 24% of the fund's investments were in real estate, infrastructure and other real assets as at March 31, 2020.
CI Investments offers several options to access the attractive non-traditional source of income available through real assets. The team at Signature Global Asset Management has developed deep expertise investing in these areas on a global basis and manages over $7.5 billion2 in real assets across a variety of mandates to help investors access the opportunity.
|Mandate||Class A (ISC)||Class F||Ticker Symbol|
|CI First Asset Canadian REIT ETF||RIT|
|CI Global REIT Private Pool*||CIG2349||CIG4349||CGRE|
|CI Global Infrastructure Private Pool*||CIG2344||CIG4344||CINF|
|CI Global Real Asset Private Pool*||CIG2348||CIG4348||CGRA|
|First Asset REIT Income Fund||FAF5803||FAF5805|
|First Asset Utility Plus Fund||FAF5903||FAF5905|
|Signature Global REIT Fund||CIG50205||CIG54205|
|Signature Global Infrastructure Fund||CIG50230||CIG54230|
|Signature High Income Fund||CIG686||CIG447|
|Signature Diversified Yield Fund||CIG11111||CIG11011|
All funds and ETFs offer monthly distributions with the exception of First Asset Utility Plus Fund.
*Minimum investment was recently reduced to $25,000 per Private Pool
2 Source: Signature Global Asset Management as at June 30, 2020.
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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.
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EXPERIENCED MANAGEMENT COUNTS
Eric Bushell, Senior Vice-President, Portfolio Management and Chief Investment Officer, began his career as an equity analyst and trader at BPI Mutual Funds in 1993 before becoming a portfolio manager at the firm. He joined CI Investment Inc.'s ("CI") Signature team in 1999 when BPI became part of CI Investments. He became Chief Investment Officer of Signature in 2002.
Lee Goldman is a portfolio manager with a successful long-term track record of managing real estate assets. He joined Signature Global Asset Management in 2018 following 12 years as a lead manager at First Asset. Lee holds a Bachelor of Science (Statistics) degree from the University of Western Ontario and a Master of Business Administration (Finance) degree from York University. He also holds the Chartered Financial Analyst designation.
Kate MacDonald joined Signature Global Asset Management in 2018 as a portfolio manager responsible for a number of dedicated real estate funds, as well as real estate allocations across various strategies. Prior to joining Signature, Kate co-managed the real estate portfolios at First Asset for five years. Kate holds a Masters in Finance from Queen's University, the Chartered Investment Manager designation, and the Chartered Financial Analyst designation.
Joshua Varghese has been involved in global real estate investing since joining Signature in 2011, most recently as Portfolio Manager with responsibility for over $2.5 billion in global real estate assets across Signature funds. He is a frequent speaker at national real estate conferences such as RealPac and RealREIT. Joshua joined CI Investments in 2006 and has over 10 years of financial industry experience.
Kevin McSweeney has 12 years of financial services and investment management experience and is a member of the team responsible for infrastructure and REITs. He moved to this team from the high-yield, convertible bond and leveraged loan assets team in 2016. Prior to joining Signature, Mr. McSweeney worked for six years with Scotiabank, most recently in corporate credit risk management. Prior to that, Mr. McSweeney worked with Finance Canada as a financial economist in the international trade and financial markets divisions. Mr. McSweeney holds a Bachelor of Arts (Honours) from St. Mary's University a Master of Business Administration from Dalhousie University, and the Chartered Financial Analyst designation.
Massimo Bonansinga has 21 years of financial, managerial and consulting experience. He focuses on industrials. Prior to joining Signature in 2005, he spent five years in investment banking in London with Bankers Trust and Morgan Stanley and five years in the automotive industry in Europe with Ford Motor Co. and Fiat Group, holding positions in finance. He has a Master of Business Administration from the Wharton School and a bachelor's degree in economics and accounting from Università Bocconi in Milan.
Geof Marshall, Senior Vice-President, Portfolio Management and Portfolio Manager, heads the corporate bond team and manages the high yield bond assets at Signature Global Asset Management. Mr. Marshall has extensive experience analyzing, managing and trading corporate bonds, leveraged loans and private credit. He is the lead manager of Signature High Yield Bond Fund and co-manages several Signature funds, including Signature High Income Fund, Signature Global Income & Growth Fund and Signature Corporate Bond Fund. He joined CI Investments Inc. in 2006 from Manulife Financial, where he was a portfolio manager. Mr. Marshall holds a Bachelor of Arts from the University of Western Ontario and the Chartered Financial Analyst designation. He is a member of the Finance and Investment Committee at the Royal Ontario Museum.