Toronto, September. 17, 2020 - 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 email@example.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.
For further information: CI Financial Corp., Murray Oxby, Vice-President, Communications, (416) 681-3254, firstname.lastname@example.org; The Cabana Group, Patrick Phalon/Chris Sullivan, MacMillan Communications, (917) 689-3438, email@example.com