Key Takeaways
- • Forge First Asset Management, a wholly owned subsidiary of CI Global Asset Management, launched ETF series and U.S. dollar hedged series of its liquid alternative funds, with trading beginning on the Toronto Stock Exchange.
- • The CI Forge First Conservative Alternative Fund (Low risk rating) now trades as CCAF (ETF C$ Series) and CCAF.U (ETF US$ Hedged Series).
- • The CI Forge First Long Short Alternative Fund (Low-to-Medium risk rating) now trades as CLSF (ETF C$ Series) and CLSF.U (ETF US$ Hedged Series).
- • Both funds add U.S. dollar Hedged Series AH, FH, IH and PH alongside existing Series A, F, I and P.
- • The launch expands CI GAM's ETF lineup of 128 ETFs and $39 billion in assets under management, including its alternative ETF mandates.
Summary
Forge First Asset Management Inc. ("Forge First"), a wholly owned subsidiary of CI Global Asset Management ("CI GAM"), has announced the launch of ETF series and U.S. dollar hedged series of its liquid alternative funds. The company says the offering gives investors expanded access to strategies focused on balancing capital preservation with long-term growth.
The ETF series have closed their initial offering of units and began trading on the Toronto Stock Exchange ("TSX"). The CI Forge First Conservative Alternative Fund trades under the tickers CCAF (ETF C$ Series) and CCAF.U (ETF US$ Hedged Series). The CI Forge First Long Short Alternative Fund trades under CLSF (ETF C$ Series) and CLSF.U (ETF US$ Hedged Series). Both funds are also now available in U.S. dollar Hedged Series AH, FH, IH and PH, in addition to Series A, F, I and P.
According to the release, the Conservative Alternative Fund carries a Low risk rating and aims to generate consistent risk-adjusted net returns over the long term with low correlation to North American equity and credit markets. The Long Short Alternative Fund carries a Low-to-Medium risk rating and seeks a positive net total return regardless of market conditions or general market direction, also with low correlation to North American equity and credit markets. Both funds use alternative strategies including equity long/short, pairs trading, arbitrage trading, thematic trading, and derivatives for leverage, and invest primarily in equities, ETFs, fixed income and listed options in North American markets.
Jennifer Sinopoli, Executive Vice-President and Chief Distribution Officer for Forge First and CI GAM, said the funds combine broad alternative strategies with fundamental research and disciplined security selection, with a focus on consistent, risk-adjusted returns and low correlation to traditional asset classes. She added that the launch expands the alternative ETF mandates at CI GAM and further diversifies its ETF lineup, which she described as one of the most diverse in Canada with 128 ETFs and $39 billion in assets under management.
The release also notes that alternative funds can use strategies unavailable to conventional mutual funds, including increased derivatives use, short selling and borrowing for investment, which may accelerate losses during certain market conditions. Investors may pay brokerage fees on ETF trades and may pay more or receive less than net asset value when buying or selling units on Canadian exchanges.
The ETF series have closed their initial offering of units and began trading on the Toronto Stock Exchange ("TSX"). The CI Forge First Conservative Alternative Fund trades under the tickers CCAF (ETF C$ Series) and CCAF.U (ETF US$ Hedged Series). The CI Forge First Long Short Alternative Fund trades under CLSF (ETF C$ Series) and CLSF.U (ETF US$ Hedged Series). Both funds are also now available in U.S. dollar Hedged Series AH, FH, IH and PH, in addition to Series A, F, I and P.
According to the release, the Conservative Alternative Fund carries a Low risk rating and aims to generate consistent risk-adjusted net returns over the long term with low correlation to North American equity and credit markets. The Long Short Alternative Fund carries a Low-to-Medium risk rating and seeks a positive net total return regardless of market conditions or general market direction, also with low correlation to North American equity and credit markets. Both funds use alternative strategies including equity long/short, pairs trading, arbitrage trading, thematic trading, and derivatives for leverage, and invest primarily in equities, ETFs, fixed income and listed options in North American markets.
Jennifer Sinopoli, Executive Vice-President and Chief Distribution Officer for Forge First and CI GAM, said the funds combine broad alternative strategies with fundamental research and disciplined security selection, with a focus on consistent, risk-adjusted returns and low correlation to traditional asset classes. She added that the launch expands the alternative ETF mandates at CI GAM and further diversifies its ETF lineup, which she described as one of the most diverse in Canada with 128 ETFs and $39 billion in assets under management.
The release also notes that alternative funds can use strategies unavailable to conventional mutual funds, including increased derivatives use, short selling and borrowing for investment, which may accelerate losses during certain market conditions. Investors may pay brokerage fees on ETF trades and may pay more or receive less than net asset value when buying or selling units on Canadian exchanges.
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