CI Global Asset Management Expands Equity Fund Offerings

CI Global Asset Management Expands Equity Fund Offerings

In an exciting development for investors, CI Global Asset Management ("CI GAM") has introduced the CI Global Quality Dividend Growth Index Fund and CI Global Quality Dividend Growth Index ETF. These new offerings aim to provide investors with access to a globally diversified portfolio of high-quality companies known for their robust dividends and strong growth potential.

Overview of the New Fund and ETF

The CI Global Quality Dividend Growth Index ETF recently finalized its initial offering of Non-Hedged Units. Beginning trading today on the Toronto Stock Exchange ("TSX") under the ticker CGQD.B, this ETF is designed to track the performance of a fundamentally weighted index, which focuses on dividend-paying companies that exhibit both quality and growth traits across developed markets.

Investment Strategy

CI GAM’s latest additions to the “Quality Dividend Growth Index” suite align with the growing demand for reliable, dividend-focused investment options. Jennifer Sinopoli, Executive Vice-President and Head of Distribution for CI GAM, stated that these products are well-positioned to serve as core holdings in global equity portfolios due to their low cost and diversified nature. This strategy emphasizes large-cap companies with proven track records of profitability.

Key Features of CI Global Quality Dividend Growth ETF

The CI Global Quality Dividend Growth Index ETF seeks to replicate the performance of the WisdomTree Global Quality Dividend Growth CAD Index, thereby offering exposure to a diverse array of dividend-paying companies worldwide. Notably, this ETF maintains a management fee of 0.45%, making it an attractive option for cost-conscious investors.

In addition to the ETF, the CI Global Quality Dividend Growth Index Fund similarly invests primarily in CGQD.B, ensuring that it shares the same management team and investment objectives. This coherent strategy allows both products to leverage the strengths of the Quality Dividend Growth Index approach.

Benefits of the Quality Dividend Growth Approach

The Quality Dividend Growth Index methodology focuses on identifying high-quality, large-cap companies capable of increasing their dividends over time. The strategy’s multi-factor approach prioritizes not only returns on equity and assets but also anticipated earnings growth, thereby aiming to mitigate risks often associated with traditional passive investing.

According to Sinopoli, this strategy presents a significant advantage, counteracting typical weaknesses found in passive index strategies that often lack forward-looking assessments and can be vulnerable to market bubbles.

Comparison of Fees and Risk Ratings

For investors considering the CI Global Quality Dividend Growth Index options, the Management Fee for the Fund is set at 0.40% with a 0.05% administration fee, both of which offer a competitive edge in the marketplace. Each investment option is classified with a Medium risk rating, thus indicating a balanced approach to investing.

CI Quality Dividend Growth Index Suite

The newly launched funds complement the existing range of CI GAM offerings, including mutual funds and ETFs focused on U.S., Canadian, and international growth through the lens of quality dividends. This suite serves a wide array of investor needs, enhancing portfolio construction strategies centered around dividend income and growth potential.

In summary, CI Global Asset Management stands as one of Canada’s largest investment firms, recognized for a strong commitment to providing innovative and effective investment solutions. By introducing the CI Global Quality Dividend Growth Index Fund and ETF, CI GAM responds adeptly to investor demands for quality, dividend-paying global equities.

Frequently Asked Questions

What is the CI Global Quality Dividend Growth Index Fund?

The CI Global Quality Dividend Growth Index Fund aims to provide exposure to high-quality, dividend-paying companies across developed markets.

What does CGQD.B represent?

CGQD.B is the ticker symbol for the CI Global Quality Dividend Growth Index ETF, which began trading on the TSX.

How does CI GAM ensure quality in their investments?

CI GAM employs a robust methodology focusing on profitability and growth characteristics, selecting large-cap companies with potential for dividend growth.

What are the management fees for the new offerings?

The CI Global Quality Dividend Growth Index ETF has a management fee of 0.45%, and the Fund has a fee of 0.40% plus an additional administration fee.

What is the risk rating for these investments?

Both the CI Global Quality Dividend Growth Index Fund and ETF carry a Medium risk rating, suitable for diverse investor profiles.

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