TSX Symbol: CIX
TORONTO, Nov. 17, 2014 /CNW/ - CI Investments Inc. ("CI") has announced the appointment of HR Strategies Inc. ("HRS") as a portfolio sub-advisor for G5|20 Series, CI's innovative guaranteed cash flow funds. Effective today, HRS is responsible for the funds' risk management overlay strategy.
HRS is an independent asset management firm specializing in portfolio management solutions for institutional investors globally, and offers significant experience in developing and executing risk management strategies. HRS employees have done extensive research in this field and have been published in academic and industry journals. HRS was founded in 1994 and has offices in Montreal and Paris.
"The HRS approach to portfolio volatility management is an excellent fit with G5|20 Series and supports the balance of growth and protection that our unique product seeks to achieve," said Derek J. Green, CI President.
G5|20 Series is designed to help investors achieve a secure retirement and mitigate the risks to their income posed by market volatility. Each fund distributes for 20 years a stable annual cash flow equal to 5% of the investor's initial investment or the Guaranteed Asset Value, whichever is greater. The cash flow is guaranteed by Bank of Montreal. G5|20 funds invest in a well-diversified, tactical balanced portfolio, with asset allocation being determined by CI Investment Consulting and security selection by CI's leading portfolio managers.
The G5|20 risk management overlay strategy is a dynamic hedging strategy that uses exchange-traded derivatives to provide protection from market downturns and optimize market exposure to benefit from growth in rising markets. This sophisticated approach has typically been available only to institutional or high net worth investors. HRS is assuming responsibility for the risk management overlay strategy on all G5|20 funds, replacing Nexus Risk Management LP.
"The risk management overlay strategy performed as designed during the market volatility in September and October, highlighting the value this feature provides to investors," said Mr. Green. "Nexus implemented an effective strategy that has proven to be invaluable in the launch and operation of G5|20 Series since inception. Today, the asset base of G5|20 Series continues to grow, and CI has recently added new features to the product, increasing its flexibility and complexity. We are confident that HRS, with its extensive capabilities in risk and portfolio management, will build on and refine this strategy."
HRS has 25 employees, including 13 investment professionals, and $1.7 billion in assets under management. The HRS principals primarily responsible for G5|20 risk management include Portfolio Manager Alexandre Hocquard and Nicolas Papageorgiou, Head of Research.
Mr. Hocquard has seven years' experience in quantitative asset management, from practical research to implementing strategies. Previously, he was Director, Quantitative Strategies and Portfolio Manager at Pavilion Asset Management, where he managed institutional portfolio solutions that included market volatility hedging overlays. Prior to that, he was Portfolio Manager at Desjardins Global Asset Management, where his responsibilities included risk management for institutional portfolios. He holds a PhD in quantitative finance from HEC Montreal.
Mr. Papageorgiou, PhD, is also Professor of Finance at HEC Montreal. Prior to joining HRS, he was Senior Derivatives Strategist at the Montreal Exchange. His previous positions include Director of Quantitative Research at Pavilion Financial Corp. and Director of Research at Desjardins Global Asset Management.
The appointment of HRS as portfolio manager affects the following funds:
- CI G5|20 2038 Q3 Fund
- CI G5|20 2038 Q4 Fund
- CI G5|20 2039 Q1 Fund
- CI G5|20 2039 Q2 Fund
- CI G5|20 2039 Q3 Fund
- CI G5|20 2039 Q4 Fund
- CI G5|20i 2034 Q2 Fund
- CI G5|20i 2034 Q3 Fund
- CI G5|20i 2034 Q4 Fund.
G5|20 Series, part of the CI Guaranteed Retirement Cash Flow Series, is available in two funds: G5|20, which provides 20 years of guaranteed cash flow after a five-year accumulation phase, and G5|20i, which provides an immediate payout. Features include the automatic locking in of a portion of gains that increase a fund's Guaranteed Asset Value, so that cash flow can increase but never decrease. More information about G5|20 Series is available from financial advisors or at www.ci.com/g520.
About CI Investments – Canada's Investment Company
CI Investments is one of Canada's largest investment management companies. It offers a wide range of investment products and services, including an industry-leading selection of investment funds, and is on the Web at www.ci.com. CI is a subsidiary of CI Financial Corp. (TSX: CIX), an independent, Canadian-owned wealth management firm with $130.6 billion in assets as of October 31, 2014.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Except as described below, mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Bank of Montreal guarantees that at least the original amount you paid for the fund unit will be paid back to you over a 20-year period in equal monthly instalments. This guarantee does not apply to units redeemed before the end of that period. You will receive the net asset value per unit for any unit redeemed early. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer.
®CI Investments, the CI Investments design and CI Guaranteed Retirement Cash Flow Series are registered trademarks of CI Investments Inc. TMG5|20 Series is a trademark of CI Investments Inc. BMO Financial Group and Bank of Montreal are marketing names (also referred to as trade names or brand names) used by Bank of Montreal. "BMO", "BMO Financial Group", "BMO (M-bar roundel symbol) Financial Group", "Bank of Montreal" and "BMO Capital Markets" are trademarks owned by Bank of Montreal. Nexus Risk Management is a trademark of Nexus Risk Management LP.
SOURCE: CI Investments Inc.
For further information: Derek J. Green, President, CI Investments, (416) 364-1145