Asset management giant files for etf

Share post!

asset management giant files for etf

It reasoned that it would be more cost-efficient from both trading and management perspectives to offer funds across a multi-share class structure.

It created a patented method of taking a mutual fund and creating an alternate ETF share class that trades on an exchange, which some analysts said posed possible legal problems for mutual fund companies when it came to translating their traditional open-end active portfolios into accompanying ETFs.

The much-anticipated rollout of active ETFs has been a slow-motion process of much talk and little action, with some companies filing for exemptive relief and the SEC being slow to provide a thumbs up for those plans.


Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.
FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what CI Global Asset Management believes to be reasonable assumptions, CI Global Asset Management cannot assure that actual results will be consistent with these FLS.

CI GAM reviews the risk rating for each of the funds it manages at least on an annual basis, as well as when a fund undergoes a material change. Such changes are not the result of any changes to the investment objectives, strategies or management of the funds.

Termination of CI First Asset Long Duration Fixed Income ETF

CI GAM will terminate CI First Asset Long Duration Fixed Income ETF (TSX: FLB) on or about April 22, 2021 (the “FLB Termination Date”).

CI GAM will request that the TSX de-list the units of CI First Asset Long Duration Fixed Income ETF from the TSX on or about April 21, 2021. Until such date, units of the ETF will continue to be listed on the TSX.

As soon as practicable following the FLB Termination Date, the net assets of the ETF will be liquidated and the proceeds therefrom distributed pro rata among unitholders of record as of the FLB Termination Date.

Asset management giant files for etfal

A new filing with the U.S. Securities and Exchange Commission indicates that asset management giant Fidelity is seeking to create a bitcoin exchange-traded fund (ETF).

The Wise Origin Bitcoin ETF is the latest entrant in a growing race to launch a bitcoin exchange-traded product in the United States. According to the filing, a firm called FD Funds Management LLC is the sponsor of the fund, with Fidelity Service Company, Inc.

serving as administrator. Per the document, FD Funds Management LLC shares the same Boston, MA address as Fidelity’s office.

Fidelity Digital Assets, the asset manager’s crypto-focused arm, will serve as custodian.

Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.

FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what CI Global Asset Management believes to be reasonable assumptions, CI Global Asset Management cannot assure that actual results will be consistent with these FLS.

Another hang-up has been fears that exposing active mutual fund portfolios to daily disclosure in an ETF needed for intraday trading runs the risk of front running by professional traders such as hedge funds.

That has spawned creative strategies to thwart front running by keeping holdings non-transparent, such as the exchange-traded mutual fund structure from NextShares, which are active funds owned by Eaton Vance that began trading in February. These hybrid products have the low fees and intraday trading of ETFs, but like mutual funds are priced at net asset value just once daily after the market closes.
The funds don’t have to disclose their holdings on a daily basis.

And just last week, Fidelity Investments filed with the SEC for approval of non-transparent actively managed ETFs based on a modified closed-end fund structure called exchange-traded active funds.

TORONTO–(BUSINESS WIRE)–CI Global Asset Management (“CI GAM”) announced today that it has filed and obtained a receipt for a preliminary prospectus for CI Galaxy Ethereum ETF (“ETHX” or the “ETF”). When launched, it is expected to be the first ETF in the world to invest directly in Ether, the cryptocurrency built on the Ethereum blockchain.

“Cryptocurrencies are transforming the financial world, and we are excited to launch the world’s first ETF investing directly in Ether, one of the most highly valued cryptocurrencies,” said Kurt MacAlpine, Chief Executive Officer of CI Financial, the parent company of CI GAM.

“CI is quickly establishing a leadership position in this space, having launched CI Galaxy Bitcoin Fund and recently filing a preliminary prospectus for CI Galaxy Bitcoin ETF, in partnership with blockchain and cryptocurrency experts Galaxy Digital.

Vanguard on Wednesday filed for exemptive relief with the Securities and Exchange Commission to create an entirely new line of transparent actively managed exchange-traded funds.

In it’s filing, the Valley Forge, Pa.-based company is seeking approval to create stand-alone ETFs. That differs from a similar exemptive relief filing from March 2014 for transparent ETFs where Vanguard sought approval to offer an ETF share class of existing actively managed stock or bond funds.

Vanguard currently offers 70 passive ETFs listed in the U.S., all of which are market cap-weighted products based on its existing mutual funds.

Before it entered the ETF space in 2001, Vanguard decided against creating stand-alone products like those of iShares or State Street and instead sought to leverage the mutual funds it already had by creating a separate ETF share class for those funds.

There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

About Galaxy Digital

Galaxy Digital Capital Management L.P. is an affiliate of Galaxy Digital Holdings Ltd. (TSX: GLXY) (“Galaxy Digital Holdings”). Galaxy Digital Holdings currently operates four distinct business lines, which include: Trading, Asset Management, Principal Investments and Investment Banking.
Galaxy Digital Holdings’ CEO and Founder is Michael Novogratz. The Company is headquartered in New York City, with offices in Chicago, San Francisco, London, Tokyo, Hong Kong, the Cayman Islands (registered office) and New Jersey.

The proposed merger of CI First Asset European Bank ETF is expected to take place on a taxable basis, would be considered a disposition for tax purposes and may have tax consequences for unitholders of the CI First Asset European Bank ETF.

In each case, the Terminating and Continuing ETFs have the same CI GAM portfolio management team. In addition, the management and fixed administration fees or operating expenses, as applicable, of the Continuing ETFs are the same as or lower than the management fees and fixed administration fees or operating expenses, as applicable, of the corresponding Terminating ETFs.

CI GAM has proposed the Mergers to reduce duplication in its ETF lineup and create larger, more efficient funds.

Additional information about the Company’s businesses and products is available on www.galaxydigital.io.

About CI Global Asset Management

CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com.

CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an independent company offering global asset management and wealth management advisory services with approximately C$231.8 billion in total assets as at January 31, 2021.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements.

CI GAM”) today announced proposed changes to its lineup of exchange-traded funds, including mergers and investment objective changes.

Additionally, CI GAM has revised the risk rating for certain ETFs and is announcing the termination of CI First Asset Long Duration Fixed Income ETF (TSX: FLB), which will take place on or about April 22, 2021. All of the affected ETFs are listed on the Toronto Stock Exchange (“TSX”).

ETF Mergers

CI GAM is proposing the following five ETF mergers (the “Mergers”):

Terminating ETF

Continuing ETF

CI First Asset Morningstar Canada Dividend Target 30 Index ETF (TSX: DXM)

CI WisdomTree Canada Quality Dividend Growth Index ETF (TSX: DGRC)

CI First Asset Canadian Buyback Index ETF (TSX: FBE)

CI WisdomTree Canada Quality Dividend Growth Index ETF (TSX: DGRC)

CI First Asset U.S.

Share post!

Leave a Reply

Your email address will not be published.