Strategic transaction offers opportune chance for Canadians to access top-rated portfolio strategies
CI Financial is continuing on its path of U.S. expansion with the closing of a major strategic agreement.
Under the newly announced deal, CI will acquire a strategic interest in the Fayetteville, Arkansas-based Cabana Group, which is the parent company of Cabana Asset Management.
Cabana is recognized as among the fastest-growing registered investment advisors (RIAs) in the U.S. Aside from its comprehensive investment management and wealth planning services, the firm is known for its Target Drawdown Portfolios, which are currently available only in the U.S. to its retail clients as well as RIAS and advisors on a sub-advisory basis.
“The Target Drawdown Series – both recently and over the longer term – has generated strong demand and helped to fuel Cabana's rapid growth," said CI CEO Kurt MacAlpine.
The four portfolios offered by Cabana, which aim to minimize losses within a pre-defined drawdown parameter while actively participating in favourable market conditions, have all received the five-star overall ratings from Morningstar as of December 31. The strategies have reportedly posted positive net flows every month this year, and every week since the recent downturn started.
“Given current market conditions and the ongoing need for effective retirement solutions, there is a tremendous and timely opportunity to offer the Target Drawdown Series to a wider audience in both the U.S. and Canada,” MacAlpine said.
Actively managed through Cabana’s proprietary Cyclical Asset Reallocation Algorithm (CARA), the Target Drawdown products follow numerically quantified levels of acceptable risk at the outset of the investment process. Cabana claims to be compliant with Global Investment Performance Standards (GIPS), with all of its portfolio composites examined by external parties consistent with the standards.
“CI's financial strength, vision, expertise in asset and wealth management, and commitment to building a client-focused RIA business provide excellent support for Cabana's next wave of growth,” said Cabana CEO and co-founder Chadd Mason.
