CI Financial Corp’s (CI) US affiliate Cabana Asset Management (Cabana) has launched a USD1 billion lineup of exchange-traded funds using Cabana’s innovative and proven target drawdown investment strategy.
The Target Drawdown ETFs, which are listed on the New York Stock Exchange, are designed to maintain and grow wealth over the long term by clearly defining risk in terms of the maximum expected percentage loss or “target drawdown.” The five ETFs have target drawdown percentages ranging from 5 per cent to 16 per cent.
The new ETFs build on the proven track record of Cabana’s Target Drawdown Professional Series of separately managed accounts (SMAs), which have been available in the United States since 2012 exclusively through Cabana’s financial professionals and partner firms. The Cabana SMAs have achieved strong results and been well received by advisors and investors across the US.
“We congratulate Cabana on a successful launch and are pleased to support the company as it makes this unique strategy available to an even broader spectrum of investors through an accessible ETF structure,” says Kurt MacAlpine, CI Chief Executive Officer. “There is tremendous potential for these ETFs given the proven success of the Target Drawdown strategy and investor demand for effective risk-managed solutions for retirement and to navigate through market volatility.”
CI owns a strategic interest in Cabana’s parent company, The Cabana Group, LLC, a wealth management and financial services firm based in Fayetteville, Arkansas. Cabana has launched the Target Drawdown ETFs in partnership with private label ETF advisor Exchange Traded Concepts.
“What we’ve experienced this year underscores the necessity of proper hedging, transparency, and risk mitigation as key parts of investor portfolios,” says Chadd Mason, Chief Executive Officer of The Cabana Group.
“It also makes clear the need to ensure that any strategy being put to use has a real-world track record and is backed by an experienced team that has lived and worked through times of significant market turbulence. We’ve built our firm and the strategy behind these ETFs seeking to do the two things necessary to be a successful investor: avoid large losses and stay invested.”
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