CI Global Asset Management launches world’s first ether mutual fund
CI Global Asset Management (CI GAM) has launched the CI Ethereum Fund, the world’s first mutual fund to provide exposure to ether, the cryptocurrency built on the Ethereum blockchain.
The Fund carries an industry-low management fee of 0.40 per cent (for Series F), which CI GAM has entirely waived until 15 June, 2021. The Fund’s management expense ratio (MER) has also been capped at 1.00 per cdnt (Series F).
The introduction of the Fund follows CI GAM’s launch last week of CI Galaxy Ethereum ETF (ETHX), the world’s first ETF to invest directly in Ether. CI Ethereum Fund invests in units of CI Galaxy Ethereum ETF. CI GAM also offers a bitcoin mandate in both the ETF and mutual fund structures: CI Galaxy Bitcoin ETF (TSX: BTCX) and CI Bitcoin Fund.
“CI Global Asset Management is the only company in the world offering convenient, low-cost and secure exposure to the two largest cryptocurrencies through both ETFs and mutual funds,” says Kurt MacAlpine, Chief Executive Officer of CI Financial, the parent company of CI GAM.
“Importantly, these products allow investors to access these digital assets through their financial advisors, so they can be integrated into an investor’s existing portfolio and investment plan. Building a leadership position in the digital assets sector as it becomes increasingly mainstream is an important part of CI GAM’s mission to offer investors timely and relevant investment solutions in the product structure they prefer.”
CI Ethereum Fund’s investment objective is to provide unitholders with exposure to ether through an institutional-quality fund platform. It invests all or substantially all of its assets in CI Galaxy Ethereum ETF. The Fund is available to retail investors in Canada in Series A, F and P units. The management fees have been waived until 15 June, 2021, at which time they will revert back to a management fee of 0.90 per cnt for Series A and 0.40 per cent for Series F. The MER for each series has been capped at 1.55 per cent and 1.00 per cent, respectively.
Key benefits of investing in CI Ethereum Fund include a convenient way to gain exposure to ether, which provides potential diversification benefits due to its low correlation to other asset classes. The Fund also offers the expertise of a leading digital asset portfolio management team, secure storage of ether in a segregated cold storage system, and the ability to be held in registered plans.