CI Global Asset Management today announced the appointment of River Road Asset Management, LLC as sub-advisor to a series of U.S. equity mandates, effective immediately.
The affected mandates are:
- U.S. Equity Value Corporate Class
- U.S. Equity Value Pool
- U.S. Equity Value Currency Hedged Corporate Class
- U.S. Equity Value Currency Hedged Pool
- A portion of CI Select U.S. Equity Managed Corporate Class
- A portion of CI Select U.S. Equity Managed Fund.
River Road is a leading boutique value investor founded in 2005 and based in Louisville, Kentucky. The firm manages more than US$10 billion in assets on behalf of institutional investors worldwide, including endowments, retirement plan sponsors, foundations, family offices, corporations and others.
River Road focuses on value investing in U.S. equities, practising what it defines as Absolute Value® – a proprietary approach that seeks to identify well-managed companies with predictable cash flows trading at an attractive discount to their assessed intrinsic value. The objective is to generate attractive, sustainable returns over the long term, with an emphasis on minimizing downside portfolio risk.
“River Road’s experienced and cohesive investment team and their well-defined, highly disciplined investment process differentiate them from other value managers and make them a strong fit with the style-specific mandates of these portfolios,” said Marc-André Lewis, President and Chief Investment Officer of CI GAM.
“Their approach incorporates strong risk management practices and has resulted in consistent results with lower downside risk. We are confident that River Road, which was selected through a comprehensive search and due diligence process, will add value to the funds.”
River Road employs 17 investment professionals with its portfolio managers having an average of 23 years of industry experience. The lead portfolio managers on the CI GAM mandates are Daniel Johnson, CFA, CPA, and Matt Moran, CFA, who have worked together at River Road for over 14 years.
U.S. Equity Value Corporate Class, U.S. Equity Value Pool, U.S. Equity Value Currency Hedged Corporate Class and U.S. Equity Value Currency Hedged Pool are part of the Assante Private Pools lineup, which is managed by CI GAM and available to clients of CI Assante Wealth Management.
CI Select U.S. Equity Managed Corporate Class and CI Select U.S. Equity Managed Fund are multi-manager funds that provide investment style diversification within a single holding and are part of the Portfolio Select Series group of asset allocation funds. The funds are managed by the CI GAM Multi-Asset team, which determines the allocations to each asset class and to the underlying portfolio managers, who are responsible for security selection within their portion of the portfolios.
Effective today, the underlying portfolio managers of CI Select U.S. Equity Managed Corporate Class and CI Select U.S. Equity Managed Fund are River Road, CI GAM, CI Segall Bryant & Hamill Asset Management, and Wellington Management Canada ULC.
River Road is replacing Epoch Investment Partners, Inc. on the six portfolios listed above, which have a combined total of $1.1 billion in assets under management. The Independent Review Committee of the funds has reviewed the changes with respect to the potential conflict of interest matters and provided its positive recommendation, having determined that the changes achieve a fair and reasonable result for the funds.
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