| Fund Company | CI Investments Inc. |
| Fund Type | Canadian Focused Equity |
| Rating | $$ |
| Style | Value |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Good |
| TFSA Suitability | Good |
| Manager | Daniel Bubis since October 2006 Aaron Clarke since December 2008 |
| MER | 2.37% |
| Code | CIG 7420 – Front End Units CIG 7425 – DSC Units |
| Minimum Investment | $500 |
Analysis: The CI Canadian Investment Fund follows a very simple investment approach where manager Daniel Bubus looks to buy out of favour companies that are trading at a discounted valuation, often due to a controversy. Using their fundamentally driven, bottom up, value focused approach, they look to determine if the reason it is out of favour is permanent or temporary in nature and how likely the value of the company is to return to normal. To do this, they develop a very clear investment thesis on each company they review.
The portfolio is fairly concentrated holding between 25 and 45 names, with the top ten making up around a third of the fund. Sector weights are largely the by-product of the stock selection process and individual names are capped at 10% of the fund.
While the investment approach may make intuitive sense, the results have been somewhat disappointing, lagging both the index and the peer group. Volatility has been roughly in line with the index.
All in all this isn’t a bad fund however we do believe that there are better options available. Within the CI family, it is our opinion that Harbour or CI Signature Select Canadian would offer a more favourable risk reward profile for investors.