CI Global Asset Management Lowers Risk Rating for CI Morningstar International Value Index ETF (VXM)
MWN-AI** Summary
CI Global Asset Management (CI GAM) has announced a decrease in the risk rating for its CI Morningstar International Value Index ETF (TSX: VXM) Hedged Common Units, shifting it from "Medium-to-High" to "Medium" effective immediately. This modification is based on the prescribed risk classification methodology from the Canadian Securities Administrators (CSA), which evaluates mutual funds and ETFs for their risk levels. CI GAM conducts annual reviews of the risk ratings for all managed funds and reassesses them when material changes occur. This recent adjustment stems from CI GAM’s consistent internal evaluations and does not reflect any alterations in the ETF's investment objectives, strategies, or management processes.
The ETF's Unhedged Common Units (TSX: VXM.B) maintain a risk rating of “Medium,” ensuring that investors continue to have options aligned with their risk preferences. CI GAM is recognized as one of Canada’s prominent investment management firms, offering a diverse range of products such as mutual funds, ETFs, and alternative investments, thus playing a crucial role in helping Canadians meet their financial objectives. Established in 1965, CI GAM has built a trusted reputation for innovation and disciplined portfolio management.
Investors should be mindful of the associated costs of investing in ETFs, including management fees and potential brokerage fees when buying or selling ETF units. Furthermore, it is essential for investors to review the ETF's prospectus beforehand to fully understand the inherent risks, as ETF values can fluctuate and past performance does not guarantee future results. CI GAM emphasizes the importance of consulting professional advisors to tailor investment strategies to individual circumstances.
MWN-AI** Analysis
CI Global Asset Management's recent decision to lower the risk rating for the Hedged Common Units of the CI Morningstar International Value Index ETF (TSX: VXM) from “Medium-to-High” to “Medium” presents a notable shift in the investment landscape for this ETF. This change, which is based on CI GAM’s standard risk classification methodology mandated by the Canadian Securities Administrators, indicates a reassessment of the ETF’s risk exposure rather than a change in its underlying investment strategy or management.
From a market perspective, this adjustment could enhance the appeal of the VXM ETF to conservative investors who have been hesitant about entering international markets, especially in today's volatile economic environment. The reclassification may signal greater stability, which could attract additional capital inflows as investors seek to diversify their portfolios with lower-risk options.
Moreover, being categorized as "Medium" allows VXM to target a broader audience, which could potentially lead to increased trading volumes and better liquidity in the market. This is particularly critical for ETFs, as stronger liquidity often results in tighter bid-ask spreads, making it easier for investors to enter and exit positions without significant cost.
Investors should consider this risk adjustment when evaluating their holdings or exploring new investments, particularly if their portfolios are currently underexposed to international equities. However, it is essential to maintain a holistic view of other factors such as global economic conditions, currency fluctuations, and regional market performance that could impact the ETF's returns.
In conclusion, while the updated risk rating of the CI Morningstar International Value Index ETF may suggest a more favorable risk-reward profile, investors should still conduct thorough due diligence and consider their individual risk tolerance and investment objectives before making any changes to their investment strategies.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
CI Global Asset Management (“CI GAM”) announces that the risk rating of the Hedged Common Units of CI Morningstar International Value Index ETF (TSX: VXM) is changing to “Medium” from “Medium-to-High,” effective immediately.
The risk rating change is based on the risk classification methodology mandated by the Canadian Securities Administrators to determine the risk level of mutual funds, including ETFs. CI GAM reviews the risk rating for each of the funds it manages at least on an annual basis, as well as when a fund undergoes a material change. This change is the result of CI GAM’s ongoing internal reviews and is not the result of any changes to the investment objectives, strategies or management of the ETF.
The Unhedged Common Units of CI Morningstar International Value Index ETF (TSX: VXM.B) continue to have a risk rating of “Medium.”
About CI Global Asset Management
CI Global Asset Management (CI GAM) is one of Canada’s leading investment management firms, providing a comprehensive suite of solutions – including mutual funds, exchange-traded funds and alternative investments – to help Canadians achieve their financial goals. Founded in 1965, CI GAM has built an enduring legacy of innovation, disciplined portfolio management and commitment to investor success. Our investment team brings deep expertise in fundamental research, portfolio construction and risk management to deliver results across a broad range of asset classes. We partner with financial advisors, wealth management firms and institutions to serve more than 1.3 million investors. CI GAM is a subsidiary of Toronto-based CI Financial Corp ., a diversified global asset and wealth management company. For more information, visit www.ci.com or follow us on LinkedIn .
Commissions, management fees and expenses all may be associated with an investment in exchange-traded funds (ETFs). You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. Please read the prospectus before investing. Important information about an exchange-traded fund is contained in its prospectus. ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. Returns of the Index do not represent the ETF’s returns. An investor cannot invest directly in the Index. Performance of the ETF is expected to be lower than the performance of the Index.
This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase mutual funds managed by CI Global Asset Management and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor.
Morningstar ® is a registered trademark of Morningstar, Inc. (“Morningstar”). Morningstar ® Developed Markets ex-North America Target Value Index ™ (the “Index”) is a service mark of Morningstar and has been licensed for use for certain purposes by CI Global Asset Management (“CI GAM”). The securities of each CI Morningstar ETFs (the “ETFs”) are not in any way sponsored, endorsed, sold or promoted by Morningstar or any of its affiliates (collectively, ‘‘Morningstar’’), and Morningstar makes no representation or warranty, express or implied regarding the advisability of investing in securities generally or in the ETFs particularly or the ability of the Index to track general market performance.
The CI Exchange-Traded Funds are managed by CI Global Asset Management, a wholly owned subsidiary of CI Financial Corp.
CI Global Asset Management is a registered business name of CI Investments Inc.
©CI Investments Inc. 2025. All rights reserved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251217233400/en/
Murray Oxby
Vice-President, Corporate Communications
CI Global Asset Management
416-681-3254
moxby@ci.com
FAQ**
How might the change in risk rating for CI First Asset Morningstar International Value Index ETF VXM.B:CC from "Medium-to-High" to "Medium" impact investor perception and demand for the ETF?
Given that the risk rating for CI First Asset Morningstar International Value Index ETF VXM.B:CC is now "Medium," what specific factors led CI Global Asset Management to this classification update?
In what ways does CI Global Asset Management ensure that the risk rating changes, such as for CI First Asset Morningstar International Value Index ETF VXM.B:CC, align with the Canadian Securities Administrators' mandated methodologies?
How does CI Global Asset Management plan to communicate the implications of this risk rating adjustment for investors holding CI First Asset Morningstar International Value Index ETF VXM.B:CC?
**MWN-AI FAQ is based on asking OpenAI questions about Ci First Asset Morningstar International Value Index Etf (TSXC: VXM:CC).
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