CI announces Portfolio Management Change Canadian Small Cap and Mid Cap Funds

March 2, 2015

Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the fund listed below, which is established as segregated fund in accordance with the Insurance Companies Act (Canada).

CI Investments (CI) has announced that effective January 9, 2015, Manulife Asset Management (Manulife) and QV Investors Inc. (QV) will replace Red Sky Capital Management Ltd. (Red Sky), as sub-advisor of the CI Canadian Small/Mid Cap Fund.

The sub-advisory change comes as a result of a decision by Red Sky’s President and Chief Executive Officer Tim Lazaris, to no longer manage mutual funds. Red Sky previously managed a 30% allocation of the fund with Picton Mahoney Asset Management (Picton Mahoney) managing the remaining 70%.

The Manulife portion of the portfolio will be managed by Ted Whitehead, a Senior Managing Director and Senior Portfolio Manager at Manulife. The QV portion of the portfolio will be managed by Joe Jugovic, QV's Chief Investment Officer, President and Chief Executive Officer, and Ian Cooke, Vice-President and Portfolio Manager.

Picton Mahoney will continue as a sub-advisor to the fund, with David Picton, President and Portfolio Manager, and James Lawson, Portfolio Manager, continuing as portfolio managers. The allocation to Picton Mahoney has been decreased from a 70% to a 40% weighting in the portfolio.

The sub-advisory allocations on the fund have been changed as follows:
  Portfolio Sub-Advisor Allocations
CI Canadian Small/Mid Cap Prior to January 9, 2015 After January 9, 2015
Picton Mahoney Asset Management 70% 40%
Red Sky Capital Management Ltd. 30% -
Manulife Asset Management - 30%
QV Investors Inc. - 30%

CI Investment Consulting will continue to oversee the portfolio and re-balance accordingly.

The Statement of Investment Policies and Guidelines (SIP&G) has been revised for the CI Canadian Small/Mid Cap Fund to reflect these changes. The SIP&G outlines the investment objectives and strategy for the investment funds managed by CI. A copy of the revised SIP&G is available on the Sun Life Financial Plan Sponsor Services website at When logged into the website, under the Administration and reporting tab, select Group Retirement Services, then on the top navigation menu select Investments > Governance Reports.

Red Sky was appointed as a sub-advisor to a portion of the CI Canadian Small/Mid Cap Fund in December 2012. Prior to that, Picton Mahoney was the sole sub-advisor of the fund.
Founded in 1996, QV is an independent, Canadian investment manager with a value oriented investment style and a client base that includes pension funds, insurance companies, mutual fund companies, foundations, endowments and high net worth private clients. As of June 30, 2014, QV managed $11.3 billion (CAD) in assets.

Manulife Asset Management is the asset management arm of Manulife Financial Corporation with assets under management of approximately $275 billion (USD) as of September 30, 2014. Their investment style follows a growth-based approach.

Please contact your Sun Life Group Retirement Services representative.