Fund Watch

Three new offerings mirror those already sold under Castlerock name.
By June Yee | 08-16-11

CI Investment Corp. has launched a new family of funds that features both the name and expertise of a manager that figures prominently in its most recent acquisition.

About the Author
June Yee is a researcher, writer and editor who covers investment funds. She is a co-author of the managed funds sections of the Canadian Securities Course, and has authored or co-authored articles for numerous media and research organizations. She is a founding member of the Canadian Investment Funds Standards Committee.

Black Creek Global Leaders Corporate Class, Black Creek International Equity Corporate Class and Black Creek Global Balanced Corporate Class were introduced on Aug. 15. The funds will be managed by Black Creek Investment Management Inc., a Toronto-based firm that serves as sub-advisor on several funds in CI's Castlerock family.

Headed by veteran global investment managers Bill Kanko and Richard Jenkins, Black Creek was the incumbent sub-advisor to three significant mandates within the Hartford Investments Canada Corp. family at December 2010, when Hartford was acquired by CI. Black Creek retained its role through the rebranding of Hartford as Castlerock Investments Inc. in February 2011.The new funds are the first to bear the Black Creek name.

Black Creek's global expertise is extensive. Kanko founded the firm in 2004 after leaving a leading position with AIM Trimark (now Invesco Trimark). He had been lead manager of Trimark Fund and Trimark Global Fundamental Equity (formerly Trimark Select Growth). In 2008, Jenkins joined Kanko, also from AIM Trimark where he had steered Trimark Europlus and Trimark Global Balanced .

The three new Black Creek funds are corporate-class versions of three established funds in the Castlerock family: Castlerock Global Leaders , Castlerock International Equity and Castlerock Global Balanced .

According to a company spokesperson, despite the corporate integration of Castlerock with its main mutual-fund subsidiary in June, CI Investment Corp. says there are no immediate plans to amalgamate the Castlerock funds into the larger CI fund family. Instead, Castlerock will continue to operate as an independent division.

There are currently 21 funds in the Castlerock family and, unlike other CI sub-brands such as Harbour and Cambridge, which are named for the sole sub-advisor on all funds in their respective groups, the Castlerock funds employ a number of third-party sub-advisors of which Black Creek is one. Other Castlerock sub-advisors include Winnipeg-based Tetrem and Boston's Cambridge Advisors, which features Alan Radlo, a well-known Canadian equity manager formerly with Fidelity Investments. Another prominent sub-advisor is Regina-based Greystone Managed Investments Inc., which has also weathered Hartford's acquisition by CI and the rebranding to Castlerock. For Canadian investors, the Castlerock funds represent the only retail presence for Greystone, which specializes in institutional investing.

The new Black Creek funds are part of CI corporate class, which means they may be switched among other funds in the corporate class structure without triggering potential tax liability. Currently, class A shares of the new funds are available with initial, deferred and low-load sales charges, with a management fee of 2%.Class F shares, which are sold through fee-based advisors, charge a management fee of 1%.

Castlerock funds currently have approximately $2 billion in assets, a fraction of the nearly $73 billion in assets under management reported by CI at July 31.

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