Inflation Protection ETF “CPII” Launches from Ionic Capital Management® LLC and Tidal ETF Services
29 Giugno 2022 - 4:03PM
With the most recent inflation print at a 40-year high, Ionic
Capital Management LLC (Ionic) in partnership with Tidal ETF
Services, LLC (Tidal) launches the Ionic Inflation Protection ETF
(NYSE: CPII). The actively managed fund seeks to generate positive
returns during periods of elevated and/or rising inflation and
inflation expectations as well as during periods of increasing
interest rates and fixed income volatility.
“While the world has been in a deflationary
environment for the past few decades, it now appears that period
has ended. We have shifted to an inflationary environment that will
persist at elevated levels even if current readings ultimately
prove to be peak levels. It is critical that institutional and
retail investors find ways to mitigate the destructive elements of
sustained elevated inflation,” says Doug Fincher, Portfolio Manager
at Ionic. “Now is the time to seek protection from the destruction
of purchasing power caused by inflation.”
CPII will invest in inflation swaps on the
Consumer Price Index (CPI), swaptions (a/k/a swap options) on U.S.
interest rates and short-duration TIPS (Treasury
inflation-protected securities). This combination provides exposure
to elevated inflation and inflation expectations, rising rates and
real yields (nominal yields minus inflation).
“Investors have traditionally viewed fixed
income as providing diversification to their equity exposure.
However, there is a regime change to a higher inflationary
environment underway where fixed income may actually be risk
additive. Investors are struggling to find investments that will
help their portfolios in this type of market,” says John
Richardson, Chief Operating Officer at Ionic. “With the launch of
CPII, we are able to bring inflation protection strategies
historically only available in our private funds to the ETF space
accessible to a broader universe of investors. CPII will give RIAs,
family offices, institutional and retail investors a fixed income
alternative for those who are worried about the value of their
assets after adjusting for inflation.”
This fund will leverage Ionic’s interest rate
derivatives expertise while offering daily liquidity and
transparency at an attractive fee. For more information
visit CPIIetf.com
About Ionic Capital Management
LLC
Ionic Capital Management LLC (“Ionic”) is a New
York based alternative asset manager that employs long volatility,
relative value arbitrage, and value equity investment strategies on
behalf of private investment funds as well as funds that are
regulated pursuant to the Investment Company Act of 1940 and under
the Undertakings for Collective Investments in Transferable
Securities Directive (“UCITS”). As of June 1, 2022, Ionic has
approximately $3.9 billion in assets under management.
About Tidal ETF Services
Formed by ETF industry pioneers and thought
leaders, Tidal ETF Services, LLC sets out to thoughtfully disrupt
the way ETFs have historically been developed, launched, marketed,
and sold. With a focus on helping ETF issuers, Tidal offers a
comprehensive suite of services, proprietary tools, and
methodologies designed to bring lasting ideas to market. We are
advocates for ETF innovation on a mission to help issuers
efficiently and effectively launch their ETFs and optimize their
growth potential in a highly competitive space. Learn more at
tidaletfservices.com.
Investors should consider the investment objectives,
risks, charges, and expenses carefully before investing. For a
prospectus or summary prospectus with this and other information
about the Fund, please call (866) 214-2234 or visit our website
at www.cpiietf.com. Read the
prospectus or summary prospectus carefully before
investing.
Investment involve risk. Principal loss is possible. The Fund is
new and has limited operating history.
Swaptions Risk. A swaption, is an option
contract that give the holder the right (but not the obligation) to
enter into a swap at a predetermined rate at expiration in exchange
for a premium payment. Swaptions enable the Fund to purchase
exposure that is significantly greater than the premium paid.
Consequently, the value of swaptions can be volatile, and a small
investment in swaptions can have a large impact on the performance
of the Fund. TIPS Risk. Interest payments on TIPS
are unpredictable and will fluctuate as the principal and
corresponding interest payments are adjusted for inflation. There
can be no assurance that the Consumer Price Index will accurately
measure the real rate of inflation in the prices of goods and
services. Non-Diversification Risk. Because the
Fund is “non-diversified”, it may invest a greater percentage of
its assets in securities of a single issuer or fewer issuers than a
diversified fund, which may expose the Fund to the risks associated
with the developments affecting the issuers in which the Fund
invests. Investment Company Securities Risk. To
the extend that the Fund invests in other funds, a shareholder will
bear two layers of asset-based expenses, which could reduce
returns. Derivatives Risk. The Fund may invest in
derivatives, which are often more volatile than other investments
and may magnify the Fund’s gains or losses. Debt Securities
Risk. The Fund may invest in debt securities which are
subject to the risks of the issuer’s inability to meet its
obligations under the security; failure of an issuer or borrower to
pay principal and interest when due; and interest rate changes
affect the prices of fixed income securities. In addition, an
increase in prevailing interest rates typically causes the value of
existing fixed income securities to fall and often has a great
impact on longer duration and/or higher quality fixed income
securities. Actively Managed Fund Risk. Unlike
ETFs that track an index, this ETF is actively managed and
dependent upon the ability of the portfolio managers to achieve the
Fund’s objective.
The Fund invests in a Cayman Island Subsidiary.
The Fund is indirectly exposed to the risks associated with the
Subsidiary’s investments. The swaps, swaptions and other
investments held by the Subsidiary are subject to the same economic
risks that apply to similar investments if held directly by the
Fund. The Subsidiary is not registered under the Securities and
Exchange Act of 1940, and unless other wise noted in the Prospectus
for the Fund, is not subject to all the investor protections of the
Act.
The fund is distributed by Foreside Fund Services, LLC.
Darby Rowe
Darby@gregoryfca.com
610-228-2148
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