Toronto-based independent fund giant CI Financial Corp. is now the largest shareholder in Fayetteville-based Cabana Asset Management, a fee-only Registered Investment Adviser (RIA) with more than $1.1 billion in assets under management and a wholly-owned subsidiary of The Cabana Group LLC.
The companies announced the news Tuesday (April 21).
“Identifying a strategic partner to more widely distribute our products and services in the U.S. has always been our goal,” Cabana CEO and co-founder Chadd Mason said in a statement. “CI’s financial strength, vision, expertise in asset and wealth management, and commitment to building a client-focused RIA business provide excellent support for Cabana’s next wave of growth.”
Cabana was ranked by Financial Advisor magazine as the fastest-growing RIA in the U.S. in 2018 and the second fastest-growing RIA in 2019. In addition to providing a comprehensive suite of investment management and wealth planning services, Cabana offers a highly successful lineup of risk-managed portfolios to its retail clients and on a sub-advisory basis to RIAs and advisors across the U.S.
More information on Cabana is available in this October 2019 cover story in the Northwest Arkansas Business Journal.
The Cabana transaction is part of CI’s initiative to build a U.S. wealth management business within the RIA sector, the fastest-growing segment in North American wealth management.
Cabana’s Target Drawdown Portfolios, which are only offered in the U.S., have achieved strong results, with all four portfolios eligible for a rating from Morningstar Inc. receiving the top five-star overall rating (as of Dec. 31, 2019). The portfolios are designed with the goal of minimizing losses within a predetermined drawdown parameter, while actively participating in favorable market conditions.
“The Target Drawdown Series – both recently and over the longer term – has generated strong demand and helped to fuel Cabana’s rapid growth,” said Kurt MacAlpine, CI CEO, said in a statement. “Given current market conditions and the ongoing need for effective retirement solutions, there is a tremendous and timely opportunity to offer the Target Drawdown Series to a wider audience in both the U.S. and Canada.”