CI will replace Daniel Bubis's Tetrem with in-house Harbour team

Rudy Luukko 25 May, 2017 | 5:00PM
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The more than 10-year tenure of Daniel Bubis as portfolio manager of the $2.1-billion CI Canadian Investment will end in mid-July when this fund and others that he and his firm manages will be handed to the Harbour team of CI Investments Inc.

CI says Bubis, founder and chief investment officer of Winnipeg-based Tetrem Capital Management Ltd., has decided to close his business. As a result, Tetrem is resigning from its CI mandates, which also include CI Canadian Investment Corporate Class, CI Canadian Dividend, United Canadian Equity Value Pool and its corporate-class version, and portions of three multi-manager CI funds.

Tetrem's roles for all of these funds, which have a combined total of about $3.5 billion in assets, are to be assumed by Harbour Advisors personnel on or about July 15. "The Harbour approach is closely aligned with Tetrem's investment style, and this change will ensure that these portfolios remain suitable for clients seeking a conservative, value-based approach to equity investing," CI said in a May 24 release.

The fund most similar to CI Canadian Investment, which the value-oriented Bubis has managed since October 2006, is the $1.8-billion CI Harbour. Both funds are in the Canadian Focused Equity category. CI Canadian Investment currently has a large-cap-blend portfolio, according to the Morningstar Equity Style Box, while CI Harbour's portfolio is large-cap growth. CI Canadian Investment has a 3-star Morningstar Rating for its historical risk-adjusted returns, versus a 2-star rating for CI Harbour.

Confirmation by CI of the surprising decision by Bubis, who is in his early 50s, coincides with the hiring of a new senior member of the Harbour team. Peter Hofstra, formerly chief investment officer of the Toronto-based investment-counselling firm Manitou Investment Management Ltd., will become a senior vice-president and senior portfolio manager for Harbour, effective July 3.

Hofstra will join senior portfolio managers Ryan Fitzgerald and Roger Mortimer as the third lead manager at Harbour Advisors, CI said. Fitzgerald will be the new lead manager of CI Canadian Investment, with Mortimer as the lead for CI Canadian Dividend and Hofstra for United Canadian Equity Value.

In another management change, Harbour will also assume the role of Connecticut-based Altrinsic Global Advisors as manager of the international portions of CI Canadian Investment and its corporate-class version.

As a CI spokesperson told Morningstar, Tetrem focused on Canadian and U.S. equities, so Altrinsic provided an international equity component. This is no longer necessary since Harbour covers all regions of the world. Headed by chief investment officer John Hock, Altrinsic will continue to manage about $2 billion for CI in various mandates including global and international equities.

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About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to Morningstar.ca on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.

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