Harnessing the investment power of disruptive change

Counterpoint Global, a specialized investment team within Morgan Stanley Investment Management, has established a reputation for identifying and capitalizing on disruptive trends well ahead of the market. Now, through a partnership with CIBC Global Asset Management, retail investors in Canada can access this expertise via a suite of 4 exchange traded funds (ETFs) listed on the TSX:

• Counterpoint Global CIBC Global Permanence ETF
• Counterpoint Global CIBC International Permanence ETF
• Counterpoint Global CIBC U.S. Large Cap Growth ETF
• Counterpoint Global CIBC U.S. Small Cap Growth ETF

Counterpoint Global’s investment philosophy is rooted in 4 cornerstones: long-term ownership, bottom-up fundamental analysis, active management and a culture of evolution and learning. They leverage the insights of a dedicated team of sector analysts complemented by an additional team of generalists, a structure that fosters intellectual curiosity and robust debate, resulting in high-conviction investment ideas.

The team’s process is largely bottom-up, focusing on understanding companies at a granular level. They seek to identify businesses with enduring competitive advantages, evaluating how these advantages can last over 3, 5 or even 10 years. This long-term orientation enables the team to weather short-term volatility and remain focused on value creation over time.

Counterpoint Global employs 3 differentiated research pillars.

Disruptive change research

This pillar focuses on anticipating and understanding new business models and technologies. The team has a history of investing early in companies such as Alphabet, Meta, Spotify and Netflix, recognizing their potential before they became industry giants.

Consilient research

This pillar integrates insights from valuation, decision-making and strategic thinking. It emphasizes the importance of intangible assets and broad market dynamics, enriching the team’s analytical framework.

Tailwinds research

This pillar examines the characteristics and practices that support a company’s ability to deliver enduring value and adapt to changing market conditions or secular themes.

These pillars are purpose-built to support Counterpoint Global’s unique approach, enabling the team to identify both disruptors and companies resilient in the face of disruption.

Counterpoint Global distinguishes itself by investing across the full spectrum of market caps and geographies. This approach allows the team to identify emerging business models before they become mainstream and provides valuable insights into how these models evolve. The team’s use of pattern recognition also plays a key role in their investment process. By observing trends in logistics, cloud computing and shared economy models, the team has been able to spot opportunities in analogous businesses across different regions and sectors.

Counterpoint Global’s ETFs are characterized by High Active Share — over 90% — meaning their portfolios are markedly different from traditional benchmarks. The top 10 holdings typically comprise around 50% of the portfolio, reflecting the team’s conviction in its best ideas. This concentration enables investors to benefit from differentiated exposure and the potential for significant alpha generation.

For retail investors, these ETFs often serve as “completion portfolios” — ideal complements to core index or passive holdings. By providing exposure to companies and sectors underrepresented in standard benchmarks, they help diversify risk and capitalize on emerging growth opportunities.

Counterpoint Global’s record of early investments in disruptive companies is a testament to its forward-looking research. The team actively seeks second-order beneficiaries of technological trends, such as AI, robotics, healthcare innovation, space exploration and next-generation energy. Rather than focusing solely on first-order investments, such as hardware manufacturers, they identify companies poised to leverage new technologies for sustained growth.

Their differentiated approach to AI, for example, emphasizes companies using AI to drive business value — whether through improved profitability, new business models or enhanced customer engagement. This perspective ensures that the ETFs are positioned to benefit from both current and future waves of innovation.

Historically, in Canada, Counterpoint Global strategies were available only to institutional investors. The launch of Counterpoint Global CIBC ETFs democratizes access, enabling retail investors to participate in strategies previously reserved for large institutions. For retail investors seeking to participate in the next wave of innovation and disruption — backed by a team with a track record and strong alignment — Counterpoint Global CIBC ETFs represent a compelling story. To learn more about their potential role in your portfolio, speak to your advisor or CIBC representative today.