TORONTO, Aug. 26 /CNW/ - CI Investments Inc. today announced the launch
of Skylon Big Five Barrier Return of Capital Note Securities, Series 1, which
offer investors attractive tax-efficient payments and returns linked to the
performance of the common shares of the five largest Canadian banks.
"Over the past year, Canadian bank stocks have been affected by the U.S.
financial crisis, and they are trading significantly below their 52-week
highs. The Skylon Big Five Barrier Return of Capital Notes have been designed
to take advantage of the opportunity presented by the price decline and
increased volatility of Canadian bank stocks," said David R. McBain, Senior
Vice-President, CI Investments Inc. "At the same time, the Notes offer
protective features for investors who are concerned that more bad news and
further writedowns may be in store."
The principal-at-risk Note Securities, issued by National Bank of Canada,
offer a return linked to the common shares of Bank of Montreal, Canadian
Imperial Bank of Commerce, Royal Bank of Canada, The Bank of Nova Scotia and
The Toronto-Dominion Bank.
Regardless of the performance of the underlying stocks, the Note
Securities will make semi-annual payments equal to 7.5% per annum of the
principal amount. The payments will be tax-efficient, as they will be in the
form of return of capital. The 7.5% yield is superior to the current dividend
yield offered by the five bank shares.
At the end of the five-year term, in addition to the $37.50 of cumulative
ROC payments already received and provided that none of the bank stocks
decline by 50% or more during the term of the Note Securities, investors will
receive an amount equal to their original investment of $100 per Note
Security. There is also the potential for investors to receive more than their
Detailed information about the Skylon Big Five Barrier Return of Capital
Note Securities, Series 1, is contained in a prospectus and related pricing
supplement filed on www.sedar.com and which may also be obtained through
financial advisors authorized to distribute these securities. The Note
Securities are fully eligible for registered plans and available for sale
until September 30, 2008. The issue price is $100 per Note, with a minimum
subscription of $5,000.
CI Investments Inc. is one of Canada's largest investment fund companies
with approximately $55 billion in assets under management. CI offers a broad
range of investment products and services, including an industry-leading
selection of investment funds, and is on the Web at www.ci.com. CI is
controlled by CI Financial Income Fund (TSX: CIX.UN), an independent,
Canadian-owned wealth management firm with $99.3 billion in fee-earning assets
as of July 31, 2008.
For further information:
For further information: David R. McBain, Senior Vice-President, CI
Investments Inc., (416) 364-1145