LONDON, ON, Sept. 8, 2025 /CNW/ - Today, Canada Life Investment Management Ltd. (CLIML), announced the launch of three new enhanced equity income mutual funds, the Canada Life Canadian Enhanced Equity Income Fund, Canada Life U.S. Enhanced Equity Income Fund, and Canada Life International Enhanced Equity Income Fund (the "Funds").
The new Funds offer diversified exposure to Canadian, U.S., or international equity markets, with the potential for enhanced cash flow, long-term capital growth and lower overall portfolio volatility compared to their respective broad-based benchmarks. Each fund may use an actively managed covered call strategy, which involves holding one or more ETFs and writing call options on a portion of the ETF's exposure. The Funds will be sub-advised by Irish Life Investment Managers.
"In an environment where market volatility and income needs are top of mind, covered call strategies have emerged as a practical way to help generate cash flow while maintaining some downside mitigation", says Sam Febbraro, Senior Vice President of Wealth Solutions at Canada Life and President and CEO of CLIML. "Our Enhanced Equity Income suite gives advisors another powerful tool to offer greater choice and flexibility for evolving client needs."
Potential benefits of investing in the Funds:
Each of the Funds invests in one or more ETFs, and when employing an actively managed call option writing program on the underlying ETFs, the Funds aim to deliver the following benefits:
- Modest growth potential from exposure to the underlying ETFs
- Reduced volatility compared to respective broad-based benchmarks
- Opportunity for enhanced tax-efficient cash flows beyond the typical dividend yield of the broad market
Additionally, on or about September 26, 2025 (subject to regulatory approval), The Canada Life Assurance Company intends to launch three enhanced equity income segregated funds, providing policyholders with access to the same strategies through an insurance-based solution. These segregated funds will invest in the corresponding mutual funds.
"We're excited to offer these covered call strategies to policyholders. This launch reflects our commitment to innovation and empowers advisors with greater choice in building more resilient, income-focused portfolios for their clients." said Nick Moumos, Vice-President, Product, Wealth Solutions at Canada Life.
About Canada Life Investment Management Ltd.
Canada Life Investment Management Ltd. is an investment management firm offering wealth management products and services for individuals, families and business owners. The funds are sub-advised by leading asset managers, providing access to specialized investment expertise from around the world. CLIML is a subsidiary of The Canada Life Assurance Company. Learn more.
About Canada Life
Canada Life is a leading insurance, wealth management and benefits provider focused on improving the financial, physical, and mental well-being of Canadians. For over 175 years, individuals, families and business owners across Canada have trusted us to provide sound guidance and deliver on the promises we've made. We proudly serve more than 14 million customer relationships from coast to coast. Canada Life is a subsidiary of Great-West Lifeco Inc. and a member of the Power Corporation of Canada group of companies. Visit canadalife.com to learn more.
Canada Life Mutual Funds are managed by Canada Life Investment Management Ltd. The funds are distributed by Quadrus Investment Services Ltd., IPC Investment Corporation, and IPC Securities Corporation, and may also be available through other authorised dealers in Canada.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
The Funds may seek to generate income and long-term capital growth through an options-based strategy designed to enhance cash flow and reduce portfolio volatility. The Funds aim to do this by selling (writing) call options on an equity index. Distributions to unitholders will depend on the yield from the underlying equity holdings and premiums from the written options and are not guaranteed. The amount and frequency of these distributions may vary with market conditions. Any portion of a distribution in excess of a Fund's current and accumulated earnings and profits will be classified as a return of capital and reflects a return of the investor's principal, not income or yield. Writing call options carries risks, including potential losses if the underlying assets must be sold below market value. Option premiums may underperform direct equity investments. Please refer to the Funds' prospectus for more details of these and other risks.
The payment of distributions is not guaranteed and may fluctuate. The payment of distributions should not be confused with a fund's performance, rate of return or yield. If distributions paid by the fund are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a fund, and income and dividends earned by a fund are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base goes below zero, you will have to pay capital gains tax on the amount below zero.
A description of the key features of the segregated fund policy is contained in the information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value. These funds are available through segregated funds policies issued by Canada Life.
SOURCE Canada Life Investment Management Ltd. (CLIML)
For more information, contact: Colin Roy, Associate Manager, Communications, Canada Life, 204-946-7380, [email protected]
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