CI Investments issues update on the G5|20i guaranteed cash flow funds

TORONTO, Nov. 17, 2016 /CNW/ - CI Investments Inc. ("CI") today announced an update on some important developments regarding its G5|20i funds.

CI introduced the first G5|20i fund in the second quarter of 2014 in response to market demand based on the success of its G5|20 Series funds launched in July 2013. These funds provide investors with a guaranteed, predictable cash flow with the potential for capital appreciation.

Since the launch of the first G5|20i fund, the 10-year Government of Canada bond yield has continuously declined from approximately 2.3% and has regularly traded below 1.2% since June 2016. As a result of these sustained record low interest rates, the G5|20i funds have had to decrease their equity exposure in order to reduce the risk of being switched to their protection portfolios.

Given the extraordinary circumstances, CI has introduced changes that will allow the equity exposure of the G5|20i funds to be increased without increasing the risk that the funds will be switched to their protection portfolios. The changes are intended to enhance the long term upside potential of these funds. 

In addition, CI is making an Optional Accelerated Payment Offer to investors who wish to redeem or transfer out of G5|20i funds. The Optional Accelerated Payment Offer is available to any investor who redeems or transfers all or any G5|20i fund units between July 1, 2016 and December 23, 2016. The associated top-up payment, to be made on December 30, 2016, is being made by CI and not the G5|20i funds. Investors in G5|20i funds are advised to contact their financial advisor for the full details of the offer.

About CI Investments

CI Investments is one of Canada's largest investment management companies. It offers a broad range of investment products and services and is on the Web at www.ci.com. CI is a subsidiary of CI Financial Corp. (TSX: CIX), an independent, Canadian-owned wealth management firm with approximately $149 billion in assets as of October 31, 2016.

This news release may contain forward-looking statements about the G5|20i funds, their future performance, strategies or prospects, and possible future fund action. These statements reflect the managers' current beliefs and are based on information currently available to them. Forward-looking statements are not guarantees of future performance. We caution you not to place undue reliance on these statements as a number of factors could cause actual events or results to differ materially from those expressed in any forward-looking statement, including economic, political and market changes and other developments. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Except as described below, mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The G5|20i funds are subject to a guarantee such that the greater of the net asset value per unit or the original amount you paid for the unit will be paid back to you over a 20-year period in equal monthly instalments. This guarantee does not apply to units redeemed before the end of that period. Other than as described in this news release, you will receive the net asset value per unit for any unit redeemed early. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer.

SOURCE CI Investments Inc.

For further information: Murray Oxby, Director, Communications, [phone], [email protected]