TSX Symbol: CIX
TORONTO, July 8, 2013 /CNW/ - CI Investments Inc. ("CI") today announced the launch of G5|20 Series, an innovative retirement solution that provides guaranteed cash flows, growth potential and protection from market downturns.
"As millions of Canadian baby boomers approach retirement, having a stable and secure retirement income will be a key issue for them," said Derek J. Green, President of CI. "Low interest rates mean that fixed-income investments generate little return, while many investors are wary of volatility in equity markets. CI designed G5|20 Series to help Canadians deal with these challenging times by providing a dependable cash flow in retirement as well as the potential for continued growth in their investments."
G5|20 Series is a mutual fund with an actively managed, diversified portfolio of income and growth investments, with a 25-year lifespan. Protection against downturns is provided through advanced risk management strategies. After a five-year accumulation phase, the fund pays out for the next 20 years an annual cash flow equal to 5% of the investor's initial investment or the market value at the five-year anniversary date, whichever is greater. The cash flow is guaranteed by Bank of Montreal.
"G5|20 Series is the first mutual fund of its kind in Canada," said Mr. Green. "It is designed and managed specifically to ensure a dependable, stable cash flow through the retirement period. It helps investors deal with those factors that present significant risks to their retirement plans, including market volatility, inflation and the risk of outliving their money."
The features of G5|20 Series include:
- 5% cash flows for 20 years, guaranteed by Bank of Montreal.
- Flexibility to provide downside protection in bear markets and take advantage of opportunities in bull markets.
- A low volatility investment strategy.
- Simplicity and liquidity of a mutual fund, with investors able to redeem daily at the current market value. The remaining units will continue to distribute the guaranteed cash flow without penalties.
- A diversified portfolio of Canadian and global equity and income securities managed by CI's award-winning portfolio management teams.
- Active asset allocation, managed by CI Investment Consulting, an in-house team that oversees $20 billion in CI's managed solutions.
- Eligibility for registered and non-registered accounts.
- Tax efficiency for non-registered accounts.
- A "risk management overlay" that is designed to provide long-term growth potential, reduce volatility and maximize the fund's residual value. The risk management overlay is provided by Nexus Risk Management of Chicago and includes strategies that have typically been available only to insurance companies and other institutional and high net worth investors.
G5|20 Series is part of the CI Guaranteed Retirement Cash Flow Series, under which funds with guaranteed cash flow will be available quarterly. The G5|20 Series fund announced today will be available for purchase until September 30, 2013.
For more information about G5|20 Series, contact your financial advisor or visit www.ci.com/G520.
About CI Investments - Canada's Investment Company
CI Investments is one of Canada's largest investment management companies. It offers a wide 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 a subsidiary of CI Financial Corp. (TSX: CIX), an independent, Canadian-owned wealth management firm with $106 billion in assets as of June 30, 2013.
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. Bank of Montreal guarantees that, following the five-year Accumulation Phase of the fund, an amount equal to 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. 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.
®CI Investments and the CI Investments design are registered trademarks of CI Investments Inc. BMO Financial Group and Bank of Montreal are marketing names (also referred to as trade names or brand names) used by Bank of Montreal. "BMO", "BMO Financial Group", "BMO (M-bar roundel symbol) Financial Group", "Bank of Montreal" and "BMO Capital Markets" are trademarks owned by Bank of Montreal.
Image with caption: "CI Investments launches G5|20 Series, a unique and innovative retirement solution (CNW Group/CI Financial Corp.) (CNW Group/CI Investments Inc.)". Image available at: http://photos.newswire.ca/images/download/20130708_C5781_PHOTO_EN_28820.jpg
SOURCE: CI Investments Inc.
For further information:
Derek J. Green