CI Global Asset Management Launches CI Structured Premium Yield Fund: A New Income Solution

CI Global Asset Management (CI GAM) has announced the launch of the CI Structured Premium Yield Fund, a new income solution designed to deliver enhanced yields typically offered by structured notes. The Fund aims to provide investors with the opportunity for regular distributions by replicating the outcome of an actively managed portfolio of diversified structured notes, primarily through investing in derivatives and/or structured notes that provide exposure to North American and/or global equity indexes and securities.

Structured notes are debt instruments that pay a return based on the performance of a reference asset, such as a stock market index or a basket of stocks or commodities. They may include conditional principal protection, which can protect against moderate equity market declines. The CI GAM investment team actively manages the Fund's exposure to indexes, markets, and global industry sectors, as well as the maturity dates and protection levels of the underlying structured notes portfolio, to manage risk and enhance returns.

The Fund's investment objective is to provide investors with the opportunity for regular distributions by replicating the outcome of an actively managed portfolio of diversified structured notes, primarily through investing in derivatives and/or structured notes that provide exposure to North American and/or global equity indexes and securities. Structured notes are debt instruments that pay a return based on the performance of a reference asset, such as a stock market index or a basket of stocks or commodities. They may include conditional principal protection, which can protect against moderate equity market declines.

The CI GAM investment team actively manages the Fund's exposure to indexes, markets, and global industry sectors, as well as the maturity dates and protection levels of the underlying structured notes portfolio, to manage risk and enhance returns. The Fund pays a monthly distribution and has a risk rating of Low-to-Medium.

Jennifer Sinopoli, Executive Vice-President and Head of Distribution for CI GAM, commented on the launch, "CI Structured Premium Yield Fund is a compelling choice for investors seeking a higher-yielding and stable monthly income stream. As an actively managed fund, it stands out within the enhanced yield fund segment due to the expertise of our investment management team, who bring to bear extensive experience in managing income and equity-income portfolios."

The Fund's three lead portfolio managers – Geofrey Marshall, Kevin McSweeney, and Lee Goldman – have more than 80 years of combined investment experience and are backed by the deep bench strength of CI GAM's income and equity investment teams. CI GAM currently manages over $7 billion in high-yield and diversified income funds.

The Fund is being offered in Series I, with a management fee of 0.55%, and Series F and P, with a management fee of 1.55%. CI GAM is one of Canada's largest investment management companies, offering a wide range of investment products and services, and is a subsidiary of CI Financial Corp. (TSX: CIX), an integrated global asset and wealth management company with approximately $532.7 billion in assets as at November 30, 2024.

In conclusion, the CI Structured Premium Yield Fund offers investors a compelling income solution with its actively managed portfolio of diversified structured notes, conditional principal protection, and experienced investment team. With a risk rating of Low-to-Medium and a focus on regular distributions, the Fund is well-suited for retirees and income-seeking investors looking for a higher-yielding and stable monthly income stream.