TSX Symbol: CIX
TORONTO, May 13, 2014 /CNW/ - CI Investments Inc. ("CI") today announced
the launch of G5|20i, an innovative retirement solution for investors
who require immediate guaranteed cash flow.
The new mutual fund complements the G5|20 fund, which provides
guaranteed cash flow after a five-year accumulation phase. Both funds
are part of G5|20 Series and each provides 20 years of guaranteed cash
flow, growth potential and protection from market downturns.
In addition, CI announced that the G5|20i and G5|20 funds available for
sale beginning today will provide cash flow that can increase but never
decrease through a new feature that automatically locks in a portion of
fund gains.
"These enhancements add to the value and flexibility of G5|20 Series, a
retirement solution that offers millions of Canadian baby boomers both
a dependable cash flow and potential for growth from their savings,"
said Derek J. Green, President of CI. "G5|20 Series helps provide
security and peace of mind at a time when low interest rates mean that
fixed-income investments generate little return."
The G5|20 Series funds are actively managed, diversified portfolios of
income and growth investments. Protection against downturns is provided
through advanced risk management strategies. Each fund distributes for
20 years an annual cash flow equal to 5% of the investor's initial
investment or the Guaranteed Asset Value, whichever is greater. The
cash flow is guaranteed by Bank of Montreal.
"G5|20 Series is designed and managed specifically to ensure a
dependable, stable cash flow through the retirement period," said Mr.
Green. "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:
-
Choice of two funds: the new G5|20i for immediate cash flow, and G5|20
for cash flow after a five-year accumulation phase.
-
Automatic locking in of a portion of fund gains so that cash flow can
increase but never decrease.
-
5% cash flow for 20 years, guaranteed by Bank of Montreal.
-
Strategies to capture market gains and protect against downturns.
-
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 guaranteed cash flow.
-
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 over $20 billion in CI's managed solutions.
-
Eligibility for registered and non-registered accounts.
-
Tax-efficient cash flow for non-registered accounts.
-
A "risk management overlay" that is designed to provide long-term growth
potential, reduce volatility and optimize 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 affluent investors.
G5|20 Series funds are part of the CI Guaranteed Retirement Cash Flow
Series, under which funds with guaranteed cash flow will be available
quarterly. The new G5|20 Series funds announced today will be available
for purchase until June 30, 2014.
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 $125.8 billion in assets as
of April 30, 2014.
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 at least the original
amount you paid for the fund 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.
SOURCE CI Investments Inc.
Derek J. Green
President
CI Investments
(416) 364-1145