CI In­vest­ments launches float­ing-rate in­come pool

Stockwatch Daily - - FINANCE - Mr. Geof Mar­shall re­ports

CI FI­NAN­CIAL Corp.’s CI In­vest­ments Inc. is pro­vid­ing a new op­tion for in­come in­vestors con­cerned about ris­ing in­ter­est rates with the launch of Sig­na­ture Float­ing Rate In­come Pool.

The pool in­vests in a con­ser­va­tive, ac­tively man­aged global port­fo­lio of float­ing-rate bonds and lever­aged loans, as well as shorter-term high-yield and in­vest­ment-grade bonds, which are less sen­si­tive to changes in in­ter­est rates com­pared with other fixed-in­come se­cu­ri­ties. The pool pro­vides an in­come stream through a monthly dis­tri­bu­tion.

The launch of the fund is timely, as the U.S. Fed­eral Re­serve has in­creased its bench­mark rate twice in 2017, with ad­di­tional hikes ex­pected. Mean­while, Bank of Canada an­nounced a rate in­crease of 0.25 per cent on July 12, and raised the pos­si­bil­ity of fur­ther in­creases this year.

“When in­ter­est rates are ris­ing, in­vestors are con­cerned about pre­serv­ing cap­i­tal and bal­anc­ing risk within their fixed-in­come port­fo­lios,” said Geof Mar­shall, se­nior vice-pres­i­dent, Sig­na­ture Global As­set Man­age­ment, port­fo­lio man­ager of the new pool. “Sig­na­ture Float­ing Rate In­come Pool is de­signed to di­ver­sify fixed-in­come port­fo­lios and pro­vide pro­tec­tion against in­creases in in­ter­est rates.”

Sig­na­ture Global As­set Man­age­ment, a di­vi­sion of CI In­vest­ments, man­ages over $53-bil­lion in as­sets, in­clud­ing a di­verse lineup of in­come man­dates. Sig­na­ture Float­ing Rate In­come Pool will ben­e­fit from Sig­na­ture’s ex­per­tise in man­ag­ing high-yield, in­vest­ment-grade and govern­ment bonds, pre­ferred shares, and other in­come se­cu­ri­ties. Within the float­ing-rate space, Sig­na­ture cur­rently man­ages over $800-mil­lion in se­nior se­cured loans and over $1-bil­lion of float­ing-rate pre­ferred shares. The pool is ac­tively man­aged in se­cu­rity se­lec­tion, al­lo­ca­tion to in­come as­set classes and cur­rency ex­po­sure, with the goal of en­hanc­ing risk-ad­justed re­turns.

The lead port­fo­lio man­agers are Geof Mar­shall, CFA, who leads Sig­na­ture’s credit team, and Dar­ren Ar­row­smith, CFA, who has over 13 years of ex­pe­ri­ence in­vest­ing in float­ing-rate in­stru­ments.

“CI of­fers a wide range of man­dates to meet Cana­di­ans’ con­tin­ued need for re­li­able in­come and cap­i­tal preser­va­tion,” said Neal Kerr, ex­ec­u­tive vice-pres­i­dent, in­vest­ment man­age­ment, CI In­vest­ments. “Sig­na­ture Float­ing Rate In­come Pool adds to the di­ver­sity of our lineup and pro­vides in­vestors with a choice of an­other high-qual­ity in­come so­lu­tion, man­aged by one of Canada’s largest in­vest­ment teams.”

Mean­while, the risk rat­ings of both Har­bour Global Growth & In­come Cor­po­rate Class and Mar­ret Strate­gic Yield Fund have been changed from low to medium to medium. These changes will be ef­fec­tive on or about July 27, 2017. The changes are based on the new method­ol­ogy man­dated by the Cana­dian Se­cu­ri­ties Ad­min­is­tra­tors to de­ter­mine the risk level of mu­tual funds, and are not a re­sult of any changes to the in­vest­ment ob­jec­tives, strate­gies or man­age­ment of the funds.

Also, in ad­di­tion to Cam­bridge Global As­set Man­age­ment, Epoch In­vest­ment Part­ners and Pic­ton Ma­honey As­set Man­age­ment, the Macken­zie Ivy team will man­age a por­tion of the port­fo­lios of Se­lect U.S. Eq­uity Man­aged Fund and Se­lect U.S. Eq­uity Man­aged Cor­po­rate Class. The Ivy team’s ap­point­ment as sub­ad­viser to the two mul­ti­man­ager funds is ef­fec­tive on or about July 17, 2017.

So­nia A Bax­en­dale, Ron­ald Dun­can Besse, Paul W Derk­sen, Wil­liam Thomas Hol­land, Har­land Bar­clay Horner, Stephen Alexan­der MacPhail, David P Miller, Stephen Tay­lor Moore, Thomas Pin­aud Muir, An­gus Winn Oughtred, David John Rid­dle

(CIX) Shares: 261,453,017

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