CI Investments Inc. announced today that unitholders have approved resolutions to change the investment strategy of DDJ Canadian High Yield Fund and to extend its term. In conjunction with these changes, the fund has been renamed DDJ High Yield Fund.
The fund’s investment objective is to provide investors with a high level of current income distributed quarterly while preserving capital for distribution to unitholders upon termination of the fund. The fund also seeks capital appreciation through investing in securities with potential for appreciation.
Previously, the fund invested primarily in a diversified portfolio of high-yield debt securities issued in the United States market by Canadian corporations. The fund was also restricted from holding more than 20% of the fund in foreign property on a cost basis.
Under the revised investment strategy, approved today at a meeting of unitholders, the fund is permitted to invest in high-yield debt securities on a global basis. The fund’s name was changed to DDJ High Yield Fund to reflect this change.
CI and the fund’s investment advisor, DDJ Capital Management, LLC, recommended the new mandate because of the elimination of the foreign property rule for registered plans and because it provides the fund with increased investment flexibility and a broader selection of debt securities.
Unitholders also approved a resolution to extend the term of the fund by 10 years to August 15, 2017, from August 15, 2007. The longer term allows the fund to take full advantage of the new mandate.