Toronto-based CI Investments Inc. Tuesday announced the launch of G5|20i, a retirement product 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,” says Derek 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 diversified portfolios of income and growth investments, actively managed, managed by CI’s portfolio management teams. Asset allocation is managed by CI Investment Consulting, an in-house team that oversees over $20 billion in CI’s managed solutions.
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.
The G5|20 Series also features automatic locking in of a portion of fund gains so that cash flow can increase but never decrease.
“G5|20 Series is designed and managed specifically to ensure a dependable, stable cash flow through the retirement period,” 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 funds are eligible for registered and non-registered accounts with a $5,000 minimum investment ($100,000 for CI Private Investment Management), and feature tax-efficient cash flow for non-registered accounts.
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 will be available for purchase until June 30.
CI is a subsidiary of CI Financial Corp. (TSX: CIX), an independent, Canadian-owned wealth management firm with $125.8 billion in assets.