CI Income Advantage Fund, a fund designed to provide a diversified, tax-efficient income solution in a single investment, was launched Friday by CI Investments Inc.

The fund provides exposure to a portfolio of income-generating securities, including investment-grade government and corporate bonds, as well as preferred shares, common shares and real estate investment trusts.

The fund pays a tax-efficient income stream through a sustainable monthly distribution of 3.5 cents, representing a yield of approximately 4.2%. The fund uses a forward contract that results in the distribution being characterized as capital gains, which are taxed at a lower rate than interest income.

The investment portfolio is managed primarily by Signature Global Advisors, a division of CI that manages approximately $24 billion in assets. Trilogy Global Advisors, LLC of New York also manages a portion of the portfolio that is allocated to global government bonds.

“CI Income Advantage Fund is a convenient and tax-efficient option for the income portion of investors’ portfolios,” says Derek Green, CI president.

CI Investments Inc. is a subsidiary of wealth managmement firm CI Financial Corp. (TSX: CIX).