CI Investments is launching the CI Oil Sands and Energy EARNS (Enhanced Accelerated Return Note Securities), Series 1.

A new way for investors to benefit from potential gains in the energy sector, the notes provide exposure to an actively managed portfolio of companies involved in the oil sands and alternative energy sources such as uranium and ethanol, as well as traditional oil and gas companies

The notes are issued by National Bank of Canada,

The shutdown of key pipelines from the Prudhoe Bay, Alaska, oil fields, followed by a US$2 a barrel jump in the price of oil, shows that the energy market remains tight — providing opportunities for investors, says David McBain, senior vp, CI Investments Inc.

“The note securities allow investors to benefit from the potential long-term returns of the oil sands and other segments of the energy sector, as well as providing top-notch portfolio management and the potential for accelerated returns,” McBain adds.

The portfolio is managed by Eric Bushell and Scott Vali of CI’s Signature Advisors, who have posted strong returns as portfolio managers of CI Global Energy Corporate Class. Signature Advisors manages approximately $18.8 billion in assets on behalf of CI.

The acceleration feature of the notes provides investors with 150% of any positive return at the maturity of the note securities, but only 100% of any negative performance. This feature allows investors to enjoy the benefits of leverage without the corresponding downside of actual leverage.

The note securities have an eight-year term to maturity and are not principal protected.

The notes are available for sale until August 31, through financial advisors, and are eligible for registered plans. The minimum purchase is $5,000.