Connor, Clark & Lunn Managed Portfolios Inc. (CC&L Managed Portfolios) today announced today the launch of two new return of capital series, R5 and R7, providing investors with a tax-effective way to generate monthly cash flow from their non-registered investments.

Series R5 will provide monthly cash flow with a target distribution of 5% annually while Series R7 will have a target distribution of 7% annually.

The two series are being made available as investment options for the CC&L Balanced Income, CC&L Balanced, CC&L Balanced Growth, and the CC&L Growth portfolios.

“Advisors came to us looking for a solution that combines a tax-efficient distribution with our suite of actively managed investment portfolios,” says Nick Mancini, president and CEO of CC&L Managed Portfolios Inc. “They wanted to help clients use their non-registered portfolios to generate a regular income stream that has potential tax advantages.”

The target distribution will be paid to investors through a combination of regular income distributions and a return of capital. Since the return of capital portion of the distribution is not subject to taxation, Series R provides a way to generate tax-efficient cash flows.

Baker Gilmore to play larger role in portfolios

In a separate release, CC&L Managed Portfolios announced today that short-term bonds will be added to the asset mix in four more of their portfolios. Montreal-based Baker Gilmore & Associates Inc. will manage these assets.

“Our clients rely on us to manage the risk in their portfolio,” says Jeff Guise, head of the team responsible for managing the asset allocation of each Portfolio offered by CC&L Managed Portfolios. “As a result, we are increasing our exposure to short-term bonds across most of the portfolios to balance the increase in risk we see in equity markets.”

Baker Gilmore currently manages a portion of CC&L Conservative Portfolio. This change brings the investment expertise of Baker Gilmore to five of the six managed portfolios offered by CC&L Managed Portfolios.

CC&L Managed Portfolios and Baker Gilmore are members of the Connor, Clark & Lunn Financial Group, a multi-boutique asset management firm responsible for the investment of over $37 billion in financial assets through its investment managers on behalf of institutional, private and retail clients.