CI Investments Inc. today announced the launch of The Bank of Nova Scotia – CI 2X Deposit Notes, Series 2, which offer investors double the exposure to a broadly diversified and actively managed balanced fund, along with principal protection.
The notes, issued by The Bank of Nova Scotia, provide a return linked to the performance of Signature Income & Growth Fund from CI Investments. The fund invests in a broad range of asset classes, including income trusts, preferred shares and dividend-paying common stocks. The lead portfolio managers are Eric Bushell, chief investment officer, and James Dutkiewicz of Signature Global Advisors.
CI says the option-based strategy of the notes ensures that they have continuous 200% exposure to the fund throughout their seven-year life. Fund distributions are automatically reinvested into the note structure to maximize tax-deferred growth, while the principal amount is 100% guaranteed by the Bank of Nova Scotia if held to maturity.
“The notes are designed for investors who want the security of protecting their capital, while enhancing the returns of their investments,” says David McBain, CI senior vp. “The notes’ structure controls risk through principal protection and the fund’s broad diversification, while maximizing performance potential with 200% exposure to the fund at all times regardless of fund returns.”
The notes are available for sale until September 30, through registered dealer representatives, and are eligible for registered plans. The minimum purchase is $5,000.
Notes offer double the exposure to CI fund
Principal protected notes linked to Signature Income & Growth Fund
- By: IE Staff
- August 20, 2008 August 20, 2008
- 13:30