RBC, CI Investments introduce new principal protected notes

RBC Financial Group and CI Investments Inc. today launched RBC CI Multi-Callable Deposit Notes, Series 1, which are linked to a basket of four funds managed by CI’s Signature Advisors investment team.

“The Multi-Callable Notes are ideal for investors looking for alternatives to low-paying GICs or volatile income trust structures,” says David McBain, senior vp of CI Investments and president and CEO of Skylon Advisors Inc., which is marketing the Deposit Notes in co-operation with CI. “These funds and their managers have excellent long-term track records and provide the potential to produce outstanding returns.”

The notes provide 100% principal protection and the potential for two distinct returns. Investors may receive a 7% minimum simple annual return if RBC, as the issuer, calls the Notes during any of four call periods over the six- and-a-half-year term of the notes. If the notes are not called, investors will receive the full growth percentage of the basket on the maturity date.

The four funds included in the basket are:

• Signature Select Canadian Fund, a Canadian equity fund managed by Eric Bushell, Chief Investment Officer of CI’s Signature Advisors;
  Signature High Income Fund, which invests in high-yielding income securities and is managed by Bushell, Matt Shandro and Robert Lyon;