A Guide to CI Investments

A Guide to CI Investments
Table of Contents
CI Investments...................................................................................................1
An award-winning record .................................................................................2
Investment solutions .........................................................................................3
Portfolio management expertise.......................................................................4
Income opportunities ........................................................................................6
Balanced opportunities .....................................................................................7
Growth opportunities ........................................................................................8
Managed solutions ...........................................................................................9
Tax-efficient investments ................................................................................10
Guaranteed solutions ......................................................................................11
Group plans .....................................................................................................12
Education savings ...........................................................................................12
CI Investments fund classes ...........................................................................13
CI has been managing money since 1965, and today we are one of Canada’s largest investment managers
with $75 billion in assets under management. More than 1.7 million Canadians have entrusted us with their
savings. CI has experienced strong growth over the years, as we have evolved and innovated to meet the
increasingly diverse and complex needs of Canadian investors. CI offers:
Expertise – CI’s award-winning lineup of portfolio management
teams consists of some of the country’s best money managers. Their
expertise and accomplishments have been recognized through an
extensive list of accolades, which are shown on the next page.
Experience – CI has over four decades of experience in
investment management and has established a strong overall
track record of performance, as well as excellence in fund
administration and operations.
Choice – CI provides a wide choice of investment options,
representing a diverse selection of investment styles, mandates
and product platforms, including mutual funds, segregated funds
and managed solutions. This selection allows investors and their
advisors to build a portfolio that meets their unique needs – all
within the CI lineup.
Strength – CI is backed by the financial strength of its parent
company CI Financial Corp., an independent, diversified wealth
management firm listed on the Toronto Stock Exchange (symbol:
CIX) with over $98 billion in fee-earning assets.
1
An award-winning record
CI has received extensive and industry recognition over the years, a testament to the consistent quality of its portfolio managers and its fund lineup.
Canadian Investment Awards – 43 awards in the past 13 years
CI Investments
n Analysts’ Choice Investment Fund Company of the Year – 2006, 2007, 2009
n Advisors’ Choice Investment Fund Company of the Year – 2005
Portfolio Managers
n Gerry Coleman, Fund Manager of the Year – 2001, 2008
n Eric Bushell, Morningstar Equity Fund Manager of the Year – 2009
n Eric Bushell, Morningstar Fund Manager of the Decade – 2010
Individual Funds – 32 category winners, including:
n CI American Value Fund – 2005, 2006, 2007, 2008, 2009
n CI Canadian Investment Fund – 2004
n Harbour Fund – 2002, 2008
n Harbour Growth & Income Fund –2006, 2008
n Signature Canadian Balanced – 2007, 2009
n Signature Canadian Resource Fund –2008, 2009
n Signature Dividend Fund – 2001, 2002, 2009
n Signature High Income – 2004, 2010
Lipper Awards
Since 2007, CI funds have received 24 Lipper Fund Awards, which
honours funds that have excelled in delivering consistently
strong risk-adjusted performance, relative to peers.
Morningstar Ratings
CI consistently leads the industry for the most funds with the
top four and five-star ratings from Morningstar Canada.
2
Investment solutions
FUNDS
Mutual Funds
Segregated Funds
Managed Solutions
CI offers a broad selection of over 100
mutual funds, with mandates that cover the
full spectrum of asset classes, geographic
regions, economic sectors and investment
styles. More than 55 of our funds are
available in the tax-efficient CI Corporate
Class platform. Our T-Class funds provide
monthly cash flow with significant tax
advantages.
Segregated funds combine the advantages
of investment funds with the protective
features of an insurance contract, including
principal guarantees and a guaranteed
income for life. CI partners with Sun Life
Financial to offer the SunWise Essential
Series. SunWise Essential Series contracts
are issued by Sun Life Assurance Company of
Canada and are managed and administered
by CI.
CI’s managed solutions are founded on the
strength of our investment management
expertise. Portfolio Series and Portfolio
Select Series offer fully diversified portfolios
that can be easily tailored to fit each client’s
individual objectives. CI Private Managed
Assets is a flexible program providing high
net worth investors with superior service
and access to our portfolio managers in a
tax-efficient and cost-effective manner.
3
Portfolio management expertise
Signature Global Advisors is CI Investments’ largest in-house portfolio management group. The team of
30 investment professionals, led by Chief Investment Officer Eric Bushell, manages over $27 billion in
assets across all asset classes, including income and Canadian and global equities. Signature’s advantage
is its approach in which portfolio managers and analysts specializing in each asset class and sector
combine their research to develop a comprehensive picture of a company and its securities.
Since 1997, Gerry Coleman (L) and Stephen Jenkins (R) have guided the Harbour Funds to strong longterm performance compared to their peer funds. Harbour Advisors, a division of CI Investments, aims to
achieve above-average long-term growth while preserving the funds’ capital base. The managers focus
on identifying high-quality businesses and buying them at a reasonable price. Mr. Coleman’s reputation as
one of Canada’s premier fund managers was acknowledged by his selection as Fund Manager of the Year
in 2001 and 2008. The team manages over $16 billion.
Boston-based Cambridge Advisors manages over $2 billion in assets and is led by Chief Investment Officer
Alan Radlo (L) and portfolio managers Robert Swanson (C) and Brandon Snow (R). Combined, they
have more than 60 years of investment experience and have managed a number of multi-billion-dollar
Canadian and global equity and income portfolios. Cambridge Advisors is the business name of CI Global
Holdings Inc., a subsidiary of CI Investments Inc.
Tetrem is an employee-owned investment management firm founded in 2004 by Daniel Bubis and
associates. The firm uses a disciplined investment approach to seek out and invest in undervalued
Canadian and U.S. companies. A central tenet of Tetrem’s approach is that the market overreacts to good
and bad news, and that stocks eventually revert to their fair values. Tetrem has offices in Winnipeg and
Boston and manages over $5 billion.
Picton Mahoney Asset Management, led by David Picton (L) and Michael Mahoney (R), manages the
portfolios of CI’s Synergy Funds. Both have built their investment careers using quantitative analysis as the
foundation for their success. The Toronto-based firm manages over $5 billion.
4
CI’s strength comes from our outstanding lineup of portfolio managers and the variety of expertise and experience they provide – all under one
roof. Rather than offering a single investment style, we have engaged leading money managers in all disciplines: value, blend and growth.
Our portfolio manager lineup consists of three in-house teams – Cambridge Advisors, Harbour Advisors and Signature Global Advisors – and
several external sub-advisors. Our managers have been selected for their strategic focus, consistent discipline and long-term track record of
investing here in Canada and around the world.
CI Investment Consulting is an experienced team of investment experts who monitor the portfolio
managers and the funds’ portfolios to ensure they are adhering to their mandates and performing
within expectations. This team, led by Alfred Lam, Vice-president and Portfolio Manager, is also
responsible for the asset allocation and monitoring of CI’s managed solutions – Portfolio Series and
Portfolio Select Series.
Epoch Investment Partners Inc. was established in 2004 by a group of experienced investment professionals
led by Wall Street veteran William Priest. The New York-based firm is founded on their belief that the
drivers of investment returns are changing, with the use of free cash flow to create value for shareholders
becoming increasingly important. Epoch’s value-based, bottom-up approach incorporates this emphasis.
Epoch has a team of more than 14 investment professionals and manages over US$15 billion.
Altrinsic Global Advisors follows a fundamental value approach in which the team seeks out highquality undervalued companies worldwide. Founded by John Hock and associates, Altrinsic is based in
Greenwich, Connecticut, and manages over US$11 billion for CI and other clients.
QV Investors Inc. is a Calgary-based portfolio management firm founded in 1996 and led by Chief
Investment Officer Leigh Pullen (L) and President Joe Jugovic (R). It manages over $3.7 billion in assets
for institutions, pension funds, foundations and high net worth individuals. The firm follows a philosophy
of selecting investments offering quality and value.
Trident Investment Management, a New York-based investment firm that specializes in alternative
investments, was founded in 1998 by Nandu Narayanan. Trident employs top-down macroeconomic
Trident
analysis to identify attractive investment trends and themes, followed by bottom-up security selection.
Investment Management
8
To access the mini-sites for our portfolio managers, visit www.ci.com and click on the firm logo.
5
Income opportunities
With interest rates paid on traditional investment vehicles at generational lows and an aging population increasingly searching
for better returns on their savings, the demand for income-producing investments has grown dramatically in recent years.
CI Investments offers a comprehensive selection of income funds to meet a diverse range of needs, from traditional bond funds
to diversified income funds that invest in higher-yielding asset classes, such as high-yield corporate bonds, infrastructure, and
real estate securities.
Highlights of CI’s income lineup:
Signature Diversified Yield Fund
n
n
Managed solutions
invests in higher-yielding asset classes (high-yield
bonds, infrastructure and real estate)
tax-efficient structure
Portfolio Series Income Fund
n
n
widely diversified income sources
multi-manager, multi-style portfolio management
Signature High Income Fund
n
n
Select Income Advantage Managed Corporate Class
invests in higher-yielding asset classes with a
Canadian focus
two-time Canadian Investment Award winner; four-time
Lipper Fund Award winner
n
n
Signature Income & Growth Fund
n
n
n
All of these funds, with the exception of Select Income Advantage
Managed Corporate Class, pay a monthly distribution. Selected
funds are also available in Corporate Class, T-Class and SunWise
Essential Series.
a balanced fund with an income focus
invests in equities, investment-grade bonds and higheryielding asset classes
Canadian Investment Award winner
CI Income Advantage Fund
n
n
invests in investment-grade government and corporate
bonds and higher-yielding asset classes
part of the tax-efficient Corporate Class structure
invests in investment-grade government and corporate
bonds and higher-yielding asset classes
tax-efficient structure
6
Balanced opportunities
Balanced funds can provide a solution for investors who are concerned about the volatility of equity markets and want to
combine growth potential with the safety of income solutions.
The strength of CI’s balanced funds is our leading portfolio managers, who take full advantage of a high degree of flexibility to
choose the best investments and asset allocation according to economic and market conditions.
Highlights of CI’s balanced fund lineup:
Harbour Growth & Income Fund
n
n
n
Signature Income & Growth Fund
managed by Gerry Coleman of Harbour Advisors, twice
named Fund Manager of the Year
concentrated equity portfolio focused on large-cap
multinational companies
two-time Canadian Investment Award Winner
n
n
n
Cambridge Canadian Asset Allocation Corporate Class
n
Signature Canadian Balanced Fund
n
n
n
managed by Signature Global Advisors
a focus on income with a monthly distribution
Canadian Investment Award winner
managed by Eric Bushell of Signature Global Advisors,
named Morningstar Fund Manager of the Decade in 2010
a focus on quality investments with significant foreign
content
two-time Canadian Investment Award winner
n
managed by Alan Radlo, Chief Investment Officer of
Cambridge Advisors
significant equity content
Portfolio Series and Portfolio Select Series also offer balanced
strategies within a multi-manager, multi-style framework.
7
Growth opportunities
Even the most conservative investors typically need a growth component in their portfolio to offset rising inflation. CI Investments
offers an extensive list of equity and balanced funds that will meet any investor’s needs. From global equity sector funds, to
managed solutions, CI has a wide choice of quality growth solutions.
Highlights of CI’s growth lineup:
Cambridge Global Equity Corporate Class
n
n
n
Managed solutions
managed by Alan Radlo of Cambridge Advisors
invests in equities located anywhere in the world
part of the tax-efficient Corporate Class structure
Portfolio Series Maximum Growth Fund
n
n
invests in Canadian, U.S. and international equities
multi-manager, multi-style portfolio management
CI Canadian Investment Fund
n
n
n
managed by Danny Bubis of Tetrem Capital
Management
focuses on Canadian large-cap companies; holds
moderate foreign content
track record of consistent top-quartile performance over
the long term
Select 100e Managed Portfolio
n
n
Most CI equity funds are available in CI Corporate Class. Selected
funds are available in T-Class and SunWise Essential Series.
Harbour Fund
n
n
n
managed by Gerry Coleman of Harbour Advisors
invests in large and mid-cap Canadian companies; holds
significant foreign content
two-time Canadian Investment Award winner
Signature Select Canadian Fund
n
n
n
multi-manager, multi-style equity portfolio
part of the tax-efficient Corporate Class structure
managed by Eric Bushell of Signature Advisors
focuses on Canadian large caps; holds significant
foreign content
Canadian Investment Award winner
8
Managed solutions
Sophisticated, yet simple. CI’s managed solutions are an easy and effective way to invest. At the same time, these programs are founded on
a high level of expertise in portfolio construction and the investment management experience of CI’s portfolio managers.
Portfolio Series and Portfolio Select Series are comprehensive investment programs based on the principles of strategic asset allocation –
a long-term investment strategy that determines the best asset mix for an investor with the goal of earning the greatest possible rate of
return for the investor’s risk tolerance. Whether the goal is to save for retirement, seek regular income, or some other purpose, CI’s managed
solutions can meet any investor’s needs.
These programs are monitored and maintained by CI Investment Consulting, which combines its analysis and portfolio construction expertise
with comprehensive research from State Street Global Advisors, a world leader in asset allocation.
n
n
n
seven diversified portfolios, from income to maximum
growth
minimum investment of $500
appropriate for most investors, especially registered
accounts
8
n
n
n
n
n
The CI Private Managed Assets (PMA) program provides access
to CI’s top portfolio management teams in a competitive fee
structure for the high net worth investor. CI’s PMA offers the
most diverse lineup of tax-effective investment options in the
Canadian marketplace, providing investors with the potential for
superior after-tax returns.
www.ci.com/portfolioseries
Portfolio Series and PMA are available in SunWise Essential
Series. Selected Portfolio Series funds, Portfolio Select Series and
PMA are available in T-Class, CI’s tax-efficient cash flow solution.
nine model portfolios to meet a range of investor profiles
optional customization by adding other funds
based on CI`s tax-efficient Corporate Class platform
minimum investment of $25,000
most suitable for larger investments and open accounts
8
www.ci.com/portfolioselect
9
Tax-efficient investments
T-Class provides an income solution that creates a predictable,
tax-efficient cash flow from CI Corporate Class funds.
CI Corporate Class is tax-efficient investing at its best. CI Corporate
Class provides many of the benefits that can be found with taxfree savings accounts and other registered accounts, including
the ability to defer tax on investment income and capital gains.
This allows for increased compound growth over the long term
and the ability to make investment decisions without worrying
about the tax consequences.
By tapping into the unrealized gains in their Corporate Class
funds, investors can create a monthly income stream without
sacrificing the potential for growth. With T-Class, they are able
to have steady cash flow from non-conventional sources, such as
equities and balanced portfolios.
With the Corporate Class structure, you can:
n
n
n
T-Class features include:
switch between a selection of more than 55 funds within
the corporation, including managed portfolios, without
tax consequences
receive tax-efficient capital gains or Canadian dividends
from traditional income funds
defer paying tax on distributions, given the low dividend
payout of the fund.
n
n
n
n
CI Corporate Class is an ideal choice for all non-registered
investments.
8
CI was the first company to establish a multi-class mutual fund
corporation in 1987 and has the most experience in managing the
corporate class structure.
8
monthly distributions of 100% return of capital (ROC),
which is tax efficient because ROC is not taxable
the ability to customize a level of cash flow
a choice of more than 30 funds, allowing for a diverse
portfolio
the ability to switch or rebalance between T-Class funds
and other funds within Corporate Class without triggering
taxable gains or losses.
www.ci.com/corporateclass
10
www.ci.com/t-class
Guaranteed solutions
SunWise Essential Series Investment Class is for clients under
the age of 50 who are continuing to build their wealth and want
to see their investments grow.
As retirement approaches, many people become concerned
about the possibility of outliving their savings. SunWise Essential
Series segregated funds provide a comprehensive investment
strategy that can guide investors securely through their saving
and wealth accumulation years into their retirement years.
SunWise Essential Series Estate Class is for investors at any age
who want to ensure maximum estate value for their beneficiaries,
with minimal estate settlement costs and delays.
Key features:
n
n
n
n
Maturity and death benefit guarantees
Resets to lock in investment gains
Powerful estate planning benefits
Potential creditor protection
SunWise Essential Series contracts are issued by Sun Life
Assurance Company of Canada and are managed and administered
by CI.
8
SunWise Essential Series is available in three classes – Income
Class, Investment Class, and Estate Class – each with its own
eligible investments and different guarantee packages.
www.sunwiseessentialseries.com
SunWise Essential Series Income Class is for clients age 50-plus
who are at retirement or in their pre-retirement years. It provides
a guaranteed, predictable, annual income beginning at age 65,
of at least 5% of their deposits for life, regardless of market
performance.
Advisor Guide
Client Guide
managed by CI Investments Inc.
issued by Sun Life Assurance Company of Canada
11
managed by CI Investments Inc.
issued by Sun Life Assurance Company of Canada
Group plans
Education savings
CI Investments group plans can replace or complement traditional
employee retirement plans. From an employer’s perspective,
providing an enhanced employee benefits program can be a
deciding factor in attracting and keeping talented employees,
maintaining staff morale, increasing productivity and reducing
costly turnover. For employees, a CI Group Plan can enhance their
retirement savings.
The spiralling cost of post-secondary school education has many
parents concerned about whether they will be able to afford
to send their children to college or university. CI Registered
Education Savings Plans (RESPs) are popular vehicles for parents,
grandparents and others who want to set aside money for a
child’s education.
Contributions to an RESP may qualify for federal and provincial
government grants. The money invested in an RESP grows taxfree. When funds are withdrawn for school expenses, only the
growth and grant portion of the plan is taxable in the hands of
the student or students, who will, in all likelihood, be in a low
tax bracket. CI does not charge trustee or administrative fees for
RESP accounts.
Group plans offered by CI include:
n
n
n
n
Group RRSPs
Group Deferred Profit-Sharing Plans
Group RESPs
Group Non-Registered Investment Accounts
Grant programs:
n
n
n
n
Canada Education Savings Grant (CESG)
Canada Learning Bond (CLB)
Alberta Centennial Education Savings (ACES)
Quebec Education Savings Incentive (QESI)
8
12
RESP Centre: www.ci.com/resp
CI Investments fund classes
Several classes of CI funds have been established to suit a variety of client needs. Here is a summary:
Class
Investor
Minimum Investment (PAC)
Class A
Available to all investors, with initial, deferred and low-load
sales charge options.
$500 ($50)
Class F
Clients who have negotiated a fee-for-service or wrap program.
Class I
$25,000 ($50) for Portfolio Select Series
$500 ($50)
$25,000 ($50) for Portfolio Select Series
Class M
Available to investors in CI Private Managed Assets or
institutional investors who have negotiated a Class I agreement.
$500,000 ($5,000) for Private Managed Assets; minimum
$100,000 per fund.
Class W
For clients invested in Insight units of Portfolio Select Series.
$25,000 ($50)
T-Class
Available in selected funds in Class A, F, I and W.
Varies by Class and program.
Class H, U, X, Y, Z
These classes are closed to new investors.
N/A
For more information, please see the simplified prospectus for the CI funds,
available from CI Client Services or at www.ci.com
under “Services” and “Fund-related documents.”
13
Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the
prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies, is the sole issuer of the individual variable
annuity contract providing for investment in SunWise Essential Series segregated funds. A description of the key features of the applicable
individual variable annuity contract is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at
the risk of the contract holder and may increase or decrease in value.
CI Investments, the CI Investments design, Signature Global Advisors, Harbour Funds,Harbour Advisors and Cambridge are registered
trademarks of CI Investments Inc. ™Portfolio Select Series, Portfolio Series, Signature Funds and Synergy Funds are trademarks of
CI Investments Inc.
®
SunWise is a registered trademark of Sun Life Assurance Company of Canada.
®
MORNINGSTAR, Morningstar.ca, and the Morningstar logo are registered trademarks of Morningstar.
The Lipper Fund Awards program honours funds that have excelled in delivering consistently strong risk-adjusted performance, relative to
peers. The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence, a global family of awards that celebrate exceptional
performance throughout the professional investment community. The Thomson Reuters Awards for Excellence recognize the world’s top
funds, fund management firms, sell-side firms, research analysts, and investor relations teams.
2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I www.ci.com
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1-800-268-9374
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