Fund is a category leader for cost and performance
CI Global Asset Management (“CI GAM”) announced a significant reduction in the management fee of the top-performing CI Floating Rate Income Fund (the “Fund”), along with plans to launch an ETF series of the Fund – both timely moves designed to help Canadians manage the investment risks of inflation and rising interest rates.
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“This combination of performance and lower cost makes CI Floating Rate Income Fund a compelling choice for income investors in today’s environment”
Effective immediately, the maximum management fees of Series F and A of the Fund have been reduced by 40 basis points to flat fees of 0.35% and 0.85%, respectively. CI GAM believes this change will result in CI Floating Rate Income Fund having the lowest Series F management fee in the category.
The Fund has posted exceptional performance, being the top-performing fund in its category from its inception on June 1, 2017 to January 31, 2022. Additionally, it holds a five-star rating from Morningstar Canada and was the winner of a 2021 FundGrade A+® Award.1
CI GAM has filed a prospectus amendment to offer ETF C$ Series units of the Fund, which are expected to begin trading on the Toronto Stock Exchange (“TSX”) on or about April 19, 2022 under the ticker symbol CFRT, subject to TSX approval. The ETF C$ Series units will have a management fee of 0.35%.
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“This combination of performance and lower cost makes CI Floating Rate Income Fund a compelling choice for income investors in today’s environment,” said Marc-André Lewis, Head of Investment Management for CI GAM.
“Floating rate investments can diversify fixed-income portfolios and help to mitigate the impact of rising interest rates. Investors in the Fund also benefit from the deep expertise of the entire CI Global Asset Management fixed-income team, as our portfolio managers actively manage the allocations to asset classes and exercise deep due diligence in selecting individual holdings, which is crucial in managing high-yield securities.”
CI Floating Rate Income Fund is designed to provide a regular income stream by investing in higher-yielding floating rate debt securities such as bonds and loans, as well as short-term high-yield and investment grade bonds and floating rate preferred shares. Given that interest rates paid by loans and floating rate bonds typically reset quarterly, such securities offer a hedge against rising interest rates. In comparison, the prices of fixed-income securities such as government bonds tend to decline as interest rates move up.
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