It offers structured note exposure with active management
Investors seeking to enhance their income stream may find investing in structured notes challenging due to their complexity, unique features, and the difficulty in evaluating their underlying assets.
To address these challenges, CI Global Asset Management (CI GAM) has launched the CI Structured Premium Yield Fund, designed to provide investors with a managed approach to accessing the income potential of structured notes.
The fund aims to generate regular income by replicating a carefully curated portfolio of structured notes, which typically link their returns to underlying assets such as stock market indexes, commodities, or baskets of stocks. Some notes may offer features that aim to mitigate potential losses in declining markets.
The fund's investment team actively manages the portfolio, adjusting its exposure to different indexes, sectors, and markets while carefully managing risk by adjusting maturity dates and the level of protection offered by individual notes.
The fund carries a low-to-medium risk rating and distributes income on a monthly basis.
Jennifer Sinopoli, executive vice president and head of distribution at CI GAM, said that the fund caters to investors seeking to enhance their income stream.
“As an actively managed fund, it stands out within the enhanced yield fund segment due to the expertise of our investment management team, who bring to bear extensive experience in managing income and equity-income portfolios,” said Sinopoli.
The fund's management team, led by Geofrey Marshall, Kevin McSweeney, and Lee Goldman, boasts a combined investment experience of over 80 years. They are supported by CI GAM's broader income and equity investment teams.
CI GAM currently manages more than $7 billion in high-yield and diversified income funds.
One of the key advantages of the fund, according to Sinopoli, is that it provides access to the structured note market within a traditional mutual fund framework. This offers several benefits to investors, including low minimum investment requirements, professional management, and diversification across a range of notes.
"[This] eliminates the need for advisors to individually evaluate each structured note," Sinopoli added.
The CI Structured Premium Yield Fund is available in Series I, F, P, and A. Management fees range from 0.55% for Series F and P to 1.55% for Series A.
