CI Investments has launched two new mutual funds: Cambridge US Dividend Registered Fund and CI Investment Grade Bond Fund.
Cambridge US Dividend Registered Fund provides exposure to US dividend-paying companies with the stock selection expertise of the Cambridge Global Asset Management team. In addition, the fund offers the potential for enhanced returns through an exemption from the 15% US withholding tax on dividends paid by American companies. To achieve the exemption, the fund is available only to certain registered accounts, including registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs). The fund's portfolio will be similar to that of Cambridge US Dividend Fund, which is available to all account types.
The investment objective of Cambridge US Dividend Registered Fund is to provide long-term capital appreciation and dividend income. It invests primarily, directly or indirectly, in equity securities of US companies that pay, or may be expected to pay, dividends.
"The launch of Cambridge US Dividend Registered Fund is especially timely, as the Cambridge team believes that American dividend-paying stocks constitute a compelling investment opportunity today," says Derek J Green, CI President. "The Cambridge approach to dividend investing focuses on high-quality growing companies with sustainable payouts that will rise over time."
The award-winning Cambridge team manages over USD13 billion and has offices in Boston and Toronto. The Lead Portfolio Manager of Cambridge US Dividend Registered Fund and Cambridge US Dividend Fund is Stephen Groff and Chief Market Strategist Robert Swanson is Co-Manager.
In a related development, Groff was named Portfolio Manager of Cambridge American Equity Fund and Cambridge American Equity Corporate Class, effective immediately. Alan Radlo, Co-Chief Investment Officer of Cambridge, continues as Co-Manager of the funds. Groff has seven years of investment experience and has been Co-Lead Manager of Cambridge Pure Canadian Equity Fund and Co-Manager of Cambridge Canadian Growth Companies Fund since 2012.
The investment objective of CI Investment Grade Bond Fund is to seek to generate income and capital appreciation by investing primarily in a diversified portfolio of corporate bonds rated BBB- and above by a recognized bond rating agency and issued anywhere in the world. The portfolio will invest primarily in Canadian, US and European corporate bonds. The fund will pay a monthly distribution. The portfolio advisor is Marret Asset Management and the Lead Portfolio Manager is Paul Sandhu, who has 30 years of domestic and international fixed-income experience.
"This fund expands CI's diverse lineup of income funds by being our first to invest primarily in investment-grade corporate bonds," says Green. "Paul Sandhu and the Marret team bring considerable experience and expertise in credit investing to this mandate."
