TORONTO--(BUSINESS WIRE)--

(“CI GAM”) announces the launch of new covered call mandates – a multi-sector mutual fund and a U.S. fixed-income strategy available in both mutual fund and ETF structures. The three funds are the latest additions to CI GAM’s extensive covered call lineup.

The new funds are CI Multi-Sector Covered Call Fund, CI U.S. Aggregate Bond Covered Call Fund and CI U.S. Aggregate Bond Covered Call ETF. The ETF has now closed its initial offering of Hedged Common Units, which begin trading today on the Toronto Stock Exchange under the ticker CCBD.

“We’re pleased to add these compelling new options to our covered call lineup, which now consists of eight ETFs and six mutual funds,” said Jennifer Sinopoli, Executive Vice-President and Head of Distribution for CI GAM.

“Covered call strategies are an attractive option in today’s climate because they offer a tax-efficient income stream and a degree of downside protection while maintaining targeted exposure to the underlying asset class. Investors also benefit from CI GAM’s systematic approach and the deep experience of our investment team in managing covered call strategies.”

CI GAM’s approach is to sell call options on approximately 25% of the portfolio on a monthly basis, which generates income while ensuring that at least 75% of the portfolio remains invested.

CI Multi-Sector Covered Call Fund

CI Multi-Sector Covered Call Fund marries the covered call strategy to a broadly diversified portfolio of North American equities. It invests in CI GAM’s lineup of seven sector equity-based covered call ETFs, which provide exposure to the financial services, technology, health care, utilities, energy and materials sectors. The fund will maintain a sector allocation that is largely representative of the North American equity market, rebalancing quarterly.

The covered call option strategy used by the underlying ETFs seeks to generate tax-effective income from dividends, distributions and call option premiums, provide the potential for capital appreciation, and reduce the volatility associated with owning the underlying equity securities.

CI U.S. Aggregate Bond Covered Call ETF (“CCBD”) and CI U.S. Aggregate Bond Covered Call Fund

CCBD invests in U.S. government bond and high-quality U.S. corporate bond ETFs in a mix designed to represent the aggregate U.S. bond market. CCBD will rebalance its holdings quarterly. The covered call option strategy used by CCBD seeks to earn an attractive yield from interest income, distributions and call option premiums, to lower the overall volatility of returns associated with owning this portfolio of bonds, and to generate capital appreciation.

CI U.S. Aggregate Bond Covered Call Fund invests all or substantially all of its assets in CCBD, which has the same portfolio advisor and investment objectives as CI U.S. Aggregate Bond Covered Call Fund.

More information about CI GAM’s covered call ETF lineup is available .

A covered call option strategy is implemented by selling a call option contract while owning an equivalent number of the underlying securities. The option premiums provide additional income, which is considered tax efficient because the premiums are taxed as capital gains rather than interest income. However, when prices of the underlying securities are rising, the upside gains are limited because the buyers of the call options will exercise their right to purchase the underlying securities.

About CI Global Asset Management

CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the web at . CI Global Asset Management is a subsidiary of (TSX: CIX), an integrated global asset and wealth management company with approximately $489.1 billion in assets as of June 30, 2024.

Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.

This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase funds managed by CI Global Asset Management and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor.

Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what CI Global Asset Management believes to be reasonable assumptions, CI Global Asset Management cannot assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.

The CI Exchange-Traded Funds (ETFs) are managed by CI Global Asset Management, a wholly owned subsidiary of CI Financial Corp. (TSX: CIX).

CI Global Asset Management is a registered business name of CI Investments Inc.

©CI Investments Inc. 2024. All rights reserved.

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