CI Investments has launched two mutual funds: the Cambridge U.S. Dividend Registered Fund and CI Investment Grade Bond Fund.
The dividend fund offers the potential for enhanced returns through an exemption from the 15% U.S. withholding tax on dividends paid by American companies, says CI Investments. To achieve that exemption, the fund is available only to certain registered accounts, including RRSPs and RRIFs.
Also, the fund’s portfolio will be similar to that of the Cambridge U.S. Dividend Fund, which is available to all account types. The lead portfolio manager is principal and portfolio manager Stephen Groff, and chief market strategist Robert Swanson is co-manager.
The new bond fund will seek to generate income and capital appreciation by investing primarily in corporate bonds rated BBB- and above by a recognized bond rating agency. The portfolio will invest primarily in Canadian, U.S. and European corporate bonds.
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.