CI is charging an administration fee for GAM fund series as well as ETF units, which will range from 0.15% to 0.17%.
“This combination of performance and low cost makes CI Floating Rate Income Fund an attractive option for income investors in today’s environment,” said Marc-André Lewis, Head of Investment Management, CI GAM.
CI Floating Rate Income Fund invests in high-yield floating rate debt assets such as bonds and loans as well as short-term high-yield and investment grade bonds and floating rate preferred stocks to generate a consistent income stream.
Since interest rates on loans and floating rate bonds typically reset every three months, these products provide a hedge against rising interest rates. On the other hand, fixed-income securities, such as government bonds, tend to decline in value with an increase in interest rates.
“Floating rate investing can diversify fixed income portfolios and help mitigate the effects of rising interest rates,” Lewis said. “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 allocation of asset classes and exercise thorough due diligence in selecting individual holdings, Which is important in managing high-yield securities.”