CI Launches Guaranteed Retirement Cash Flow Series start

CI Guaranteed Retirement Cash Flow G5/20 Series

First Published Date: July 16, 2013 ADawnJournal.com

As stock markets continue their rollercoaster ride and the once-considered safe haven gold loses it luster, baby boomers and regular investors continue to search for products that offer predictable, guaranteed income with peace of mind. To capture this segment of the market, CI has come up with a product called the G5/20 series. Let’s look at some features this product offers.

What Is CI G5/20 Series

You can think of it some sort of hybrid of an annuity and a mutual fund.  The G5/20 series is an actively-managed mutual fund consisting of global and Canadian equities alone with some fixed income securities to provide 20 years of guaranteed income. For example, let’s say you have 2 investments: A and B. Investment A is $100,000 invested in CI G5/20 series and Investment B is another $100,000 invested elsewhere such as stocks, ETFs, mutual funds, etc. In case of a global market meltdown, theoretically, Investment B could go down to $60,000 or even less. However, Investment A, CI G5/20 Series, are guaranteed and protected against any such loss.

Some CI G5/20 Series Features

– Each Series has a 25 years lifespan.

– Each Quarter Will Offer a new series

– The first five years is called accumulation phase. In this phase, the investor will invest and watch the growth. There will be no payments. The principal amount investor invested can not go down even if the market tanks due to its guarantee.

– The next twenty years is called distribution phase. Investors will get back 5% each year for twenty years based on their initial investment or investment + accumulated growth from five years, whichever is greater.

– The portfolio and active asset allocation are managed by CI.

– The income flow of G5/20 is guaranteed by the Bank of Montreal.

– The risk management segment (to reduce volatility and enhance growth) to the portfolio is managed by Chicago-based Nexus Risk Management.

Is the CI G5/20 Series For You?

This is suitable for those who are looking for an actively-managed, risk-adjusted product managed by those who have the expertise and guaranteed by a well-known bank to provide income for 20 years in exchange for 2.77% MER (before taxes).

Link: CI Retirement Cash Flow Series

Some Other Alternatives Providing Guaranteed Income

BMO LifeTime Cash Flow Product

Manulife Income Plus