CI Investment Grade Bond Fund

CI Investment Grade Bond Fund

The Uncorrelated, ‘Modern Core’ Bond Fund

MANAGERS

Paul Sandhu

Expert Oversight – More Important than Ever

Low interest rates across much of the developed world have left fixed-income investors with the prospect of insufficient yields and low total returns. It is now more important than ever to ensure that clients’ fixed-income portfolios are being overseen by a proven management team with the expertise and levers at their disposal to navigate this challenging yield environment. And that’s exactly what you get from Marret Asset Management, one of Canada’s premier credit research teams.

A Strong Performer

CI Investment Grade Bond Fund’s strategies have consistently generated alpha over the past three calendar years.

Calendar Year Returns
2017 2016 2015
CI Investment Grade Bond Fund – Class A 3.48% 4.68% 4.25%
CI Investment Grade Bond Fund – Class F 4.20% 5.14% 4.91%
FTSE TMX Canada Universe Bond Index 2.52% 1.66% 3.52%
Trailing Returns
1 Year 3 Year Since Inception Inception Date
CI Investment Grade Bond Fund – Class A 0.11% 2.73% 3.43% 2014-12-30
CI Investment Grade Bond Fund – Class F 0.64% 3.34% 4.03% 2014-12-30
FTSE TMX Canada Universe Bond Index 0.76% 1.97% 2.54%

Buffering Equity Risk

The most important characteristic of a core bond fund is its ability to insulate a portfolio from equity risk and CI Investment Grade Bond Fund has demonstrated its ability to weather equity drawdowns very well.

Performance During Equity Corrections2

1/5/15 - 1/15/152/18/15 - 3/10/154/16/15 - 1/20/169/7/16 - 9/13/162/22/17 - 9/21/171/5/18 - 2/9/182.1%-4.7%-1.1%-3.0%-1.7%-21.5%-4.0%-4.8%TSX DrawdownCI Investment Grade Bond Fund – Class F1.2%4.1%-8.2%-0.8%1/5/15 - 1/15/154/16/15 - 1/20/162/22/17 - 9/21/17-1.7%-21.5%-4.8%-4.7%1.2%2.1%

2As defined by periods when the S&P/TSX Composite was down by at least 3%. Source: Morningstar Direct, as of June 30, 2018.

Key Reasons to Invest

  • Core bond positioning focused on generating alpha and low-to-negative correlation to risk assets
  • Flexible mandate with numerous hedging tools, including unparalleled active duration management to minimize interest-rate risk and dampen volatility
  • Global exposure for greater opportunities outside of Canada

Fund details

Fund Size$558 million

Inception DateDecember 30, 20141

Risk RatingLow

12 Mth Dist. Yield2.4%

YTM3.1%

Duration6.0 years

Average Credit Quality A

Fund Codes

ClassLoadCIG
A FE 2185
LL 1185
DSC 3185
F - 4185
Downside Capture
-5.86-0.55100.00CI Investment Grade Bond Fund has posted a negative downsidecapture versus Canadian equities. This means the fund has providedpositive performance when the market was negative.CI Investment Grade Bond Fund – Class FFTSE TMX Canada Universe Bond IndexS&P/TSX Composite Index
An Ideal Core Mandate and Perfect Complement
After years of favourable tailwinds for bonds amid declining interest rates, it’s time to assess whether you actually hold a “satellite fund in core clothing” – one that claims to provide ballast to portfolios but stretches for yield and exposes investors to potentially unwanted risks. CI Investment Grade Bond Fund provides a core foundation for portfolios and pairs well with several prominent bond funds that have been in vogue over the past few years.
CI Investment Grade Bond
Satellite Funds
Duration
management

Negative correlation
to equity
Investment Grade

Corporate Bonds

Government Bonds


Cash
Mortgage-Backed
Emerging Markets Debt
High Yield
Currency
Government Bonds

Investment Grade
Corporate Bonds

Stretch for yield


Positive correlation
to equity

The information contained herein is not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. The indicated rates of return are the historical annual compound total returns net of fees (except for figures of one year or less, which are simple total returns) including changes in security value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns.

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