January - Early Edition - CI Investments

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Spotlight James DutkiewiczAbout 43% of the fund is corporate credit, versus roughly26% for the benchmark. All of the credits in the mandateare investment grade. The fund is rounded out with 38% infederal government securities, 15% in provincial governmentbonds and the balance in cash.“In terms of the corporate credits, we own a fair amount ofU.S. financials,” Mr. Dutkiewicz points out. “We hold theU.S banks, J.P. Morgan, Wells Fargo, and Bank of AmericaMerrill Lynch. Also, recently, we’ve been buying a lot of thegrocery store chains, including Loblaw. We didn’t own any ofit two years ago.”Signature Corporate Bond FundSignature Corporate Bond Fund is a blend of asset classes.It can invest in investment-grade bonds across the maturityspectrum, based on Mr. Dutkiewicz’s direction, or it caninvest in high-yield corporate bonds, under the direction ofGeof Marshall, who heads Signature’s high-yield team. Thefund’s third lead manager is John Shaw, who concentrateson international credit analysis, corporate bonds andpreferred shares.In terms of positioning, the fund began 2010 with a60% allocation to investment grade and 40% in high yield.“It’s currently flipped around. It’s now 60% high yield andjust under 40% in investment grade,” says Mr. Dutkiewicz.“That reflects our growing confidence about the recovery.When we lend money to companies in the high-yield spacewe get a greater yield than investment grade. Our averagerating in the high-yield portion of the portfolio is singleB high to double B low, slightly higher quality than the highyieldbenchmark. Our modus operandi in high yield is tobuy good companies. We don’t buy distressed debt. We don’ttry to catch falling knives or falling pianos. We want to buycompanies that we think are going to be successful.”And by shifting exposure away from investment grade,Mr. Dutkiewicz says, Signature is reducing duration orinterest rate risk. The average maturity of the corporate bondfund is less than five years.8 WINTER 2011 EARLY EDITION PERSPECTIVE AS AT DECEMBER 31, 2010
Coming soon … new website forAs part of our commitment to provide useful information and tools for you andyour clients, we are pleased to bring you our new Corporate Class website.About CI Corporate Class …CI Corporate Class provides many of the benefits that can be found withTFSAs or registered accounts, including the ability to defer tax oninvestment income and capital gains. This allows for increasedcompound growth over the long term and the ability to makeinvestment decisions such as rebalancing, without worryingabout the tax consequences. Corporate Class alsoallows clients to draw tax-efficient cash flow fromtheir investments.CI Corporate Class is an ideal choice for allnon-registered investments.www.ci.com/corporateclassWINTER 2011 EARLY EDITION PERSPECTIVE AS AT DECEMBER 31, 2010 9
Page 1 and 2: www.ci.com/perspectiveWinter 2010Er
Page 3 and 4: Winter 2011Dear Advisor,It is tradi
Page 5: CI Investments congratulates Eric B
Page 11 and 12: Signature Market RoundupInterest ra
Page 13 and 14: Signature Market RoundupHealth care
Page 15 and 16: Signature Market RoundupHigh-yield
Page 17 and 18: Income Opportunitiesas at November
Page 19 and 20: Portfolio SnapshotPerformanceYTD 1
Page 21 and 22: The resultBetween June 1997 and Aug
Page 23 and 24: Signature Gold Corporate ClassInves
Page 25 and 26: Investment ClassSame as Income Clas
Page 27 and 28: All commentaries are published by C

January - Early Edition - CI Investments

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