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CI Investments has announced the launch of a new fund focused on generating a high-yield income for clients. The Signature Diversified Yield Fund’s investment mandate allows for exposure to fixed income and high-yielding equity securities from around the world.

“With interest rates at historic lows, income investors need to generate higher returns without taking on excessive risk,” says Peter W. Anderson, CI’s CEO. “This fund is designed to meet that need, taking full advantage of a diversified approach and the expertise of the Signature portfolio management team.”

As the fund’s name suggests, it will be managed by Signature Global Advisors, CI’s largest in-house portfolio management team. The fund will pay a monthly distribution, initially targeting an annual yield of 6%, based on its launch price.

Eric Bushell, chief investment officer of Signature Global Advisors and lead portfolio manager of the fund, expects the fund to invest largely in high-yield corporate bonds, real estate investment trusts and other securities in the real estate, infrastructure and telecommunications sectors.

“In Canada, with the income trust sector shrinking significantly, there is reduced choice for investors seeking higher yields beyond a limited selection of dividend-paying equities,” he says. “Canadians who wish to benefit from higher-yielding asset classes must invest globally and, in doing so, they should ensure that they entrust their savings to portfolio management teams with sufficient resources to manage these asset classes. Signature Diversified Yield Fund is managed by a team of experts, who are specialists in their sectors on a global basis.”

The fund will use an active hedging stratefy to mitigate foreign currency risks.

Using forward contracts, the fund’s distributions will typically be in the form of either capital gains or returns of capital. The fund is also available as a corporate class offering, which will not pay a monthly distribution.

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Mackenzie to merge tech funds

Mackenzie Financial has proposed to merge Mackenzie Universal World Science and Technology Class into Mackenzie Universal Technology Class.

The merger has already been approved by the company’s independent review committee, and is conditional upon approval by investors in Mackenzie Universal Technology Class.

A special meeting to consider and vote on the proposal will be held mid-March 2010 at the Mackenzie offices in Toronto. If approved, the merger is expected to be effective following the special meeting.

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Portland closing one trust

Portland Investment Counsel, the firm owned by Michael Lee Chin, has announced plans to terminate its International Financial Income and Growth Trust, effective Dec.15, 2009.

Unitholders of the trust will receive a final payment based on net assets after costs, and may receive additional payments of any net income and net realized capital gains not previously distributed.

The company will continue to offer five other closed end funds for the next three years, assuming they remain economically viable. These funds include:

&8226; Global Banks Premium Income Trust &8226; Copernican World Banks Income and Growth Trust &8226; Copernican International Premium Dividend Fund &8226; Copernican British Banks Fund &8226; European Premium Dividend Fund

Manulife Mutual Funds has agreed to provide certain administrative services for these five funds. Manulife bought Lee-Chin’s AIC mutual funds in August 2009.

(11/13/09)