Solutions for the discerning affluent investor:
CI Private Investment Management
AGENDA
• Comprehensive financial planning
• CI Private Investment Management
• Overview
• Competitive deductible fees
• Case study
• Support materials
COMPREHENSIVE FINANCIAL PLANNING
Having a comprehensive financial plan can provide a road map
to greater financial and emotional well-being.
COMPREHENSIVE FINANCIAL PLANNING
Investors with comprehensive financial plans (CP) are substantively more
likely to report feeling on track with their financial affairs compared with
those who do no planning (NP) or only limited planning (LP).
Feel on track with their financial affairs:
81% (CP)
73% (LP)
Source: Survey of Canadians conducted in 2012 as part of the Financial Planning
Standards Council’s three-year Value of Financial Planning Study.
44% (NP)
COMPREHENSIVE FINANCIAL PLAN
A comprehensive financial plan should cover all aspects of a
client’s life, including:
• Investments
• Tax planning
• Cash flow requirements
• Keeping financial
data current
• Asset protection and
estate planning
CI PRIVATE INVESTMENT MANAGEMENT
• CI Private Investment Management (PIM) provides the
cornerstone of a fully integrated financial plan.
• World-class investment options
• Tax efficiency
• Principal and estate protection
• Competitive pricing
• Consolidated, simplified account management
CI PIM OVERVIEW
• High net worth platform that fits any practice
• Enhanced accessibility
– $100,000 per mandate per account to receive preferred pricing
– At $250,000, fund minimum reduced to $25,000
• Competitive pricing
– High net worth pricing starts at $100,000, reduced for upper tiers
• Consolidate and simplify across platforms
– Link mutual fund, Corporate Class and SWESS accounts for reduced
pricing and consolidated reporting
• Simplified comprehensive proposals
– Advisor-facing tool that creates personalized proposal documents
COMPETITIVE FEES
• Offers two classes for maximum flexibility:
– O Class
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Ideal for non-registered accounts
Management fee charged to the account quarterly
Tiered fees based on aggregate total of both classes
Service fees automatically applied
– E Class
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Ideal for registered accounts
Fees completely embedded
Fee flexibility through trailer fee rebates up to 100%
Tiered fee rebates based on aggregate total of both classes
Offers the option of an ISC commission of 0-5%
FEES ARE DEDUCTIBLE AND TRANSPARENT
• O Class example:
– a MTR of 40% and $250,000 in PSS 50i50e in an open account
with a 1% trailer on O Class
– Clients will pay 1.85% before tax
– 1.85% - 0.74% (40% MTR) = Net 1.11%
• Fees summarized on quarterly statement
• Facilitates compensation disclosure to comply with National
Instrument 31-103
Case study
The story of Mark and Christine
THE SITUATION
• Mark and Christine are married and have a son, Matthew, age 10.
• They started a heavy machinery leasing company five years ago
and it has grown into a thriving business. They want to expand
their business in the next few years.
• Mark and Christine each have a registered retirement savings
plan (RRSP) and a jointly held non-registered account.
• To help expand their business they will be decreasing their salary
for the next few years and want to use their non-registered
account to help bridge their income gap.
• They also want to protect sufficient funds for Matthew in the
event of their passing.
THE SITUATION
• Consolidated Portfolio’s Value: $1,325,000
– Corporate account
$675,000
– Mark’s RRSP
$150,000
– Christine’s RRSP
$250,000
– Non-registered account
$250,000
THE STRATEGY: CI PIM
• World-class, diversified investment options to meet their various
investment objectives
– Expanding their business
– Retirement
– Estate planning
– Short-term funding
• Tax efficiency during accumulation period with ROC cash flows
during decumulation for their non-registered account
– CI Corporate Class and CI’s flexible T-Class
• Option to protect their principal and estate
– SunWise Essentials Series Estate Class
THE STRATEGY: CI PIM
• Competitive, flexible fee structure
• Consolidated, simplified account management
• Designed to enhance client accounts from
– a tax,
– asset allocation and
– cost perspective
• All backed by the strength of CI Investments’ award-winning
portfolio management expertise
THE SOLUTION
Corporate account
$675,000
• Investment planning
– Investment objective: to expand business
– Risk profile: low to moderate
– Investment preference/selection:
• Corporate Class funds
• Tax planning
– Ability to switch among funds without tax consequences
– Corporate Class may only distribute capital gains and eligible
Canadian dividends so RDTOH and CDA may be fully utilized
– Deductibility of advisory fees
THE SOLUTION
Mark’s RRSP
$150,000
• Investment planning
– Investment objective: to fund retirement and provide estate
protection
– Risk profile: conservative
– Investment preference/selection:
• SWESS Estate Class
• Estate planning
– Christine designated as primary beneficiary and a Trust for Matthew as
contingent beneficiary
– Ensures account value is protected for his family
THE SOLUTION
Christine’s RRSP
$250,000
• Investment planning
– Investment objective: to fund retirement
– Risk profile: moderate to high
– Investment preference/selection:
• PIM’s Guided Portfolios
• Financial planning
– Provides a fully customizable dynamic asset allocation portfolio
– Ensures maximum equity exposure through some of Canada’s leading
portfolio managers
THE SOLUTION
Non-registered account
$250,000
• Investment planning
– Investment objective: short-term cash flow, long term growth
– Risk profile: moderate to high
– Investment preference/selection:
• T-Class
• Financial planning
– Provides tax-free cash flow to help bridge the income gap
– Wide selection of equity funds to help grow the portfolio while still
providing cash flow
– Deductibility of advisory fees
CONSOLIDATE AND SIMPLIFY – WITH
HOUSEHOLDING
• Consolidated pricing and simplified reporting
– All accounts are linked for consolidated pricing
• Link multiple accounts for multiple people as long as same household;
• At least one account must meet the $250,000 minimum
– Consolidated statement for all accounts
• All accounts are consolidated into one statement, with an
overview at the group level, followed by reporting on each
individual account/contract
IMPLEMENTATION: IDENTIFY ACCOUNTS
• Select Reference Account:
– Christine’s RRSP account:
$250,000
• Link Family Accounts (same address)
– Mark’s RRSP account:
$150,000
– Non-registered account:
$250,000
– Corporate account:
$675,000
COMPETITIVE FEES
• PIM offers significant savings over Class A mutual funds
– PIM fee 1.75%
– Equivalent Class A retail fee 2.33%
– Savings of $7,845 annually
• At a 4% annual compound rate, savings equal more than
$233,000 over a 20- year period
SUPPORT MATERIALS
• Advisor Guide
• Client Guide
• Sell sheets
– Corporate Class
– SWESS
– T-Class
– Portfolio Manager overviews
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Fee schedule
Fund listing
Paper-based approach for Managed solutions
Advisor-facing proposal tool, including fee calculator
Thank you
For advisor use only
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.
Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past
performance may not be repeated. ®CI Investments and the CI Investments design are registered trademarks of CI
Investments Inc.