CI Mutual Funds Inc. on Wednesday launched Business Development Bank of Canada CI EQUIPP Notes, which allow investors to participate in the returns of two CI equity mutual funds while fully protecting their principal.

EQUIPP stands for Equity Investing with Principal Protection. The notes are debt obligations to be issued by BDC, a federal Crown corporation with an AAA credit rating.

At the end of the seven-year term of the notes, investors will be repaid their principal. In addition, at maturity they will be paid variable interest linked to the returns of the two CI mutual funds over the seven years. The notes are 100% eligible for registered plans.

“With CI EQUIPP Notes, investors benefit from the growth potential of Canadian and global equity markets, along with the security of knowing that their principal is fully protected at maturity,” said Peter Anderson, CI President. “This investment is an excellent option for investors seeking safe alternatives to low-yielding GICs and money market funds.”

The interest paid on the notes is linked to the returns of CI Canadian Investment Fund and CI Global Fund. The portfolio of CI Canadian Investment Fund is managed by Kim Shannon, chief investment officer of Sionna Investment Managers Inc., using a disciplined value approach. The fund is first quartile over the one, three, five and 10-year periods and has never lost money in any calendar year under Shannon’s guidance.

CI Canadian Investment Fund was chosen for CI EQUIPP Notes for its consistency and relatively low volatility. It is well complemented by CI Global Fund, a strong, growth-oriented fund. Its portfolio is managed by William Sterling, global strategist and chief investment officer, and Robert Beckwitt, Managing Director, of CI Global Advisors LLP.

CI EQUIPP Notes are available through brokers until March 14, 2003. The agent is BMO Nesbitt Burns Inc. The issue price is $1,000 per note, with the minimum investment being $3,000.

The complete terms of the offering of CI EQUIPP Notes are set out in an Information Statement, which can be obtained by investors from BMO Nesbitt Burns. Information will also be available at CI’s Web site at www.cifunds.com.