CI Investments Inc. today introduced its T-Class offering, which allows investors to draw a tax-efficient monthly cash flow from their non-registered investments while maintaining the potential for growth.

T-Class makes monthly payments in the form of return of capital, which is not taxable.

“After-tax income is the critical issue for investors since many traditional interest-paying investments offer both low yields and high tax rates,” says Peter Anderson, CI’s CEO. “As one of the most tax-efficient investments available, T-Class is an important option for retirees and other Canadians planning for their retirement.”

CI’s T-Class is available on 25 funds within CI Corporate Class. The Corporate Class structure minimizes annual dividends and allows investors to switch between funds without triggering taxable capital gains.

“This structure means that investors can enjoy the tax advantages and the broad selection of top mutual funds within CI Corporate Class while saving for retirement and then, at retirement, create an income stream by switching tax-free to T-Class, Anderson says.

The T-Class option is available on 25 Corporate Class funds, as well as four funds from CI’s popular Portfolio Series, which are mutual fund trusts. The line-up includes income, equity, balanced and portfolio funds.

Investors have their choice of annual payouts of 5% or 8%, or they can create a customized payout through a combination of T-Class and non-T-Class shares.

Since the funds chosen for T-Class have a track record of performance that would have sustained a payout of 5% or 8% without eroding investors’ capital, a T-Class portfolio has the potential for continued growth while also providing a monthly cash flow, CI says.