Active Fixed Income: Finding Value amid the Challenges
|
|
- Linette Reed
- 6 years ago
- Views:
Transcription
1 By Kamyar Hazaveh, April 11, 2018 As passive penetration into fixed income picks up, active managers are increasingly making the case for how active management can benefit fixed income. Arguably, the debate between active and passive management of fixed-income investing is driven by asset-accumulation incentives on both sides. This article outlines a portfolio manager s views on the value of active management in fixed income and how this may be right for your plan. Active management can add value for Canadian investors, including pension plans, not by promising market timing or fear mongering about exchange traded funds, but by identifying what we can reliably offer at the right price. This article provides details on some solutions and how they can address some of the challenges including the poor risk concentration and lack of diversified global content of Canada s fixed-income indices. First, let s briefly examine the meteoric rise of passive investment products. The rise of passives The stampede to passive solutions away from actively managed funds is one of the most significant shifts in the asset management industry in recent years. Combined with regulatory changes (such as the Markets in Financial Instruments Directive, known as MiFID), this has led to a product and value-proposition rethink for active products and to consolidation within the asset management industry. The move to passive investing has been most visible in the equity markets, but the growth rate of passive solutions has been highest in fixed income. The commoditization of fixed-income exposure via exchange traded funds, and the (perceived or real) liquidity on equity exchanges, has attracted both retail and institutional investors to passively managed products. For some time, ETF providers have sought to dispel fears about passive solutions, which have been blamed by some for market melt-ups, crashes and liquidity crises. One of the strongest arguments against passive fixed-income instruments has been that they can constitute fake liquidity when the underlying instruments are not nearly as liquid. Conversely, the biggest win for passive fixedincome providers is avoiding a designation by regulators as systemically important financial intermediaries (SIFIs). Such a designation would subject these providers to heightened supervision based on SIFI s transparency and prudential supervision framework. The bull market of the last 10 years combined with expectations of falling returns and relatively high active management fees have helped passive solutions to attract average investors and accumulate astronomical assets in a relatively short period of time. 2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I Head Office / Toronto Calgary Montreal Vancouver Client Services English: French:
2 The verdict on active versus passive fixed income So how does active management of fixed income compare? Active managers on average are not mathematically able to outperform market indices after fees. There are active managers who have and will outperform passive solutions consistently, but it can be difficult to identify them beforehand. In addition, the nature of fixed-income alpha among the winners is poor. Various studies show that actively managed fixed-income products generate alpha by chronically overweighting credit or exposing the portfolio to illiquidity risk. The problem with chronic credit exposure in fixed income is that credit correlates positively to the equity market (corporate debt and stocks are both pro-cyclical), taking away from the desirable attribute of fixed income for investors: portfolio diversification. Investors could replicate active funds outcome by having more pro-cyclical exposure via more equity holdings than paying active fees for chronic overweight credit allocations inside their fixed-income portfolios. While suggesting that a chronic overweight credit allocation amounts to alpha is disingenuous, exposing the portfolio to illiquid fixed-income securities could be detrimental if the liquidity risk isn t properly managed. The liquidity risk premium is consistently mispriced in fixed income because episodes of market illiquidity ( no-bid scenarios) are rare. These rare episodes are exactly the times when investors need the safety and liquidity of their fixed-income portfolios the most. Time and again, many fixed-income active managers are found to have excessive exposure to illiquid products in periods of market stability (in their attempt to outperform) without a proper liquidity risk-management framework. For these reasons, passive solutions are a welcome innovation for the fixed-income market. The technology and transparency of these instruments can be superior to active funds. They provide retail investors with greater access to different parts of the fixed-income market at a lower cost. For institutional investors, passive products like ETFs provide equity exchanges as a venue for exchanging fixed income risk, in many cases bypassing the cash market altogether, like derivatives. This is certainly true for some of the large ETFs, in which risk changes hands on the equity exchanges without the need for unit creation or redemption. The added feature of fixed-income ETFs (and ETF options) relative to interest rate and credit derivatives is that the liquidity premium of the cash market is captured within the ETF s price. One of the biggest shortcomings of fixed-income ETFs relates to governance issues, which I believe should be addressed by ETF providers to improve these products. As an example, authorized participants (AP) in charge of market-making and the creation/redemption process have no obligation to either ETF investors or providers to offer these services. Currently, APs are driven purely by arbitrage opportunities with no-one acting as a back-stop for a no-bid market. This means that the value of the ETFs may deviate substantially from the underlying index during difficult market periods, thereby violating the very promise they are built on: tracking the index.
3 Even in normal markets, the performance of some well-known fixed-income ETFs have deviated from the underlying index. In a bid to lure APs to make markets in ETFs, providers have tilted the creation and redemption baskets towards more liquid bonds. This creates unwanted tracking error that sometimes leads to substantial deviation from index performance. The way forward for active fixed income In the markets of the future, beta will be almost free for all investors, small and large. In my opinion, there is little difference in active management of fixed income and equities as passive solutions are as useful in fixed income as they are in equities. Certainly, equity markets are years ahead in standardization, execution, and overall technology. However, the over-the-counter nature of fixed income will change as technology, better security and benchmark design disrupt this still mysterious corner of the global capital markets. Accepting this likely evolution will help to focus efforts in active fixed income on many genuine services that active managers can provide, instead of getting bogged down by asset accumulation incentives. The opportunity for adding value in fixed income starts by questioning the very foundation that ETFs are built on: the index. In the Canadian fixed-income context, that means understanding that the returns of index solutions benchmarked against the commonly used FTSE/TMX Canadian Universe Bond Index are primarily driven by long maturity bonds of heavily indebted provincial issuers, as well as by shrinking and increasingly less-diversified Canadian corporate bonds. As such, the primary determinant of total returns in the Canadian fixed-income benchmark is the 30-year interest rate, not the Bank of Canada overnight rate target or any other interest rate or spread. Given the risk-reward trade-off at the long-end, Canadian fixed income indices offer poor risk-reward. Another critical feature of Canada s fixed income market is that it represents less than 2% of the available global fixed-income market. All segments of the fixed-income market, from developed and emerging market sovereigns to various shades of corporate credit, mortgages and inflation-linked securities swamp the Canadian market opportunity set many times over. The Signature fixed income model To address the shortcomings of Canadian fixed-income indices in terms of risk concentration on 30- year interest rates or their lack of global diversified content, Signature s solutions rely on the following model:
4 In this model, efficient sampling replicates the benchmark s exposure more effectively and with greater liquidity. The set of Core Total Return adjustments are designed to improve the risk-reward dynamic of the Canadian benchmark away from long-term provincial bonds and into other sectors and global yield curves. The Core Portable Beta component is a collection of diversified global fixed-income exposures (global developed and developing sovereigns, corporate credit, mortgages, inflation-linked, etc.) that are actively managed to provide diversified exposure to duration as well as various other fixedincome premia. Implementing a globally diversified fixed-income risk premia overlay requires developing internal expertise in global developed and developing fixed-income markets to capture currency, duration, credit, curve, inflation, and volatility risk premia. In this construct, security selection resides in Portable Alpha, which is the final building block in our active solutions. The central bank policy-driven bull markets of the last 10 years and the stampede to passives have masked the importance of this component; however, this should make active management in the downturn easier and investors will appreciate the importance of successful security selection in difficult markets. I strongly believe that genuine fixed income value-add via global portfolio construction for Canadian investors can coexist alongside a surge in passive fixed-income investing. These solutions can be custom designed for investors within other jurisdictions, or with different objectives, beyond the Canadian bond universe.
5 Strategy Attributes Active Fixed : Canadian Fixed Global Fixed Flexible Fixed Exchange Traded Funds Signature Short -Term Bond Fund Signature Canadian Bond Fund Signature Global Bond Fund Signature Tactical Bond Pool First Asset Long Duration Fixed ETF Benchmark FTSE/TMX Canada Short-Term Bond Index FTSE/TMX Canada Universe + Maple Bond Index JP Morgan Global Bond Index FTSE/TMX Canada Universe Bond Index FTSE/TMX Canada Long-Term All Government Bond Index Description Low Duration Fixed Traditional Canadian Fixed Global Bonds & Currencies Global Diversified Bonds Deflation Hedge Foreign Currencies Hedged Hedged Unhedged Hedged Hedged Benchmark Duration (years) Duration Range (years) Alpha Target (bp) Tracking Error Target (bp) These products are designed to correlate negatively to stocks Source: Bloomberg, Signature Global Asset Management As of April 11, 2018: First Asset Long Duration Fixed ETF is an exchange traded fund managed by First Asset Investment Management Inc. Signature Global Asset Management, a division of CI Investments Inc., acts as portfolio advisor.
6 This commentary is published by CI Investments Inc. It is provided as a general source of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort has been made to ensure that the material contained in this commentary is accurate at the time of publication. However, CI Investments Inc. cannot guarantee its accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein. This commentary may contain forward-looking statements about the fund, its future performance, strategies or prospects, and possible future fund action. These statements reflect the portfolio managers current beliefs and are based on information currently available to them. Forward-looking statements are not guarantees of future performance. We caution you not to place undue reliance on these statements as a number of factors could cause actual events or results to differ materially from those expressed in any forward-looking statement, including economic, political and market changes and other developments. 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.
Emerging markets: Issuance frenzy and complacency about growing risks
By Naman Agarwal November 3, 2017 Low interest rates have propelled a search for yield and rotation into higher-yielding emerging market (EM) debt, resulting in record inflows into the asset class. As
More informationFixed Income in a Flat Yield Curve Environment
By Kamyar Hazaveh, May 22, 2018 The difference between short-term and long-term yield in the U.S. and Canada is the narrowest in a decade. The flatness of the yield curve has been the subject of financial
More informationMaximize your clients income. CI Income Solutions
Maximize your clients income CI Income Solutions Maximize your clients income with CI Today s investors may be facing low interest rates and a lack of yield but they aren t facing lack of choice to maximize
More informationSelect 40i60e Managed Portfolio. Portfolio Review First Quarter 2018
Select 40i60e Managed Portfolio Portfolio Review First Quarter 2018 Q1 Portfolio Review First Quarter 2018 as at March 31, 2018 Portfolio Performance (Class F) 1 Month 3 Months 6 Months 1 Year 3 Years
More informationPortfolio Series Balanced Fund. Portfolio Review Fourth Quarter 2017
Portfolio Review Fourth Quarter 2017 Q4 Portfolio Performance (Class F) 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Since Inception (November 1988) -0.6% 2.8% 3.3% 7.5% 6.2% 9.2% 6.0% 5.9%
More informationMarket Commentary Fourth Quarter 2017
Portfolio Series and Portfolio Select Series Alfred Lam, SVP and Chief Investment Officer Yoonjai Shin, VP and Portfolio Manager CI Multi-Asset Management Happy New Year! We wish all of our investors and
More informationPortfolio Series Conservative Balanced Fund. Portfolio Review Fourth Quarter 2017
Portfolio Review Fourth Quarter 2017 Q4 Portfolio Review Fourth Quarter 2017 as at December 31, 2017 Portfolio Performance (Class F) 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Since Inception
More informationSelect 60i40e Managed Portfolio. Portfolio Review Fourth Quarter 2017
Select 60i40e Managed Portfolio Portfolio Review Fourth Quarter 2017 Q4 Portfolio Review Fourth Quarter 2017 as at December 31, 2017 Portfolio Performance (Class F) 1 Month 3 Months 6 Months 1 Year 3 Years
More informationFinancials Sector 2019 Outlook
Financials Sector By John Hadwen, CFA Vice-President, Portfolio Management and Portfolio Manager January 23, 2019 With the global financials sector struggling over the last 12 months, what s in store for
More informationCI MOSAIC ETF PORTFOLIOS
CI MOSAIC ETF PORTFOLIOS Greater access. Greater potential opportunity Successful investing comes down to many things, including access to a broad range of investment options. Historically, mutual funds
More informationThe Mechanics of Corporate Class
The Mechanics of Corporate Class How Corporate Class works Whether your clients have investments in their corporate accounts, non-registered investments or both, the tax efficiency of their investments
More informationYour Sophisticated, Yet Simple Portfolio CLIENT GUIDE
Your Sophisticated, Yet Simple Portfolio CLIENT GUIDE fieramilano complex, Milano, Italy Sophisticated, Yet Simple Portfolio Series is a family of seven portfolio funds, each carefully crafted to match
More informationPlease note that in the following document any reference to HRS Capital should be treated as a mention of Fiera Capital _E (11/16)
Client Guide Effective November 1, 2016, Fiera Capital assumed responsibility for the funds risk management overlay strategy. CI has appointed Fiera Capital to replace HRS Capital ( HRS ) following a change
More informationSelect Income Managed Portfolio Corporate Class. Portfolio Review Third Quarter 2018
Portfolio Review Third Quarter 2018 Q3 Portfolio Review Third Quarter 2018 as at September 30, 2018 Portfolio Performance (Class F) 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Since Inception
More informationBalanced Opportunities. CI Investment Solutions
Balanced Opportunities CI Investment Solutions Portfolio Management Expertise Balanced Opportunities Given the volatility of recent years, many of your clients may be hesitant about investing in equity
More informationIt s easy to get started
Client Guide It s easy to get started You and your advisor create an investor profile based on your discussions and responses to the Portfolio Select Series questionnaire. Based on the profile, you and
More informationSelect 20i80e Managed Portfolio Corporate Class. Portfolio Review Third Quarter 2018
Portfolio Review Third Quarter 2018 Q3 Portfolio Performance (Class F) 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Since Inception (November 2006) -0.8% 1.2% 2.8% 4.5% 6.9% 7.6% 7.5% 4.6%
More informationSelect 50i50e Managed Portfolio Corporate Class. Portfolio Review Third Quarter 2018
Portfolio Review Third Quarter 2018 Q3 Portfolio Review Third Quarter 2018 as at September 30, 2018 Portfolio Performance (Class F) 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Since Inception
More informationAdvisor Guide FOR ADVISOR USE ONLY NOT FOR DISTRIBUTION TO CLIENTS
Advisor Guide FOR ADVISOR USE ONLY NOT FOR DISTRIBUTION TO CLIENTS Managed solutions can provide many benefits to your practice. Their convenience allows you to shift your time from portfolio construction
More informationSunWise Essential CI Signature Bundles
SunWise Essential CI Signature Bundles managed by CI Investments Inc. issued by Sun Life Assurance Company of Canada s Here s how they work All equity funds hold a certain amount of cash. With s, we consider
More informationSignature Global Bond Fund
This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial
More informationThe Signature Position: Latest Equity Market Sell-off
By Jean-Philippe Bry, October 12, 2018 To quote the market s most stable genius in chief, Donald Trump, a stock market correction was overdue. A correction was something we have been anticipating, and
More informationWhy we are still not owners of Canadian banks
Why we are still not owners of Canadian banks Stephen Groff, June 14, 2018 Early last year we published Why we are not owners of Canadian Banks today, which summarized our rationale for avoiding investing
More informationSunWise Essential CI Harbour Bundles
SunWise Essential CI Harbour Bundles managed by CI Investments Inc. issued by Sun Life Assurance Company of Canada s Here s how they work All equity funds hold a certain amount of cash. With s, we consider
More informationCase study RRSP to RRIF account. The story of Robert and Elizabeth
Case study RRSP to RRIF account The story of Robert and Elizabeth Effective November 1, 2016, Fiera Capital assumed responsibility for the funds risk management overlay strategy. CI has appointed Fiera
More informationA Guide to CI Corporate Class
A Guide to CI Corporate Class What is CORPORATE CLASS? For a variety of reasons, Canadian investors save and invest their money in non-registered accounts. This is when Corporate Class funds come into
More informationSelect Income Advantage Managed Portfolio. Portfolio Review First Quarter 2013
Portfolio Review First Quarter 2013 Q1 Portfolio Review First Quarter 2013 as at March 31, 2013 Portfolio Managers Economic Overview Income investors in the first quarter of 2013 favoured high-yield corporate
More informationPortfolio Review xxx Quarter 20xx. Evolution 40i60e Model Portfolio Portfolio Review First Quarter 2018
Portfolio Review xxx Quarter 20xx Evolution 40i60e Model Portfolio Portfolio Review First Quarter 2018 Q1 Overview Diversified portfolios capture gains from asset classes and security types that are performing
More informationVideo: GIC Wealth Management Perspectives
GLOBAL INVESTMENT COMMITTEE FEB.8, 2017 Video: GIC Wealth Management Perspectives Video: The Case for Active Management A new video takes a deep dive into the drivers of recent Active Manager underperformance
More informationTop 5 Reasons to own Signature
Top 5 Reasons to own Signature A global approach with a Canadian perspective Award-winning funds Long-term performance Experience & expertise Leadership A global approach with a Canadian perspective 5
More informationGlobal Banks: 1H Recap, Review & Update
By John Hadwen, August 2, 2018 How has the global Financials sector fared in the first half of 2018? Here are my key takeaways on the recent performance of North American and European banks, as well as
More informationPortfolio Review xxx Quarter 20xx. Evolution 100i Model Portfolio Portfolio Review First Quarter 2018
Portfolio Review xxx Quarter 20xx Evolution 100i Model Portfolio Portfolio Review First Quarter 2018 Q1 Evolution 100i Model Portfolio Standard geographic asset allocation and blend of investment styles
More informationBulletShares ETFs An In-Depth Look at Defined Maturity ETFs. I. A whole new range of opportunities for investors
BulletShares ETFs An In-Depth Look at Defined Maturity ETFs I. A whole new range of opportunities for investors As the ETF market has evolved, so too has the depth and breadth of available products. Defined
More informationYour Guide to Liquid Alternatives LIQUID ALTS. alternative investment strategies
Your Guide to Liquid Alternatives LIQUID ALTS alternative investment strategies The Canadian Securities Administrators (CSA) published a detailed proposal in September 2016 regarding changes to the set
More informationGlobal Opportunities. CI Global Solutions
Global Opportunities CI Global Solutions Global Opportunities Where can investors find the best opportunities today? From 2000 to 2010, the Canadian stock market consistently outperformed its global counterparts.
More informationSemi-Annual Financial Statement as at September 30, CI Short-Term Advantage Trust
Semi-Annual Financial Statement as at September 30, 2010 CI Short-Term Advantage Trust A look inside Overview... 1 About the CI Funds Board of Governors and Letter from the CI Funds Board of Governors...
More informationInvest with Peace of Mind
issued by Transamerica Life Canada Invest with Peace of Mind managed by CI Investments Inc. issued by Transamerica Life Canada Invest with Peace of Mind Growth with Protection Is protecting your investment
More informationComparing Exchange Traded Funds to Mutual Funds and Stocks and Bonds
ETFs 101 Comparing Exchange Traded Funds to Mutual Funds and Stocks and Bonds In an era when investment options may appear endless, the growing popularity of Exchange Traded Funds (ETFs) has taken the
More informationPortfolio Review xxx Quarter 20xx. Evolution 50i50e Model Portfolio Portfolio Review Third Quarter 2018
Portfolio Review xxx Quarter 20xx Evolution 50i50e Model Portfolio Portfolio Review Third Quarter 2018 Q3 Overview Diversified portfolios capture gains from asset classes and security types that are performing
More informationDiscover the power. of ETFs. Not FDIC Insured May May Lose Lose Value Value No No Bank Bank Guarantee
Discover the power of ETFs Not FDIC Insured May May Lose Lose Value Value No No Bank Bank Guarantee Discover exchange-traded funds (ETFs) Financial television programs and publications continue to give
More informationDiscover the power. of ETFs. Not FDIC Insured May May Lose Lose Value Value No No Bank Bank Guarantee
Discover the power of ETFs Not FDIC Insured May May Lose Lose Value Value No No Bank Bank Guarantee Discover exchange-traded funds (ETFs) Financial television programs and publications continue to give
More informationShort Term Income Pool
This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial
More informationSelect Income Advantage Managed Portfolio. Portfolio Review Second Quarter 2013
Select Income Advantage Managed Portfolio Portfolio Review Second Quarter 2013 Q2 Select Income Managed Portfolio Portfolio Review Second Quarter 2013 as at June 30, 2013 Portfolio Managers Economic Overview
More informationPortfolio Series Conservative Fund. Portfolio Review Second Quarter 2015
Portfolio Review Second Quarter 2015 Q2 Portfolio Performance (Class A) 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Since Inception (December 1997) -1.4% -2.0% 3.7% 6.8% 8.9% 8.0% 5.0% 5.4%
More informationGet active with Vanguard factor ETFs
Get active with Vanguard factor ETFs Factor investing has gained attention in recent years, in part because of the rise of alternatively weighted indexes and smart-beta products. Yet factor investing has
More informationPortfolio Series Balanced Fund
This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial
More informationTrump and his Trade Wars
By Jean-Philippe Bry, July 7, 2018 With so much rhetoric from the Trump administration on tariffs and trade wars, we believe it s helpful to provide an overview of recent developments and our take on how
More informationAlphabet Soup. Understanding CI s fund classes
Alphabet Soup Understanding CI s fund classes CI Investments offers a broad range of investment fund classes to suit how you and your clients achieve their investment goals. You may prefer compensation
More informationPortfolio Series Conservative Balanced Fund. Portfolio Review Second Quarter 2015
Portfolio Review Second Quarter 2015 Q2 Portfolio Performance (Class A) 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Since Inception (December 2001) -1.5% -1.9% 4.0% 7.0% 10.3% 8.8% 5.1% 5.2%
More informationUnderstanding Fixed Income ETFs ( Exchange Traded Funds )
Please note that the following piece is for information purposes only and is not intended to constitute any investment advice, recommendation or solicitation. This is not an offer to sell any product.
More informationXtrackers High Yield Corporate Bond Interest Rate Hedged ETF
Summary Prospectus October 2, 2017, as supplemented June 6, 2018 Ticker: HYIH Stock Exchange: Bats BZX Exchange, Inc. Before you invest, you may wish to review the Fund s prospectus, which contains more
More informationETFs: A BEGINNER S GUIDE. November 2018
ETFs: A BEGINNER S GUIDE November 2018 The purpose of this guide is to provide an introductory guide to exchange traded funds ( ETFs ) in Europe. We note that this guide has been made available to the
More informationPortfolio Series Maximum Growth Fund. Portfolio Review Second Quarter 2015
Portfolio Review Second Quarter 2015 Q2 Portfolio Performance (Class A) 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Since Inception (December 2001) -2.0% -1.2% 6.2% 8.8% 16.1% 11.9% 5.2%
More informationFund Codes - U.S. dollar mandates
Fund codes s - U.S. dollar mandates Money Market Class O Class E Class EF CI Short-Term US$ Corporate Class 19168 17168 - Money Market CI U.S. US$ Pool 19099 17099 15299 * Lawrence Park Strategic Fund
More informationSunWise Essential Bundles Overview
SunWise Essential Bundles Overview managed by CI Investments Inc. issued by Sun Life Assurance Company of Canada t SunWise Essential Bundles SunWise Essential Bundles maximize your equity exposure SunWise
More informationASSET MANAGEMENT. Why Cidel? Our risk approach.
ASSET MANAGEMENT GLOBAL Why Cidel? Our risk approach. At Cidel, our primary focus is managing risk to ensure each client s assets are protected. Our proactive risk approach ensures that as risks change
More informationIs it time to cue the raven? Nevermore?
Is it time to cue the raven? Nevermore? By Sandy McIntyre Capital Markets Strategist, CI Investments December 10, 2018 The time has come for the annual rite of forecasting. What will 2019 bring? If you
More informationFor professional investors only. Understanding Exchange Traded Funds (ETFs)
For professional investors only Understanding Exchange Traded Funds (ETFs) What are Exchange Traded Funds (ETFs)? 3 Contents Get selective 4 Evaluating ETFs 4 Building portfolios with ETFs 4 Fixed income
More informationMarket Commentary Third Quarter 2018
CI Canadian Small/Mid Cap Fund The portfolio of the fund is divided among three sub-advisors: Picton Mahoney Asset Management, Manulife Asset Management, and QV Investors Inc. The comments below pertain
More informationFUND FEES AND EXPENSES The following tables describe the fees and expenses that you may pay if you buy and hold shares of the Fund ( Shares ).
MARKET VECTORS J.P. MORGAN EM LOCAL CURRENCY BOND ETF Ticker: EMLC Principal U.S. Listing Exchange: NYSE Arca, Inc. SUMMARY PROSPECTUS SEPTEMBER 1, 2015, as revised on OCTOBER 1, 2015 EMLCSUM Before you
More information2014 Annual Management Report of Fund Performance
(the Fund ) For the 12-month period ended September 30, (the period ) Manager: BMO Investments Inc. (the Manager or BMOII ) Portfolio manager: BMO Asset Management Inc., Toronto, Ontario (the portfolio
More information2013 Simplified Prospectus dated July 26, 2013
CI Investments Inc. 2 Queen Street East Twentieth Floor Toronto, Ontario M5C 3G7 You can find additional information about each fund in its annual information form, fund facts, management reports of fund
More informationPortfolio Series Income Fund. Portfolio Review Second Quarter 2015
Portfolio Review Second Quarter 2015 Q2 Portfolio Review Second Quarter 2015 as at June 30, 2015 Portfolio Performance (Class A) 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years 10 Years Since Inception
More informationDirexion/Wilshire Dynamic Asset Allocation Models Asset Management Tools Designed to Enhance Investment Flexibility
Daniel D. O Neill, President and Chief Investment Officer Direxion/Wilshire Dynamic Asset Allocation Models Asset Management Tools Designed to Enhance Investment Flexibility Executive Summary At Direxion
More informationSelect 30i70e Managed Portfolio. Portfolio Review Third Quarter 2013
Portfolio Review Third Quarter 2013 Q3 Portfolio Managers Economic Overview After sending signals earlier this year that it would be scaling back its economic stimulus efforts, the U.S. Federal Reserve
More informationGet the Alternative Advantage
Get the Alternative Advantage Alternative Investments Manage Risk and Potentially Enhance Performance Innovation is our capital. Make it yours. As an asset class, alternative investments have demonstrated
More informationPortfolio Review xxx Quarter 20xx. Evolution 70i30e Model Portfolio Portfolio Review Third Quarter 2018
Portfolio Review xxx Quarter 20xx Evolution 70i30e Model Portfolio Portfolio Review Third Quarter 2018 Q3 Evolution 70i30e Model Portfolio Standard geographic asset allocation and blend of investment styles
More information(R)evolution of ETFs
(R)evolution of ETFs Agenda The global ETP marketplace Indexing adoption accelerates Fee and regulatory (r)evolution ETF usage trends Trading evolution 2 Global ETP marketplace Assets (US$ billions) $2,000
More informationEXCHANGE- TRADED FUND FOUNDATIONS
EXCHANGE- TRADED FUND FOUNDATIONS ETF FOUNDATIONS Building a stronger understanding of exchange-traded funds WELCOME TO THE FAST-GROWING WORLD OF ETFs DRAMATIC CHANGES ARE HAPPENING IN THE INVESTING WORLD,
More informationPlain talk about how ETFs work. Client education
Plain talk about how ETFs work Client education Contents 2 What are ETFs? 4 How ETFs work 8 Which ETFs are right for you? Exchange-traded funds (ETFs) are attracting evergreater attention from investors.
More informationSelect 70i30e Managed Portfolio. Portfolio Review Fourth Quarter 2012
Portfolio Review Fourth Quarter 2012 Q4 Portfolio Managers Economic Overview In the income sector, investors continued to favour higher-yielding securities in the fourth quarter of 2012, spurred by low
More informationCI Short-Term Advantage Corporate Class
This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial
More informationThe Evolution of Index and ETF Strategies: Going beyond Passive vs. Active
0.75 CE Credits The Evolution of Index and ETF Strategies: Going beyond Passive vs. Active FOR ADVISOR USE ONLY Agenda Evolution of indexing Market Capitalization Indexing Equal Weighted Indexing Fundamental
More informationIIAC Market Insights Canadian ETF Dynamics, Risks and Outlook
IIAC Market Insights Canadian ETF Dynamics, Risks and Outlook JANUARY 2019 INTRODUCTION Growth of exchange traded funds (ETFs) has accelerated in recent years while ETF industry product offerings have
More informationG5 20 Series FAQ FOR ADVISOR USE ONLY NOT FOR DISTRIBUTION TO CLIENTS
G5 20 Series FAQ FOR ADVISOR USE ONLY NOT FOR DISTRIBUTION TO CLIENTS What is the difference between G5 20i funds and G5 20 funds? There are two versions of the fund available, taking into consideration
More informationSelect 30i70e Managed Portfolio. Portfolio Review First Quarter 2013
Portfolio Review First Quarter 2013 Q1 Portfolio Managers Economic Overview Income investors in the first quarter of 2013 favoured high-yield corporate bonds, where yields declined amid robust issuance
More informationHull Tactical US ETF EXCHANGE TRADED CONCEPTS TRUST. Prospectus. March 30, 2018
EXCHANGE TRADED CONCEPTS TRUST Prospectus March 30, 2018 Hull Tactical US ETF Principal Listing Exchange for the Fund: NYSE Arca, Inc. ( NYSE Arca ) Ticker Symbol: HTUS Neither the Securities and Exchange
More informationCambridge Canadian Short-Term Bond Pool
This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial
More informationTD Mutual Funds. TD Asset Management. Simplified Prospectus. July 27, 2017
TD Asset Management TD Mutual Funds Simplified Prospectus July 27, 2017 Money Market Funds TD Canadian Money Market Fund (3)(4)(10) TD Premium Money Market Fund (1)(11) TD U.S. Money Market Fund (1)(5)(9)(11)
More informationMackenzie Exchange Traded Funds. Invest across the ETF Spectrum
Mackenzie Exchange Traded Funds Invest across the ETF Spectrum 1 What are Exchange Traded Funds? An ETF is a pooled investment vehicle that allows investors to buy and sell units in a single security that
More information2018 Summary Prospectus
April 1, 2018 Global X Founder-Run Companies ETF Cboe BZX, Inc.: BOSS 2018 Summary Prospectus Before you invest, you may want to review the Fund's prospectus, which contains more information about the
More informationInvestor Profile Questionnaire
Investor Profile Questionnaire Investor Profile Questionnaire This questionnaire is designed to help you select the portfolio from Portfolio Series that best meets your investment goals. Simply complete
More informationSchroders Emerging Markets Multi-Sector Bond Fund
Third Quarter 2013 Schroders Emerging Markets Multi-Sector Bond Fund As of September 30, 2013 Quarterly Investment Report Schroder Fund Advisors LLC, Member FINRA, SIPC 875 Third Avenue, New York, NY 10022-6225
More informationINSIGHTS. The Factor Landscape. August rocaton.com. 2017, Rocaton Investment Advisors, LLC
INSIGHTS The Factor Landscape August 2017 203.621.1700 2017, Rocaton Investment Advisors, LLC EXECUTIVE SUMMARY Institutional investors have shown an increased interest in factor investing. Much of the
More informationPortfolio Review xxx Quarter 20xx. Evolution 100e Model Portfolio Portfolio Review Second Quarter 2018
Portfolio Review xxx Quarter 20xx Evolution 100e Model Portfolio Portfolio Review Second Quarter 2018 Q2 Evolution 100e Model Portfolio Standard geographic asset allocation and blend of investment styles
More informationSignature Mortgage Fund Management Report of Fund Performance for the year ended March 31, 2012
This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial
More informationINTERNATIONAL INVESTING CAPTURE THE OPPORTUNITIES. REDUCE THE RISK.
INTERNATIONAL INVESTING CAPTURE THE OPPORTUNITIES. REDUCE THE RISK. INTERNATIONAL INNOVATION Approximately 97% of the world s investment opportunities are outside Canada 1 and the majority of them are
More informationPortfolio Construction Including ETFs: Impressive Opportunities and Clear Benefits
Portfolio Construction Including ETFs: Impressive Opportunities and Clear Benefits Rohit Mehta Executive Vice-President, Distribution & Strategy First Asset Investment Management, Inc. ETF AUM over the
More informationNI FAQ: New rules will affect your client relationships. Q. When will these changes be implemented? Q. What is NI ?
NI 31-103 FAQ: New rules will affect your client relationships Q. What is NI 31-103? A. The full name is National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations,
More informationWhy and How to Pick Tactical for Your Portfolio
Why and How to Pick Tactical for Your Portfolio A TACTICAL PRIMER Markets and economies have exhibited characteristics over the past two decades dissimilar to the years which came before. We have experienced
More informationXtrackers Low Beta High Yield Bond ETF
Deutsche Asset Management Summary Prospectus January 10, 2018 Ticker: HYDW Stock Exchange: NYSE Arca, Inc. Before you invest, you may wish to review the Fund s prospectus, which contains more information
More informationSTRATEGY OVERVIEW EMERGING MARKETS LOW VOLATILITY ACTIVE EQUITY STRATEGY
STRATEGY OVERVIEW EMERGING MARKETS LOW VOLATILITY ACTIVE EQUITY STRATEGY A COMPELLING OPPORTUNITY For many years, the favourable demographics and high economic growth in emerging markets (EM) have caught
More informationPortfolio Construction
Portfolio Construction The benefits of portfolio diversification with ETFs 2 ETF Securities Investment building blocks for a changing world Portfolio Construction 3 In a world where investors are seeking
More informationSignature Global Bond Corporate Class
Management Report of Fund Performance for the year ended March 31, 217 This annual management report of fund performance contains financial highlights but does not contain the complete annual financial
More informationThe benefits of core-satellite investing
The benefits of core-satellite investing Contents 1 Core-satellite: A powerful investment approach 3 The key benefits of indexing the portfolio s core 6 Core-satellite methodology Core-satellite: A powerful
More informationWBI BULLBEAR RISING INCOME 2000 ETF
SUMMARY PROSPECTUS OCTOBER 31, 2018 WBI BULLBEAR RISING INCOME 2000 ETF WBIA This summary prospectus is designed to provide investors with key fund information in a clear and concise format. Before you
More informationBROAD COMMODITY INDEX
BROAD COMMODITY INDEX COMMENTARY + STRATEGY FACTS JUNE 2017 80.00% CUMULATIVE PERFORMANCE ( SINCE JANUARY 2007* ) 60.00% 40.00% 20.00% 0.00% -20.00% -40.00% -60.00% -80.00% ABCERI S&P GSCI ER BCOMM ER
More informationFlexShares Trust Prospectus
FlexShares Trust Prospectus Fund Ticker Stock Exchange FlexShares Ready Access Variable Income Fund RAVI NYSE Arca FlexShares Core Select Bond Fund BNDC NYSE Arca Prospectus dated March 1, 2018. An investment
More informationD E F I N I T I O N O F D U T I E S O B J E C T I V E S
UNIVERSITY OF UTAH E NDOWMENT POOL INVESTMENT IMPLEMENTATION STRATEGY CONTENTS May, 2015 O V E R V I E W D E F I N I T I O N O F D U T I E S O B J E C T I V E S A S S E T A L L O C A T I O N / I N V E
More informationGROWTH FIXED INCOME APRIL 2013
GROWTH FIXED INCOME APRIL 2013 BACKGROUND Most investors view fixed income investments as providing a liability-matching or defensive aspect to their total portfolio. The types of investments considered
More information