Renaissance Corporate Bond Capital Yield Fund
Advisor Essentials Meeting investors’ needs for higher-yielding, tax-efficient fixed income solutions
An attractive, tax-efficient income opportunity Higher-quality investment grade and high-yielding corporate bonds can provide investors with reliable income and the potential for superior yield. When accessed through the Renaissance Corporate Bond Capital Yield Fund, the distribution will be realized as tax-efficient capital gains.
Corporate bonds offer an attractive investment opportunity Corporate bonds offer the potential for greater long-term absolute returns than government bonds. In addition, corporate bonds are secured by corporate assets ahead of equities, and can offer the potential for equity-like returns with lower volatility. The Renaissance Corporate Bond Capital Yield Fund provides exposure to a corporate bond fund (the Reference Fund) with an asset mix of 80% high-quality corporate bonds and 20% high-yield bonds in order to seek increased yields while managing risk. The fund’s blended benchmark reflects its target asset mix and enhanced yield potential. Average Yield DEX Government Bond Index
2.02%
DEX Corporate Bond Index
3.09%
Merrill Lynch U.S. High Yield Cash Pay Index
7.19%
Merrill Lynch Canadian and U.S. Dollar High Yield Canadian Issuers Index
7.84%
Renaissance Corporate Bond Capital Yield Fund Blended Benchmark1
3.95%
Source: PC Bond and Bank of America/Merrill Lynch Global Index Data as at June 30, 2012. 1 8 0% DEX Corporate Bond Index, 14% Merrill Lynch U.S. High Yield Cash Pay Index, (100% hedged back to Canadian dollars), 6% Merrill Lynch Canadian and U.S. Dollar High Yield Canadian Issuers Index (100% hedged back to Canadian dollars). Blended benchmark average yield is gross of fees.
Target 80/20 asset mix of the Reference Fund.
Key benefits Higher yield The fund offers exposure to a diversified pool of higher-quality corporate and high-yield bonds with the potential for superior yield and compelling after-tax returns relative to most fixed income alternatives, while managing risk.
Reliable, tax-efficient income The fund is focused on delivering reliable income and significantly enhancing after-tax returns by distributing the income in the form of capital gains.
Experienced management CIBC Global Asset Management Inc. (CGAM), manager of the Reference Fund, follows a research-driven approach to analyze credit risks and add value through active portfolio management. CGAM is one of Canada’s largest fixed income managers and currently manages more than $18 billion in corporate credit assets.2
High-yield bonds (20%) Investment grade corporate bonds (80%)
2
As at September 30, 2011
For Advisor Use Only