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High Yield Bonds


The prices at which High Yield Debt trade vary over time based on such factors as term to maturity, interest and currency rate fluctuations, the liquidity of the security, underlying changes in the risks associated with the issuer of the securities (such as business changes affecting a corporate issuer), investor demand, and general economic trends. The yield of a High Yield Debt at a specific time is typically calculated on a “yield-to-maturity” basis (the return to be earned on the security if held to maturity, taking into account the discounted value of the future interest and principal payments). The price of High Yield Debt varies inversely with yields available in the market, which, in turn, reflect the changes in spreads over U.S. Treasury. The longer term historical average spread is considered to be approximately 450 basis points, taken from over two decades of data from January 1980 to December 2008. A proxy for the High Yield Debt market is the Merrill Lynch U.S. High Yield Master II Index which, as of March 31, 2009, had a par value of approximately US$738 billion, representing over 1,000 issuers, including US dollar High Yield Debt issued by Canadian issuers.

 

Investment Grade Bonds


Investment grade debt securities in North America are distributed in both public and private offerings. Debt issues are typically traded over-the-counter (OTC) by a wide variety of investment dealers and financial institutions on a negotiated basis. Pricing and liquidity can vary depending on the issuer, size of issue, availability of the securities, rating, term to maturity, interest and currency rate fluctuations, investor demand, the risks associated with the issuer and general economic conditions. As of July 31, 2009, the total dollar value of investment grade securities outstanding in the U.S. was approximately US$2.7 trillion representing approximately 3,900 issues. In Canada, investment grade debt securities outstanding as of July 31, 2009 was approximately CAD$245 billion across approximately 620 issues. The yield on Investment Grade Bonds at a specific time is typically calculated on a “yield to maturity” basis (the return to be earned on the security if held to maturity, taking into account the discounted value of the future interest and principal payments). The price of Investment Grade Bonds varies inversely with yields available in the market, which, in turn, reflect the changes in spreads over underlying government bonds and yields.

 

Marret Investment Grade Bond Fund (TSX listed: MIG.UN)
A portfolio of highly liquid, investment grade bonds paying a tax-advantaged monthly distribution. Investors benefit from Marret’s institutional access and pricing as well as portfolio transparency.

 

Marret Funds (for Accredited Investors)


Marret offers investment funds for accredited investors: Marret High Yield Fund, Marret High Grade Hedge Fund and Marret Resource Yield Fund (individually, a "Fund" and, together, the "Funds"). Investors can subscribe for units in the Funds on a monthly basis. Basic information on the Funds can be obtained through the links set out below. More detailed information on the Funds, including information on how to invest, can be obtained from the Marret Investor Relations Centre Telephone by telephone at (416) 214-5800 or by e-mail: investors@marret.com.

 

Marret High Yield Fund (for accredited investors)

Marret High Grade Hedge Fund (for accredited investors)

Marret Equity Hedge Fund (for accredited investors)

 

 

Mutual Funds


Marret is the portfolio advisor of the following mutual funds managed by CI Investments Inc.: Marret High Yield Bond Fund, Marret Short Duration High Yield Fund and Marret Strategic Yield Fund.

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