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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 578 basis points, taken from around two decades of data from December 1996 to August 2016. A proxy for the High Yield Debt market is the Bank of America Merrill Lynch U.S. High Yield Index which, as of August 31, 2016, had a par value of approximately US$1,364 billion, representing approximately 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 August 31, 2016, the total dollar value of investment grade securities outstanding in the U.S. was approximately US$5.0 trillion representing approximately 5,785 issues. In Canada, investment grade debt securities outstanding as of August 31, 2016 was approximately CAD$350 billion across approximately 814 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.

 

First Asset Investment Grade Bond ETF (TSX: FIG)
This ETF aims to provide exposure to a high quality diversified mix of investment grade corporate bonds from issuers in Canada, the US and Europe. The manager strives to provide attractive monthly distributions, low volatility and negative correlation to other asset classes.

 

Marret Funds (for Accredited Investors)


Marret offers investment funds for accredited investors: Marret High Yield Fund, Marret High Grade Hedge Fund and Marret Enhanced Tactical Fixed Income Fund (individually, a "Fund" and, together, the "Funds"). Investors can subscribe for units in the Funds on a monthly basis, or weekly for Enhanced Tactical. 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 Enhanced Tactical Fixed Income 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, Marret Strategic Yield Fund and CI Investment Grade Bond Fund.

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