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Waldo Bezuidenhout Ryan Ehmann James Excell Steph Hudema

Waldo Bezuidenhout Ryan Ehmann James Excell Steph Hudema. Outline. History and Advantages iShares Scotia Capital Short Term Bond Index Fund iShares CDN Real Return Bond Index Fund iShares Scotia Capital Universe Bond Index Fund. History of iShares.

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Waldo Bezuidenhout Ryan Ehmann James Excell Steph Hudema

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  1. Waldo Bezuidenhout Ryan Ehmann James Excell Steph Hudema

  2. Outline • History and Advantages • iShares Scotia Capital Short Term Bond Index Fund • iShares CDN Real Return Bond Index Fund • iShares Scotia Capital Universe Bond Index Fund

  3. History of iShares • iShares is the brand name of ETFs by Barclays Global Investors • Offers investors the advantages of both stocks and index funds • iShares is the largest issuer of ETFs in the world

  4. 5 Advantages of iShares • Low cost • Tax efficiency • Transparency and risk management • Liquidity • Modularity

  5. iShares Scotia Capital Short Term Bond Index Fund XSB

  6. Overview • Seeks to provide interest income • Fund invests in a portfolio of bonds that closely matches the characteristics of the Short Term Bond Index • Consists of a diversified range of Canadian government and corporate bonds • Determined By Scotia Bank

  7. Aimed Towards • Investors seeking diversified exposure to the Canadian bond market • Alternative to holding individual bonds • Provides broad exposure to a portfolio of short term bonds • Provides regular rebalancing without the costs of individual trades • Investing in Canada

  8. Performance • Fund: iShares CDN Short Term Bond Index • Index: S&P/TSX Canadian Bond Short Term • Category: Canadian Short Duration Fixed Income

  9. iShares CDN Real Return Bond Index Fund (XRB) • What is it? • Stock listed on the TSX that provides income by replication of the Scotia Capital Real Return Bond Index. • Fixed income fund index • Usually semi annual distribution of income through dividends or reinvestment plan. • Annual fee of 0.35%

  10. iShares CDN Real Return Bond Index Fund (XRB) Real Return Bonds: • Amount you receive back is the inflation adjusted equivalent of the principle amount invested. • Aimed at people who are less concerned with “how much” and more concerned with “what it will buy”

  11. Holdings 10 Bonds • 24.89% CANADA GOVT REAL RETURN • 23.36% CANADA 4.25% 12/1/26 (FTIPS) • 21.18% CANADA GOVT REAL RETURN L256 • 18.21% CANADA GOVT REAL RETURN • 3.17% QUEBEC (PROVINCE OF) • 2.75% QUEBEC PROV • 2.50% ONTARIO • 2.00% QUEBEC PROV • 1.22% QUEBEC PROV • 0.31% MANITOBA PROV

  12. Cumulative performance Difference (1 Yr): 0.25% Fund Return (1Yr): -2.27% Index Return (1Yr): -2.02%

  13. Trades on the TSX: XBB Based on the Scotia Capital Universe Bond Index iShares Scotia Capital Universe Bond Index Fund

  14. iShares Scotia Capital Universe Bond Index Fund

  15. Scotia Capital Universe Bond Index • Started in December 1979 • Broadest measure of Canadian bond market • Includes more than 990 bonds • Government and corporate bonds • Market value $651 billion

  16. iShares Scotia Capital Universe Bond Index Fund Average Annualized Return • 1 year – 3.80% • 2 year – 5.94% • 3 year – 6.78%

  17. Thanks for letting us BOND with you! Any questions?

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