TORONTO, Jan. 29,
2024 /CNW/ - CIBC (TSX: CM) (NYSE: CM) – CIBC Asset
Management Inc. (CAM) today announced that three new target
maturity bond mutual funds known as CIBC 2025
Investment Grade Bond Fund, CIBC 2026 Investment
Grade Bond Fund, and CIBC 2027 Investment Grade
Bond Fund (the "Funds") are now available for purchases.
Each CIBC Investment Grade Bond Fund provides a diversified
portfolio of Canadian-dollar denominated investment grade corporate
and government bonds with an effective maturity in the calendar
year stipulated in their name.
The Funds will prioritize the inclusion of bonds that are
trading at a discount to their maturity value to seek to provide
greater tax efficiency.
Investors will benefit from:
- Designated maturity dates – Similar to individual bonds,
each CIBC Investment Grade Bond Fund has a defined maturity date at
which time the Fund will terminate and the Fund's net assets will
be distributed to investors.
- Explicit exposure – With the CIBC Investment Grade Bond
Funds investors can build customized portfolios tailored to
specific maturity profiles that can benefit from the potential pre
and after-tax return advantage of maturing bonds that are purchased
at a discount to par.
- Monthly distributions - Income is distributed monthly
with the option of receiving a consistent cash flow or reinvesting
the proceed in additional units of the Fund, an option not
available with individual bonds.
- Simplicity and efficiency – The CIBC Investment Grade
Bond Funds are an efficient and convenient way to build bond
ladders and manage interest rate risk by investing in the Funds
with consecutively maturing years.
"This is the first time in decades that a considerable amount of
bonds within the Canadian bond market are trading at a discount to
par. We are extremely pleased to provide investors with a new
investment solution that offers the preciseness of investing in
individual bonds with the diversification benefits of a mutual
fund" said David Scandiffio,
President and Chief Executive Officer, CIBC Asset Management.
A copy of the simplified prospectus of the Funds is available
at https://www.renaissanceinvestments.ca/reporting-governance/prospectus
Commissions, trailing commissions, management fees and expenses
all may be associated with mutual fund investments. Please read the
simplified prospectus before investing. Mutual funds are not
guaranteed, their values change frequently, and past performance
may not be repeated.
About CIBC
CIBC is a leading North American financial institution with
14 million personal banking, business, public
sector and institutional clients. Across Personal and Business
Banking, Commercial Banking and Wealth Management, and Capital
Markets and Direct Financial Services businesses, CIBC offers a
full range of advice, solutions and services through its leading
digital banking network, and locations across Canada, in the United
States and around the world. Ongoing news releases and more
information about CIBC can be found
at www.cibc.com/ca/media-centre.
About CIBC Asset
Management
CIBC Asset Management Inc. (CAM), the asset management
subsidiary of CIBC, provides a range of high-quality investment
management services and solutions to retail and institutional
investors. CAM's offerings include: a comprehensive platform of
mutual funds, strategic managed portfolio solutions, discretionary
investment management services for high-net-worth individuals, and
institutional portfolio management. CAM is one of Canada's largest asset management firms, with
over $170 billion
in assets under administration as of December 2023.
SOURCE CIBC