Claymore Investments, Inc. Launches New Canadian Bond ETF

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Claymore Investments, Inc., on Nov. 19, 2009 announced the launching of the Claymore Advantaged Canadian Bond ETF (TSX: CAB.TO).

The fund is a fixed income exchange traded fund (ETF) which is designed to provide investors with a low cost, tax-efficient exposure to a diversified Canadian bond portfolio. The plan is for the fund to track the DLUX Capped Bond Index, a high-quality subset of the DEX Universe Bond Index.

In other words, the price and performance of the DEX DLUX Capped Bond Index ("the Index") will determine the return of the fund, net of fees and expenses.

To qualify for the DLUX indexes, securities must have a minimum issue size or amount outstanding of $300 million, credit ratings of A or higher, and annual trade-volume turnover of 25% or higher. The Index tracks Canadian investment grade Government and corporate bonds, with target exposure allocations of 60% and 40%, respectively. The fund will receive exposure to the bond securities underlying the Index through the use of a forward agreement with TD Global Finance.

"Bonds are a very important part of an investment portfolio for income and diversification purposes and CAB is a simple, low cost way to get exposure to bonds on a tax-efficient basis. The fund is structured to provide tax-efficient income, making it an optimal investment for non-registered or taxable accounts and we are excited to be partnering with DEX, the leader in Canadian fixed income indexes, to bring this product to the market" said Som Seif, President and CEO of Claymore.

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Money Magazine Hoss

Next Hoss Cents Free Financial Money Magazine Post: Nov.28, 2009
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Excel Funds Launches BRIC Fund
BMO Introduces Nine New ETFs
PH&N Bond Fund Series D: A Best Bet Mutual Fund

BMO Introduces Nine New ETFs

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Bank of Montreal (BMO) on Oct 26, 2009 added nine new funds to their stable of Exchange Traded Funds (ETFs). This brings the total of ETFs in the BMO barn to thirteen.

The new ETFs are comprised of an exacta of industry diversified funds:

1. BMO International Equity Hedged to CAD Index
2. BMO Emerging Markets Equity Index

A trifecta of "equal weight" industry sector funds:

1. BMO S&P/TSX Equal Weight Banks Index
2. BMO S&P/TSX Equal Weight Oil & Gas Index
3. BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index

The remaining four new ETFs are fixed income funds. Three of these fixed income funds invest in federal, provincial and corporate issues, and the fourth is hedged to the Canadian Dollar.

1. BMO Short Federal Bond Index
2. BMO Short Provincial Bond Index
3. BMO Short Corporate Bond Index
4. BMO High Yield U.S. Corporate Bond Hedged to CAD

The following document provides the investor with the names, symbols and current management expense ratio (MER) for these nine new BMO exchange traded funds.




Investors may find these new additions to the BMO stable of EFTs a worthwhile bet.

Stay on track,

The Hoss
Next Hoss Cents Free Financial Money Magazine Post: Nov.08, 2009
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PH&N Bond Fund Series D: A Best Bet Mutual Fund

Another Hoss's best bet mutual fund is The PH&N Series D bond fund. This is another fund that the Hoss and Mrs. Hoss hold in their portfolio.

The PH&N bond fund is a fixed income fund whose fundamental investment objectives are to provide relatively high yields and stability of capital by investing primarily in a well-diversified portfolio of fixed income securities issued by Canadian governments and corporations. This fund is suitable for investors with a low tolerance for risk.

According to the PH&N website, annualized compound rates of return As of September 30 2009, are as follows:

1 year 13.6%

3 years 5.3%

4 years 5%

5 years 5.7%

10 years 6.5%


As of September 30, 2009 the top ten holdings were:

Prov. of Ontario Return: 7.60% Matures: Jun 02/27 (Total % of fund 12.2%)

Prov. of Ontario Return: 4.30% Matures: Mar 08/17 (Total % of fund 4.7%)

Canada Housing Trust Return: 3.15% Matures: Jul 15/14 (Total % of fund 3.4%)

The Toronto-Dominion Bank Return: 5.38% Matures: Nov 01/12/17 (Total % of fund 3.3%)

Morgan Stanley Group Inc. Return: 4.50% Matures: Feb 23/12 (Total % of fund 2.6%)

Prov. of Ontario Return: 4.40% Matures: Jun 02/19 (Total % of fund 2.5%)

Canada Housing Trust Return: 4.10% Matures: Dec 15/18 (Total % of fund 2.3%)

The Bear Stearns Companies Inc. Return: 4.35% Matures Jul 20/12 (Total % of fund 2.1%)

Wells Fargo Financial Canada Corp Return: 5.20% Matures: Sep 13/12 (Total % of fund 2.0%)

Canadian Imperial Bank of Commerce Return: 5.00% Matures: Sep 10/12 (Total % of fund 2.0%)

The fund pays interest dividends quarterly and capital gains (if any) yearly.


For more information on this fund visit PH&N

Stay on track,

The Hoss
Next Hoss Cents Free Financial Money Magazine Post: Oct.18, 2009
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Hoss's Best Bet Mutual Funds: Bond Funds

PH&N High Yield Bond Fund

Starting with today's edition, Money Magazine Hoss will begin a series of posts in which he reviews his best bet mutual funds.

Fixed income Bond Funds are the first category of mutual funds Money Magazine Hoss has selected for review.

The Hoss and Mrs. Hoss have included the PH&N High Yield Bond Fund, in their stable of mutual funds.

When the Government of Canada introduced the tax free savings account in 2009, The Hoss and Mrs. Hoss invested the maximum permissible amount in The PH&N High Yield Bond Fund. How has this fund performed? Since their initial investment on January 26, 2009, The Hoss and Mrs. Hoss have realized a return of over 14%.

The PH&N High Yield Bond Fund investment objectives are to provide a high level of income and the opportunity for capital appreciation by investing primarily in a well-diversified portfolio of fixed income securities issued by Canadian corporations.

To achieve the fund's investment objectives, the manager invests primarily in medium quality Canadian corporate bonds and preferred shares and government bonds issued or traded in Canadian and U.S. dollars. The average term to maturity of the portfolio is managed within strict guidelines, typically between three and ten years.

If you are an investor with low or moderate risk looking for a bond fund with high levels of current interest income, this fund may be of interest to you.

As with all Mutual Funds there is some risk with the purchase of this fund. The principal risks associated with an investment in this fund are market, interest rate, credit and liquidity risks.

For more information see PH&N High Yield Bond Fund.

Stay on track,

The Hoss
Next Hoss Cents Free Financial Money Magazine Post: Oct.11, 2009
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Money Market Funds

From The Hoss's Mouth

Money Market Funds are featured in today's Hoss Cents Free Financial Money Magazine. Money market funds are a safe hitching post to park your cash. Income or growth potential is very low but in times of unstable stock markets they are a good place for your money.

Money Market Funds are appropriate for the investor who wants liquidity, stability of capital, and an interest income higher than savings accounts. If you and your financial adviser have determined that you have a very low risk tolerance level, a MMF would be perfect for you.

When shopping for a Money Market Fund, you and your financial adviser should consider no-load funds only. The returns on money market funds do not vary much, so The Hoss cannot see any advantage to purchasing a commission-based Money Market Fund. Also, closely review the fund's expenses, which are outlined in the prospectus.

The investment objectives of most money market funds are to preserve capital and provide a steady level of income for the investor. It is the intention of the fund company to maintain the per unit price at a constant level, usually ten dollars, but the prospectus may contain a clause that states there is no guarantee that the unit price will not fluctuate.

Money market funds usually invest in a well diversified portfolio of short term securities such as, government or government guaranteed treasury bills (T-Bills), asset-backed commercial paper, certificates of deposit, and bankers acceptances. The funds are conservatively managed, and the average term to maturity varies, but never more than 364 days.

Distribution of interest earned is paid monthly and can be deposited directly into your bank account, paid by cheque, or reinvested in units of the fund. Most fund companies will automatically reinvest in units of the fund unless otherwise directed by the investor.

To sum up, you will not make a large return from a money market fund, but your money is relatively safe and can be accessed quickly.

Stay on track,

The Hoss

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Types of Fixed Income Securities

From The Hoss's Mouth

Today, Hoss Cents Free Financial Money Magazine discusses fixed income securities. There are four major types of fixed income securities: Bonds, Debentures, Stripped Bonds and Mortgage-Backed Securities. The Hoss will provide some detail of each, and you can evaluate which are best suited for your risk tolerance level. Somewhat like handicapping a racing form, only with fewer variables. The cost of purchasing any of these fixed income securities is by commission built into the purchase price. You earn money from the interest paid and/or a capital gain. Note: You could also have a capital loss.

Bond: A fixed income security that is a secured loan to a company or government. The security is in the assets of the company or government. Length of term to maturity is usually one to thirty years. Interest is generally paid at a fixed percentage per year. The credit rating of the issuer and interest rates at time of issue will determine the interest rate. The greater the risk, the higher the interest rate. In the event of a default and subsequent disposition of assets, tax authorities, employees and creditors rank ahead of the bondholders. Preferred and common shareholders rank behind the bondholders.

Debentures: The principal difference between bonds and debentures is in the security. Debentures may be secured by the issuer's general assets not specific company assets. However, it is still considered a fixed income security.

Stripped Bonds (Strips): With this fixed income security, the principal portion of the bond and the interest payment coupon are separated from each other and sold as individual investments. Eighteen months to thirty years is the term range of this fixed income security. Regular bonds with similar credit quality and terms usually have lower yields than stripped bonds. Strips mature at face value, but are sold at a discount. The difference between the value at maturity and discounted price you paid for the strips is your interest income. You should expect a greater discount the longer the term to maturity. The income you receive is deferred, so The Hoss suggests it may be wise to seek the advice of a tax consultant before investing in strips.

Mortgage-Backed Securities (MBS): This type of fixed income security is a pool of mortgages in which you have a partial ownership. You should expect a term range of one to ten years. MBS usually make monthly income payments on fixed rates of return. An MBS is fully guaranteed by Canadian Mortgage and Housing Corporation.

That sums up today's post on fixed income securities. Now it's time for The Hoss to munch on some oats.

Stay on track,

The Hoss

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