The bond has been designed to provide investors with exposure to the return and performance of a broad liquid high yield corporate bond index, the Barclays Capital US High Yield Very Liquid Index, net of fees and expenses.
Given that the high yield bonds comprising the index are priced in US dollars, the fund intends to hedge the fund’s US dollar currency value back to the Canadian dollar, providing exposure to the bonds underlying the index while reducing the currency risk for Canadian investors.
Som Seif, president and CEO of Claymore, said: “High Yield bonds are a very important part of an investment portfolio for their income and diversification benefits and CHB is a simple, low cost way to obtain hedged exposure to high yield bonds on a tax-efficient basis, making it an optimal investment for income-focused investors.”
