CIBC Asset Management has introduced ETF share classes for three actively managed, multi-sector bond portfolios catering to investors with different risk tolerances.

David Scandiffio, President and CEO, CIBC Asset Management.

The CIBC Conservative Fixed Income Pool ETF (CCNS CN), CIBC Core Fixed Income Pool ETF (CCRE CN), and CIBC Core Plus Fixed Income Pool ETF (CPLS CN) have listed on the Toronto Stock Exchange and come with management fees of 0.30%.

Each portfolio – CIBC calls them ‘pools’ – invests in ETFs and mutual funds, including both CIBC’s own products as well as those offered by non-affiliated third parties, to gain exposure to short-term instruments, Canadian and global investment-grade bonds, high-yield securities, emerging market debt, and currencies.

CIBC engages multiple groups and strategies to diversify sources of added value. The portfolios are run by a network of global investment managers with each applying their unique market knowledge and experience through a collaborative team approach.

Asset allocations

The CIBC Conservative Fixed Income Pool focuses on generating regular income while preserving capital. Half (50%) of its long-term asset allocation is to short-term debt and a third (35%) to global government and corporate securities. Small allocations are made to high-yield bonds (7%), emerging market debt (6%), and currencies (2%).

The CIBC Core Fixed Income Pool seeks to generate regular income with a secondary focus on capital appreciation. Its long-term asset allocation favours global government and corporate securities (47%) and short-term debt (28%) with modest allocations to high-yield bonds (14%), emerging market debt (8%), and currencies (3%).

The CIBC Core Plus Fixed Income Pool balances the goals of generating regular income and achieving modest capital appreciation. Nearly half (48%) of its long-term asset allocation is dedicated to global government and corporate securities, with high-yield (19%) and short-term debt (14%) the next largest exposures. Emerging market debt and currencies account for 12% and 7% respectively.

David Scandiffio, President and CEO, CIBC Asset Management, commented, “Building on the successful performance of our fixed income pool products, we are pleased to offer these investment solutions in an ETF series which will allow investors greater flexibility in their portfolios.”