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FIRST ASSET
CORPORATE BOND BARBELL INDEX ETF
AS AT NOVEMBER 28, 2014
TSX Ticker
Fund Overview
KXF
The First Asset Corporate Bond Barbell Index ETF (the "Fund") has been designed to replicate, to the
extent possible, the performance of the FTSE TMX Canada Corporate Bond Barbell Index™ (the "Index"),
net of expenses.
Continued on back page >
Fund Data - Common Units
Inception Date
Historical Index Performance - Growth Of $10,000
July 04, 2012
NAV per Unit
$9.84
Distribution Frequency
Monthly
Distribution Yield¹
3.84%
Management Fee
CUSIP
0.25%
31863H103
The Fund also offers Advisor Units
Fund Characteristics
Weighted Average Coupon %
4.95
Weighted Average Duration
5.30
Weighted Average Term to Maturity
8.27
Weighted Average Yield to Maturity %
2.84
Current Yield² %
4.06
Fund Returns (%)
Rating Summary (%)
AAA
0.00
AA
22.00
A
44.00
BBB
35.00
Total
The rate of return chart shown is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of
the Index or the Fund or returns on investment in the Fund.
101
Key Reasons to Invest
• Low Cost
• Liquidity and transparency of ETF Structure
• Institutional bond pricing for all investors
• Balanced approach offers benefits of long
and short dated bond buckets
• High income from long term bonds,
defensiveness of short term bonds
• Diversification across maturities and security
offerings
• DRIP/PACC/SWP program
¹ The Distribution Yield is calculated on the Fund`s actual
distributions paid to investors over the past 12 months based
on NAV. All distributions are paid in cash.
² The Current Yield represents the gross yield on the ETF`s
underlying portfolio of securities. It is not the yield or the
distribution investors will receive by virtue of an investment in
the ETF.
First Asset Corporate Bond Barbell Index
ETF
1M
3M
6M
YTD
1Y
2Y
SI
1.03
0.47
2.08
6.72
6.40
3.03
3.36
Sector Breakdown (%)
··
··
··
·
Financials
64.2
Industrials
8.3
Telecommunication Services
7.3
Utilities
6.5
Energy
5.5
Consumer Staples
5.5
Consumer Discretionary
Total
2.7
100
First Asset Corporate Bond Barbell Index ETF
Top Holdings (%)
Fund Overview (continued)
Coupon (%)
Maturity
BMO Capital Trust
4.63
31-Dec-2015
Greater Toronto Airports
6.47
2-Feb-2034
Bell Canada
7.85
2-Apr-2031
Toronto Dominion Bank
1.47
21-Apr-2016
Trans Canada Pipelines
8.29
5-Feb-2026
Westcoast Energy Inc
7.30
18-Dec-2026
Loblaw Companies Limited
6.45
9-Feb-2028
Canadian Imperial Bank
1.85
18-Dec-2015
Canadian Western Bank
1.69
26-Sept-2016
Great West Lifeco Inc.
6.67
21-Mar-2033
Portfolio Breakdown
Short Term Bonds
Weight %
Long Term Bonds
49.74
50.26
1 to 2 years
10 to 20 years
Yield to Maturity %
1.65
4.09
Duration
0.67
9.89
Coupon %
2.89
6.99
Maturity
The FTSE TMX Canada Corporate Bond Barbell Index™ is comprised of a
diversified selection of investment grade corporate bonds issued in Canada
and denominated in Canadian dollars.
The Index is divided into two buckets, each representing approximately 50%
of the total market value, with the short maturity bucket comprised of
floating rate notes and fixed coupon bonds with at least 1 year to maturity
but less than 2 years to maturity, and the long maturity bucket comprised of
fixed rate bonds with at least 10 years to maturity but less than 20 years to
maturity.
Barbell Strategy
A barbell bond investment strategy allocates the total portfolio equally
between short term and long term bonds. The barbell strategy allows the
fixed-income investor to receive higher income from long term bonds while
the short term bond exposure provides a counter-balance of safety and
flexibility.
The Fund, replicating the Index has 50% invested in short term maturities
(less than two years) and floating rate notes, with the other 50% invested in
longer term maturities (10-20 years). This approach provides a high current
yield but lower overall duration risk than other broad market indexes. All
bonds in the Fund are rated investment grade.
The barbell approach minimizes the need to determine where interest rates
are headed. Instead the fixed income investor can rest easier with the higher
current income provided by the 50% in longer term bonds, balanced off by
the lower risk and flexibility provided by having 50% of the Index invested in
floating rate notes and sub-two year maturities.
First Asset Corporate Bond Barbell Index ETF provides diversification by
offering a corporate bond ETF across multiple sectors. It’s a smart
risk-adjusted way to invest in investment grade bonds.
How To Purchase First Asset ETFs
First Asset exchange traded funds are listed on the Toronto Stock Exchange
in the same manner as shares of a publicly-traded company. First Asset
exchange traded funds can be purchased through most brokerage accounts.
They can be bought and sold throughout the day on the TSX during normal
trading hours.
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1 (877) 642-1289 | www.firstasset.com | info@firstasset.com
First Asset - Smart Solutions
First Asset is an independent investment firm focused on providing smart, low cost solutions that address the real-world investment needs of Canadians - capital appreciation, income generation and risk mitigation.
Rooted in strong fundamentals, First Asset`s smart solutions strive to deliver better risk-adjusted returns than the broad market while helping investors achieve their personal financial goals.
There is no assurance that the Fund will achieve its investment objectives. Commissions, trailing commissions, management fees and expenses all may be associated with investments in exchange traded funds.
Please read the prospectus before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated. The indicated rates of return of the Fund are the
historical annual compounded total returns, including changes in unit value and do not take into account sales, redemption or optional charges or income taxes payable by a security holder that would have reduced
returns. Performance is calculated net of fees. The Fund is not in any way sponsored, endorsed, sold or promoted by, FTSE TMX Debt Capital Markets Inc. ("FTDCM"), FTSE International limited ("FTSE"), the
London Stock Exchange Group companies (the "Exchange") or TSX INC. ("TSX" and together with FTDCM, FTSE and the Exchange, the "Licensor Parties"). The Licensor Parties make no warranty or representation
whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Index and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index
is compiled and calculated by FTDCM and all copyright in the Index values and constituent lists vests in FTDCM. The Licensor Parties shall not be liable (whether in negligence or otherwise) to any person for any
error in the Index and the Licensor Parties shall not be under any obligation to advise any person of any error therein. The Index is a trademark of FTSE TMX Global Debt Capital Markets Inc., incorporating "FTSE®"
and "TMX" under license. "TMX" is a trade mark of TSX Inc. and is used under licence. "FTSE®" is a trade mark of the London Stock Exchange Group companies and is used by FTDCM under licence. The Fund is
managed by First Asset Investment Management Inc.