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The Global Bond Advantage Fixed Income

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The Global Bond Advantage Fixed Income THE GLOBAL BOND ADVANTAGE FIXED INCOME Value-added options for fixed income investors are shrinking Reasons to invest For over 30 years, falling interest rates have fueled bond market returns. But as global central banks prepare to tighten their in global bonds: monetary policies, there may be upward pressure on interest rates and, downward pressure on the prices of bonds. Increased opportunity Diversify bond exposure to deal with rising rates 1 Investing globally increases the available Due to different economic and monetary cycles across the globe, not all interest rates will follow the same path and not all pool of fixed income bond markets will feel the same price impact at the same time. Investors who diversify fixed income globally can benefit options and offers from these price differences. potential value-add opportunities. Global bonds offer exposure to the monetary policies, interest rate profiles, inflation and economic cycles of markets outside North America. By owning a globally diversified mix of bonds you benefit from positive factors in some countries, potentially offsetting some of the downside in others. Diversify to lower risk An investment that 2 Best-performing countries differ every year includes global bonds allows investors to Total Return (%)Total Return (%) diversify economic and interest-rate risk. 0 10 20 30 40 50 60 0 10 20 30 40 50 60 1990 U.K. 2005 Canada 1991 Australia 2006 Poland Enhanced return 1992 Japan 2007 Canada 3 potential 1993 Japan 2008 Japan For Canadian investors 1994 Belgium 2009 Australia global bonds was the 1995 Sweden 2010 Australia 1996 Italy 2011 U.K. ar best-performing asset ar 1997 U.K. 2012 Ireland Ye class in 2008 returning Ye 1998 France 2013 Ireland 1 38.7%. 1999 Japan 2014 U.K. An investor with 2000 U.S. 2015 Swiss a North American 2001 U.S. 2016 South Africa bias would have 2002 Swiss 2017 Poland 2003 Australia 2018 Japan missed out. 2004 Poland 2019 Mexico 2020 Italy Source: Bloomberg. Returns in USD represented by Citigroup WGBI. Benefits of active currency management Global bonds pay interest in foreign currencies, which when converted to Canadian dollars, can add or detract from performance. Currency hedging can mitigate exposure to overvalued currencies that may decline in value, reducing portfolio risk. In contrast, if a currency is deemed to be undervalued, an investment manager may seek to add exposure within the portfolio. Value-added options for fixed income investors are shrinking | 1 Renaissance Investments Investor suitability Access this asset class with the Renaissance Global Bond Fund The Renaissance Global The Renaissance Global Bond Fund is managed by Brandywine Global Investment Management, LLC (Brandywine Global). Bond Fund may appeal to investors looking for: 4 pillars of superior risk-adjusted returns: A core global bond • Invests in bonds with the highest real yields 1 portfolio. • Actively manages currency exposures to protect principal and enhance returns • Patiently rotates among countries A diversifier to an 2 equity portfolio and/ • Controls risk by purchasing undervalued securities or a Canadian bond portfolio to manage How the fund manages currencies: risk. • Often hedges currency exposure of a bond position if a currency is likely to depreciate • Reduces currency exposure when a growth slowdown could be negative for currency-holders • May use currency forward contracts to invest in undervalued currencies likely to appreciate Fund options to fit your needs: • Class A • Class F 1 Source: Global Bonds represented by the FTSE World Government Bond Index. Return expressed is annual total return in CAD. ©2021 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Renaissance Investments is offered by CIBC Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. To obtain a copy of the Renaissance Investments family of funds simplified prospectus, call 1-888-888-FUND (3863). Alternatively, you may obtain a copy from your advisor. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Distributions are not guaranteed and may fluctuate and should not be confused with a fund’s performance, rate of return, or yield. Distributions paid as a result of capital gains realized by a fund and income and dividends earned by a fund are taxable in the year they are paid. ®Renaissance Investments is a registered trademark of CIBC Asset Management Inc. renaissanceinvestments.ca 579 | 01/2021 02814E Value-added options for fixed income investors are shrinking | 2.
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