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TORONTO, Oct. 25, 2011 /CNW/ - Claymore Investments, Inc., a leading provider of intelligent exchange‐traded funds ("ETFs") in Canada, is pleased to announce the launch of the common and advisor class units of the Claymore 1-10 Yr Laddered Government Bond ETF (TSX:CLG/CLG.A) and the Claymore 1-10 Yr Laddered Corporate Bond ETF (TSX: CBH/CBH.A). These two new laddered bond ETFs expand on the existing lineup of Claymore's 1-5 Yr Government and Corporate Laddered Bond ETFs and together they are among the lowest cost bond funds in Canada, in their respective fixed income category*.
The Claymore 1-10 Yr Laddered Government Bond ETF ("CLG") seeks investment results that correspond generally to the price and yield (before fees and expenses) of the DEX 1-10 Year Laddered Government Bond Index. CLG will hold constituent securities of the DEX 1-10 Year Laddered Government Bond Index in substantially the same proportion as they are reflected in that index. The portfolio will consist primarily of semi-annual pay fixed rate government bonds issued domestically in Canada and denominated in Canadian dollars with an investment grade rating and a remaining effective term to maturity of between zero and ten years. The management fee will be 0.15%**, similar to the Claymore 1-5 Yr Laddered Government Bond ETF (CLF).
The Claymore 1-10 Yr Laddered Corporate Bond ETF ("CBH") seeks investment results that correspond generally to the price and yield (before fees and expenses) of the DEX 1-10 Year Laddered Corporate Bond Index. CBH will hold constituent securities of the DEX 1-10 Year Laddered Corporate Bond Index in substantially the same proportion as they are reflected in that index. The portfolio will consist primarily of semi-annual pay fixed rate corporate bonds issued domestically in Canada and denominated in Canadian dollars with an investment grade rating and a remaining effective term to maturity of between zero and ten years. The management fee will be 0.25%**, similar to the Claymore 1-5Yr Laddered Corporate Bond ETF (CBO).
CLG and CBH are structured using a laddered strategy, which allocates the capital of the funds over the staggered maturity dates of the securities in their respective portfolios.
"When it comes to bond investing, we believe that a laddered bond strategy remains one of the best ways to passively own bonds. These two new ETFs extend on the success of our existing 1-5 year laddered ETFs, which have clearly had great demand from the market, with close to $2 billion in assets already." said Som Seif, President & CEO of Claymore Investments, Inc. "These laddered bond ETFs remain one of Canada's lowest cost options when it comes to bond investing."
The Claymore 1-10 Yr Laddered Government Bond ETF and the Claymore 1-10 Yr Laddered Corporate Bond ETF have closed their initial offerings and will begin trading on the Toronto Stock Exchange when it opens this morning.
About Claymore Investments, Inc.
Claymore Investments, Inc. ("Claymore") is a Canadian leader in bringing
intelligent, low cost exchange-traded funds in Canada through its
family of 34 ETFs and 2 closed-end funds across broad asset classes
including core equity, global sectors, fixed income and commodities
with approximately $6.4 billion in assets under management as of
September 30, 2011. Claymore Investments, Inc. is a wholly-owned
subsidiary of Guggenheim Funds Services Group, Inc., a financial
services and asset management company based in the Chicago, Illinois
area and an indirect subsidiary of Guggenheim Partners, LLC,
("Guggenheim") a global, diversified financial services firm with more
than $100 billion in assets under supervision. Guggenheim, through its
affiliates, provides investment management, investment advisory,
insurance, investment banking, and capital markets services. The firm
is headquartered in Chicago and New York with a global network of
offices throughout the United States, Europe, and Asia.
For further information about any of the Claymore ETFs or Claymore Investments, Inc., please visit our website at www.claymoreinvestments.ca
*Reference is to the common class units management expense ratio of the applicable Claymore Laddered Bond ETFs. Source Morningstar Direct as of 9/30/11.
**Management fees for common class units only. Advisor class units have higher management expense ratios because of an additional service fee payable to registered investment advisors. Commissions, trailing commissions, management fees and expenses may all be associated with an investment in an exchange-traded fund ("ETF"). Investors should consider the investment objectives and policies, risk considerations, charges and ongoing expenses of an ETF before investing. Please read the prospectus carefully before you invest. For a copy of the prospectus or more information, please contact your IIROC registered advisor or Claymore Investments, Inc. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.
