TORONTO, April 20, 2016 /CNW/ - CIBC (TSX: CM) (NYSE: CM) – CIBC Asset Management announced today the launch of three new fixed income strategies for institutional investors seeking higher levels of value-add and additional tools for building liability-aware portfolios.
- CIBC Core Plus Enhanced Alpha
- CIBC Canadian Core Plus Long Bond Pool
- CIBC Canadian Active Long Bond Pool
"In today's low yield environment, investors need their fixed income allocations to work harder for them more than ever before," said Doug MacDonald, Managing Director & Head, Institutional Asset Management, CIBC Asset Management. "The CIBC Core Plus Enhanced Alpha strategy addresses this challenge. Unique to the Canadian market, the strategy combines unconstrained alpha overlays with our established Core Plus approach.
"CIBC Core Plus Enhanced Alpha also seeks to exploit inefficiencies in the currency markets, which have been exacerbated by divergent monetary policies," says Mr. MacDonald. "This strategy delivers an additional source of alpha and diversification to a Core Plus fixed income portfolio."
CIBC Asset Management has also added new tools for liability-aware investors seeking active strategies managed against public benchmarks. The CIBC Canadian Core Plus Long Bond Pool offers a unique approach to de-risking, providing longer duration exposure to help hedge liabilities in conjunction with the benefits of a broader investment universe. Managed against the FTSE/TMX Canada Long Term Bond Index, the Pool is modeled after our existing Core Plus strategies—leveraging the success of a 20-year track record and $10 billion in assets under management. The Canadian CIBC Active Long Bond Pool provides another tool for investors seeking access to the Canadian-only long bond market.
"The launch of the new Pools adds to our existing suite of targeted duration strategies designed to cost-effectively help plans transition to our fully customized liability driven investing (LDI) solution, which benchmarks the LDI portfolio against a plan's unique liabilities," said Carlo DiLalla, Vice-President & Senior Client Portfolio Manager, Fixed Income, CIBC Asset Management. "The Pools provide clients with a de-risking option that maintains the transparency of public benchmarks, while delivering active management against a broader investment opportunity set."
About CIBC Asset Management
CIBC Asset Management, Inc. the asset management subsidiary of CIBC, provides a range of high-quality investment management services and solutions to retail and institutional investors. Offerings include: A comprehensive platform of mutual funds, strategic managed portfolio solutions, discretionary investment management services for high-net-worth individuals, and portfolio management for institutional clients. CIBC Asset Management is one of Canada's largest asset management firms, with over $112 billion in assets under management as of March 31, 2016.
CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients. Through our three major business units – Retail and Business Banking, Wealth Management and Wholesale Banking – CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC on our corporate website at www.cibc.com/ca/media-centre/.
SOURCE Canadian Imperial Bank of Commerce