CPD Resources

CPD

FUND SUMMARY

The Claymore S&P/TSX CDN Preferred Share ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P/TSX Preferred Share Index™ (the “Index”). The investment strategy of the Fund is to invest in and hold the constituent securities of the Index.

The ETF provides suitable investors of any size with the opportunity to gain exposure to the Canadian preferred shares market, while providing a diversified portfolio and the potential for quarterly distributions. By accessing preferred shares through an ETF portfolio rather than buying individual securities, investors may benefit in other ways as well. The ETF may:

  • Reduce risks associated with retractions and early redemptions, which might otherwise compromise the potential returns of an individual investor’s preferred share portfolio.
  • Reduce the credit risk associated with any particular security/issuer.
  • Eliminate the responsibility of individual investors to elect fixed or floating option upon reset of fixed/floater preferred share holdings.

Overview of Preferred Shares and Their Benefits

Preferred shares are equity securities that typically offer attractive dividend yields. They can be considered a “hybrid” investment, carrying attributes similar to both bond and stock investments. Preferred shares, like common shares, represent a form of ownership in a corporation and may also be traded on a stock exchange. Preferred shares are primarily purchased by investors for income purposes and are therefore often compared with fixed-income investments. There are a variety of characteristics common to all preferred shares:

  • As an equity investment, preferred shares rank above the interest of common equity holders and behind creditors – both in their right to receive dividend payments and ranking in their claim on the assets of the issuer.
  • The preferred share investor is entitled to a preset rate of dividend that must be paid out of earnings before any dividends are distributed to common shareholders.
  • Equity dividends receive favourable tax treatment relative to ordinary income. Normally, preferred shares carry no voting rights. However, there are often provisions for limited voting rights in the case of missed dividend.

Fund Statistics

as of 3/11/10

  MARKET PRICE NAV
Close $16.86 $16.86
Change ($0.02) $0.01
52-Week High $17.11 $17.07
52-Week Low $14.08 $13.96
Bid/Ask Midpoint $16.85
Bid/Ask Premium (Discount) -0.03 %
Volume 74,688
Shares Outstanding 22,004,000
Total Managed Assets $370,878,377
Total Managed Assets (Common and Advisor) $429,785,451
Price History

Figures are based on market close.

INDEX CHARACTERISTICS

as of 12/31/09

Number of Securities 58
Weighted Average Coupon 5.36 %
Current Dividend Yield 5.44 %

FUND PREFERRED TYPE BREAKDOWN

as of 12/31/09

Fixed/Floaters 39.17 %
Retractable 38.17 %
Floating Rate 22.66 %

This data is subject to change on a daily basis.

RATINGS BREAKDOWN

as of 12/31/09

Pfd-1 59.37 %
Pfd-2 22.02 %
Pfd-3 18.61 %

This data is subject to change on a daily basis.

Profile

Symbol (Click for Intraday Price) CPD
Exchange TSX
CUSIP 18383X106
Fund Inception Date 4/10/07
Income Distribution Canadian Dividend Income
Distribution Schedule (if any) Quarterly
Management Fees 0.45 %
Fiscal Year-End 12/31
Investment Adviser Claymore Investments, Inc.
Index Name -
Index Provider -
RRSP, RRIF, RESP, DPSP, TFSA 100% Eligible
DRIP Yes
PACC Yes
SWP Yes

Top Fund Holdings

as of 3/11/10

TRANSCANADA CORP CUM RED 1ST PFD SER 1 3.39 %
MANULIFE FINANCIAL CORP CL A SR 4 2.98 %
ROYAL BANK OF CANADA 5YR NON CUM RST PFD 2.64 %
BK OF MONTREAL NON CUM 5 YR RESET B S-23 2.55 %
ROYAL BK OF CANADA1ST PRF NON CUM 5 YR R 2.49 %
TORONTO DOMINION BK N-CUM 5YR CL A PFD S 2.47 %
CANADIAN IMPERIAL BANK COMM 5.3% 2.44 %
ROYAL BANK OF CANADA 5YR PFD SER-AR NON 2.30 %
MANULIFE FIN COR PFD SHARES 2.22 %
TORONTO-DOMINION PFD SERIES O 4.85% 2.20 %
All Holdings

This data is subject to change on a daily basis.

Top Sectors

as of 3/11/10

SECTOR WEIGHTING
Financials 76.73 %
Telecommunication Services 4.80 %
Consumer Discretionary 4.41 %
Consumer Staples 4.31 %
Energy 3.39 %
Industrials 3.35 %
Utilities 3.01 %
All Sectors

The data is subject to change on a daily basis.

CURRENT DISTRIBUTION

Ex-Date 12/24/09
Record Date 12/30/09
Payable Date 1/7/10
Distribution per Share $0.210000
Distribution History

Distribution per unit is subject to change on the ex-distribution date. Distributions, if any, will be paid on a quarterly basis.

RISKS AND OTHER CONSIDERATIONS

There is no assurance the Fund will achieve its investment objective. Past performance does not guarantee future results. Index returns do not represent Fund returns. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed. Their values change frequently and past performance may not be repeated.

An investment in the Fund will be subject to certain risk factors, including: there can be no assurance that the Fund will be able to achieve its distribution or total return objectives; risk of error in replication the S&P/TSX Preferred Share Index; equity risk; Index investment strategy risk; tracking error; rebalancing and adjustment risk; calculation and termination of the S&P/TSX Preferred Share Index; risk that the constituent securities may cease trading; fluctuations in NAV; illiquid securities risk; use of derivative transactions; counterparty risks associated with securities lending; trading price of units; potential conflicts of interest; changes in legislation, including tax legislation; taxation of the fund; absence of an active public trading market for the units; lack of an operating history; changes in dividend policies, foreign investment risk and interest rate risk.

Commissions, trailing commissions, management fees and expenses all may be associated with fund investments. Please read the prospectus before investing. The indicated rate of return is the historical annual compounded total return including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Funds are not guaranteed, their values change frequently and past performance may not be repeated.