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TORONTO, Sept. 13, 2016 /CNW/ - First Asset Investment Management Inc. ("First Asset") is pleased to announce the launch of First Asset Canadian Buyback Index ETF (TSX: FBE) and First Asset U.S. Buyback Index ETF (TSX:FBU). Both will commence trading today on the Toronto Stock Exchange.
"For the first time, CIBC's Proprietary Equity Index Strategies will be available to retail investors through ETFs. First Asset Canadian Buyback Index ETF and First Asset U.S. Buyback Index ETF represent an excellent opportunity to invest with a unique strategy that favours high quality firms, while also enjoying the benefits of the ETF structure, including transparency, tax efficiency, liquidity and low cost."
President and Chief Executive Officer
First Asset Investment Management Inc.
Access to Quality Companies with Low Share Price Volatility and Tax Efficiency
FBE and FBU are the only ETFs in Canada that provide access to a portfolio of equity securities of quality companies with active share buyback programs that have significantly and consistently reduced their issued and outstanding share count. Companies selected for inclusion in these indexes typically demonstrate strong cash flows and lower share price volatility. Additionally, share buybacks are typically a more tax efficient method of returning value to shareholders than dividends. FBE is designed to replicate, to the extent possible, the performance of the CIBC Canadian Buyback Index and FBU is designed to replicate, to the extent possible, the performance of the CIBC U.S. Buyback Index, in each case net of expenses.
CIBC Share Buyback Indexes
The CIBC Canadian Buyback Index and the CIBC U.S. Buyback Index were developed by CIBC World Markets Inc. based on empirical evidence that shows that highly profitable companies with excellent core business models often have cash flows that exceed the required re-investment needed to support intrinsic growth and such cash flows are frequently used to implement share buyback programs. Each Index uses a proprietary rules-based methodology to select its constituent securities. In order for stocks to be included in the Canadian & U.S. buyback indices, companies must demonstrate both sufficient buyback activity and frequency in reducing their shares outstanding.
CIBC is a Canadian Schedule I bank that, among other things is a leading provider of quantitative index strategies in Canada and the United States with solutions offered across multiple asset classes (equities, commodities, FX and rates). CIBC's index clients include retail investors, asset managers, pension plans and insurance companies. CIBC's index family provides factor, trend, curve, hedging and thematic based investing. CIBC indices facilitate exposure to various asset classes in a systematic, transparent and cost-efficient manner.
First Asset – Smart SolutionsTM
First Asset, a CI Financial Company, is a Canadian investment firm delivering a comprehensive suite of smart ETF solutions. 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.
Please read the prospectus before investing. Important information about each First Asset ETF is contained in its prospectus. Individuals should seek the advice of professionals, as appropriate, prior to investing. The First Asset ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses all may be associated with an investment in the First Asset ETFs.
Each First Asset ETF is managed by First Asset, a subsidiary of First Asset Capital Corp. (FA Capital). TMFirst Asset and its logo are trademarks of FA Capital, a wholly-owned subsidiary of CI Financial Corp. which is listed on the Toronto Stock Exchange under the symbol "CIX". ®CI FINANCIAL is a registered trademark of CI Investments Inc., used under license.
Certain trademarks of Canadian Imperial Bank of Commerce and/or certain of its affiliates (collectively "CIBC") have been licensed by First Asset for use in connection with the First Asset ETFs. The securities of the First Asset ETFs are not sponsored, promoted, sold or supported in any other manner by CIBC or by the index calculation agent, Solactive A.G. ("Solactive"), nor do CIBC or Solactive offer any express or implicit guarantee or assurance either with regard to the results of using the indexes on which the First Asset ETFs are based, or the index prices at any time or in any other respect. The prospectus of the First Asset ETFs contains a more detailed description of the limited relationship CIBC and Solactive have with First Asset and the First Asset ETFs.
SOURCE First Asset
For further information: First Asset Investor Relations, 416-642-1289 or 1-877-642-1289 or www.firstasset.com