UNION SECURITIES

ENHANCED HIGH GRADE BOND FUND

FUND DESCRIPTION
The Fund seeks to invest in a portfolio of high quality bonds and generate additional income via an option writing program.
This is an actively managed fund with the objective to outperform the Canadian Bond Index with limited volatility while only
investing in bonds of superior quality issuers.

PORTFOLIO HIGHLIGHTS FUND DETAILS

• Average Credit Rating: AA+ NAV: 10.00
• Minimum Credit Rating: A MER: class B = 0.98%, class F = 0.48%
• Effective duration approximately 6 years Management Fee: 0.48%
• Effective term to maturity approximately 7 years Minimum Investment: $10,000 Initial; $25 PAC
Listing: FundSERV
Income Distribution: Quarterly
5% initial distribution
THIS FUND IS NOT: Low management fees – suitable for fee based
accounts
• A GIC – it has similar term, but higher investment quality
from a rating and diversification perspective
• A junk bond fund – the credit quality is high investment RATINGS DISTRIBUTION
grade, no less than A as rated by established rating agencies
• A dividend fund – the fund invests in fixed income securities Credit Ratings

and not equity securities 20%

• An Emerging Markets Bond Fund – it invests exclusively in AAA

the highest rated bonds of Canadian governments and AA

50%
corporations issued in Canadian Dollars A

• A leveraged fund – the option writing program will not use 30%
leverage

SECTOR ALLOCATION
THIS FUND IS:
Sector Breakdown
• A conservative fixed income fund of the highest quality
• Suitable for risk averse investors who are seeking enhanced 25%
30% Canada, government
income are not willing to compromise credit quality
Canada, agency
• Competes with cash, government strip bonds, bond ETFs,
bond mutual funds, GICs by providing a higher cash flow Provincial / Municipal

without compromising credit quality Infrastructure / Corporate

• Eligible for registered accounts 30%

15%

A bond fund that will let you sleep at night.

The Union Securities Enhanced Bond Fund is managed by Levente Mady, Portfolio Manager and Malcolm Manson, Research Associate at
Union Securities Ltd. Commissions, management fees and expenses may all be associated with investing in the Union Securities Enhanced
High Grade Bond Fund. Please read the fund’s offering memorandum before investing. The fund is not guaranteed; its value changes
frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with
guidance from a qualified professional. Union Securities Ltd. is a member of the Canadian Investor Protection Fund and the Investment
Industry Regulatory Organization of Canada. © 2010 Union Securities Ltd. All rights reserved.
Head Office: Union Securities Ltd. ∙ PO Box 10341, Pacific Centre ∙ 900 - 700 West Georgia Street ∙
Vancouver, BC ∙ V7Y 1H4 ∙ Tel: (604) 687-2201 ∙ Fax: (604) 684-6307 ∙ Web: www.union-securities.com