Achieving A Balanced Portfolio With. Fixed Income Investments

Transcription

1 Achieving A Balanced Portfolio With Fixed Income Investments

2 Table Of Contents 2 About CIBC Wood Gundy 3 Introducing The CIBC Wood Gundy Fixed Income Investment 4 Inflation And The Real Rate Of Return 5 Types Of Fixed Income Investments 11 1 A Quick Guide To Fixed Income Securities

3 With your best interests always front of mind, your Investment Advisor will help you create the financial future you ve always dreamed of. At CIBC Wood Gundy, our clients are the focus of everything we do. At CIBC Wood Gundy, our services give you unparalleled service, customization to your individual needs and value for your dollar. Designed to develop an enhanced relationship with your Investment Advisor, our accounts and services connect you with a professional to receive personalized advice on investment decisions and portfolio construction. Investing is more than just a series of transactions. It s about getting professional advice from a qualified expert and knowing that someone you trust is looking out for your best interests. It s about having a seasoned professional monitor your portfolio so you can focus on other things. Investing is about building the future you ve dreamed of. Since 1905, generations of Canadians have relied on the expertise and integrity of CIBC Wood Gundy Investment Advisors to manage their future. Today, we continue to uphold these standards, ensuring our name remains synonymous with excellent service, support and value, for affluent Canadians. A name steeped in tradition, CIBC Wood Gundy is a top-tier firm among full-service brokerages in Canada, offering the services and products you need to achieve all of your financial goals. 2

4 What Is A Fixed Income Investment? Dependable, yet flexible, fixed income investments serve a myriad of individual financial needs. CIBC Wood Gundy recognizes the importance of fixed income investments in a properly diversified and balanced portfolio, and we make available to our clients a wide spectrum of appropriate products. A traditional* fixed income investment is a debt obligation essentially an IOU. The borrower (known as the issuer) promises to pay the investor a specified rate of interest (known as the coupon rate) on a regular basis (typically every six months) for as long as the investor holds the investment, and then repay the principal on a stated maturity date. Similar to stocks, most debt investments trade in the marketplace and fluctuate in price. Because the bond market is not readily visible to investors, many do not realize its size. In Canada, the fixed income market is approximately 40 times larger in trading volume than the equity market. The value of a fixed income security is tied to current interest rates and the currency of the country in which the security has been issued, along with the credit quality and outlook of the issuer, and the issue s term to maturity. When interest rates decrease, the price of a bond generally will increase; the bond s coupon rate becomes more attractive compared to the current market interest rates. In contrast, when interest rates rise, bond prices generally fall. Considering the future trend of interest rates is an important part of understanding fixed income securities. Why Invest In Fixed Income Securities? Fixed income securities appeal to investors for several reasons: Diversification: By diversifying your portfolio with fixed income securities, you can reduce your investment risk and potentially increase your returns over time. Safety: Fixed income securities provide a steady stream of income and an issuer-guaranteed payback price if held to maturity. In addition, the safety of a fixed income security is reflected in the credit rating of the issuer. Debt also ranks before equity within the capital structure, providing investors with additional security. Certainty: High quality fixed income securities can provide a series of predictable cash flows over a period of time with minimal risk to the invested capital. This feature is essential for budgeting and long-term planning. Choice: The multitude of fixed income securities available today provides investors with a flexible means to increase the value of their investments. *Traditional fixed income investments refers to semi-annual pay bond and debenture issues. 3

5 Inflation And The Real Rate Of Return The real rate of return a bond offers is the stated return (yield) of the bond less inflation. If inflation rises, the purchasing power of the investor s investment at maturity declines. This decline in value causes the current price of the bond to fall. If inflation declines over the holding period of the bond, the reverse is true and the value of the bond increases. In this instance, the purchasing power increases when it matures, which is reflected by higher current prices. As the chart below demonstrates, inflation cycles are long-developing, and it is more important to follow secular trends than near-term fluctuations. For long maturity bonds, a major component in their valuations is the market s collective expectations for future inflation. Inflation has been a focal point for central banks around the world since And since that time, inflation has been trending down on a global scale. This trend has, in turn, prompted lower interest rates and provided bond investors with capital gains. Looking ahead, we see inflation to be well-contained, as it remains the priority of the central banks. The Bank of Canada has set an explicit target band for the core rate of inflation at between one and three per cent, as represented by the dashes in the CPI chart below. %

6 Types Of Fixed Income Investments Fixed Income: Lower Risk, But Not Risk-Free When held to maturity, high quality issues are generally considered conservative investments. Yet, like any investment, fixed income securities can be subject to certain risks, including price fluctuation. This type of risk arises when you sell your fixed income investment prior to the maturity date. However, doing so can also work to your advantage. As mentioned, bond prices and interest rates generally have an inverse relationship: when interest rates rise, prices on existing bonds tend to fall, and when rates fall, bond prices tend to rise. So, if you sell a fixed income investment before the maturity date and interest rates have risen since your original purchase, you may receive less than your original principal. Then again, if interest rates have fallen since that time, the principal you receive could be higher. The broad and growing appeal of fixed income investments has caused an explosion in the type and range of products available: Government of Canada Securities Federal government securities are considered the safest fixed income investments available as they are secured by the full faith, credit, and taxing power of the Canadian government. As a result, the market for these securities is enormous, with billions of dollars exchanging hands daily. Because of their high quality and large market, Government of Canada bonds also serve as the benchmark for all other Canadian fixed income securities. This means that all other securities are priced relative to these bellwethers. The higher an issue s credit worthiness, the lower the yield relative to other bonds of the same maturity. Therefore, the difference in yield between a provincial bond and a federal government bond reflects the higher credit worthiness of the Government of Canada. Correspondingly, the credit worthiness of a province is higher than that of a corporation. A small percentage difference in yield may make a significant impact on an investor s return. However, an assessment of risk tolerance must be considered when choosing the appropriate fixed income investment. There are three classes of federal securities: Government of Canada Guarantees Several present and former federal government agencies carry the Government of Canada s guarantee, and offer attractive yields. Examples include agencies such as Canada Mortgage and Housing Corporation (CMHC) and Export Development Canada (EDC). Government of Canada Treasury Bills Canadian Treasury Bills (T-Bills) are short-term instruments issued by the federal government. They are considered the safest Canadian money market instrument and are assigned the top credit rating (R1-High) by the Dominion Bond Rating Service. Terms to maturity range from one to 365 days with the most liquid offerings available in three-, six- and 12- month terms, with auctions occurring every other week. Government of Canada Bonds Federal fixed income securities with maturities greater than one year are generally referred to as Canada bonds. These "Canadas" are issued at, or near, their par value of $1,000 with a stated coupon, or interest rate, which is paid to the owner semi-annually. Government of Canada bonds range in maturity from one month to 30 years, and are actively traded giving you the benefit of a large, liquid market in which to buy or sell your securities. 5

7 Provincial, Municipal And Agency Securities Just as the federal government has the need to offer fixed income securities to finance indebtedness, so too, do provinces, municipalities and various government agencies. Provincial Securities Provinces issue T-Bills, notes and bonds. Instead of being federally guaranteed, these securities are guaranteed by the issuing provinces. Because they are slightly less liquid, they generally provide higher yields. These higher yields also reflect the fact that the creditworthiness of a province is somewhat lower than that of the federal government. Municipal and Agency Securities Municipalities and provincial government agencies all issue bonds on the open market. Like all bonds, these provide semi-annual interest payments and the return of principal at maturity. Money Market Instruments Money market instruments are ideal for people seeking a short-term, lower-risk holding. The money market brings together borrowers and lenders of large sums of money for short periods of time. Aside from Government of Canada T-Bills, the two most common forms of money market instruments are Banker s Acceptances and Commercial Paper. Bankers Acceptances A Banker s Acceptance (BA) is a short-term credit investment created by a corporation and guaranteed by a bank to make payment. BAs are offered at a discount from face value and pay accrued interest at maturity just like a T-Bill. Yields on BAs tend to be slightly higher than federal or provincial T-Bills, reflecting the difference in creditworthiness between these corporate issuers and their government counterparts. Most BAs issued by major banks are rated as high as R1-High by Dominion Bond Rating Service and terms to maturity range from one to 365 days with the most liquid offerings set at one-, two-, three-, six- and 12-month terms. Similar to Banker s Acceptances are Bearer Deposit Notes (BDNs). A BDN is a promissory note issued by a bank on a discounted basis. Terms on BDNs range from one to 365 days. As a direct obligation of the bank, BDNs are issued in bearer form at a discount and mature at par. BAs and BDNs offer numerous maturity terms, along with liquidity through an active secondary market. Commercial Paper Commercial Paper investments are short-term, unsecured promissory notes issued by major corporations. Like T-Bills and BAs, Commercial Paper is sold at a discount and pays accrued interest at maturity. Commercial Paper is backed only by the creditworthiness of the issuer and generally provides the highest yield of any money market security. Issues range in rating from top investment grade quality down to the equivalent of junk bond status. Terms to maturity range from one to 365 days with most liquid offerings at one-, two- and three-month terms. Guaranteed Investment Certificates Guaranteed investment certificates (GICs) offer investors high yielding term deposits which may be federally insured. They are most commonly available from banks and trust companies. GIC maturities range from one to five years, and a minimum investment amount is required. Interest is usually calculated on an annual basis, but issues are also available with interest paid monthly or semi-annually or at maturity. GICs cannot be redeemed prior to maturity and, generally, they cannot be resold. Thus, most investors who purchase these securities should be prepared to hold them until maturity. 6

8 Types Of Fixed Income Investments Stripped Bonds Stripped bonds are one of the most popular retirement investments in the Canadian fixed income market, and represent the ownership of a future payment. They are created when an investment dealer, such as CIBC World Markets, separates the interest-bearing coupons from the principal of a bond. Both of these elements may then be sold independently at a discount, allowing investors to obtain quality and issuer guaranteed returns for a modest investment. No periodic interest payments are made on stripped bonds. Instead, these securities are sold at deep discounts and compound to their maturity value. The purchaser of a strip knows the future value of the investment, so the rate of return to maturity is also predetermined. And because there are no periodic interest payments, the investor avoids re-investment risk. Because these strips represent the semi-annual interest payments on a conventional bond, a wide array of maturities is available. This variety provides an advantage when structuring a retirement portfolio, planning for a child s education, hedging against interest rate fluctuations, or simply choosing an investment that best suits your individual investment needs. Stripped bonds are generally recommended for registered accounts due to the declining real returns on these investments when exposed to the combination of taxation and inflation. Retirement Savings Packages Important Considerations For Canadian Taxpayers With any investment, what you get to keep after taxes is more important than what you earn. Canada Revenue Agency has very specific rules governing the tax treatment of the interest paid to you on your fixed income investments. All payments due to you are considered taxable in the year they are declared, regardless of whether you actually receive the income. Therefore, for investments such as stripped bonds, which accrue interest that is not received until maturity, tax planning holds special challenges. Tax sheltered funds like RRSPs and RRIFs are good vehicles to hold special types of fixed income securities. You should consult your tax advisor with specific questions about the effects of taxation on your investments.. CIBC Wood Gundy offers unique retirement savings packages for investors seeking a pre-determined coupon cash flow and a provincially guaranteed principal repayment at maturity. In addition, the cash flow does not begin until a predetermined start date that may be selected to correspond with an investor s income and/or retirement needs (investors can choose between a fixed cash flow or an escalating cash flow). These packages are recommended for registered accounts and typically pay on a semi-annual basis when the cash flow commences. Retirement savings packages are an attractive fixed income product for investors who are looking for a predetermined series of future cash flows. Investors know the amount of cash they will be receiving on future dates. These products are designed for registered accounts and CIBC World Markets will provide a secondary market on the packages. 7

9 Corporate Bonds And Debentures Corporate debentures have earned a large place in the Canadian fixed income market. Because they provide a higher rate of interest than do similar federal, provincial or municipal securities, they are an attractive option for investors willing to assume issuer credit risk and call features in return for higher yields. A corporate bond is secured by the pledge of specific assets; a corporate debenture is backed solely by the reputation and credit worthiness of the issuer. Most corporate debt issues offered by CIBC Wood Gundy are unsecured debentures and are backed by the general credit of the issuer. Limited secured issues are also available, albeit at possibly lower yields. Like government securities, corporate debentures are available in a broad range of maturities and generally pay interest semi-annually. Many investors will recognize corporate debentures issued by well-known telecommunication companies, industrials, banks and other corporations. With such a wide selection available, corporate buyers often turn to independent credit rating agencies to assess the safety of individual issuers. Ratings and the advice of a CIBC Wood Gundy Investment Advisor can be important guides in determining whether a particular issue is consistent with your investment goals. Real Return Investments Real Return Investments are essentially very simple. They exist for one purpose only: to provide cash flows whose value keeps pace with the cost of living (Consumer Price Index CPI ). That is, purchasing power remains constant over time, no matter what the interest rate or inflationary environment may be. Real Return Investments include both coupon paying bonds (Real Return Bonds) and Real Return Strips. Real Return Bonds are essentially bonds whose interest rate floats with inflation and whose principal amount is paid out at maturity at a value that reflects any changes in the cost of living since purchase. Real Return Strips, like traditional Strips, pay out only once, at maturity, but then include any Cost of Living Adjustment that has accrued since purchase. Through the mechanism of compensating the Real Return holder for inflation, purchasing power in today's dollars is retained for future use. In effect, one should consider Real Return Investments as a kind of insurance against erosion of capital due to inflation. Real Return Investments are recommended to be purchased in non-taxable accounts. Canada Revenue Agency (CRA) considers any Cost of Living Adjustment to be interest income and is taxable as income on an accrual basis. The most common purchasers of Real Return Investments are pension funds and insurance companies (considered a separate asset class in their asset mix), along with investors that face real, rather than nominal, funding requirements (such as endowments and foundations). Real Return Investments should be classified as an asset class of their own (apart from fixed income) even for Individual Investors. Foreign Bonds Foreign bonds are best suited to the larger, more sophisticated client looking for a long-term hold. Investors should be aware of the differences that exist when investing in foreign bonds different markets, types of yield quotes, and currencies for example. Discussing your portfolio requirements with your CIBC Wood Gundy Investment Advisor will help you to better determine whether foreign bonds merit a position in your portfolio. Eurobonds Eurobonds are bonds issued in the European bond market by various governments, government agencies, supranationals (such as the World Bank), banks and corporations from around the world. They offer individual buy-and-hold investors a vast selection of issuers, terms and credit, and can be denominated in all major currencies, although the majority are denominated in Euro and U.S. dollars. Canadian investors must realize that Euro-Canadian spreads over domestic bonds will fluctuate due to supply and demand factors in Europe, as well as the level of interest rates and the Canadian dollar. Spreads can even be affected when a particular issuer name is more popular in Europe. Discussing your portfolio requirements with your CIBC Wood Gundy Investment Advisor will help you better determine if Eurobonds are suitable for your portfolio. 8

10 Types Of Fixed Income Investments Capital Trust Securities Subordinated bank debt instruments such as Capital Trust Securities, Reset Notes, and Fixed-To-Float Bonds are investment grade fixed income securities. Capital Trust Securities (CTS) have been structured with the intention of satisfying Tier 1 Capital regulatory requirements for the issuing bank/insurance company and have, in certain circumstances, features similar to those of equity securities. Tier 1 capital instruments are structured in legal form to be either long-term (legal stated maturity of 99 years) or perpetual (they cannot be redeemed at the option of the holder). The securities are junior subordinated debt within the bank/insurance company s capital structure and rank at the same level of preferred shares but higher than common equity. Here is a quick look at the CTS structure: they are redeemable by the issuer (typically 10 to 30 years after their issue date), and if not redeemed at $ by the issuer, one of two things may occur (depending on the issue): 1) they may be exchanged by holders into preferred shares which are in turn, convertible into common shares at the option of the holder or 2) the paid interest rate is reset at a certain percentage (spread) over stated date Canadian Deposit Offering Rate, Banker s Acceptances or Government of Canada bonds. If the trust fails to pay distributions on the CTS, the bank/insurance company is prevented from paying dividends on any of its common and preferred shares. It should also be noted, that CTS are automatically exchanged into non-cumulative preferred shares if the bank s or insurance company s financial position weakens significantly. Regulators define significant financial weakness for banks to be a Tier 1 Capital ratio that is less than 5% of the risk-weighted assets of the bank or a Total Capital Ratio that is less than 8% of the risk-weighted assets of the bank (risk-weighted assets represent customer loans and mortgages among other items). Capital Trust Securities are best suited for longer-term income-oriented investors and further discussions with your Investment Advisor will help you decide if this product is appropriate for your portfolio. Tier 2a Capital Reset Notes Tier 2a Capital is a measure of a bank s financial strength with regard to the second most reliable form of financial capital from a regulator s point of view. It is composed of supplementary capital, which is categorized as undisclosed reserves, hybrid instruments (such as some Reset Notes) and subordinated term debt. Reset Notes that fall under Tier 2a Capital have a legal stated maturity of 99 years but are usually redeemable by the issuer at par after 10 years. If not redeemed, the fixed coupon rate resets every five years to the yield on five-year Government of Canada bonds plus a spread. The bank may defer interest payments on these securities if net income is negative for the previous four quarters and it is not paying any dividends on equity instruments. Tier 2a Reset Notes are automatically converted into cumulative preferred shares if the bank s financial position weakens significantly. Tier 2b Capital Fixed-To-Float Bonds Fixed-To-Float Bonds are issued as part of Tier 2b Capital. They generally have legally stated maturities of up to 15 years, and are redeemable by the issuer five years prior to maturity. If not redeemed, the coupon changes from a fixed to a floating rate equal to the three month Bankers Acceptance rate plus a spread. Deferral of payments on these securities is not legally allowed and there are no conversion features to preferred or common shares. Interest Rate Structured Notes There are numerous types of interest rate structured notes in the marketplace and this space continues to grow. At this time, the four most regularly issued notes to choose from are: 1) Step-Up Notes 2) Accrual Notes 3) Collared Floating Rate Notes 4) Callable Range Notes 9

11 Step-Up Notes offer investors higher than normal coupon rates that increase at a prescribed rate over the term of the note. In exchange for offering potentially higher interest payments, the issuer has the right to call the notes on certain prescribed dates until the final maturity date. The first maturity date represents the minimum possible term of the investment; the final maturity date is the maximum potential term of the investment. The date on which the notes will be repaid is chosen by the issuer s election not to extend maturity. The coupon rate increases or "steps up" with the extension periods. Accrual Notes also offer investors higher than normal coupon rates over the term of the instrument. The notes are generally issued at par ($100). Interest accrues and compounds at the coupon rate, and is payable once on a redemption date chosen by the issuer or at maturity, whichever occurs first. In exchange for offering potentially higher interest payments, the issuer has the right to call the notes on certain prescribed dates until the final maturity date. Due to their compound interest nature, like stripped bonds, accrual notes are best suited to registered accounts. Collared Floating Rate Notes provide investors with a simple solution to rising interest rates. In most cases the benchmark rate is the 3-month BA Rate, but other reference rates can be utilized. By referencing the 3-month BA Rate investors can participate in rising short term interest rates up to a pre-defined maximum interest rate. The minimum guaranteed coupon provides protection from falling interest rates and provides a minimum return in low rate environments. Callable Range Notes generate yield based on the performance of a benchmark rate (the Reference Asset). In most cases, the benchmark rate is the 3-month BA Rate, but other reference rates can be utilized. Callable Range Notes can be used by investors to express the view that the benchmark rate will be range bound during a particular period or to earn supplemental income on an asset they already own, which they believe will be range bound over a specific term. Callable Range Notes pay quarterly coupons, if any, based on how many days the Reference Asset is within a predetermined range. The coupon rate is equal to a maximum rate, for example 5%, multiplied by the percentage of the total number of days in the period that the Reference Asset was within such range. The specialized nature of these notes increases the complexity of their valuation. Consequently, they are not as liquid as regular term notes and are meant to be held to maturity Mortgage Backed Securities NHA Mortgage Backed Securities (MBS) are debt securities that are backed by a pool of Canada Mortgage and Housing Corporation (CMHC) fully-guaranteed Canadian mortgages. As CMHC is guaranteed by the Government of Canada, these securities carry the same AAA credit rating as all other Government of Canada bonds. Due to their pass-through nature, holders receive a monthly pro rata blended payment of principal and accrued interest as the individual mortgagees make payments on their mortgages. An MBS represents an undivided interest in a specific pool of residential first mortgages. Just as mortgages may be open or closed, so too can an MBS. An open MBS is subject to higher early principal repayments. A closed MBS pays monthly principal back at lower rates, which makes it a good investment for those requiring regular monthly income combined with a high degree of safety. Because they are less liquid than other government guaranteed vehicles, they often offer higher yields. Fixed Income Portfolios At CIBC Wood Gundy, our Investment Advisors have access to the resources and fixed income strategies to help implement a portfolio of personalized fixed income investments suitable for your unique situation. By developing a personal relationship with your Investment Advisor, together, you can build a customized fixed income portfolio complementing your personal investment objectives. These strategies and portfolios are designed to address objectives including: Safety of capital Preservation of capital Growth of capital Reinvestment risk protection Capital gains Monthly or quarterly income in a taxable account Annual income in a registered income account Bond market trading strategies 10

12 A Quick Guide To Fixed Income Securities Security Quality Backed By T-Bills & Notes Highest/High Issuing Government Bankers Acceptances High Issuing Bank Commercial Paper Varies Corporation Canada Savings Bonds Highest Federal Government Provincial Savings Bonds High Provincial Government Guaranteed Investment Certificates (GICs) High Issuer Minimum Government of Canada Bonds Highest Federal Government Provincial Bonds High Provincial Government Municipal Bonds Varies Municipality Corporate Debentures Varies Corporation Government Stripped Bonds Highest/ High Federal/ Provincial Government Corporate Stripped Debentures Varies Corporation Real Return Bonds Highest/ High Federal/ Provincial Government Real Return Strips Highest/ High Federal/ Provincial Government Retirement Savings Packages Highest/ High Government NHA/CMHC Mortgage-Backed Sec. Highest Federal Government Asset-Backed Securities Varies Assets of Loans Capital Trust Securities Varies Corporation Step-Up Notes High Issuing Government/Corporation Accrual Notes High Issuing Government/Corporation Collared Floating Rate Notes High Issuing Corporation Callable Range Notes High Issuing Corporation Euro Bonds Varies Varies Foreign Currency Bonds Varies Foreign Government or Corporation 11

13 Income Frequency Suitability RRSP/RRIF Eligibility Maturity Short-Term/ Liquidity Yes Maturity Short-Term/ Liquidity Yes Maturity Short-Term/ Liquidity Yes Annual/ Semi-Annual/ Compounding Quality/ Liquidity Yes Annual/ Semi-Annual/ Compounding Quality/ Liquidity Yes Annual/ Semi-Annual/ Monthly/ Compounding Buy & Hold Yes Semi-Annual Quality/ Liquidity Yes Semi-Annual Quality/ Liquidity/ Yield Yes Semi-Annual Buy & Hold Yes Semi-Annual/ Monthly Yield Yes Compounds to Maturity Compounds to Maturity Wide range of terms/ Compound Interest Wide range of terms/ Compound Interest Yes Yes Semi-Annual to Maturity Inflation Protection Yes Compounds to Maturity Inflation Protection Yes Compounds then Semi-Annual to Maturity Buy & Hold Yes Monthly Monthly Income Yes Semi-Annual Buy & Hold Varies Semi-Annual Yield Yes Semi-Annual Buy & Hold Yes Paid at Maturity or Call Buy & Hold Yes Varies/Quarterly Buy & Hold Yes Varies (if any) Buy & Hold Yes Annual Buy & Hold/Quality Yes Annual/Semi-Annual Portfolio Diversification Yes 12

14 At CIBC Wood Gundy, we offer a full complement of investment products to help you achieve your financial goals, including: Investment products available through CIBC Wood Gundy Investment Products Available Through CIBC Wood Gundy Alternative Investments Annuities Asset Management Accounts Banker s Acceptances Capital Accumulation Plans Cash Management Accounts Commercial Paper Common Stocks Corporate Bonds Equity Linked Notes Government Bonds Guaranteed Investment Certificates (GICs) Individual Pension Plans Insurance Mortgage-backed Securities Mutual Funds Options Preferred Shares Retirement Compensation Agreements Savings Bonds Segregated Funds Strip Bonds Treasury Bills And more

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16 CIBC Wood Gundy is a division of CIBC World Markets Inc., a subsidiary of CIBC and a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. Insurance services are available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are available through CIBC Wood Gundy Financial Services (Quebec) Inc. Trademark of CIBC World Markets Inc. Wood Gundy Portfolio Partner is a registered trademark of CIBC World Markets Inc. 2010, CIBC World Markets Inc., BCE Place, P.O. Box 500, Toronto, Ontario, Canada M5J 2S8. Telephone: (416) XXXX /10