2028 Investment Grade Bond Trust · TSX:IGBT.UN
2028 Investment Grade Bond Trust — Investor Presentation (April 2024)
16 slides from 2028 Investment Grade Bond Trust's investor presentation, April 2024
Slide 1: 2028 Investment Grade Bond Trust
2028 Investment Follow Us Grade Bond Trust April 2024
Slide 2: Important Notes
Important Notes The "2028 Investment Grade Bond Trust " or "Fund" means the "2028 Investment Grade Bond Trust ". Capitalized terms not defined in this presentation are defined as set forth in the prospectus of the Fund (the "Prospectus"). This communication is not, and under no circumstances is to b
Slide 3: Aggressive interest rate hikes create rare opportunity to buy bonds at a discount
2028 Investment Grade Bond Trust Aggressive interest rate hikes creates rare opportunity to buy bonds at a discount 10% U.S. CPI NSA YoY Canada CPI NSA YoY 8% Fed. Funds Target Rate BoC Overnight Lending Rate • Central banks have 6% aggressively raised policy interest rates to combat post-COVID-19 i
Slide 4: Yields are attractive relative to the past few decades
2028 Investment Grade Bond Trust Yields are attractive relative to the past few decades 6.00% Bank of Canada Overnight Lending Rate 5.00% Federal Funds Target Rate (Upper Bound) 4.00% 3.00% 2.00% 1.00% 0.00% 2018 2019 2020 2021 2022 2023 Source: Bloomberg. For the period starting January 1, 2018 and
Slide 5: Tax efficiency of buying bonds at a discount
2028 Investment Grade Bond Trust Tax efficiency of buying bonds at a discount • Bonds purchased at a discount to par have built-in price appreciation which can create favourable after-tax returns • The Manager expects that approximately 50% of the Fund’s return (after fees and expenses) would be cap
Slide 6: Before it's too late?
2028 Investment Grade Bond Trust Significant capital sitting in cash, short-term fixed income, HISA ++ ….. This is an opportunity to lock in attractive yields for longer ….before it’s too late? 6
Slide 7: Overview and Highlights
2028 Investment Grade Bond Trust Overview and Highlights The Fund focused on purchasing bonds with an average maturity similar to the 1 term of the Fund, March 2028, purchased at discounts to par value Focus on purchasing bonds with an average maturity of five years or less, 2 expected to be held to
Slide 8: Key Benefits of the Fund
2028 Investment Grade Bond Trust Key Benefits of the Fund Attractive Return Potential 4 1 Proven Track Record of Performance** • Robust, targeted Fund returns (after • Ridgewood Capital Asset Management fees and expenses) based on the Fund’s Inc. has outperformed their respective Portfolio bond benc
Slide 9: Historically Attractive Yield on Corporate Credit with Low Default Rates
2028 Investment Grade Bond Trust Historically Attractive Yield on Corporate Credit with Low Historical Default Rates • BBB-rated bond yields exceed the S&P 500 earnings yield for the first time since the 2007-2008 financial crisis • The Fund’s Portfolio is predominantly composed of bonds rated BB an
Slide 10: Summary of Terms
2028 Investment Grade Bond Trust Summary of Terms • The Fund’s Class F Units are listed on the TSX under the ticker symbol “IGBT.UN” • Units may be converted back and forth from the Fund’s Class F (TSX listed) Units to Class A (non TSX listed) Units or Class A (non TSX listed) Units to Class F (TSX
Slide 11: The Adviser
The Adviser Ridgewood Capital Asset Management Inc. Founded in 2008 $1.4BN AUM ($1BN+ in Fixed Income) Clients include HNW, Endowment, First Nations, Institutions Award Winning Track Record Strong Historical Track Record of Outperformance 11
Slide 12: Reference Track Record for the Adviser
Reference Track Record for the Adviser Ridgewood Capital Asset Management Inc. Historical Performance of the Ridgewood Canadian Investment Grade Bond Fund (“RIB”) as of December 31, 2023 1-Year 3-Year 5-Year 10-Year 14-Year RIB(1) 7.00% -2.40% 3.50% 5.20% 6.60% FTSE Canada Universe 6.70% -2.80% 1.30
Slide 13: Award Winning Track Record
Award Winning Track Record Ridgewood Capital Asset Management Inc. • Ridgewood Tactical Yield Fund: 2023 Best Fund over 3 Years Canadian Fixed Income (LSEG Lipper Fund Awards) Best Fund over 10 Years Canadian Fixed Income (LSEG Lipper Fund Awards) • Ridgewood Tactical Yield Fund: 2022 Best Fund over
Slide 14: Fund Portfolio Snapshot as at March 28, 2024
Fund Portfolio Snapshot as at March 28, 2024 Credit Rating Industry Sector Top 10 Holdings % 2% AA Banks Laurentian Bank 4.05% A(H) 32% Specialty REALT 2017 D1 3.42% 7% 9% A Finance BMO 3.21% 12% 8% A(L) 81% CMBS Keyera Corp 3.13% Investment BBB(H) Grade 16% 81% Other Diversified CIBC 3.12% 8% Inves
Slide 15: Fund Performance
Fund Performance HISTORICAL PERFORMANCE Class F1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD2 2024 1.26% 1.02% 0.99% 0.29% -- -- -- -- -- -- -- -- N/A 2023 -- -- -- -- -- -- -- -- -- -- -- -0.01%* N/A 1. 2028 Investment Grade Bond Trust returns are net of all fees and expenses associated wit
Slide 16: Contact Next Edge Capital
nextedgecapital.com linkedin.com/company/next-edge-capital twitter.com/NextEdgeCapital NextEdgeCapital 1 Toronto Street, Suite 200, Toronto, ON M5C 2V6 416.775.3600 Toll Free: 1.877.860.1080 info@nextedgecapital.com
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