It is Saturday October 9, 2021 and you notice that thereceptionist has booked an appointment for you at 11:30 thismorning with Sylvester MacEwan for a withdrawal from his mutualfund account. Sylvester first opened the account in Octoberof 2009 with a $50,000 deposit from his mom’s estate. Sylvester is very pleased with the portfolio’s performance(according to the notes entered by the receptionist on theappointment booking). Happy client with great returns – thisshould be an easy one!! And good thing too, because you havescheduled a lunch date and don’t want to be late!!

You pull Sylvester’s mutual fund file and notice that on October8, 2009 he made the following purchases within the newly opened,non-registered mutual fund account:

$12500	CIBC CANADIAN BOND (CIB476)
$12500	CIBC GLOBAL BOND INDEX (CIB511)
$8000	MAWER CANADIAN EQUITY (MAW106)
$5000	TD HEALTH SCIENCES (TDB976)
$3000	MAWER GLOBAL SMALL CAP (MAW150)
$7000	TD GLOBAL ENTERTAINMENT & COMMUNICATIONS FUND (TDB652)
$2000	CIBC EMERGING MARKETS INDEX (CIB519)

These would all seem to be good selections, fairly welldiversified and in-line with the completed KYC associated with theaccount indicating that Sylvester had a “balanced” investor profile(50% fixed income & 50% equity). You notice that whilethere had been several attempts to have Sylvester in over the yearsto review his investments, there had been no updates to the file ortrades on the account. This is the first time Sylvester hasbeen in since the account was first opened 12 years ago! Sylvester holds two funds that are considered 100% fixed-income(CIB511 & CIB476) and five funds that are considered 100%equity (TDB976, TDB652, MAW106, MAW150, and CIB519).

According to the appointment details, Sylvester is purchasing anew vehicle for $35,620.34 + GST and wants to make a draft payableto the dealership for the full purchase price (including theGST) and will be coming in to withdraw the amount from hisinvestment account.

Use Morningstar (link below)to:

1. Look up the performance (over the period October 8, 2009 toOctober 8, 2021) and, for each fund over the period:

1. Calculate the dollar balance currently held (3.5marks)

** (USE CONVENTIONAL ROUNDING RULESTO 2 DECIMAL PLACES FOR $$ BALANCES)

CIBC CANADIAN BOND (CIB476)
CIBC GLOBAL BOND INDEX (CIB511)
MAWER CANADIAN EQUITY (MAW106)
TD HEALTH SCIENCES (TDB976)
MAWER GLOBAL SMALL CAP (MAW150)
TD GLOBAL ENTERTAINMENT & COMMUNICATIONS FUND (TDB652)
CIBC EMERGING MARKETS INDEX (CIB519)
TOTAL:

2. Calculate the annually compounded rate of return (3.5marks)

** (USE CONVENTIONAL ROUNDING RULESTO 2 DECIMAL PLACES FOR % RATE OF RETURN)

CIBC CANADIAN BOND (CIB476)
CIBC GLOBAL BOND INDEX (CIB511)
MAWER CANADIAN EQUITY (MAW106)
TD HEALTH SCIENCES (TDB976)
MAWER GLOBAL SMALL CAP (MAW150)
TD GLOBAL ENTERTAINMENT & COMMUNICATIONS FUND (TDB652)
CIBC EMERGING MARKETS INDEX (CIB519)

2. Under a separate calculation, compute the annually compoundedreturn for the portfolio as a whole (2 marks) **(USE CONVENTIONAL ROUNDING RULES TO 2 DECIMAL PLACES FOR % RATE OFRETURN)

Answer rating: 100% (QA)

Answer CIBC CANADIAN BOND CIB476 The CIBC Canadian Bond fund is a Canadian Fixed Income Fund which has been in operation since October 8 2009 The fund has returned an average of 378 annually over the ... View the full answer