SOLUTIONS > INCOME STRATEGIES
Investment Grade Income Model
Utilizes a quantitative approach to uncover investment grade corporate bond opportunities.
Key Features
INVESTMENT GRADE
Investment grade bonds have a historically low default rate.
SYSTEMATIC APPROACH
We utilize our proprietary ranking methodology that ranks investment grade bonds on combined duration, yield, financial strength, and momentum metrics.
DIVERSIFICATION
Notional sector and issuer limits create diversified portfolios.
Strategy Overview
The Generation Investment Grade Income Model is generally for clients whose principal objective is long-term income generation.
The Investment Grade Income Model invests in Canadian investment grade corporate bonds. The Model employs a proprietary and systematic process that ranks investment grade bonds on their duration, yield, financial strength, and momentum. Our proprietary TRAC™ system is used in an effort to optimize buy and sell decisions for targets and portfolio holdings.
Key Details
| Inception | Oct. 1, 2018 |
| Investment universe | Canadian investment grade bonds |
| Management fee | 0.75% |
Top 10 Holdings
AS OF DEC 31, 2022
| ARC RES LTD 3.465% 10MAR2031 |
| ALTAGAS LTD 3.98% 04OCT27 |
| BMO CDN BANK CAL 2.88% 17SEP29 |
| BROOKFIELD INFRA 4.193% 11SP28 |
| CAMECO CP 4.19% 24JUN24 |
| CIBC FX 27 FLT 2032 07APR2032 |
| CDN PAC RWY 3.15% 13MAR2029 |
| CDN TIRE LTD 6.5% 13APR28 |
| CDN WSTN BK 1.818% 16DEC2027 |
| CAPITAL 3.147% MTN S4 01OCT32 |
Security selection process
Process Overview
1 PROPRIETARY RANKING
The Investment Grade Income Model employs a proprietary and systematic process to uncover Canadian investment grade bond opportunities.
2 TRADE OPTIMIZATION
Our proprietary TRAC™ system is used in an effort to optimize buy and sell decisions for targets and portfolio holdings.
3 REBALANCING
Portfolios are rebalanced every six months.
Ranking Ingredients
To find ideas we utilize our proprietary ranking methodology that ranks investment grade corporate bonds on combined duration, yield, financial strength, and momentum metrics.
DURATION
Bonds are ranked on their duration–the lower the better.
YIELD
Bonds ranked on option adjusted spread.
FINANCIAL STRENGTH
Bond issuers ranked on debt-to-equity, interest coverage, and profitability.
MOMENTUM
Bonds ranked on relative performance over the last 12 months.
Investment Grade Bond Model
Utilizes a quantitative approach to uncover investment grade bond opportunities.
Overview
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Investment Grade
Investment grade bonds have a historically low default rate.
Systematic Approach
We utilize our proprietary ranking methodology that ranks investment grade bonds on combined duration, yield, financial strength, and momentum metrics.
Diversification
Notional sector and issuer limits create diversified portfolios.
-
Inception
Oct. 1, 2018
Investment Universe
Canadian and investment grade bonds
Management fee
0.75%
-
The Generation Investment Grade Income Model is generally for clients whose principal objective is long-term income generation.
The Investment Grade Income Model invests in Canadian investment grade bonds. The Model employs a proprietary and systematic process that ranks investment grade bonds on their duration, yield, financial strength, and momentum. Our proprietary TRAC™ system is used in an effort to optimize buy and sell decisions for targets and portfolio holdings.
-
AS OF DEC 31, 2022
ARC RES LTD 3.465% 10MAR2031 ALTAGAS LTD 3.98% 04OCT27 BMO CDN BANK CAL 2.88% 17SEP29 BROOKFIELD INFRA 4.193% 11SP28 CAMECO CP 4.19% 24JUN24 CIBC FX 27 FLT 2032 07APR2032 CDN PAC RWY 3.15% 13MAR2029 CDN TIRE LTD 6.5% 13APR28 CDN WSTN BK 1.818% 16DEC2027 CAPITAL 3.147% MTN S4 01OCT32
Security Selection Process
-
The Investment Grade Income Model employs a proprietary and systematic process to uncover Canadian investment grade bond opportunities.
-
Our proprietary TRAC™ system is used in an effort to optimize buy and sell decisions for targets and portfolio holdings.
-
Portfolios are rebalanced every six months.