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, 2021
| ALTAGAS LTD 3.98% 04OCT27 |
| ATCO FXD/FLT SUB 01NOV78 RSTD |
| CDN PAC RWY 3.15% 13MAR2029 |
| ENBRIDGE 6.625%-FLT 18C 12AP78 |
| FORTISBC ENRGY DB 2.58% 8APR2 |
| LAUR BK 3.45% 27JUN2023 |
| LOBLAW COS LTD 6.45% 09FEB28 |
| PEMBINA PPL SR 10 4.02% 27MR28 |
| WESTCOAST ENGY 3.77% 08DEC25 |
| BROOKFIELD RNW CL 3.752% 2JN25 |
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, 2021
ALTAGAS LTD 3.98% 04OCT27 ATCO FXD/FLT SUB 01NOV78 RSTD CDN PAC RWY 3.15% 13MAR2029 ENBRIDGE 6.625%-FLT 18C 12AP78 FORTISBC ENRGY DB 2.58% 8APR2 LAUR BK 3.45% 27JUN2023 LOBLAW COS LTD 6.45% 09FEB28 PEMBINA PPL SR 10 4.02% 27MR28 WESTCOAST ENGY 3.77% 08DEC25 BROOKFIELD RNW CL 3.752% 2JN25
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.