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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%

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

Security Selection Process