Investment Grade
Income
Model
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.
| # | ISSUER |
|---|---|
| 01 | FORD CR CDA LTD 5.582% 23MAY31 |
| 02 | INTER PIPE 4.637% MTN 30MAY44 |
| 03 | ARC RES LTD 3.465% 10MAR2031 |
| 04 | GIBSON ENERGY 4.45% 12NOV2031 |
| 05 | RBC 4.464% 17OCT2035 |
| 06 | STELLA JONES 4.312% 01OCT2031 |
| 07 | TD 4.423% SR UNSEC 18OCT35 |
| 08 | CU INC MTN 6.50% 07MAR39 |
| 09 | CANADIAN NAT RES 4.15% 15DEC31 |
| 10 | COGECO COMMU 4.743% 06FEB2035 |
BENEFITS
The case for investment grade income
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.
SECURITY SELECTION
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.
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.