Short-Term Bonds

This strategy aims to preserve capital and provide high current income, while limiting exposure to interest rate fluctuations through a portfolio of short-term Canadian bonds.

Investment process

The strategy invests in a well-diversified portfolio composed primarily of Canadian federal, provincial, municipal, and corporate investment-grade bonds (credit rating equal to or higher than BBB) denominated in Canadian dollars.

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The manager uses a top-down approach to optimize the portfolio’s positioning based on economic, sector, and issuer outlooks.

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The first level of analysis, carried out on the economic outlook, aims to take advantage of interest rate movements through the implementation of strategies and tactics related to duration management and yield curve positioning. The two subsequent levels of analysis are based on sector and issuer outlooks, and aim to implement relative value strategies.

Capital preservation and high current income

Well-diversified bond portfolio

Top-down approach

Portfolio managers

Bobby Bureau

Senior Manager, Fixed Income | Eterna Investment Management

Why invest in short-term bonds

Well-diversified portfolio of short-term Canadian investment-grade bonds that provides a high current yield
Top-down approach integrating economic, sector, and issuer-specific outlooks
Risk-return profile suited to investors with a short- to medium-term investment horizon
Active duration management to limit the impact of interest rate fluctuations

See the factsheet

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