The Fixed Income Mandate is designed for clients with a lower level of risk tolerance than all other firm mandates. The mandate focuses exclusively on capital preservation and forgoes long-term growth. Clients seek the steady stream of interest income and/or dividends (preferred shares) provided under this mandate. The fixed income strategy is adjusted according to long-term interest rate movements and encompasses bonds across multiple durations and preferred shares.
Objectives:
- Return: income and capital preservation
- Risk: below average
General asset class guidelines:
- Bonds (federal, provincial, & corporate): BBB or better.
- Preferred Shares: P3 or better.
Target Asset Allocation:
- 0% allocation to equities.
- 90% allocation to fixed income securities.
- 10% allocation to cash & cash equivalents.
Geographic Allocation:
- Maximum flexibility between domestic and international securities.
- Maximum variations across Family Groups with a +/- 10% range.
Benchmark:
- 10% PC-Bond 91-Day T-Bill Total Return Index / 90% DEX Universe Bond Index.
