Fixed income

The fixed income or bond portion of an investment portfolio is managed to provide a total return consisting of interest income and modest capital gains. The majority of investments are highly rated securities issued by Canadian governments and corporations. The benefit of holding bonds is to provide regular income and to reduce risk through diversification.

Fixed income strategies are based on our macroeconomic forecast. To achieve high, real rates of return, we focus on identifying interest rate trends, which are primarily driven by the strength of the economy and by inflation expectations. Our outlook determines bond portfolio maturity and industry sector allocation.