June 2020 Mutual Fund Focus List
PH&N Total Return Bond Fund (RBF 6340 – Front End Units, RBF 4340 – Low Load Units) – With interest rates now at or near record lows and expected to remain there for some time, investors looking for ways to generate returns may have to look outside of your basic government and corporate bond issues. It is that ability to invest in non-core bond fixed income products that makes this an attractive fund.
Read MoreMutual Fund Focus List – September 2019
Managed by a team headed by veteran manager Mark Wisniewski, this is an actively managed diversified North American-focused bond fund with a flexible mandate allowing the manager to invest across the capital structure. The fund takes an absolute return approach and aims for a 4% to 6% return, net of fees over a rolling three-year period, regardless of interest rates. It is managed using a disciplined investment process blends top-down macro views, thematic tactical trades, and bottom-up security selection. Management has a range of tools at their disposal including the ability to alter interest-rate sensitivity, currency exposure, security mix, and credit quality to either capture potential upside or to reduce or manage risk.
Read MoreETF Focus List – September 2019
Vanguard Canadian Short-Term Bond Index ETF (TSX: VSB) – This is my top pick for broad-based short-term bond exposure. Despite carrying an MER that is 1 basis point higher than the iShares version (XSB), I prefer it for its higher credit quality and greater exposure to government bonds. I have always viewed short-term fixed income as a safe haven, and with my expectation of higher equity-market volatility in the next few months, I believe this offering will hold up slightly better than XSB.
Read MoreMutual Fund Focus List – June 2019
Heading into the second quarter, the consensus was that the next moves from global central banks was going to be a hike in interest rates. That changed about two-thirds of the way into the quarter as the friction caused by the trade wars started to have a real impact on the economic numbers, and with no end in sight, created real uncertainty about the future. This caused a complete 180 and the consensus shifted that the next move was going to be a cut by central banks, with the only real debate being how big of a cut. In this environment, we saw yields move lower. In Canada, the yield on the benchmark five year Government of Canada Bond fell from 1.52% to 1.39%, after peaking in mid-April at 1.66%.
Read MoreETF Focus List – June 2019
. Download a PDF Version of this Report . Additions Horizons Active Corporate Bond ETF (TSX: HAB) – This is an actively managed bond ETF that is run by the fixed income team at Fiera Capital. Fiera is a Montreal based Canadian money manager with more than $144 billion in assets under management. The company offers a wide range of investment strategies from traditional fixed income and equities...
Read MoreMarch 2019 ETF Focus List Review
Last time around, I noted that I continue to favour the Invesco Senior Loan ETF (TSX: BKL.F) for exposure to the leveraged loan space largely on the higher quality portfolio it offers. During an extremely challenging period for credit markets, this ETF held up better than the other floating rate ETFs, gaining 1.10%. This narrowly outpaced the Mackenzie Floating Rate Income ETF. I continue to follow the Mackenzie offering closely and am looking to see how it continues to perform in a challenging environment.
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