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iShares 1-5 Year Laddered Corporate Bond
Investing in a laddered portfolio of credits with maturities between one and five years, it offers both a higher yield and shorter duration to the iShares Canadian Short Term Bond Index ETF. Barring a complete collapse in the credit markets, I would expect that higher yielding corporate bond names will outperform government issues, even in the shorter part of the curve. That makes this my top pick in the short term space as we head into the summer.
read morePowerShares Tactical Bond ETF (TSX: PTB)
With the U.S. Federal Reserve widely expected to finally begin moving interest rates higher in September, volatility in rates is likely to emerge. In a volatile environment, a more tactical approach can help mitigate some of that volatility and outperform. Based on that premise, I believe this rules based, tactically managed ETF should outpace its more traditionally constructed, index focused peers. At the end of April, slightly more than half was invested in investment grade corporate bonds, 31% in long term government bonds, and 11% in high...
read moreiShares MSCI World (TSX: XWD)
This is designed to track the performance of the MSCI World Index, net of fees, in Canadian dollar terms. The index is largely regarded as the global equity benchmark. It provides exposure to large and mid-cap equity exposure across 23 developed market countries. It covers approximately 85% of the free float adjusted market capitalization in each, making it a decent proxy. Unfortunately, there aren’t a lot of Canadian traded ETFs that cover a global index. Still, even if there were more index options, this would still be my pick, given its...
read moreSentry Small / Mid Cap Income Fund
Fund Company Sentry Investments Fund Type Cdn Small / Mid Cap Equity Rating A Style Mid-Cap Blend Risk Level Medium Load Status Optional RRSP/RRIF Suitability Good Manager Aubrey Hearn since May 2006 Michael Simpson since Mar. ‘08 MER 2.72% Fund Code NCE 721 – Front End Units NCE 321 – DSC Units Minimum Investment $500 Analysis: This fund just keeps delivering, posting an impressive 7% gain in the first quarter, handily outpacing both the benchmark and its peer group. Much of this outperformance is attributed to the investment process used...
read moreSentry Conservative Balanced Income Fund
Fund Company Sentry Investments Fund Type Canadian Neutral Balanced Rating A Style Blend Risk Level Medium Load Status Optional RRSP/RRIF Suitability Good Manager Michael Simpson since Jan ‘12 James Dutkiewicz since May 12 MER 2.23% Fund Code NCE 734 – Front End Units NCE 334 – DSC Units Minimum Investment $500 Analysis: This conservatively managed balanced fund is managed by the team of Michael Simpson, who runs the equity sleeve, James Dutckiewicz, who is responsible for the fixed income and broader asset mix. The equity portion is managed...
read moreDynamic Advantage Bond Fund
Fund Company Dynamic Funds Fund Type Canadian Fixed Income Rating B Style Duration Management Risk Level Low - Medium Load Status Optional RRSP/RRIF Suitability Excellent Manager Michael McHugh since July 07 MER 1.58% Fund Code DYN 258 –Front End Units DYN 688 – DSC Units Minimum Investment $500 Analysis: In an environment where interest rates are moving higher, I believe this is a bond fund you will want to own. The management team places an extraordinary focus on preserving capital, and actively manage the portfolio’s duration, yield curve...
read morePowerShares 1–5 Year Laddered Corporate Bond
Fund Company Invesco Canada Ltd. Fund Type Cdn Short Term Fixed Income Rating C Style Rules Based Risk Level Low Load Status Front End RRSP/RRIF Suitability Excellent Manager PowerShares Management Team MER 0.99% Fund Code AIM 53203 – Front End Units Minimum Investment $2,000 Analysis: In a recent speech, Bank of Canada Governor Stephen Poloz highlighted that the Canadian economy is once again on the road to recovery. This essentially signals the likelihood of another cut to the Bank’s key overnight lending rate is now remote. With rates on...
read moreChou Associates Fund
Managed by veteran Francis Chou, this concentrated portfolio holds just 17 stocks, and nearly 30% in cash. The high cash weight is the byproduct of Mr. Chou’s disciplined, deep value approach. Philosophically, he would rather hold cash than pay what he believes to be too much for a stock. The portfolio looks much different than its index, with a very cyclical bent to it. Approximately a third is invested in financials, 15% in consumer cyclicals, and 11% in materials, with the rest in telecom and healthcare names. While shorter term...
read moreSteadyhand Income Fund
Managed by Connor, Clark & Lunn, this is the closest thing Steadyhand has to a bond fund. It has a target asset mix of 75% fixed income and 25% high yielding equities, which makes it a good bond fund substitute for those with a risk tolerance that is average or higher. Within the fixed income portion, it is heavily tilted towards corporate bonds, which make up about half the fund. The balance is invested in government bonds, with an emphasis on provincial bonds because of their higher yield relative to Canada’s. Credit quality is...
read moreBMO Asian Growth & Income Fund
The outlook for Asia remains very challenging – with the backdrop of slowing economic growth across the region, combined with a rising U.S. dollar. Recently, many governments, from India to China have taken steps to spur growth, and speed up market reforms. Still, it will be a challenging place to invest in the near term. In my view, this fund remains the best way to play the region. By investing in a portfolio of high quality, dividend paying stocks, as well as preferred shares and convertible bonds, it provides an excellent way to...
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