Investment Strategy
The Fund seeks to provide investors with the benefits of flexibility and cost effectiveness within a transparent fund structure, to gain exposure to two times the benchmark through the use of repurchase and reverse repurchase agreements. A provincial spread overlay strategy will be implemented on top of the RRB exposure to seek to capture the higher Provincial bond yield above the Federal bond yield and will be actively managed to help add additional absolute returns and improve the expected risk-adjusted returns.
Investment Objective
The investment objective of the Fund is to seek to provide a return in excess of 2 times the return of the Government of Canada Real Return bond market, net of funding costs and other expenses, in order to provide a hedge against liabilities of an investor that is sensitive to changes in real interest rates.
Who Should Invest
The Fund is designed for Canadian pension plans seeking to better match the interest rate exposure associated with their pension liabilities by increasing their real return fixed income exposure.
Fund Facts
Long Fixed Income |
Active |
August 15, 2018 |
2 x FTSE Canada Real Return Bond Index - 1 Month CDOR |