Description

This exchange-traded fund primarily invests in Canadian floating-rate bonds, specifically those rated as investment-grade, issued by either government entities or corporations identified for their strong performance potential. Its security selection process combines a deep dive into individual issuers' financial health (bottom-up fundamental analysis) with a broader look at industry trends (top-down sector analysis). This dual approach considers quantitative models for valuing assets and assessing market liquidity. To determine the optimal average maturity of its holdings, the fund employs both technical and fundamental research. Furthermore, it analyzes macroeconomic indicators and applies technical interest rate assessments to forecast economic expansion and interest rate movements. Given its active management style, the fund retains the flexibility to deviate temporarily from its core investment objectives when deemed appropriate. While predominantly Canadian, it has the allowance to allocate up to 30% of its portfolio to international securities and a maximum of 10% to higher-yielding, non-investment-grade debt.