Description

The fund is an actively managed fund that seeks to invest primarily in fixed income securities issued in Canada by government and corporate entities. This fund may invest up to 15% in high yield securities, as long as the overall credit rating of the portfolio remains at A- or higher, and also invest up to 30% of the fund in foreign investment. MCSB aims to maintain a minimum allocation of 30% in government issued debt securities. To limit price volatility, the advisor limits the weighted average term to maturity of the investments to five years or less. For high-quality bonds, an analysis of macroeconomic factors, such as economic growth, inflation and monetary and fiscal policy, is done in order to position the maturity and credit quality of the portfolio for different stages in the business cycle. Lower credit quality securities are analyzed using a bottom-up approach to determine their valuations.