Description

The fund is passively managed to track an index of investment-grade Canadian bonds. The portfolio is comprised of semi-annual pay fixed-coupon bonds issued in Canada. It may include federal, provincial, corporate, and municipal bonds. Securities must have a minimum credit rating of A with remaining term to maturity of at least one year. Government securities represent 60% of the market value weight, with corporate bonds representing 40%. If it is not possible or practical to hold all the constituent securities, the fund may utilize a representative sampling approach in which securities are chosen to provide the same investment characteristics of the index. The index is rebalanced daily.