Description

The fund invests in CAD-denominated corporate bonds issued in Canada. The corporate sector is divided into sub-sectors: financial, communication, industrial, energy, infrastructure, real estate, and securitization. The fund tracks a market-value-weighted index of investment grade bonds with maturities of 10 years or more. The index is usually rebalanced daily and holds semi-annual pay fixed rate bonds with credit rating of BBB or higher. ZLC aims to hold securities in parallel proportions as they are reflected in the index. The Manager may also use a sampling methodology, which uses quantitative analysis to select bonds that resemble index constituents in terms of key risk factors, performance attributes, industry weightings, market capitalization and other appropriate financial characteristics. Sibling fund ZCB provides the same exposure with but maturities greater than one year, ZCS with 0-5 years, and ZLM with 5-10 years remaining to maturity.