Why We Launched the Fund
Because the ‘new normal’ needs new thinking.
For over 30 years Canadian interest rates have been declining. While investors have enjoyed the ride down, the new rate environment presents new challenges.
With interest rates at historical lows it is increasingly difficult for investors to generate adequate returns.
An increase in rates could lead to material losses:
- Real Estate
- Preferred Shares
- High Dividend Paying Stocks
Traditional fixed income products may no longer provide sufficient portfolio diversification.
The benchmark Canada Universe Bond Index is yielding less than 1.8% while a 1% increase in rates could lead to a 7.7% loss. (As at August 31th, 2016, based on modified duration Source: FTSE)