| Objective
The Fund aims to provide investors with a moderate real rate of return primarily through interest income. Returns in excess of income will be gained through duration, yield and sector management.
The MB Select Fixed Income Fund invests primarily in a diversified portfolio of bonds issued or guaranteed by Canadian governments (Federal and Provincial) and corporations. It may also invest in U.S. dollar denominated bonds from Canadian issuers. Corporate and provincial sectors are normally emphasized over a market cycle due to their attractive yields.
The Fund’s term to maturity (duration) is actively managed within set ranges according to the interest rate outlook.
The MB Select Fixed Income Fund is a screened version of the existing MB Fixed Income Fund. The screens applied are:
*
Eligible companies may not be in the business of the manufacture and sale of tobacco products or alcoholic beverages nor the provision of gaming facilities.
*
Eligible companies may derive not more than 10% of their gross annual revenue from the sale of armaments.
*
Eligible companies must adhere to local employment standards.
For further information, please see the complete MB Select Fund Brochure.
| Fund Startup |
 |
September 2000 |
| Inception of Composite |
|
October 2000 |
| Distribution Frequency |
|
Quarterly |
| DC/DB Pensions Eligible |
|
Yes |
| Individual RRSP Eligible |
|
Yes |
Fund Managers
McLean Budden Fixed Income and Select Teams
Volatility Profile
The Fund is suitable for clients with a low to moderate risk tolerance and a medium term investment time horizon.
Investing in bonds is less risky than investing in stocks. However, there is some risk as the price of bonds is closely tied to changes in interest rates. The value of the bonds held in the Fund will rise when interest rates fall, while their value will decrease whenever interest rates rise.
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