Objective

The Fund aims to provide a moderate real rate of return, primarily through income, by investing in a diversified portfolio of Canadian, American and overseas debt securities. The Fund will primarily invest in high quality debt. Returns in excess of income will be gained through country allocation as well as duration, yield and sector management.

Fund Startup		March 1996
Inception of Composite		May 1996
Distribution Frequency		Quarterly
DC/DB Pensions Eligible		Yes
Individual RRSP Eligible		Yes

Fund Managers

McLean Budden Fixed Income Team

Volatility Profile

The Fund is suitable for clients with a low to moderate risk tolerance who have 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. Additionally, a portion of the Fund will be exposed to foreign exchange rates and market conditions in other countries. The value of the bonds held in the Fund will rise when interest rates fall, while their value will decrease whenever interest rates rise.

MB Balanced Growth Pension MB Balanced Growth MB Balanced Value MB Balanced MB Private Balanced MB Canadian Equity Growth MB Canadian Equity Value MB Canadian Equity MB Canadian Equity Plus MB Global Equity Growth MB Global Equity Value MB Global Equity MB American Equity

MB International Equity MB Fixed Income MB Long Term Fixed Income MB Short Term Fixed Income MB Fixed Income Plus MB Money Market MB Select Balanced MB Select Canadian Equity MB Select Global Equity MB Select Fixed Income MB LifePlan Income MB LifePlan Growth & Income MB LifePlan Growth