Investment-Grade Bond Mandate (SMA)
Objective & Approach:
Launched in 2021*, the investment-grade bond mandate’s objective is to preserve capital and provide a high rate of cash coupon income. Goodwood uses a disciplined, fundamental, bottom-up approach to constructing investment-grade bond portfolios that they believe will reward investors with capital gains due to credit improvements and credit rating upgrades.
The mandate invests in approximately 25 investment-grade fixed-income securities, targeting 200-300 basis point returns over 5-year Canadas. The Goodwood investment-grade bond mandate is typically invested in a portfolio of issues generating a yield-to-maturity greater than 4% with an average term-to-maturity of 3-5 years.
Institutional accounts are customized to meet compliance requirements.
Portfolio Yield to Maturity:
Portfolio Effective Duration:
Portfolio Credit Rating:
4.9% (April 30, 2023)
BBB or higher
Strategy diversified by position size, industry sectors, and term-to-maturity.
Portfolio invested in highly liquid issues, for safety, the portfolio may invest in government issues and manages duration exposure rather than create a perpetual short-duration portfolio.
Flexible, tactical approach allows the mandate to capitalize on inefficiencies in fixed-income markets.
*Inception June 24, 2021. The Investment Grade Bond Mandate is part of Third-Party UMA Program, Goodwood Inc. acts as sub-advisor for this Mandate. See full disclosure page. Performance returns above are displayed for the founding Investment-Grade Bond UMA referencing sources believed to be reliable. Performance is not guaranteed, and past performance is not indicative of future results and may not be repeated. Performance data from certain market indices/ETFs is provided for information purposes only. These ETFs are not a benchmark of the UMA portfolio but rather are displayed for comparison purposes to the broad market.