Philosophy
Sceptre’s bond management team employs a three-pronged approach to enhance value.
The first major portion of the portfolio is invested in high-quality Canadian corporate bonds at higher yields than government bonds. These bonds are generally held for a longer period of time. Quality is critical in analyzing and maintaining these bonds. In addition to the use of the major credit-rating agencies, we analyze each new offering and holding to ensure the quality standard is upheld.
The second major portion of the portfolio includes government of Canada and provincial securities. This sector is more aggressively traded to alter our overall bond exposure or the duration of our holdings in response to changing expectations for fixed income securities.
The third segment of our portfolio consists of global bonds. This segment allows us to gain additional foreign currency and interest rate exposure when deemed appropriate.
Allocation of funds between the various portions of the bond portfolio, as well as security selection, is influenced by a variety of factors, including interest rate movement, inflation, economic and political developments.
