Highstreet Asset Management Inc.
Income Options with the Highstreet Dividend Income Fund

Short Term Bonds

Approach

Short Term Bond Philosophy

We follow a passive enhanced approach to the short term bond market.

1) DEX Short Term Universe - like term and duration

Our philosophy is founded on the belief that it is not possible to successfully anticipate the direction of interest rates. For this reason we manage the short term bond portfolio to have the same duration and term as the DEX Short Term Bond Index ensuring that our strategy remains unbiased to expected interest rate movements.  

2) Over - weight corporate issues

We add value by utilizing a disciplined credit risk process.
We believe that we can improve the returns in the portfolio by holding a higher weight in corporate and provincial bonds than the index. Our Canadian Short Term Bond Fund targets a mix of 50% corporate bonds, 35% provincial bonds and 15% Government of Canada bonds.

3) No BBB’s or lower

Our Fund is a high quality bond portfolio. We do not hold any bonds with a rating of BBB-rated or lower, based on our view that these issues present a higher level of risk than we wish to assume for our clients.