Income Fund

Objective

To provide a reasonably stable level of income and modest capital growth, while also preserving capital, through investing primarily in bonds, with some exposure to REITs and dividend-paying stocks.

Is This Fund For You?

You have a medium to long-term investment time horizon (i.e., over 3 years) and a low to moderate tolerance for risk. Consider this fund if you are seeking a diversified income product that will provide a combination of current income, modest capital growth and inflation protection. The fund is designed to serve as a core income holding within a portfolio, if applicable.

Geographic Profile

Canada-focused: the portfolio manager invests primarily in fixed income instruments and income-producing securities issued by Canadian governments and corporations.

Strategy

The majority of the fund's assets are held in bonds. The manager closely monitors the attractiveness of corporate bonds in relation to government-issued bonds, and will concentrate the fixed income portion of the portfolio wherever the best relative value is found. A smaller portion of dividend-paying common shares and REITs are included in the portfolio to enhance the fund's yield and provide greater capital growth potential and protection from inflation.

Estimated long-term asset mix:

Unitholder Responsibilities

  • This fund is designed as a core holding for the fixed income portion of your portfolio; make sure that it fits into your investment plan.
  • Maintain realistic expectations. When interest rates are hovering around 2-3%, don't expect double-digit returns.
  • Understand that the manager has greater scope to enhance the fund's yield than is typical for most bond funds. This can lead to greater short-term volatility.
  • Learn about Connor, Clark & Lunn and their investment philosophy.
  • Remember that while bonds can be boring, they serve a purpose and typically have a low correlation to equities.

Portfolio Manager

Connor, Clark & Lunn

  • One of Canada’s premier independent money management firms.
  • Nearly $8 billion in fixed income assets under management.

Fee

  • All-in at $10,000: 1.04%
  • At $150,000: 0.97%
  • At $250,000: 0.92%
  • At >$250,000: Even less

See our Fee Calculator

Warren Stoddart, CC&L

Learn more about the manager's history, portfolio construction process, and the Income Fund.

Play Video (5:49 min, 16 Mb)

Literature