Lorica Canadian Fixed Income Fund

 

INVESTMENT STRATEGY

An actively managed core fixed income strategy investing in government and investment grade corporate bonds. The investment strategy includes: duration and yield curve management; and sector, industry, issuer and individual security selection; with an emphasis on duration and credit risk management.


MANAGERS

Gary Morris, CFA
President, Lorica Investment Counsel Inc.

Thomas Gomes, CPA, CFA
Portfolio Manager, Lorica Investment Counsel Inc.

T. 647.776.8111
Email. info@loricaic.com

 

Fund Details (as at December 31, 2019)

Asset Class Fixed Income
Minimum Initial purchase $500; $25 subsequent purchases
Eligibility RRSP/RRIF/TFSA
Inception December 1, 2014
Risk Rating Low

  Lorica Canadian Fixed Income Fund FTSE Canada Universe Bond Index
Yield to Maturity 2.53% 2.28%
Average Term 8.22 yrs 10.85 yrs
Modified Duration 6.50 yrs 7.99 yrs
Coupon 3.25% 3.27%
Credit Rating (%)*    
AAA 4.66 38.18
AA 41.31 36.05
A 35.82 14.31
BBB 18.21 11.46

Asset Mix

%

Provincial

%

Corporate

%

CASH

Top 10 Holdings

    % of assets
1. Province of Ontario 4.6% Jun-2-2039   8.67
2. TransCanada PipeLines 3.7% Jul-19-2023 5.57
3. Province of Ontario 2.7% Jun-2-2029 5.45
4. Nissan Canada Fin Services 2.6% Mar-5-2021 5.32
5. Telus Corp.  3.2% Feb-19-2030 5.26
6. Federation des Caisses Desjardins du Quebec 2.4% Oct-4-2024 4.74
7. Bell Canada 3.0% Oct-3-2022  4.59
8. Sun Life Financial Inc 3.1% Sep-19-2023 4.44
9. Telus Corp 3.6% Jan-26-2021 4.34
10. Jun Life Financial Inc 2.8% Nov-23-2022 4.26

 

Historical Performance (net of fees)

Annualized Returns 1 Year 2 Years 3 Years 4 Years 5 Years Since Inception
Lorica Canadian Fixed Income Fund 8.20 2.82 2.05 1.98 2.30 2.36
FTSE Canada Universe Bond Index 6.87 4.10 3.57 3.09 3.18 3.27

 

Annual Returns 2019 2018 2017 2016 2015
Lorica Canadian Fixed Income Fund 8.20 -2.29 0.53 1.76 3.60
FTSE Canada Universe Bond Index 6.87 1.41 2.52 1.66 3.52

Source: FTSE Russell & Lorica Investment Counsel Inc., as at December 31, 2019.
All Index references refer to the FTSE Canada Universe Bond Indices and their sub-indices, unless otherwise stated.
*Refers to DBRS, S&P, Moody’s

 

 

 

Lorica Canadian Fixed Income Fund

 

INVESTMENT STRATEGY

An actively managed core fixed income strategy investing in government and investment grade corporate bonds. The investment strategy includes: duration and yield curve management; and sector, industry, issuer and individual security selection; with an emphasis on duration and credit risk management.


MANAGERS

Gary Morris, CFA
President, Lorica Investment Counsel Inc.

Thomas Gomes, CPA, CFA
Portfolio Manager, Lorica Investment Counsel Inc.

T. 647.776.8111
Email. info@loricaic.com

 

Fund Details (as at December 31, 2019)

Asset Class Fixed Income
Minimum Initial purchase $500; $25 subsequent purchases
Eligibility RRSP/RRIF/TFSA
Inception December 1, 2014
Risk Rating Low

  Lorica Canadian Fixed Income Fund FTSE Canada Universe Bond Index
Yield to Maturity 2.53% 2.28%
Average Term 8.22 yrs 10.85 yrs
Modified Duration 6.50 yrs 7.99 yrs
Coupon 3.25% 3.27%
Credit Rating (%)*    
AAA 4.66 38.18
AA 41.31 36.05
A 35.82 14.31
BBB 18.21 11.46

Asset Mix

%

Provincial

%

Corporate

%

CASH

Top 10 Holdings

    % of assets
1. Province of Ontario 4.6% Jun-2-2039   8.67
2. TransCanada PipeLines 3.7% Jul-19-2023 5.57
3. Province of Ontario 2.7% Jun-2-2029 5.45
4. Nissan Canada Fin Services 2.6% Mar-5-2021 5.32
5. Telus Corp.  3.2% Feb-19-2030 5.26
6. Federation des Caisses Desjardins du Quebec 2.4% Oct-4-2024 4.74
7. Bell Canada 3.0% Oct-3-2022  4.59
8. Sun Life Financial Inc 3.1% Sep-19-2023 4.44
9. Telus Corp 3.6% Jan-26-2021 4.34
10. Jun Life Financial Inc 2.8% Nov-23-2022 4.26

 

Historical Performance (net of fees)

Annualized Returns 1 Year 2 Years 3 Years 4 Years 5 Years Since Inception
Lorica Canadian Fixed Income Fund 8.20 2.82 2.05 1.98 2.30 2.36
FTSE Canada Universe Bond Index 6.87 4.10 3.57 3.09 3.18 3.27

 

Annual Returns 2019 2018 2017 2016 2015
Lorica Canadian Fixed Income Fund** 8.20 -2.29 0.53 1.76 3.60
FTSE Canada Universe Bond Index 6.87 1.41 2.52 1.66 3.52

Source: FTSE Russell & Lorica Investment Counsel Inc., as at December 31, 2019.
All Index references refer to the FTSE Canada Universe Bond Indices and their sub-indices, unless otherwise stated.
*Refers to DBRS, S&P, Moody’s