Canadian Bond

As at September 30, 2022

Strategy Profile

Managers:
Crista Caughlin, CFA
Benchmark :
FTSE Canada Universe Bond Index
Assets Under Management:
Mawer Investment Management Ltd: $77,135 M
Strategy * : $10,633 M
Inception Date:
June 30, 1991
  • * Based on all accounts following the strategy

For more information, please contact us.

Investment Philosophy

Portfolios are all investment grade. Core positions in Government of Canada bonds are established based on the shape of the yield curve and level of interest rates. To add value, we construct enhanced positions in provincial, municipal, and corporate bonds based on yield spread, security selection, and trading strategies.

What Does the Strategy Invest In?

The strategy invests primarily in bonds and debentures of the Canadian government and corporate issuers. Treasury bills or short-term investments, not exceeding three years to maturity, may still be used from time to time.

Strategy Profile

Managers:
Crista Caughlin, CFA
Benchmark :
FTSE Canada Universe Bond Index
Assets Under Management:
Mawer Investment Management Ltd: $77,135 M
Strategy * : $10,633 M
Inception Date:
June 30, 1991
  • * Based on all accounts following the strategy

For more information, please contact us.

Investment Philosophy

Portfolios are all investment grade. Core positions in Government of Canada bonds are established based on the shape of the yield curve and level of interest rates. To add value, we construct enhanced positions in provincial, municipal, and corporate bonds based on yield spread, security selection, and trading strategies.

What Does the Strategy Invest In?

The strategy invests primarily in bonds and debentures of the Canadian government and corporate issuers. Treasury bills or short-term investments, not exceeding three years to maturity, may still be used from time to time.

Contribution to Duration

By Sector

Sector: Corporate
  • Portfolio: 2.2
  • : 1.5
Sector: Municipal
  • Portfolio: 0
  • : 0.2
Sector: Provinical
  • Portfolio: 3.5
  • : 3.4
Sector: Federal
  • Portfolio: 1.8
  • : 2.3

By Credit Rating

Rating: AAA
  • Portfolio: 1.8
  • : 2.4
Rating: AA
  • Portfolio: 3.4
  • : 3.3
Rating: A
  • Portfolio: 1.7
  • : 1.1
Rating: BBB
  • Portfolio: 0.6
  • : 0.7

By Curve Positioning

Term: 2 Year
  • Portfolio: 0.9
  • : 0.6
Term: 5 Year
  • Portfolio: 1
  • : 0.9
Term: 7 Year
  • Portfolio: 0.2
  • : 0.7
Term: 10 Year
  • Portfolio: 0.9
  • : 1.1
Term: 15 Year
  • Portfolio: 0.3
  • : 0.4
Term: 20 Year
  • Portfolio: 1.9
  • : 1.3
Term: 30 Year
  • Portfolio: 2.3
  • : 2.5

Top 10 Holdings

Top 10 Holdings Weight (%)
Canada Housing Trust No 1 1.95% Dec 15, 2025 12.6
Province of Ontario 4.65% Jun 02, 2041 4.4
Province of Quebec 3.1% Dec 01, 2051 3.6
Bank of Nova Scotia 2.95% Mar 08, 2027 3.6
Government of Canada Dec 01, 2045 3.4
Canadian Pacific Railway Co 2.54% Feb 28, 2028 3.1
Toronto-Dominion Bank 2.667% Sep 09, 2025 2.8
Province of Quebec 1.5% Sep 01, 2031 2.7
Thomson Reuters Corp 2.239% May 14, 2025 2.6
Royal Bank of Canada 3.369% Sep 29, 2025 2.5
Total 41.3

Characteristics

Portfolio FTSE Canada Universe Bond Index
Yield To Maturity (%) 4.4 4.1
Effective Maturity (Years) 10.2 10.4
Modified Duration (Years) 7.5 7.5

Source: FactSet and Mawer Investment Management Ltd. Information is based on the Mawer Canadian Bond representative account and is supplemental information to the Fixed Income Composite GIPS report(s). See GIPS report(s) and full disclaimers including credit rating methodology below.

Annualized Performance

Period: YTD
  • Fixed Income Composite (Net): -12.1
  • Fixed Income Composite (Gross): -11.8
  • FTSE Canada Universe Bond Index: -11.8
Period: 1 Yr
  • Fixed Income Composite (Net): -10.9
  • Fixed Income Composite (Gross): -10.5
  • FTSE Canada Universe Bond Index: -10.5
Period: 3 Yr
  • Fixed Income Composite (Net): -2.7
  • Fixed Income Composite (Gross): -2.2
  • FTSE Canada Universe Bond Index: -2.5
Period: 5 Yr
  • Fixed Income Composite (Net): 0.4
  • Fixed Income Composite (Gross): 0.9
  • FTSE Canada Universe Bond Index: 0.7
Period: 10 Yr
  • Fixed Income Composite (Net): 1.3
  • Fixed Income Composite (Gross): 1.8
  • FTSE Canada Universe Bond Index: 1.7
Period: Since Inception *
  • Fixed Income Composite (Net): 2.5
  • Fixed Income Composite (Gross): 3
  • FTSE Canada Universe Bond Index: 3.1

Calendar Year Returns

Calendar Year Returns 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Fixed Income Composite (Net) -2.9 8.8 6.7 1.0 1.5 1.2 3.4 8.2 -1.7 3.5
Fixed Income Composite (Gross) -2.4 9.4 7.2 1.5 2.0 1.7 3.9 8.7 -1.2 4.0
FTSE Canada Universe Bond Index -2.5 8.7 6.9 1.4 2.5 1.7 3.5 8.8 -1.2 3.6

Upside/downside Capture (10 Yr)

Upside Capture
  • Fixed Income Composite (Net):
  • Fixed Income Composite (Gross): 101
  • FTSE Canada Universe Bond Index: 100
Downside Capture
  • Fixed Income Composite (Net):
  • Fixed Income Composite (Gross): 100
  • FTSE Canada Universe Bond Index: 100
  • * December 31, 2006

Past performance does not guarantee or indicate future results. Performance is in Canadian dollars. See GIPS report(s) and full disclaimers.

Fixed Income Composite

Period Start Period End Gross-of-Fee Composite Return Net-of-Fee Composite Return Benchmark Return Internal Dispersion Composite Gross 3-Yr St Dev Benchmark 3-Yr St Dev Number of Relationships at Period End Total Composite Assets (Millions) at Period End Total Firm Assets (Millions) at Period End
31 Dec 2011 31 Dec 2012 4.04% 3.52% 3.60% - 2.55% 3.00% 3 $134 $11,334
31 Dec 2012 31 Dec 2013 -1.17% -1.66% -1.19% - 2.86% 3.19% 2 $142 $15,496
31 Dec 2013 31 Dec 2014 8.74% 8.20% 8.79% - 3.00% 3.10% 3 $162 $18,611
31 Dec 2014 31 Dec 2015 3.87% 3.35% 3.52% - 4.08% 4.14% 3 $239 $22,769
31 Dec 2015 31 Dec 2016 1.68% 1.18% 1.66% - 4.02% 4.04% 4 $318 $26,723
31 Dec 2016 31 Dec 2017 2.04% 1.53% 2.52% - 4.28% 4.28% 4 $378 $32,648
31 Dec 2017 31 Dec 2018 1.53% 1.03% 1.41% - 3.51% 3.43% 3 $572 $35,251
31 Dec 2018 31 Dec 2019 7.25% 6.71% 6.87% - 3.66% 3.62% 6 $923 $44,802
31 Dec 2019 31 Dec 2020 9.39% 8.84% 8.68% 0.09% 4.51% 4.24% 6 $1,298 $54,632
31 Dec 2020 31 Dec 2021 -2.40% -2.89% -2.54% 0.24% 4.96% 4.77% 8 $1,700 $69,636
31 Dec 2021 30 Sep 2022 -11.76% -12.09% -11.78% 0.44% 6.44% 6.28% 8 $1,530 $55,405
Compliance Statement
Mawer Institutional claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Mawer Institutional has been independently verified for the periods from January 1, 2007 to December 31, 2021. The verification report(s) is/are available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.
Definition of the Firm
For the purposes of applying the GIPS Standards, the Firm is defined as all institutional segments of Mawer Investment Management Limited ('Mawer'), collectively held out as Mawer Institutional. Private clients, Mutual Fund Direct clients and Separately Managed Accounts (SMA) are not included in the GIPS Firm.
Composite Description
Any Canadian fixed income products with the objective of income. These products include Canadian government and agency securities, corporate obligations, structured products, and foreign bonds. Includes only accounts considered Institutional.
Restrictions
Must be all Fixed Income and Cash. <15% cash and cash equivalents.
Composite Creation Date
2013-09-01
Composite Inception Date
2006-12-31
Reporting Currency
All numerical information is calculated and presented in Canadian Dollars.
Invesment Management Fees
50bps on first $5m, 25bps on next $20m, 20bps on next $25m, 15bps on next $200m, 12.5bps on balance.

The amounts of assets in the investment fee tiers are based on Canadian Dollars.
Returns
Returns presented are time-weighted returns. Over all reporting periods in this report, all discretionary accounts are fee-paying. Past performance does not guarantee future results.

Gross-of-fee returns include the reinvestment of all income received/earned. Gross-of-fees returns are presented before management fees and other expenses. Returns do not reflect the deduction of investment advisory fees.

Net-of-fee returns are calculated by deducting 1/12th of the top tier of the management fee schedule (0.5%) from the monthly gross composite return. Actual fees may vary depending on the applicable fee schedule and the size of the account. Mawer Institutional bears the costs of investment research. Research costs are not separately charged to clients.
Benchmark
FTSE Canada Universe Bond
The FTSE Canada Universe Bond index is the broadest and most widely used measure of performance of marketable government and corporate bonds outstanding in the Canadian market.

All benchmarks are total return indices (TRIs). Composite benchmarks, if they consist of a blend of more than one index, are calculated by weighting the respective index returns on a monthly basis. Composite and benchmark returns are in Canadian dollars and net of withholding taxes, if applicable.
Internal Dispersion
Internal dispersion is calculated using the equal-weighted standard deviation of annual gross returns of those relationships that were included in the composite for the entire period. No dispersion measure is presented when the composite consists of five or fewer portfolios for the full year.
Standard Deviation
The three-year annualized standard deviation measures the variability of the composite gross returns and the benchmark returns over the preceding 36-month period; it is not presented when 36 monthly returns are not available.
Trademark
GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Policies
Mawer Institutional's policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request.
List of Composites and Pooled Funds
A list of composite descriptions, a list of limited distribution pooled fund descriptions, and a list of broad distribution pooled funds are available upon request.
  • Disclaimers

    All information is in Canadian dollars unless otherwise stated. The strategy performance presented is based on the Fixed Income Composite and is gross and net of fees. Returns are calculated using a time-weighted calculation and are annualized for periods greater than one year. The index is unmanaged and does not incur fees or expenses. It is not possible to directly invest in an index.

    Gross-of-fee returns include the reinvestment of all income received/earned and are presented before management fees and other expenses, and after withholding taxes, if applicable. A client's actual return will be reduced by management fees. Net-of-fee returns are calculated by deducting 1/12th of the top tier of the management fee schedule from the monthly gross-of-fee returns of the composite. Actual fees may vary depending on the applicable fee schedule and the size of the account.

    Past performance does not guarantee or indicate future results. All financial investments involve an element of risk. The value of investments may rise and fall so you may get back less than originally invested. Investors should consider the risks, including lower returns, related to currency movements between their investing currency and the portfolio’s base currency, if different. Investors should be aware that forward-looking statements and forecasts may not be realized.

    The information contained herein was provided by Mawer Investment Management Ltd. and intends to provide you with information related to Mawer Canadian Bond Strategy and Fixed Income Composite at a point in time. It is not intended to be investment advice applicable to any specific circumstance and should not be construed as investment advice. Market conditions may change impacting the composition of a portfolio. Mawer assumes no responsibility for any investment decisions made based on the information provided herein. Certain information contained herein is obtained from third parties. Mawer believes such information to be accurate and reliable as at the date hereof, however does not guarantee that it is accurate or complete or current at all times.

    References to specific securities are presented for informational purposes only. Information relating to investment approaches or individual investments should not be construed as advice or endorsement. Any views expressed were prepared based upon the information available at the time and are subject to change. All information is subject to possible correction. In no event shall Mawer be liable for any damages arising out of, or in any way connected with, the use or inability to use this information appropriately.

    London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2022. FTSE Russell is a trading name of certain of the LSE Group companies. FTSE® is a trademark(s) of the relevant LSE Group companies and is/are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

    Mawer Credit Rating Methodology:
    Bond ratings are determined using the security level ratings of S&P, DBRS and Moody’s. If two agencies rate a security, and the ratings are not equal, we use the lower of the two ratings. If three agencies rate a security, we use the most common rating. In the rare event that all three agencies disagree, we use the middle rating. To determine the aggregate rating of a portfolio, each rating is given a numeric value, and then the weighted average for the portfolio is taken and translated back into a letter grade including cash and cash equivalents. An issuer rating may be applied for bonds classified as Government if security-level ratings are not available.

Disclaimers

All information is in Canadian dollars unless otherwise stated. The strategy performance presented is based on the Fixed Income Composite and is gross and net of fees. Returns are calculated using a time-weighted calculation and are annualized for periods greater than one year. The index is unmanaged and does not incur fees or expenses. It is not possible to directly invest in an index.

Gross-of-fee returns include the reinvestment of all income received/earned and are presented before management fees and other expenses, and after withholding taxes, if applicable. A client's actual return will be reduced by management fees. Net-of-fee returns are calculated by deducting 1/12th of the top tier of the management fee schedule from the monthly gross-of-fee returns of the composite. Actual fees may vary depending on the applicable fee schedule and the size of the account.

Past performance does not guarantee or indicate future results. All financial investments involve an element of risk. The value of investments may rise and fall so you may get back less than originally invested. Investors should consider the risks, including lower returns, related to currency movements between their investing currency and the portfolio’s base currency, if different. Investors should be aware that forward-looking statements and forecasts may not be realized.

The information contained herein was provided by Mawer Investment Management Ltd. and intends to provide you with information related to Mawer Canadian Bond Strategy and Fixed Income Composite at a point in time. It is not intended to be investment advice applicable to any specific circumstance and should not be construed as investment advice. Market conditions may change impacting the composition of a portfolio. Mawer assumes no responsibility for any investment decisions made based on the information provided herein. Certain information contained herein is obtained from third parties. Mawer believes such information to be accurate and reliable as at the date hereof, however does not guarantee that it is accurate or complete or current at all times.

References to specific securities are presented for informational purposes only. Information relating to investment approaches or individual investments should not be construed as advice or endorsement. Any views expressed were prepared based upon the information available at the time and are subject to change. All information is subject to possible correction. In no event shall Mawer be liable for any damages arising out of, or in any way connected with, the use or inability to use this information appropriately.

London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2022. FTSE Russell is a trading name of certain of the LSE Group companies. FTSE® is a trademark(s) of the relevant LSE Group companies and is/are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

Mawer Credit Rating Methodology:
Bond ratings are determined using the security level ratings of S&P, DBRS and Moody’s. If two agencies rate a security, and the ratings are not equal, we use the lower of the two ratings. If three agencies rate a security, we use the most common rating. In the rare event that all three agencies disagree, we use the middle rating. To determine the aggregate rating of a portfolio, each rating is given a numeric value, and then the weighted average for the portfolio is taken and translated back into a letter grade including cash and cash equivalents. An issuer rating may be applied for bonds classified as Government if security-level ratings are not available.