What’s the strategy?
The Mortgage Diversified (Portico) portfolio strategy has a unique design - a hybrid of commercial and Canadian residential mortgage investments, which seeks to generate more income than government bonds of a similar term, while creating a portfolio that is less interest-rate sensitive because of its shorter duration.
This portfolio strategy leverages the expertise and experience within the Canada Life Commercial Mortgage team. The Canada Life Commercial Mortgage team sources, underwrites and manages the commercial mortgage deals. This highly specialized and experienced team has a long history of investing in Canadian mortgages and has established a strong marketplace reputation and disciplined credit underwriting expertise. The Portico Investment Management team offers capital market expertise, portfolio management oversight and liquidity management. Both portfolio managers pursue tested and strongly vetted processes within a culture of strong risk management.
The portfolio tends to have a shorter duration than the broad Canadian bond market, as measured by the FTSE Canada Universe Bond Index.
Why invest in this portfolio strategy?
Ideal for investors seeking to diversify their fixed-income exposure with a portfolio of high quality mortgages geographically diversified across Canada. This portfolio enjoys a very low delinquency rate on its mortgages, which is a testament to the team’s rigorous risk management process.
It also offers higher interest income than bonds of a similar term because of the higher yield premium on mortgages. This makes the portfolio less sensitive to interest rate changes and therefore less volatile than the broad market.
This unique portfolio strategy is a good complement to traditional bond investments and offers greater diversification through mortgages not typically available to investors, and access to highly specialized and experienced portfolio management.
Data for institutional investors
Vice-President, Fixed Income
Dale is lead manager for the Portico Core Bond portfolio strategy, one of the largest Canadian bond segregated funds in Canada. As a senior portfolio manager within GLC’s fixed income division (Portico Investment Management), he also oversees some of Portico's sector-focused and specialized fixed income portfolios.
Dale began an investment career in 1990 that has included direct portfolio management responsibilities for active and passive fixed income strategies. Dale credits his deep fundamental and disciplined approach to corporate credit analysis to his varied experience early in his career, including accounting, asset liability management and a diverse educational background.
He holds a Chartered Investment Manager designation as well as an honours bachelor of business administration degree in finance from Brock University.
Benchmark source: Copyright®, FTSE is a trade mark of FTSE International Ltd and is used under license.
Portfolio attributes and rates of return reflect the portfolio strategy used by the London Life segregated fund shelf.
Past performance is no guarantee of future results.
There is no guarantee that investment objectives, or risk or return targets discussed in this material will be achieved. No part of this material may be reproduced or redistributed in any form without express written permission of GLC Asset Management Group Ltd. The data provided is for information purposes only. This material is not intended to be read in isolation and may not provide a full explanation of all the topics that are presented and discussed. Information contained in this material has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. Furthermore, there can be no assurance that any trends described in this material will continue or that forecasts will occur; economic and market conditions change frequently. This material should not be considered a recommendation or offer to purchase or sell any particular investment.
Composite benchmark is 65% FTSE Short Term, 25% FTSE Mid Term, 10% FTSE 91 Day T-Bill (effective January 3, 2017). Previously the composite benchmark was 60% FTSE Short Term, 25% FTSE Mid Term, 15% FTSE 91 Day T-Bill.