Canada Life Investments has rolled out a short duration corporate bond fund in preparation of rising interest rates.
The CF Canlife Short Duration Corporate Bond fund will invest in high-quality corporate issuers to target returns above cash, while aiming to provide some protection for investors from interest rate hikes.
The fund will be managed by Michael Count and Steve Matthews who will select from around 400 issuers, with the support of the group’s credit analysis team.
Frank Maret, head of distribution at Canada Life Investments, says: “With record low yields across the fixed income spectrum, a liquid and diversified bond portfolio such as the CF Canlife Short Duration Corporate Bond fund can provide an attractive combination of above cash returns and a strong focus on safety.”
Count adds: “This launch is natural progression for our fixed income suite. With corporate bond yields at historically low levels, any move higher in rates can have a meaningful impact on investor returns. Investing in short duration corporate bonds can minimise this sensitivity.”