There are nine Fixed Income Guided Portfolios managed by the Portfolio Advisory Group's Fixed Income team. They are:

The ScotiaMcLeod Core Plus Portfolio

This is a diversified Canadian fixed income portfolio, suitable for investors with mid to high risk tolerance who desire current income and returns to protect against future inflation. The portfolio's mandate seeks to generate current income, provide a reasonable level of returns to protect against inflation, exceed the performance of the S&P/TSX Canadian Bond Index, and is based on the belief that these goals can be achieved by building on a core income strategy. The core holdings of the portfolio are broken down as follows:

• 75% is placed in a laddered bond portfolio, which is designed to provide both a stable level of income and protection of principal
• 5% is placed into an inflation-protected instrument
• The balance of 20% is then focused on active strategies, where the total return is expected to exceed the return of the S&P/TSX Canadian Bond Index.

Four portfolios that emulate the S&P/TSX Bond Indicies:

• S&P/TSX Canadian Bond Index Portfolio
• S&P/TSX Short Index Portfolio
• S&P/TSX Mid Index Portfolio
• S&P/TSX Long Index Portfolio

The objectives of the S&P/TSX Canadian Bond Index Portfolios are to provide portfolios that are similar in structure and return to the S&P/TSX Bond Index, and its sub-components, the Short, Mid, and Long Indices.

What is the S&P/TSX Canadian Bond Index?

Half of our portfolios are modeled after the S&P/TSX Canadian Bond Index. This index is capitalization-weighted, with more than 950 Canadian bonds, and includes high quality bonds with terms-to-maturity of greater than one year.

Its purpose is to accurately mirror the composition and total return performance of the overall Canadian bond market. The index covers the span of the yield curve from 1-30 years and is diversified across sector (Canadas, provincials, municipals and corporates). The S&P/TSX Canadian Bond Index is the broadest and most widely used measure of Canadian bond market performance in the world.

Four laddered maturity portfolios:

• 5-Year Laddered Portfolio
• 10-Year Laddered Portfolio
• June Coupon Laddered Portfolio
• December Coupon Laddered Portfolio

Of the four Laddered Portfolios, two are comprised of high-quality bonds and two are Government of Canada coupon portfolios. All generate cash flows based on a 3% inflation rate. They are an excellent approach to building a systematic cash flow in registered accounts.

For more information on the ScotiaMcLeod Guided Portfolios, please contact your ScotiaMcLeod advisor.

The information contained on this website is for use by persons resident in Canada only.