Rethink Fixed Income

Today’s fixed income environment of rising interest rates and shifting monetary policies requires a more flexible, risk-aware approach.

During periods of rising interest rates, traditional bond total returns have historically declined. Focusing on recent periods of high, sudden spikes in yields, we see the negative impact of increased yields on the Canada Universe Bond Index.


Introducing an active Fixed Income solution

iShares Strategic Fixed Income ETFs can help investors stay nimble and navigate a volatile interest rate environment. This suite of actively managed solutions seek enhanced yield or return while managing risk.

  • Three distinct funds designed to meet specific investor needs for enhanced yield or return
  • Offers convenient exposure to a variety of Canadian and global bonds
  • Actively managed by a team of investment professionals that seek to optimize portfolio allocations and who can make adjustments based on market views

Flexibility through active management

Our robust portfolio management process can adapt to changing market and economic conditions, drawing from a broad universe of both Canadian and global exposures, to help position the portfolio for better risk-adjusted returns.

 

Structured for strong performance

The Strategic Fixed Income suite has delivered attractive returns in periods of rising rates. The funds’ flexibility to actively navigate the changing macro and rate environment through tactical rebalances, along with global diversification to achieve a better balance between interest rate and credit risk, has historically protected against rising interest rates without giving up potential returns.

Consistent Outperformance in Rising Rate Environment

Outperformance vs Universe Index(%)
Increase in GoC 10-yr Yield (bps)
  • 3.0075
  • 2.0050
  • 1.0025
  • 0.000

Periods of Rising Rates

Trump Election Victory
(11/4/16 to 12/16/16)

BoC Surprise Hike
(6/6/17 to 7/31/17)

Global Growth Pickup
(12/15/17 to 1/31/18)

  • XSC
  • XSI
  • XSE
  • Increase in GoC 10-yr Yield (bps)
Portfolio Strategist
Aubrey Basdeo
Head of Canadian Fixed Income
Aubrey Basdeo leads the product strategy effort in Canada for both the institutional and iShares businesses. His experience spans over 20 years in fixed income ...

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The iShares Strategic Fixed Income portfolios offer advisors a way to leverage BlackRock’s strategic insights and tactical expertise. Advisors can subscribe now to access regular asset allocation ideas and portfolio updates.


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