Real Estate Income


This strategy is primarily composed of units of real-estate income trusts. The portfolio may also be invested in high dividend-yielding stocks. The return objective is to outperform the market index as well as peers over a market cycle.


  • 15% FTSE Canada 91 Day T-Bill Index
  • 15% S&P/TSX Composite Index
  • 70% S&P/TSX Capped REITs Index

Philosophy and process

  • The strategy aims to achieve added value to its reference benchmark with a level of risk that is equal to or less than that of the benchmark.
  • Bottom-up investment approach while ensuring thorough diversification among Canadian real-estate sub-sectors as well as macroeconomic analysis and/or a specific investment thesis.
  • Security selections offer a good balance between Canadian REITs and Canadian dividend-paying stocks:
    • For REITs: companies with a strong balance sheet and above-average distribution forecasts, while being mindful of acquisition risks.
    • For dividend-paying stocks: companies with an attractive growth profile, forecasts for above-average dividend yields, and a diversified real-estate sub-sector exposure.
  • Diversified portfolio of 30 to 60 securities.
  • The valuation process is based on extensive cash-flow analysis combined with a qualitative framework emphasizing strong business models, management quality, and ESG strengths.
  • Portfolio construction is a key value-added component.

Why invest in these strategies?

  • The strategy has demonstrated a favourable risk/return profile as compared with Canadian real-estate investment trusts (REITs).
  • Historical low correlation of REITs to traditional asset classes and increased portfolio-diversification opportunity.
  • REITs tend to have a higher distribution rate than other corporations so as to benefit from favourable taxation (taxed only on post-distribution income).
  • Opportunity to invest alongside a Brendan Wood International 2021-2022 Top Gun Investment Minds team that has been managing the strategy since its inception in 2001.

How to invest?

Portfolio Manager(s)

Marc Gagnon

Vice President, Portfolio Manager, North American Equities

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David Caron

Senior Director, Portfolio Manager, North American Equities

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