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Bond Alternative

Five low-beta, non-equity-directional strategies built to outrun the aggregate bond index without equity-level risk.

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TickerWeightBetaNotes
DBMF15%0.05iMGP diversified trend-following managed futures, flat-to-positive in sustained equity drawdowns.
FLSP15%0Systematic long/short equity and style premia, value, carry, and momentum harvested market-neutral.
PFMN.TO30%0.12Market-neutral long/short equity, a beta-neutral premia complement to the trend and carry sleeves.
ARB.TO15%0.05Event-driven merger and SPAC arbitrage, retained as a low-beta diversifier.
PFLS.TO10%0.48Global long/short equity with moderate net exposure, a Canadian-listed diversifier alongside the market-neutral and arbitrage sleeves.
CVD.TO15%0.12Canadian convertible bonds, an income sleeve with lower duration than broad bond funds.

Weighted portfolio beta (approx.): 0.12

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Total return (vs XBB.TO)

Range
+8.38%
Portfolio
-0.92%
XBB.TO (benchmark)
+9.30%
Excess α vs XBB.TO
-2.89%
Max drawdown
-2.97%
XBB.TO max DD
0.94
Sharpe
Excess return above the 4.5% risk-free rate divided by annualised volatility. Above 1.0 is good; above 2.0 is excellent. SPY typically scores around 0.5–0.8.
1.34
Sortino
Excess return above the 4.5% risk-free rate divided by annualised downside deviation (penalises losses only). Above 1.5 is good; above 3.0 is excellent.
Portfolio score: B

Alpha score: D

Max DD score: B+

Beta score: A+

Beta: 0.12

Net leverage:

Total: 51.0%

Gross longs: 46.0%

Gross shorts: 40.0%

Gross alpha & alts: 45.0%

Portfolio weights:

DBMF: 15%

FLSP: 15%

PFMN.TO: 30%

ARB.TO: 15%

PFLS.TO: 10%

CVD.TO: 15%

PortfolioXBB.TO

Educational model only — not investment advice. Portfolio betas in the holdings table are weighted to the listed names and weights.

ARB.TO: methodology lists MRGRas Yahoo proxies for joint history before live listing when calendar overlap allows. In this chart's Yahoo range there was no separate pre-listing window to splice—line shows the fund's reported adjusted closes only.

PFLS.TO's inception date of 2020-08-06 is limiting the backtest.

Growthshared core
Long/short
Alpha: long/short equity (PFMN.TO, PFLS.TO)
40%
Sideways Chop
Managed futures
Alpha: managed futures (trend) (DBMF)
15%
InflationRecession
Deflation
Premia/carry
Alpha: systematic premia / carry (FLSP)
15%
Inflation
Sideways Chop
Arbitrage
Alpha: merger arbitrage (ARB.TO)
15%
Sideways Chop
Fixed income
Alpha: long-duration bonds (CVD.TO)
15%
Recession
Deflation