Real Return Bond Dynamic Exposure Strategy (RRB)
11 August 2025S&P500 PUTD Overlay
13 August 2025Thought Leadership
Validus Real Yield Protection Strategy (RYPS)
Summary
The Validus Real Yield Protection Strategy is a liquid, scalable investment approach designed to deliver competitive returns in both normal and high inflation environments. It combines Canadian government bonds with a carefully selected basket of commodities that track key drivers of the Consumer Price Index (CPI). This blend helps reduce the volatility and large drawdowns often seen in traditional nominal bonds during rising interest rate periods, while still capturing the benefits of inflation protection.
Key Insights
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Designed to work in both normal and high-inflation market conditions.
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Combines Canadian government bonds with a custom commodity basket linked to CPI.
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Reduces interest-rate-driven losses that impact standard nominal bonds.
- Uses an active, rules-based rebalancing approach for inflation responsiveness.
- Outperformed nominal bonds in recent high inflation years.