Plus

Canadian Core Plus Bond

At a Glance

We believe that a highly disciplined portfolio construction methodology is the most predictable way to generate competitive risk-adjusted returns when measured against any given benchmark. Our core plus solutions seek to capture incremental excess returns over  the long-term.

Expanding the Opportunity Set

  1. Extensive independent credit research.

  2.  Sound yield and credit curve analysis.

  3. Strategic portfolio construction.

  4. Structurally unbiased approach to credit risk.

  1. Tactical flexibility to benefit through all market conditions.

  2. Interest rate anticipation.

  3. Sector strategy and security selection.

Philosophy and Approach

  • Our core plus solutions seek to capture incremental excess returns over the long-term. We expand our opportunity beyond the Canadian investment grade bond universe and into benchmark securities to seek best compensation for risk. These plus components include global investment grade, high yield, maples, inflation-linked securities, private debt, emerging market debt, mortgages, real estate securities and currency management.

    Investment Process:

    Our research process starts with an evaluation of the global macroeconomic landscape. Across the global community we undertake a country-by-country review and focus on key economic indicators, review central bank policy, and examine the fiscal and political environment.

    We primarily focus on free-cash-flow generation and an issuer’s ability to make timely coupon and principal repayments, in addition to management’s ability to take advantage of and/or operate effectively in the current political, regulatory and economic environments. This results in our confidence in the quality of issuers our clients’ capital is invested in.

  • Our assessment of relative valuation, issuer strength and quality helps us determine where to find value within sectors and industries, and across issues and credit quality, as we seek adequate compensation for the risk taken.

    Our yield and credit curve analysis process focuses on macroeconomic factors, historical yield curves, breakeven scenarios and natural supply and demand factors.

    Our team follows the same robust process for all mandates. Analyzing global macroeconomic trends provides a better understanding of the current economic environment, market risk appetite and probability of extreme outcomes to strategically construct a portfolio and help ensure risk control and long-term added value.

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