This strategy aims to offer additional yield over comparable high-quality public credit securities by investing in a global and well-diversified portfolio of private fixed-income securities. The return objective is to outperform the benchmark by 100 basis points while limiting potential credit losses.
50% FTSE Canada Universe Bond Index
50% FTSE Canada Long Term Bond Index
Philosophy and process
The strategy typically targets investment-grade debt transactions with stable or contracted cash flows, strong credit-enhancement features, and sponsors with proven track records.
Long-term buy and hold approach that extracts additional yield from illiquidity and structure premiums.
The strategy favours non-cyclical projects such as infrastructure (transportation, social), project finance (wind farm, hydro plant, etc.), and structurally credit-enhanced real estate (credit tenant loan, ground lease).
Extensive bottom-up fundamental analysis with direct access to management teams and third-party experts.
Global focus with exposure to solely OECD and investment-grade countries.
ESG factors are an integral part of our investment analysis as we believe these factors have material impacts on risk-adjusted returns.
The strategy seeks to add value through credit selection and does not take any call on duration or currencies.
Why invest in these strategies?
Illiquidity and structure-driven premium over comparable public credit strategies.
Downside protection philosophy and structural credit enhancements favouring capital preservation over time.
Disciplined investment process with substantial track record of outperforming the benchmark while minimizing credit losses since inception.
In-house credit expertise with long-standing market relationships.
Access to a market segment that is normally reserved to select institutional investors as well as exposure to sectors and projects that are usually not available in the public fixed-income market.
A strategy that has been successfully executed on behalf of the iA’s General Funds since 1994.