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Corporate Bonds

Overview

This strategy is a core Canadian corporate bond portfolio with the objective of maximizing medium- and long-term returns by investing in fixed-income securities that provide a higher yield than government bonds. The portfolio is primarily invested in bond securities issued by Canadian corporations. The return objective is to outperform the FTSE Canada Universe Corporate Bond Index.

Benchmark

100% FTSE Canada Universe Corporate Bond Index

Philosophy and process

  • The portfolio is actively managed with a medium- to long-term horizon, using a top-down approach that aims to add value relative to its reference benchmark on a risk-adjusted return basis, primarily through sector allocation and security selection.
  • Core-satellite approach with a focus on Canadian Investment Grade corporate bonds that is complemented by selected off-benchmark exposures.
  • The security-selection approach is focused on companies with strong credit fundamentals.
  • The strategy leverages the prudent approach of the iAGAM’s credit research team’s expertise and experience.
  • The credit-analysis process is based on business and financial-risk analysis as well as a strong emphasis on ESG risks and opportunities.
  • The portfolio maintains an average credit quality of A with a maximum 10% allocation to high-yield bonds

Why invest in these strategies?

  • Predominantly Canadian corporate-bond exposure with a proven track record of outperformance through market cycles managed by an experienced management team with high industry exposure.
  • A strategy that leverages iAGAM’s market and corporate credit research expertise.
  • Access to a well-diversified fixed-income portfolio that offers daily liquidity.
  • Achievement of higher returns relative to government bonds with less volatility than equities.

How to invest?

Portfolio Manager(s)

Giampiero (Jean-Pierre) D’Agnillo

Vice President, Portfolio Manager, Corporate Bonds

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