The Fund is focused on absolute returns and aims to provide investors with stable income and potential long-term capital growth by investing primarily in fixed-income securities with an emphasis on corporate and higher-yielding fixed-income securities.
100% FTSE Canada All Corporate Bond Index
Philosophy and process
High-conviction and value-based security selection through a bottom-up approach driven by fundamental analysis with a layer of quantitative valuation. The fundamental analysis process considers 5 key elements: sustainability of cash flows; profitability; valuation; catalyst for change; and risk analysis.
Macro analysis of systemic risks and opportunities. Portfolios are constantly monitored and refined in accordance with a 12-month strategic outlook on markets.
Portfolio risk is managed through diversification and currency management. Foreign exposure is 50 to 95% hedged.
Why invest in these strategies?
Exposure to high-yield corporate bonds that have equity-like historical returns but with lower volatility.
High-yield debt securities with lower interest-rate sensitivity than investment-grade bonds allow the Fund to keep a low-duration profile.
Rigorous and active investment process that focuses on safety of income and incorporates a macro outlook.