Connor, Clark & Lunn Investment Management home
Who We Are
 
 
 
About Us An overview of our organization
History Historical time line of CC&L Investment Management
People Team structure, personnel and biographies
Corporate Brochure Access our corporate brochure
CC&L in the Community CC&L’s involvement with charitable and professional organizations
Affiliated Companies Access our affiliates
What We Do
 
 
 
Expertise Information about our experience and capabilities
Investment Approach Our approach to investment management, research, opportunities and risk
Investment Strategies Details about the investment services we offer
Client Services Our approach and commitment to servicing our clients
Responsible Investing Our approach to Responsible Investing
Connecting needs
with solutions

CC&L High Yield Bond

Investment Objective

  • Seeks to provide income and the opportunity for capital appreciation over the longer term by investing primarily in high-yield bonds or other income producing securities.
  • Generate returns equal to the benchmark plus 1.25% per annum over a market cycle.
  • The benchmark will be comprised of the following: 30% Bank of America Merrill Lynch BB US High Yield Index, 30% Bank of America Merrill Lynch BB US High Yield Index (hedged CAD), 30% FTSE TMX Canada Corporate BBB Bond Index and 10% Bank of America Merrill Lynch  BB-B Canada High Yield Index.

Highlights

  • Higher yield than traditional fixed income strategies.
  • Suitable for de-risking strategies i.e. as an alternative to equity.
  • Equity-like returns with lower volatility than equities.

Investment Philosophy

  • Economic fundamentals drive markets.
  • Inefficiencies in the high yield bond market create opportunities to add value through active management.
  • Detailed fundamental research and prudent security selection can lead to attractive risk adjusted returns.

Investment Process

  • Credit research: Detailed credit research is used to identify undiscovered opportunities in the high yield debt market.
  • Investment criteria: Emphasis is placed on issuers with strong asset coverage, unique business model, sustainable competitive advantage or a compelling restructuring plan. Insights from CC&L’s fundamental equity team supplement fixed income research. 
  • Proprietary corporate security selection: Each company is assigned a company total return forecast based on bottom-up factors including, but not limited to, a company’s operating profile, quality and incentives of management, and financial profile.
  • Concentrated portfolio: Portfolio is focused on highest conviction investment opportunities.

Portfolio Construction & Risk Management

  • Investment decisions are implemented within a rigorous risk management framework.
  • Risk exposures are identified and considered at both security and total portfolio levels.
  • Dedicated trading experts are solely focused on identifying the best implementation strategy. 
  • Robust controls measure and monitor active risk for every client, every day.

Contact us

Vancouver

604-685-2020

Toronto

416-862-2020

Connor, Clark & Lunn Financial Group home page