CC&L High Yield Bond

Investment Objective

• Maximize long-term total return by investing in a diversified portfolio of income-generating securities
• Generate a positive rate of return on a consistent basis

Highlights

• Higher yield than traditional fixed income strategies
• Suitable for derisking 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 every active risk for every client, every day.