CC&L Long Bond

Investment Objective

• Maximize long-term total return while protecting the capital value from major market fluctuations.
• Generate returns equal to or greater than the return of the benchmark FTSE TMX Long Term Overall Bond Index plus 0.5% over rolling four-year periods.

Highlights

• Well defined, portable, fundamentally based process with multiple sources of added value
• Proprietary risk modeling incorporating both risk and return in assessing opportunities
• Responsive credit process based on spread forecast
• Proven team based approach enhanced by unique skills and insights from other CC&L teams

Investment Philosophy

• Economic fundamentals drive markets.
• Better decisions result when the evaluation of fundamental information is validated through research that proves the link between the data and movements in the market.
• Research should be conducted continuously in order to allow the process to evolve with capital markets.
• Process diversification yields positive risk-adjusted relative returns.
• Risk management is fundamentally based and supported by quantitative tools

Investment Process

• Top-down, fundamentally based approach: In-depth macro-economically driven analysis validated by a disciplined research process resulting in interest rate and sector exposures
• Robust risk management: Proprietary fundamental process supported by quantitative tools requiring an ongoing dedicated research effort
• Comprehensive credit analysis: Top down industry analysis and a bottom up company research that incorporates factors such as operating factors, financial profile and quality of management
• Responsive security selection: Spread forecast continuously updated for a wide universe of industries and companies

Portfolio Construction & Risk Management

• Portfolio construction divided into three broad areas: domestic and foreign interest rate forecast, sector allocation and security selection.
• Proprietary factor based risk model provides a granular estimate of all risks across different sources of return which are then aggregated into a measure of overall portfolio risk.
• 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.