CC&L Long Bond

Investment Objective

• Generate returns equal to the return of the benchmark, FTSE Canada Long Term Overall Bond Index, plus 0.50% per annum over a market cycle.
• Maximize long-term total return while prudently managing investment risk relative to the benchmark.

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.
• ESG considerations integrated into the strategy.

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 that follows 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 active risk for every client, every day.