CC&L Long Bond Alpha Plus

Investment Objective

• Generate a total return in excess of the return of the benchmark, FTSE Canada Long Term Overall Bond Index, plus 2% per annum over a market cycle.
• Maximize long-term total return while prudently managing investment risk relative to the benchmark.

Highlights

• Fixed income focus that is enhanced by a combination of fundamental and quantitative market neutral processes that are well diversified, uncorrelated and indifferent to rising or falling market returns.
• The fixed income process is well defined, portable and fundamentally based, with multiple sources of added value.
• A synthetic allocation to the fixed income market allows additional returns to be achieved through an allocation to the CC&L Multi-Strategy Fund.
• CC&L Multi-Strategy Fund has exposure to different market neutral strategies whose risk/return characteristics are carefully risk managed individually and together.

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.

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 process supported by both fundamental and quantitative tools requiring an ongoing dedicated research effort.
• Comprehensive credit analysis: Top down industry analysis and a bottom up company research that incorporates criteria such as operating factors, financial profile and quality of management.
• Responsive security selection: Spread forecasts continuously updated for a wide universe of industries and companies.
• Well diversified processes: Multi-strategy fund invests in Canadian US and international equities, as well as in global fixed income using either fundamental or quantitative processes.

Portfolio Construction & Risk Management

• Structured by investing a portion of the portfolio in the CC&L Long Bond Fund while adding an allocation to the CC&L Multi-Strategy Fund combined with a synthetic fixed income instrument.
• 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.
• Robust controls measure and monitor active risk for every client, every day.