Active and Strategic Fixed Income Team – Strategic Universe

Investment approach

With a duration similar to the benchmark, we invest in a strategic allocation focused on the yield curve and sectors. Our objective is to produce a stable added value over rolling four-year periods with an information ratio greater than 0.50. Our decision-making process also incorporates tactical decisions and an optimization of the security selection process in relation to portfolio positioning. The portfolio generates a higher yield to maturity than its benchmark by maintaining an overweight position in provincial, municipal and corporate bonds (less than 10 years), combined with a bullet positioning on the yield curve. These sources of value added are negatively correlated with each other and with the direction of interest rates.

Key Characteristics

  • Consistency and solid performance in different types of market environments
  • Strong risk-adjusted returns as reflected by an excellent Information Ratio
  • Positive carry through long term investment decisions
  • High quality portfolio with conservative approach to corporate bonds selection
  • Continuous and rigorous risk management through disciplined investment process