ACTIVE FIXED INCOME

Our fixed-income group is known for its tradition of innovation and proven track records. The team’s longstanding expertise adds value for our diverse clientele with a high degree of consistency. They seek to optimize the risk-return trade-off using a distinct set of strategies throughout the risk spectrum.

Fundamental foundation

Our investment approach is based on fundamental concepts that rely on established economic principles. Fundamentally based internal macro economic research provides the best match for the objectives of long-term investors. The following elements are common attributes of all of our fixed-income processes:

>	Long-term focus on economic cycle
>	Identification of themes that drive future global economic activity
>	Search for catalysts that drive the timing of cyclical evolution
>	North American monetary policy analysis
>	Short-term supply and demand indicators

Multi strategy approach

We use multiple, diversified strategies – duration management, sector rotation, credit analysis and portfolio positioning along the yield curve – in all of our fixed-income processes, as they each provide independent opportunities to add value particularly in a disciplined and risk-controlled framework. This active management approach can enhance overall portfolio return in virtually any interest rate environment.

Portfolio construction and risk management are closely connected. As returns from curve, credit, sector and duration management are not highly correlated, a portfolio with relatively small and frequent adjustments across these four dimensions of risk and opportunity will diversify away some of the risks of active management and lead to consistency of returns.

In addition to our traditional mandates, we tailor client portfolios to their specific investment objectives. Our team’s flexibility and areas of expertise cover a broad spectrum of investment mandates including Canadian Core (Universe and Long), Canadian Tactical (Universe), and Real Return.