Fixed Income Strategies

Highlights

  • Well defined, portable, fundamentally based process with multiple sources of added value.
  • Proprietary risk model incorporates both risk and return in assessing opportunities.
  • Responsive credit process based on spread forecast.
  • Team-based approach enhanced by skills and insights from other CC&L teams.
  • ESG considerations integrated into the process.
  • Diversified approach, which is well suited to changing market conditions.

Investment philosophy

  • Economic fundamentals drive markets.
  • Better decisions result when fundamental information is validated through research that proves the link between the data and movements in the market.
  • Research is 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 economically driven macro analysis that follows a disciplined research process resulting in interest rate and sector exposures.
  • Robust risk management: Proprietary fundamental process supported by quantitative tools and ongoing dedicated research.
  • Comprehensive credit analysis: Top-down industry analysis combined with bottom-up company research including analysis of operational 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 forecasts, sector allocation and security selection.
  • Proprietary factor based risk model providing granular estimates of all risks across various sources of return which are then aggregated into a measure of overall portfolio risk.
  • Dedicated trading experts whose sole focus is to identify the best implementation strategy.
  • Robust controls measuring and monitoring active risk for every client, every day.

Risk disclosure

  • Investors should be aware of the material risks of CC&L’s Fixed Income strategies, which may include, but are not limited to credit, fixed income, high yield securities, interest rate, market and performance risk. For more information on the material risks of each investment strategy, please contact CC&L.

Our fixed income strategies

CC&L Money Market

Investment Objective

Generate returns equal to the return of the benchmark, FTSE Canada 91 Day T-Bill Index, per annum over a market cycle.

Maximize current income while preserving the capital value of the Fund and maintaining adequate liquidity.

CC&L Short Term Bond

Investment Objective

Generate returns equal to the return of the benchmark, FTSE Canada Short Term Overall Bond Index, plus 0.40% per annum over a market cycle.

Maximize long-term total return while prudently managing investment risk relative to the benchmark.

CC&L Core Bond

Investment Objective

Generate returns equal to the return of the  benchmark, FTSE Canada Universe Bond Index, plus 0.75% per annum over a market cycle.

Maximize long-term total return while prudently managing investment risk relative to the benchmark.

CC&L Universe Bond Alpha Plus

Investment Objective

Generate a total return in excess of the return of the benchmark, FTSE Canada Universe Bond Index, plus 2% per annum over a market cycle.

Maximize long-term total return while prudently managing investment risk relative to the benchmark.

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.

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.

CC&L Ultra Long Bond

Investment Objective

Generate returns equal to the return of the benchmark, FTSE Canada 20+ Strip Bond Index, per annum over a market cycle.

CC&L High Yield Bond

Investment Objective

Seeks to provide income and the opportunity for capital appreciation over the longer term by investing primarily in high-yield bonds or other income producing securities.

Generate returns equal to the return of the benchmark plus 1.25% per annum over a market cycle.

The benchmark will be comprised of the following: 30% Bank of America Merrill Lynch BB US High Yield Index, 30% Bank of America Merrill Lynch BB US High Yield Index (hedged CAD), 30% FTSE Canada Corporate BBB Bond Index and 10% Bank of America Merrill Lynch BB-B Canada High Yield Index.

CC&L Alternative Income

Investment Objective

The investment objective is to provide a return between 5% and 7% with a volatility target between 5% and 7% per annum over a market cycle.

Investment Objectives Disclosure

 

The Strategy’s investment objectives are targets only. Actual performance may differ materially,
including due to market or economic factors, portfolio management decisions, modelling error,
or other reasons. In determining the added value targets, CC&L may consider the Strategy’s performance
during historical periods, the level of estimated risk over a market cycle as well as the parameters used in
the Strategy’s portfolio construction process.

For more information about services available to you as a CC&L Investment Management client, please contact:

Phil Cotterill.

Phil Cotterill

Director & Portfolio Manager,
Head of Client Solutions

Download V-Card
Brent Wilkins.

Brent Wilkins

Senior Vice President,
Head of Institutional Sales, Canada

Download V-Card
John Ricketts.

John Ricketts

Senior Vice President, Co-Head of
Institutional Sales, USA

Download V-Card
Eric Hasenauer.

Eric Hasenauer

Senior Vice President, Co-Head of
Institutional Sales, USA

Download V-Card
Carlos Stelin.

Carlos Stelin

Director of Institutional Sales, Europe

Download V-Card

Insights

CC&L Investment Management Ltd.
September 8th, 2022