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CC&L Group 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.

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.

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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

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Brent Wilkins.

Brent Wilkins

Senior Vice President,
Head of Institutional Sales, Canada

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