Strategy

The Private Fixed Income Plus Strategy invests primarily in a diverse portfolio of private and public fixed income assets – and seeks to achieve total return by providing income while preserving capital over the long term.

The strategy seeks to provide total returns by taking advantage of pricing inefficiencies often found in the private fixed income market.

Philosophy

The strategy employs a top-down investment approach to create an overall target risk profile for the strategy. The top-down view incorporates macroeconomic and interest rate forecasts from our rates research group to determine the optimal duration and curve positioning. Private fixed income holdings that are consistent with portfolio objectives and constraints are sourced by the private fixed income team and serve as core asset holdings for the strategy. Public fixed income holdings are utilized primarily to complement these core holdings such that overall portfolio characteristics are consistent with the intended risk profile.

Private fixed income assets are sourced by our private fixed income team either directly from issuers, sponsors or developers, or indirectly through banks, brokers and other agents and intermediaries. The team focuses on investment opportunities that have strong credit metrics while structuring appropriate senior security and covenants for additional downside protection.

Public fixed income assets are sourced by a dedicated public fixed income team through primary issuance and secondary markets. The team has strong relationships with public issuers, syndication groups and trading desks that help to minimize transaction costs and secure access to attractive public debt investments. The team uses both a top-down and bottom-up approach to identify public debt investment opportunities that capture positive risk-adjusted returns. The bottom-up approach considers many dimensions in developing a view of security-specific relative value including expected return, fundamental credit quality, liquidity, term, unique security attributes and expected transactions costs.

Both private and public fixed income teams integrate external research with internal market and asset level research to form the basis of investment decisions. On an ongoing basis, each fixed income asset is monitored by the private fixed income team and public fixed income team, as applicable, for any changes to credit quality and rating. Private fixed income assets are monitored relative to required financial and other reporting covenants and are subject to formal annual reviews and rating recommendations that are approved by the team’s senior management.

Investment Team

Candace Shaw,
Portfolio Manager and Head of Private Fixed Income

Petra Wendroth,
Associate Portfolio Manager and Senior Director, Private Fixed Income

Maurice Primeau,
Portfolio Manager and Managing Director, Private Fixed Income

Nicolas Delisle,
Portfolio Manager and Managing Director, Private Fixed Income

Douglas J. Gardiner,
Portfolio Manager and Head of Public Fixed Income

Randall Malcolm,
Senior Managing Director and Portfolio Manager, Canadian Total Return Public Fixed Income


Please note that Sun Life Capital Management (Canada) Inc. advises on this strategy. Sun Life Capital Management (Canada) Inc. is a Canadian registered portfolio manager, investment fund manager, exempt market dealer and in Ontario, a commodity trading manager.

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