The Corporate Bond strategy seeks to achieve total return by investing primarily in a diverse portfolio of Canadian and foreign investment-grade corporate fixed income. The strategy will typically seek to outperform the FTSE Canada All Corporate Bond Index over four years rolling and before investment management fees.
The strategy applies 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. The portfolio management team has strong relationships with public issuers, syndication groups and trading desks that help to minimize transaction costs and access attractive corporate debt investments. Collaboration within the team is facilitated through open trading desks and daily team meetings with input from groups managing fixed income investments in Canada, the U.S. and the UK.
A dedicated credit research group follow industries on a global basis using formal models to determine most internal ratings. Our internal rating system defines a probability of default rating at the issuer level and an end rating based on loss given default at the issue level. This system uses industry specific scorecards which include both quantitative and qualitative factors.
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
Christian Goddard, Senior Director and Portfolio Manager
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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