Institutional Investors
Fixed Income Strategies
We take a disciplined, team-based approach to our active management of fixed income mandates, seeking to add consistent value relative to portfolios’ benchmarks through the management of duration, yield curve and credit risk.
Fundamental economic research is a core component of our macro analysis. Economic activity, labour markets, inflation, fiscal and monetary policy are among the variables that we use to determine the phase of the business cycle, which drives our portfolio risk and curve positioning, as well as overall duration. We use proprietary valuation and risk models to support our research and screening process, as well as other quantitative and qualitative tools.
Through valuation-based interest rate positioning, total return yield curve analysis, and a disciplined and rigorous fundamental credit research process, we strive to add value beyond the index.
Our core process consists of the following pillars:
- Interest rate anticipation (duration)
- Yield curve positioning
- Credit sector allocation
- Security selection
- Global credit (in our Core Plus mandates)
We use proprietary models to conduct scenario analysis and stress-tests on portfolios to set risk budgets and help determine their optimal structure.
A key advantage of the Beutel Goodman portfolios is the strength and depth of our credit research. Our Fixed Income team has dedicated credit analysts who follow a disciplined and comprehensive approach to the analysis of credit risk. Our analysts act as sector experts and are responsible for assessing credit risk throughout the life cycle of a credit. This includes initiation of coverage and ongoing fundamental and relative value monitoring.
Our credit research process includes:
- Proprietary financial models
- Industry analysis
- Management interviews
- Strategy critique
- Credit ratings and
- Environmental, Social and Governance (ESG) Review
Inception date: April 12, 2021
Benchmark: Bloomberg Barclays U.S. Aggregate Bond Index
Lead Portfolio Manager(s): Derek Brown, Sue McNamara and Neil McCabe
Objective: The Core Plus Fixed Income strategy seeks to maximize total return and provide income and capital growth by investing primarily in a diversified portfolio of fixed-income securities across investment-grade, high-yield and non-traditional fixed-income asset classes.
Composition: The strategy is a well-diversified portfolio of U.S. government and investment-grade, high-yield and non-traditional fixed-income asset classes of various maturities. The corporate bonds will have an average credit rating of BBB or higher by a recognized rating agency. The Fund may invest a portion of its assets in bonds that are rated below BBB or in other evidences of indebtedness.
Vehicles:
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Segregated account |
’40 Act Fund [1] |
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Canadian institutions |
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U.S. institutions |
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Global institutions |
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In addition to our Canadian managed-account and fund offerings, Beutel Goodman also serves as the sub-advisor for AMG Beutel Goodman Core Plus Bond Fund, a ’40 Act fund distributed in the United States by AMG Distributors, Inc. This statement does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any shares of any fund (nor shall any such shares be offered or sold to any person) in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction, and is by way of information only.
