DIVERSIFIED PRODUCTS & MANAGEMENT
We strive to offer a diverse range of products to meet the changing needs of our clients. However, we maintain a binding risk control towards our Active Management as well as our Credit Management and Liability Driven Investments.
Our management philosophy is based on 5 distinct sources of value added derived from our long-term fundamental analysis of economic conditions. This is however binded by our risk budget which forces us to prioritize investments offering the best risk/return. Our objective is to generate value added of 50 basis points on a four-year moving average.
Our specialization in fixed income management allows us to analyze in-depth the corporate bond market. We focus on identifying default risk, external events and ESG factors (Environmental, Social & Governance). This process allows us to establish an internal rating system referred to as Credit Quality Rating (CQR).
BANK LOAN FUNDS
Bank loans are debt instruments that have a priority rank over other liabilities of a company with assets pledged as collateral. This protection is also enhanced by including covenants that restrict the borrower on certain activities.
Offered at variable rates, this fund provides protection against inflation and generates high returns while prioritizing capital preservation.
The AlphaFixe ReturnPlus Fund offers an innovative solution for the active management of fixed income securities which is mainly focused on capital protection and high current yield. By its strategic combination of different asset classes, the fund offers a new perspective into the world of bond management. Our rigorous risk management system, which includes the non-financial risks (environmental, social and governance), combined with our 5 sources of added value, thereby producing an optimal portfolio .
AlphaFixe acts as sub-advisor for the Horizons Exchange Traded Funds (HSL), which is composed of U.S. senior secured floating rate loans whereas we apply the same strategy and management philosophy as our Bank Loan Fund. In addition, we act as sub-advisor for funds offered by insurance companies or for Bank Loan Fund and ReturnPlus Fund.
Exchange Traded Funds of Bank Loans (HSL.to)
Enhancing the performance of a fixed-income portfolio is often a priority for investors, but its implementation must not be met at the expense of quality and liquidity. It is under this premise that we approach our investments in high yield bonds. We therefore prefer an index approach enhanced by targeted investments in individual securities, all monitored by a detailed risk analysis.
The AlphaFixe Green Bond Fund offers an innovative solution for the active management of green bonds, helping to finance a low-carbon economy without diminishing returns. In order to ensure environmental integrity, selected investments must meet the green bond selection criteria established by the AlphaGreen’s proprietary validation process,
Our rigorous risk management system, which includes non-financial risks (environmental, social and governance), is combined with our usual sources of added value to produce an optimal portfolio. As the benchmark is the FTSE Universe Bond, global green bonds are hedged in Canadian dollars.
Our team has developed a unique expertise in constructing and performance-monitoring liability-matched portfolios with the use of highly customizable benchmarks. The range of LDI products includes, duration extension, monthly cash flow matching and hybrid portfolios using both matching and active management strategies.