The PH&N Fixed Income team based in Vancouver, Canada, is one of Canada’s largest fixed income managers. The team of experts follows a collaborative investment process using multiple strategies to meet client needs depending on opportunity & risk.
The key objective of our fixed income approach is to add value while controlling risk. There are four distinguishing characteristics of this approach to fixed income investing:
- the use of multiple strategies to add value;
- a conservative approach, with moderate positions taken concurrently in a number of strategies focusing on the risk/reward profile for the strategy and the portfolio over all;
- an emphasis on risk controls using strict guidelines and rigorous monitoring; and
- an emphasis on the use of yield-enhancing strategies, such as foreign, corporate, and provincial bonds and mortgages.
Investment process
The investment process revolves around using the ideas and skills of the Fixed Income team, and applying them to the specific parameters of each portfolio. The investment process can be broadly divided into four parts:
Idea generation & research
- Formation of markets view
- Specialty team opportunity analysis
Communication, coordination & relative value
- Consultation with strategy area specialists
- Formal & informal
- Relative value analysis
Portfolio construction
- Assessment of risk/reward impact on portfolio
- Qualitative and quantitave review of risk interacrtions with existing strategies
- Correlation and volatitly analysis
- Ranking of opportunites
- Position sizing
- Portfolio construction and testing
Measuring performance
- Daily review and monitoring
- Continuouse evaluation of expected versus actual results