The RBC Global Fixed Income and Currencies Team manages a broad range of global fixed income products. The team evaluates opportunities in global bond and currency markets by utilizing a proven investment process with a robust risk-management culture. We aim to build resilient portfolios that deliver consistent returns over the market cycle and preserve capital.
- We take an active-management approach with a long-term investment horizon, aiming to deliver consistent returns and preserve capital over the market cycle.
- We use a team-based approach in order to provide our clients with the full depth and breadth of our combined expertise and to ensure continuity in the event of management turnover.
- We rely on intensive fundamental credit analysis of our credit team who also leverage the insights and capabilities of the firm’s equity teams.
- We diversify globally in order to lower volatility and access more opportunities for earning excess returns (alpha).
- We aim to outperform our funds’ benchmarks over a full market cycle through smart portfolio construction, tactical asset allocation, credit and security selection, as well as active currency and duration management.
- We pay particular attention to portfolio construction and position sizing making sure that risks taken are proportional to opportunities available in the market at any given time.
- We de-emphasize forecasting as an investment tool in favour of building portfolios which are resilient in a range of economic and market scenarios.
- We believe that hedging foreign-currency risk is essential in core investment grade global bond portfolios.
- We incorporate review of environmental, social and governance (ESG) risks into our investment process, believing that these factors are relevant to a complete assessment of credit risk and value of securities.
Multi-layered approach
We rely on a multi-layered approach that is methodical, consistent and empirical.Top down perspective
We consider global fiscal & monetary conditions in relation to regional economic growth & inflation projections.Bottom up security selection
The relative value of individual securities is assessed by a team of Portfolio Managers and Credit analysts who incorporate in depth industry/sector analysis.Opportunistic credit use
We tactically manage allocations to various credit markets such as high yield and emerging market debt in line with risk/reward opportunities available.Scenario Analysis
Rather than building portfolios for a single forecast, we conduct multiple scenario analyses in order to understand and compare potential outcomes and risk return profiles of our funds.Foreign Exchange
We manage foreign-currency risk by hedging passive currency exposures back into Canadian dollars, and actively managing overlay positions to enhance returns.Extended time horizon
We evaluate market opportunities for an 18-36 month time horizon which allows us to take advantage of market volatility.Multiple strategies
Tactical asset allocation
- Gov't vs. credit
- HY, EM Sov
- EM Corp
- Preferred bonds
- Provincials
- EMFX
Interest rates
- Duration
- Yield curve
- Regional allocation
- X-country trade
- Inflation-linked bonds
Credit
- Sector
- Quality
- Credit curve
- Security selection
Currency
- Hedging
- Dynamic hedging
- Overlay