Core Plus Fixed Income

Top Reasons for Choosing Addenda Capital to Manage your Core Plus Fixed Income

• We offer a differentiated product by combining a diverse skillset alongside complementary portfolio exposures.
• Our investment themes are deployed into both core and non-core positions while leveraging our experience in securities including commercial mortgages, preferred shares and high-yield bonds, as well as Allianz Global Investors, LLC’s know-how in global credit.
• Our strategy is diversified not only by asset class, but by investment segment and specific, desired exposures.
• We exploit multiple and uncorrelated sources of alpha and we capitalize on divergences in returns that occur across different environments.
• We seek higher returns by remaining benchmark aware, not benchmark dependent.

We believe that:

• Higher returns are attainable by exploiting a wider array of investment opportunities, some of which lie beyond traditional Canadian bond securities.
• The diverse nature of market and credit cycles as well as monetary policies provides opportunities in terms of return divergences that can be exploited through targeted exposures and relative value positioning.
• A dynamic and disciplined tactical allocation approach, focused on multiple alpha sources and in-depth assessments of a broad range of factors, delivers higher fixed income returns over time and across market cycles.

Our investment approach for Core Plus Fixed Income involves a balanced mix of qualitative and quantitative inputs. Our process entails:

• Extensive top-down analysis to develop key investment themes that are likely to influence markets over the short to medium term. These in-depth assessments serve to determine the relative attractiveness of market segments and investment strategies.
• A quantitative optimization model serves to generate an optimal allocation to market segments based upon risk-adjusted return expectations.
• The model’s output is reviewed and allocations to the various asset class strategies are developed to ensure that multiple investment themes are expressed and assessed against inherent risks.
• The portfolio is designed to reflect multiple investment views while abiding to underlying constraints.
• A rigorous risk management framework ensures adherence to all guidelines and active exposures relative to the benchmark.
• An active management approach within each underlying asset class aiming to deliver additional alpha.