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Please read the following terms and conditions carefully. By accessing rbcgam.com and any pages thereof (the "site"), you agree to be bound by these terms and conditions as well as any future revisions RBC Global Asset Management Inc. ("RBC GAM Inc.") may make in its discretion. If you do not agree to the terms and conditions below, do not access this website, or any pages thereof. Phillips, Hager & North Investment Management is a division of RBC GAM Inc. PH&N Institutional is the institutional business division of RBC GAM Inc.

No Offer

Products and services of RBC GAM Inc. are only offered in jurisdictions where they may be lawfully offered for sale. The contents of this site do not constitute an offer to sell or a solicitation to buy products or services to any person in a jurisdiction where such offer or solicitation is considered unlawful.

No information included on this site is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any product or service. The amount of risk associated with any particular investment depends largely on the investor's own circumstances.

No Reliance

The material on this site has been provided by RBC GAM Inc. for information purposes only and may not be reproduced, distributed or published without the written consent of RBC GAM Inc. It is for general information only and is not, nor does it purport to be, a complete description of the investment solutions and strategies offered by RBC GAM Inc., including RBC Funds, RBC Private Pools, PH&N Funds, RBC Corporate Class Funds and RBC ETFs (the "Funds"). If there is an inconsistency between this document and the respective offering documents, the provisions of the respective offering documents shall prevail.

RBC GAM Inc. takes reasonable steps to provide up-to-date, accurate and reliable information, and believes the information to be so when published. Information obtained from third parties is believed to be reliable, but no representation or warranty, express or implied, is made by RBC GAM Inc., its affiliates or any other person as to its accuracy, completeness, reliability or correctness. RBC GAM Inc. assumes no responsibility for any errors or omissions in such information. The views and opinions expressed herein are those of RBC GAM Inc. and are subject to change without notice.

About Our Funds

The Funds are offered by RBC GAM Inc. and distributed through authorized dealers. Commissions, trailing commissions, management fees and expenses all may be associated with the Funds. Please read the offering materials for a particular fund before investing. The performance data provided are historical returns, they are not intended to reflect future values of any of the funds or returns on investment in these funds. Further, the performance data provided assumes reinvestment of distributions only and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. The unit values of non-money market funds change frequently. For money market funds, there can be no assurances that the fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment in the fund will be returned to you. Mutual fund securities are not guaranteed by the Canada Deposit Insurance Corporation or by any other government deposit insurer. Past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. RBC ETFs do not seek to return any predetermined amount at maturity. Index returns do not represent RBC ETF returns.

About RBC Global Asset Management

RBC Global Asset Management is the asset management division of Royal Bank of Canada ("RBC") which includes the following affiliates around the world, all indirect subsidiaries of RBC: RBC GAM Inc. (including Phillips, Hager & North Investment Management and PH&N Institutional), RBC Global Asset Management (U.S.) Inc., RBC Global Asset Management (UK) Limited, RBC Global Asset Management (Asia) Limited, BlueBay Asset Management LLP, and BlueBay Asset Management USA LLC.

Forward-Looking Statements

This website may contain forward-looking statements about general economic factors which are not guarantees of future performance. Forward-looking statements involve inherent risk and uncertainties, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement. All opinions in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.

Accept Decline

Based in Vancouver, Canada, the PH&N Fixed Income team was formally established in 1984 and since then has grown to become one of Canada’s largest fixed income managers. The team manages more than $122 billion in fixed income assets and comprises 47 investment professionals who are fully dedicated to the analysis, trading, and risk management of these assets.1

The PH&N Fixed Income team’s specific strengths as a bond manager are directly related to the depth of resources – both people and technology – that they dedicate to the management of fixed income portfolios. The specialized expertise within the group is organized into fully integrated teams that follow a collaborative investment process to support specific mandates or functions, such as universe and short-term bonds, long bonds and liability-driven investments (LDI), client servicing and research, credit analysis, insurance/regulated entities mandates, and quantitative research, among others.

1As of December 31st, 2023

Our philosophy: Adding value while controlling risk

The primary objective of the PH&N Fixed Income team is to add value while controlling risk. The team believes that the key to achieving this objective is through the use of multiple investment strategies, supported by rigorous internal credit analysis to identify high-quality investments that offer good relative value.

Diversified portfolio with attractive reward-for-risk characteristics

Interest rates

  • Duration
  • Yield curve
  • Real return bonds
  • Foreign sovereign

Credit

  • Sector
  • Quality
  • Credit curve
  • Industry
  • Security selection
  • Foreign issuers

Liquidity

  • Government sectors
  • Mortgages
  • Mortgage-backed securities
  • Security selection
Lower
Predicability of expected value-added
Higher

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Value-add

The use of multiple strategies to add value

Risk / reward profile

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 overall

Yield-enhancing strategies

An emphasis on the use of yield-enhancing strategies, such as corporate bonds, mortgages, and global credit (where applicable)

Rigorous monitoring

An emphasis on risk controls using strict guidelines and rigorous monitoring

ESG

Incorporating a comprehensive risk-based approach that includes environmental, social, and governance (ESG) downside risk analysis for applicable types of investments.*

*Certain investment strategies or asset classes do not integrate ESG factors, including but not limited to money market, passive and certain third-party sub-advised strategies.

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Investment process

The below graphic illustrates the key inputs that make up our continuous portfolio construction and risk management process.

Manager views

Manager views

Makes up the first input into an investment decision. It refers to the fund manager’s initial trade idea; for example, based on the fund manager’s holistic view on the relative attractiveness of two sectors, they consider selling one to fund the purchase of another.

Specialist views

Specialist views

Make up the second input, whereby the fund manager consults with specialists on the team to obtain their views and input on a potential trade. The specialists’ expertise in that particular sector is derived from trading bonds daily, monitoring the new issue market, following market trends, and performing continuous fundamental research.

Macro checklist (M-lab)

Macro checklist (M-lab)

The third input is from M-Lab, the team’s proprietary quantitative-based research platform. Developed in house, M-Lab generates return forecasts on trades based on macroeconomic, technical, and valuation indicators that are embedded within the platform. M-Lab is more of a decision-support tool as opposed to a decision-making tool, helping to test the fund manager’s intuitions.

Investment thesis

Investment thesis

The fund manager then synthesizes the three inputs into an investment thesis.

Risk considerations (BondLab)

Risk considerations (BondLab)

Next, we assess the risk considerations of the trade using BondLab, our proprietary quantitative risk management tool. Through BondLab, fund managers can analyze individual strategies and how they interact with the portfolio, create model portfolios with various exposures, and stress test the portfolio in a variety of different environments, as well as run tracking error analysis. All of this helps the fund managers assess the potential risks of the trade as well as size the trade appropriately.

Mandate restrictions

Mandate restrictions

Before any trade is implemented, the fund manager ensures the investment mandate restrictions for the portfolio will remain in compliance post-trade.

Portfolio decision & execution (BondLab)

Portfolio decision & execution (BondLab)

Once the above is satisfied, the portfolio decision is then implemented.

Performance attribution (BondLab)

Performance attribution (BondLab)

BondLab generated performance attribution helps the fund manager assess whether the trade is performing in line with expectations. Trades can be adjusted as necessary based on this feedback, which forms part of the continuous nature of our portfolio construction and risk management process.

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Investment team