Other links

You are currently viewing the Canadian Institutional website. You can change your location here or visit other RBC GAM websites.

Welcome to the RBC Global Asset Management site for Institutional Investors
Français

In order to proceed to the site, please accept our Terms & Conditions.

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 Investment 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

The Canadian Corporate Fixed Income Strategy seeks to provide a relatively high level of income and reasonable stability of capital by investing in a well-diversified portfolio of fixed income securities issued primarily by Canadian corporations, though the strategy may invest in non-Canadian bonds denominated in Canadian dollars as well. The strategy is managed by the PH&N Investment Grade Corporate Credit team, a specialized team of 12 experienced investment professionals embedded within the broader PH&N Fixed Income Team.

Strategy overview

  • Actively managed, fully diversified strategy designed to provide income and reasonable stability of capital by investing primarily in high-quality Canadian corporate bonds.
  • May invest in non-Canadian bonds denominated in Canadian dollars as well.
  • Managed by the PH&N Fixed Income team’s specialized group of experienced credit analysts and researchers are supported by the resources and expertise of the firm's broader fixed income and equity teams.
  • Benchmarked to the FTSE Canada All Corporate Bond Index

Our approach

Investment philosophy and style

  • The strategy’s primary objective is to add value while controlling risk.
  • There are four distinguishing characteristics of the team’s philosophy:
    • A conservative approach, with moderate positions taken concurrently in a number of strategies focusing on the risk/reward profile for the strategy and portfolio overall.
    • Rigorous fundamental credit analysis is the primary requirement for long-term success. This can be enhanced – but not superseded – by valuation analysis.
    • Active management strategies help the team benefit from changes in industry, individual security, and overall market conditions.
    • An emphasis on risk controls, using strict guidelines and rigorous monitoring.
  • This approach has been honed over many years, and aims to provide consistent and predictable value-added, whether in terms of total return or in terms of income objectives. The key to achieving these objectives is to have many strategies working for the portfolio at the same time.

Investment process

The team’s selection of corporate bonds is driven by a disciplined three-stage credit analysis process involving:

  1. A “top-down” industry group screen, based on macroeconomic factors and overall industry outlooks.
  2. A “bottom-up” fundamental analysis of specific credits based on their rigorous internal credit review.
  3. An analysis of each bond’s structure (i.e., term call features, covenants, etc.) and the relative valuation of the issue versus comparable securities.

This process results in a portfolio of investment grade corporate bonds that provides an attractive yield premium relative to other fixed income securities while limiting specific issuer risk, industry group risk, and macroeconomic risk.

Our distinctive approach to building a corporate bond strategy is the result of a combination of the following resources:

Investment grade credit edge

Our approach to the corporate bond market

Portfolio construction

  • Portfolios are constructed using a consistent and repeatable process, with inputs from many individuals within the PH&N Fixed Income team.
  • The team’s multiple-strategy approach means that the portfolio is constructed using a number of precisely-calibrated different strategies, subject to strict risk controls.
  • A multi-stage compliance procedure ensures that the portfolio construction process remains consistent and adheres to the team’s guidelines.
  • We use proprietary risk systems to monitor and measure the active risk budget for every portfolio. This tracking error can be dialed up or down depending on market conditions.

Additional information

Inception
January 2010
Primary benchmark
FTSE Canada All Corporate Bond Index
Vehicle
Canadian Investment Fund

Investment team

PH&N Fixed Income team

Collaborative investment process

Connect with our team to learn more

Contact us

body content

Accept Decline