Global Core Fixed Income

Global bonds provide important diversification benefits to a fixed income portfolio. By constraining mandates to investing in a single country or region, investors may limit their potential sources of return. Global bond exposure may provide greater return potential and offer more diversification opportunities by exploiting diverging central bank policies and varying economic environments around the world.

The strategy’s core investment focus is global sovereign bonds from developed market issuers. The strategy also aims to add value by investing across a number of other fixed income markets including investment grade corporate bonds, high yield bonds, emerging market bonds and emerging market currencies. Currency risk is carefully managed and unhedged currency exposure is limited to actively managed high-conviction positions.

Strategy Overview

  • Invests actively in bonds issues by sovereign and corporate issuers across the global fixed income universe, while limiting unhedged currency exposure to only high-conviction active positions.
  • Aims to generate value added performance across investment decisions related to asset allocation and interest rates, as well as yield curve, credit, and currency.
  • We incorporate the analysis of material environmental, social, and governance (ESG) factors into our investment process, for applicable types of investments1.

1Certain strategies do not integrate ESG factors, including but not limited to money market strategies, index strategies and certain third-party sub-advised strategies.

Our Approach

Investment Strategy

The RBC Global Fixed Income and Currencies team believes that significant and consistent value added can be achieved through a multi-disciplined, actively managed asset allocation, security selection and currency management processes and by leveraging their global research capabilities. Rigorous risk assessment is layered at the individual strategy level and at the total strategy level to ensure risk taken is proportional to the potential reward.

The team believes that:

  • Active management adds value
  • The team approach contributes to creating better strategies
  • What gets measured gets managed: all risks have to be identified
  • A longer time horizon allows the team to take advantage of opportunities
  • Risks taken should be proportional to opportunities available
  • Unmanaged, passive currency risk is not appropriate for fixed income portfolios
  • Consistency of returns is valuable

Additional information

Inception
January 2000
Primary benchmark
FTSE World Government Bond Index (CAD hedged)
Vehicle
Canadian Investment Fund

Investment team

​RBC Global Fixed Income and Currencies team

A proven investment process, a robust risk-management culture

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