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 PH&N North American High Yield Fixed Income strategy seeks to provide a high level of income and the opportunity for capital appreciation by investing primarily in a well-diversified portfolio of fixed income securities issued by Canadian and/or foreign corporations. The strategy is centered on a strong quality bias, as well as a preference for larger holdings in large-cap Canadian issuers the team knows well. The strategy aims to achieve an average credit rating of BB while limiting exposure to the lower quality segment of the high yield market.

Strategy overview

  • A specialized, actively managed portfolio that aims to provide a high current income stream while attempting to limit downside risk.
  • Invests primarily in medium quality (B-minimum) Canadian and/or foreign corporate bonds, convertible bonds, and preferred shares and government securities, traded in primarily Canadian and U.S. dollars.
  • Average term to maturity of the strategy will range between 3 to 10 years.
  • The strategy will endeavor to hedge all foreign currency exposure back to Canadian dollars, unless there is a compelling foreign-exchange return opportunity.

Our approach

Investment philosophy and style

  • The strategy aims to provide a high level of income and opportunity for capital appreciation by investing in a well-diversified portfolio of high yield fixed income securities issued by Canadian and/or foreign corporations and governments.
  • Emphasis on strong quality bias as well as preference for larger holdings in large-cap Canadian issuers.
  • The team’s fundamental credit and industry analysis process emphasizes higher quality securities, diversification, internal credit analysis, cash flows, and employing an active approach.

Investment process

  • The team’s multi-stage investment process starts with a bottom-up approach to search for issuers with attractive valuation characteristics and strong fundamentals. This is followed by a top-down risk management measure to ensure the overall portfolio is reasonably balanced in terms of industry, cyclicality, ratings, and market capitalization. The portfolio is then fine-tuned to optimize yield characteristics and curve/duration preferences.

Portfolio construction

  • Asset mix targets an allocation of 75% to 100% of the portfolio in fixed income securities and preferred shares and 0% to 25% in cash and short-term investments.
  • Average term to maturity between 3 and 10 years.

Additional information

Inception
July 1998
Primary benchmark
FTSE Canada Universe Bond Index
Vehicle
Canadian Investment Fund

Investment team

RBC Alternative Investments team

Objective is to find compelling investment opportunities while controlling for risk to meet the objectives of its various mandates

Connect with our team to learn more

Contact us

body content

Accept Decline