What’s the strategy?
The SRI Bond (Portico) portfolio strategy invests primarily in Canadian federal and provincial bonds and high-quality investment-grade corporate debt securities.
The portfolio manager pursues a consistent, measured and disciplined approach to capture incremental gains through a multi-factor approach to analyzing interest rates, credit markets and yield curves.
The portfolio is highly diversified by sector, term and debt issuers, with moderate variation of the benchmark’s duration.
All holdings are considered for their environmental sustainability, social responsibility and corporate governance (ESG) performance.
As an additional measure, all holdings pass specific exclusionary screening which avoids investment in companies that fall into any of the categories below:
Negative impact on stakeholders (ESG controversies)
Companies with a record of major ESG controversies or incidents in any of the environmental, social and governance areas will be deemed ineligible.
Low rank on ESG risks (Worst-In-Class)
Companies assessed as a severe risk with a low level of preparedness to manage ESG risks, and ranking consistently in the bottom of their peer group (typically in the bottom 25%) will be deemed ineligible.
Companies with direct involvement or meaningful related involvement in alcohol, gambling, military contracting, nuclear power, adult entertainment, recreational cannabis and/or tobacco industries will be deemed ineligible.
Why invest in this portfolio strategy?
Ideal for investors seeking Canadian fixed income exposure where socially responsible factors are an important consideration in making investment decisions.
This portfolio offers a meaningful way of ensuring that investment dollars promote a higher level of environmental sustainability, social responsibility and corporate governance, while benefiting from expert investment analysis and the opportunity for attractive interest income and long-term capital appreciation.
The SRI Bond (Portico) strategy can offer:
- A focus on capital preservation and a long-term view towards conservative, stable income and capital appreciation
- A purely Canadian bond portfolio
- Active management of credit risk, duration, yield curve and sector positioning to optimize yield opportunities while mitigating risk
- A high-quality portfolio of investment-grade fixed-income holdings
This conservatively managed, highly diversified core fixed-income portfolio is designed to be responsive to changes in interest rates and market risks, while controlling overall risk levels.
Data for institutional investors
Vice-President, Fixed Income
Natalie is lead portfolio manager responsible for Portico’s Socially Responsible bond fund. She also assists in the management of the Core Bond mandate. Natalie has a broad range of experience in the Canadian fixed-income field, including strategy formulation, fundamental and technical analysis and security selection.
Her 30 years of experience in the management of fixed income funds includes the GWLIM Core Canadian bond, corporate, income, balanced, government, mortgage, money market and specialized custom bond mandates.
Natalie holds a chartered investment manager (CIM) designation.
Benchmark source: Copyright®, FTSE is a trade mark of FTSE International Ltd and is used under license. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); and TSX® is a registered trademark of TSX. Copyright®, MSCI Inc.
Portfolio attributes and rates of return reflect the portfolio strategy used by the London Life segregated fund shelf.
Past performance is no guarantee of future results.
There is no guarantee that investment objectives, or risk or return targets discussed in this material will be achieved. No part of this material may be reproduced or redistributed in any form without express written permission of GLC Asset Management Group Ltd. The data provided is for information purposes only. This material is not intended to be read in isolation and may not provide a full explanation of all the topics that are presented and discussed. Information contained in this material has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. Furthermore, there can be no assurance that any trends described in this material will continue or that forecasts will occur; economic and market conditions change frequently. This material should not be considered a recommendation or offer to purchase or sell any particular investment.