What’s the strategy?
This Canadian-focused bond portfolio is highly diversified by sector, term and issuance, with a focus on outperforming the FTSE Canada Universe Bond Index.
Tactical approach allows portfolio managers to seize yield and return enhancement opportunities.
- As market conditions change, this portfolio has the flexibility to seek out income-generating opportunities as they present themselves, including the flexibility to invest in high-yield corporate bonds, foreign bonds, ETFs, private debt, mortgage debt and non-hedged currencies.
Active and flexible portfolio management.
- Portico’s proprietary research, analysis and strategic portfolio construction is designed to identify asymmetric opportunities within the fixed-income marketplace to enhance yield and moderate volatility.
Why invest in this portfolio strategy?
This portfolio is designed to be a core Canadian fixed-income holding. The fund is ideal for investors seeking a primarily Canadian diversified core fixed-income portfolio that’s designed to be responsive to changes in interest rates and various market conditions while controlling overall risk levels. Within well-defined risk parameters, the portfolio management team has the flexibility to add exposure to high-yield bonds, foreign-denominated bonds and alternative fixed-income securities, such as private and mortgage debt instruments that can provide enhanced yield and trading opportunities.
Tactical Bond (Portico), a video sharing the benefits of investing in the
tactical bond fund. Features an interview with Mark Hamlin, Vice- President, Fixed Income, GLC Asset Management Group.
Upbeat background music plays through the entire video.
Description: GLC Asset Management logo appears on screen. Cut to a shot of two people dressed in business attire, sitting across from each other in an office setting. The woman on the left side of the screen begins the interview as a text banner appears onscreen: Christine Wellenreiter, Vice-President, Marketing and Communications, GLC Asset Management Group
Christine: Mark, as the head of GLCs fixed income investment division, so, Portico Investment Management, and also a lead manager for the new tactical bond fund, I know that you're very excited about that fund coming to market, but I want to hear from you. Why are you excited about this fund?
Description: Cut to a close up of the man sitting across from Christine. As he begins to answer, a text banner appears beside him onscreen: Mark Hamlin, Vice-President, Fixed Income, GLC Asset Management Group.
Mark: We are excited about this fund. It gives us the opportunity to invest both in the Canadian fixed income markets but also more globally when we think that there are risk opportunities that we want to take advantage of there.
Description: The scene returns to the two shot. The remainder of the interview cuts between the two shot and the close up shot of Mark.
Mark: And over time it gives us more opportunity to add incremental returns for our investors.
Christine: Should investors be looking at this fund as a core fixed income holding in their investment portfolios or more like a specialty fund or maybe a niche fund?
Mark: This is certainly a core Canadian fixed income fund. It is going to be invested... the majority of its assets are going to be in the Canadian fixed income market at all times. What we've done with it is we've tried to make sure that we can look at the widest possible universe of investments. If we do see the opportunities exist outside of the Canadian market, then we have the ability to invest there. The way we look at investing is, is we're looking for risks or opportunities that are in our favor, where the odds are in our favor or the risks are asymmetric. As such, we're seeing some interesting tensions in the markets these days, in the fixed income markets…
Mark: …and they're not just domestic. They're global as well and so this is a good time to be able to invest in a wider array of assets.
Christine: You have a rather large team underneath you of fixed income specialists. How does that contribute to the management of the tactical bond fund?
Mark: We do have a great team of investment managers, of portfolio managers, with a diverse background. They've got experience managing a wide array of different strategies across asset classes from corporate bonds, to real rate of return bonds, socially responsible investing, government bond funds and so on.
Mark: We use a team approach to managing portfolios and the idea is to try and bring as much of that experience together as we can.
Christine: Mark, looking at the tactical bond fund from an investor's perspective, what's the benefit of investing in the tactical bond fund?
Mark: So, the tactical bond fund, as we've said, is a Canadian fixed income fund, but it has the ability to invest more globally. The best investment opportunities may arise in the Canadian fixed income market or in the North American fixed income market, but they may be elsewhere.
Mark: We as a portfolio management team will be looking at a wider universe, a wider array of possible investments, and if the best investments are elsewhere or in a different asset class, perhaps in high yield as opposed to investment grade, we'll be looking at as many potential opportunities as we can.
Christine: Incremental gain type idea.
Mark: Incremental gains, but as many possible incremental gains as we can, so that we can find the best array of investments for our investors.
Christine: And the ability to use various financial instruments like derivatives for example or ETFs, what does that do for an investor?
Mark: So, using ETFs or derivatives, which aren't themselves an asset class, they are a conduit into an asset class. They enable us to better take advantage of these opportunities when they arise. So, we'll see the same asymmetric risk, we might see the credit is a risk or an opportunity but using ETFs or derivatives will enable us to more nimbly put those positions on, and capture more of those gains, again benefiting investors.
Description: Christine and Mark shake hands.
Christine: Mark, thank you very much. It's been a pleasure speaking with you.
Mark: My pleasure entirely.
Description: The screen fades to white and text appears onscreen: Disclaimer. Copyright GLC. You may not reproduce, distribute, or otherwise use any of this article without the prior written consent of GLC Asset Management Group Ltd. (GLC). This commentary represents GLC’s views at the date of publication, which are subject to change without notice. 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 commentary is intended as a general source of information and is not intended to be a solicitation to buy or sell specific investments, nor tax or legal advice. Before making any investment decision, prospective investors should carefully review the relevant offering documents and seek input from their advisor. 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.
Vice-President, Fixed Income
Mark leads GLC’s Portico Investment Management division, which oversees more than $17 billion of fixed income assets under management within bond, balanced, mortgage and money market mandates. His work in developing portfolio positioning strategies with respect to interest rate and yield curve movement outlooks was instrumental in creating GLC’s Tactical Bond portfolio strategy, of which Mark remains a lead portfolio manager. Mark is also a key member of the GLC Global Multi-Asset Strategy team, which oversees all of GLC’s balanced, target-date and target-risk asset allocation fund solutions.
Mark brings over two decades of international fixed income and foreign exchange trading experience with a focus on derivatives to GLC. Prior to joining GLC, he held senior positions with leading financial companies in London, UK and New York.
Mark is a CFA charterholder, Chartered Investment Manager (CIM) and holds an honours bachelor of economics degree from Carleton University.
Vice-President, Fixed Income
Janet is a lead manager for the Canadian Bond, Core Plus Bond and Tactical Bond mandates, with additional oversight responsibilities for some of Portico's sector-focused and specialized fixed income portfolios. Janet also contributes as a member of GLC’s Global Multi-Asset Strategy team, which oversees all of GLC’s balanced, target-date and target-risk asset allocation fund solutions.
Joining GLC’s predecessor asset management firm in 1995, Janet brings over 25 years of portfolio management expertise spanning active and passive fixed-income strategies, including customized mandates for pension plans and financial institutions.
Janet is a CFA charterholder and holds an Honours Bachelor of Mathematics degree from the University of Waterloo.
Manager, Fixed Income
Jenny is Portico’s lead manager for the Short-Term Bond mandate and helps manage the Core Plus Bond and Canadian Bond mandates. She is also responsible for strategy formulation, bond analysis, security selection and trading.
Since 2010, Jenny has focused on fixed-income portfolio management and analytics. Before that, Jenny provided operational support for fixed-income portfolios and trading support to the Laketon equity team for 6 years.
Jenny holds a bachelor of arts degree in economics from the University of Waterloo and 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 Canada 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.