Much dialogue is taking place currently around derisking portfolios and protecting assets during periods of potential market drawdown.
As we move to a new phase in the cycle, we invite you to consider – when was your last review of the allocation to active fixed income solutions in your portfolio? Is that allocation performing as you expected? And if so, are you achieving the very best returns possible from that allocation? Most critically, will it protect the portfolio in a challenged market environment?
The FGP Core Plus Bond Fund combines the stability of a core bond allocation with yield-enhancing properties to support strong, risk-adjusted performance. Adding this strategy to clients’ portfolios may help enhance diversification and improve return potential while preserving downside protection.
Here’s why the FGP Core Plus Bond Fund is a solution for our times:
| Protecting capital to deliver strong performance |
The FGP Core Plus Bond Fund benefits from diversification of securities – all with the flexibility to opportunistically update allocations in these categories. We do not add risk to enhance performance; we enhance performance via protection of capital. This is illustrated in the table below in our impressive downside capture compared to our peers (38.6% vs. 93.7%).
| Industry-leading risk-adjusted performance |
Our proprietary credit analysis process, both a core competence and a competitive advantage of our Fixed Income team, is used to create an investment solution that has historically improved the risk and return metrics of a universe bond strategy.
We seek to achieve these returns by adhering to our philosophy that superior investment returns are realized by taking a long-term, bottom-up, value-oriented approach to investing based on detailed fundamental research and analysis.
The graph below shows how the fund has delivered greater alpha than the benchmark and its peers, at lower risk levels than both.
| Strong performance across different market environments |
The fund has delivered significant alpha over a complete business cycle:
- It outperformed as interest rates were declining in 2020
- It outperformed as interest rates spiked in 2021/2022
- It outperformed as interest rates were volatile in 2024
As you can see below, we have been successful in delivering alpha across short-, mid-, and long-term time horizons.
With a track record approaching its 10-year milestone, we encourage you to explore how the FGP Core Plus Bond Fund can complement your existing fixed income portfolio mix.
| Other FGP fixed income performance |
Our broader suite of fixed income strategies similarly all demonstrate consistency in value-adding returns over time and can meet the needs of a variety of plan types and objectives.
If you would like to learn more about the Core Plus Bond Fund and/or our other strategies, please schedule a call with one of our experts.
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1 FGP Core Plus Bond Fund was launched on October 31, 2017. Historical performance from December 31, 2015 to October 31, 2017 is based on the Core Plus Mandate, an investment model that preceded the Fund whose investment guidelines were substantially similar to those of the Fund. From October 31, 2017 onwards, performance is based entirely on the Fund.
2Inception dates:
3FGP Corporate Plus Bond Fund, formerly know as the FGP Enhanced Yield Corporate Bond Fund, was launched on January 15, 2013. Historical performance from June 30, 2003 to March 31, 2013 is based on a segregated High Yield Fixed Income portfolio, whose investment guidelines are substantially similar to the Fund. From April 1, 2013 onwards performance is based entirely on the Fund.
4FGP Long Term Bond Fund was launched on January 2, 2014. Historical performance from August 31, 2008 to January 31, 2014 is based on the Long Term Fixed Income Composite. From February 1, 2014 onwards performance is based entirely on the Fund.
This communication is not intended for distribution. Further, nothing in this publication is intended to constitute legal, tax, securities or investment advice, an opinion regarding the suitability of any investment nor a solicitation of any type. This publication has been prepared solely for information purposes. It is made available on an “as is” basis. FGP does not make any warranty or representation regarding the information.
Investment returns are expressed in Canadian dollars unless otherwise noted, gross of investment management fees, net of fund expenses for FGP pooled funds, and include reinvestment of dividends and income. Returns are time weighted. The FGP Funds are not guaranteed, their values change and past investment performance may not be repeated. |