Strategy
What is a core fixed
income strategy?
A core fixed income strategy aims to preserve capital while maximizing total return to unitholders predominantly through income, supplemented with capital appreciation. Our approach engages in hedging strategies for volatility management and risk mitigation.
Why invest in our core fixed income
strategy?
- Core exposure. The strategy has an emphasis on government and investment grade corporate bond exposure, with importance placed on duration, through cycle.
- Alternative investment principles. Our approach layers in alternative investment principles by identifying and mitigating risks with hedging tools. It also actively manages duration and targets uncorrelated sources of alpha.
- Performance enhancement. The strategy’s forensic bottom-up credit analysis aims to enhance the quality of return and identify event-driven catalyst alpha.
How does our core fixed income
strategy work?
The strategy invests in three pillars and applies an option hedging overlay aimed at mitigating risk.
HEDGE WRAPPER
government bonds
minimum 30%
income & protection
developed markets sovereign bond
investment grade
40% – 60%
income & capital gains
coupon clipping in defensive credit
high yield
maximum 25%
income & capital gains
top credit picks
The hedge wrapper uses derivative tools such as options, futures and swaps aimed at mitigating interest rate, credit, currency and liquidity risks.
What makes our approach unique is active management combined with alternative
strategies and hedging.
Who is our core fixed income strategy
suitable for?
Our core fixed income strategy may be suitable for investors who:
- Desire an actively managed portfolio that includes alternative tools and strategies to mitigate risk and enhance returns potential.
- Seek a diversified portfolio that targets a combination of income and growth through multiple return drivers.
- Would like to lower their overall risk profile by enhancing the quality of returns garnered.
What core fixed income investment products
does Picton Mahoney offer?
Alternative Investment Solutions are available as mutual funds, liquid alternative funds and hedge funds. Our suite of Fortified Mutual Funds, Fortified Alternative Funds and Authentic Hedge® Funds give investors more choice and ease of access to alternative strategies, adding an alternative source of returns to fortify a portfolio. Our goal, for over 18 years, through different market cycles and investing environments, has been to improve the quality of returns by offering alternative investment solutions.
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This information has been provided as a general source of information, is subject to change without notification and should not be construed as investment advice. This material should not be relied upon for any investment decision and is not a recommendation, solicitation or offering of any security in any jurisdiction. The information contained in this material has been obtained from sources believed reliable, however, the accuracy and/or completeness of the information is not guaranteed by Picton Mahoney Asset Management (PMAM), nor does PMAM assume any responsibility or liability whatsoever. All investments involve risk and may lose value. This information is not intended to provide financial, investment, tax, legal or accounting advice specific to any person, and should not be relied upon in that regard. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.
There is no guarantee that a hedging strategy will be effective or achieve its intended effect. The use of derivatives or short selling carries several risks which may restrict a strategy in realizing its profits, limiting its losses, or, which cause a strategy to realize or magnify losses. There may be additional costs and expenses associated with the use of derivatives and short selling in a hedging strategy.
The offering of units of the Picton Mahoney Authentic Hedge® funds are made pursuant to an Offering Memorandum only to those investors in jurisdictions of Canada who meet certain eligibility or minimum purchase requirements. Prospective investors should consult with their investment advisor to determine suitability of investment. Please see the Fund’s Confidential Offering Memorandum for more information, including investment objectives and strategies, risk factors and investor eligibility.
Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Alternative mutual funds can only be purchased through a registered dealer and are available only in those jurisdictions where they may be lawfully offered for sale.