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Credit Market Themes in 5 Charts - Q4 2023

Highlighting Key Drivers for 2024

As we head into 2024, we gathered some key themes and observations we believe will define the year ahead. Given the current economic outlook and valuation levels, we believe there is an opportunity for investors to de-risk portfolios by adding to active credit strategies. These strategies can act as an effective yet simple solution in a potentially choppy environment.
Credit Market Themes in 5 Charts

Safeguarding the Gains

A Dynamic Liability-Driven Approach in a Post-Pandemic Market

Despite disappointing recent performance for bonds, pension plans find themselves in an overfunded position for the first time in years. As many plan managers look to safeguard these gains through liability-driven investing, we believe fixed income - and active credit strategies in particular - can play a role in de-risking portfolios further.

Safeguarding-the-Gains
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ESG Deep Dive: Rethinking Safety Metrics in Mining

A Closer Look at the Culture of Harassment in Remote Mining Sites

This paper takes a closer look at the culture of harassment in remote mining sites and analyzes the challenges and gaps regarding diversity targets and safety metrics in the industry from an ESG investing perspective.

esg-deep-dive
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Extracting Value from GSIBs Following a Banking Crisis

Investment Case Study

The collapse of Silicon Valley Bank (SVB) in March sent reverberations through the global financial sector. This crisis severely impacted Global Systematically Important Banks (GSIBs) as investors feared spillover from the collapse of regional banks. Using our increased exposure to GSIBs over the last quarter as an example, this case study illustrates how we actively navigate volatile market conditions by applying a rigorous and disciplined investment process. 

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2022 Sustainability Report

As global investment experts and stewards of our investors’ capital, we believe that sustainability plays an integral role in our investment philosophy and our business. In 2022, we continued to evolve and refine our beliefs regarding how we assess environmental, social, and governance (ESG) factors and how they play a critical role in defining risk and opportunities - both for invested capital and for RPIA as a firm. To that end, our 2022 Sustainability Report has two focus areas: our role as an employer and our role as an asset manager.

2022 Sustainability Report
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Our Solutions

Our Solutions

We serve a broad range of investors through a variety of solutions catering to their unique investment goals. We apply our differentiated active skillset in all our strategies, which vary from low-risk to higher-risk. Although our toolkit and risk/return levels vary across our suite of products, our credit expertise, proprietary technology, and rigorous risk management is applied throughout. We have collaborated closely with institutional investors in developing several of our strategies to ensure that the portfolio mandate aligns with their long-term investment objectives.

RPIA Develops a Bespoke Fossil Fuel Exclusion Strategy for Institutional Investors

RPIA Develops Carbon-Reduced Fixed Income Solution

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Investment Process

Investment Process

RPIA's approach is to apply a highly active, dynamic investment process that enables us to consistently extract value from the global credit market, driven by security selection. Investors do not need to compromise on credit quality or sacrifice liquidity to improve their portfolio returns. Our active approach can be distilled into four steps:

1. The members of our Investment Committee use their expertise and experience to collaborate and identify a key theme based on prevailing macroeconomic conditions.

2. The Credit Research Team conducts deep-dive research to determine the most compelling issuer, drawing from their knowledge of the sectors each team member covers.

3. We utilize our proprietary technology and expertise to identify the most attractively priced bond within that issuer's capital structure

4. The Portfolio Management Team sizes the position accordingly within the strategy based on factors such as conviction level, existing exposures, and liquidity considerations, to name a few.

The entire process is overseen by our independent Risk Management Team and Committee, who analyze policy constraints, stress testing, and concentrations across strategies.

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Our Strategies

Our Strategies

RPIA offers a range of investment strategies reflecting our investors' diverse risk and return objectives. Our flagship institutional long-only strategy is RP Broad Corporate Bond, which has evolved into a suite of strategies for specific goals in collaboration with investors. In addition to our institutional-focused mandates, we also offer absolute return-focused strategies.

1. Long-Only Strategies

  • RP Broad Corporate Bond
  • RP Broad Corporate Bond (BBB, Fossil Fuel Exclusion)
  • RP Broad Corporate Bond (Fossil Fuel Exclusion)

2. Alternative Credit & Fixed Income

  • RP Debt Opportunities
  • RP Select Opportunities
  • RP Fixed Income Plus

3. Mutual Funds

  • RP Strategic Income Plus Fund
  • RP Alternative Global Bond Fund
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ESG

ESG

RPIA considers Environmental, Social, and Governance ("ESG") factors when making investment decisions for all the strategies we manage. When we include these factors alongside traditional financial metrics, we can think more broadly about risk and make more prudent investment decisions. In other words, it is in the best interests of our investors to integrate ESG into our process. Through our in-depth credit research, we are in regular communication with the management teams of the issuers in which we invest. We have also partnered with an institutional investor to design a strategy that targets specific ESG outcomes and, in this case, an Environmental outcome. We have been a signatory to UN PRI since 2018 and have several other industry memberships (learn more).

Download Our ESG Policy Read Our 2022 Sustainability Report

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Explore Our Funds

RP Broad Corporate Bond

This actively managed credit strategy's primary objective is to outperform the FTSE Canada All Corporate Bond Index net of fees in a risk-controlled manner. The strategy aims to add value through superior credit selection across global credit markets and avoid uncompensated interest rate risk by remaining duration-neutral versus the benchmark.

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RP Broad Corporate Bond (Fossil Fuel Exclusion)

An actively managed credit strategy with the primary objective of outperforming the FTSE Canada All Corporate Ex Fossil Fuels Enhanced Bond Index by 100 bps (net of fees) on an annualized basis. The strategy merges our long-standing investment process with a transparent, rules-based approach to screening fossil fuel exposure out of the portfolio.

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RP Fixed Income Plus

This strategy aims to generate a stable return and low volatility by investing in a portfolio of investment grade money market instruments, government bonds, and high-quality corporate bonds primarily on a long basis but with the ability to use cash-covered short positions to hedge interest rate risk. The strategy’s investment portfolio is actively managed with low sensitivity to the direction of interest rates.

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Relationship Team

 
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Principal, Co-Head of Client Portfolio Management

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Principal, Co-Head of Client Portfolio Management

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Principal, Client Portfolio Management

 
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Director, Client Portfolio Management

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Analyst, Client Portfolio Management

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Associate, Client Engagement