• Home
  • Sustainable Investment Week
    • ESG
    • Sustainable Investment
    • Sustainable Investing
  • Equities
    • UK
    • Global
    • Europe
    • US
    • Asia
    • Emerging markets
    • Specialist
  • Bonds
  • Multi-asset
  • Funds
    • Unit trusts/OEICs
    • Investment Trusts
    • VCTs/EIS
    • Platforms
    • ETFs
    • Pensions
  • Regulation
  • Diversity
  • People moves
  • Events
  • Financial library
  • Industry blogs
  • Digital Edition
  • Newsletters
  • Sign in
    • logged-in-corporate-menuYou are currently accessing Investment Week via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
     
      • Account details
      • Newsletters
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • Facebook
    • YouTube
    • Instagram
  • Register
  • Events
    • Upcoming events
      event logo
      Global Equities Market Briefing

      Investment Week are delighted to announce the date of the Global Equities Market Briefing. Against an uncertain backdrop for investors as the world continues to fight the Covid-19 pandemic, this interactive half-day event offers a valuable opportunity for delegates to hear the views of a number of different global equity managers and fund groups in one place. 

      • Date: 23 Apr 2021
      • Online, Online
      event logo
      Professional Adviser ESG Masterclass 2021

      Professional Adviser is excited to launch the new ESG Masterclass, taking place live online from 28th - 29th April 2021. Delegates attending this event will benefit from thought-provoking presentations, informative Q&A sessions and structured CPD hours.

      • Date: 28 Apr 2021
      • Live Online, Live Online
      event logo
      Fund Selector Briefing: Dublin 2021

      Investment Week's Fund Selector Briefing: Dublin 2021 is taking place live online on 29th February from 09:00 - 11:45. Aimed at senior investment professionals involved in the fund selection process, this event will provide the opportunity to hear from, and question, fund managers and networking with your peers.

      • Date: 29 Apr 2021
      • ONLINE, ONLINE
      event logo
      Alternatives Market Briefing 2021

      Investment Week is hosting its Alternatives Briefing at a pivotal time for investors as they start to position for the recovery from the Covid-19 pandemic, although risks remain. During this interactive briefing, we will hear from a number of alternatives managers about their response to the extraordinary events of the past year and their outlook for the rest of the year and beyond. The managers will identify where they are seeing the biggest opportunities and risks at the moment for their portfolios and explain the role their strategies could play in helping diversify client portfolios. Attendees will also get the chance to network with peers, quiz our speakers, as well as benefit from CPD points.

      • Date: 18 May 2021
      • Online, Online
      View all events
      Follow our events

      Sign up to receive email alerts about our events

      Sign up

  • White papers
    • Fidelity logo whitebackground1200 630px 1 120x194
      The ETF Evolution

      In this exclusive magazine exploring the evolution of quality and income ETF strategies, King reveals that each ETF follows an investment strategy developed by the group's in-house research team that leverages fundamental active insights to inform the factor definitions and applies portfolio construction principles to mitigate the unintended biases.

      Download
      7ded04ac5957a69da8d1df41c8f21a0c33988d8f 1 120x194
      A bet on the UK bounce back

      David Cumming, Aviva Investors' chief investment officer for equities, last year witnessed turbulent times for UK equities but he remains positive about the market in which he has a personal as well as a professional stake.

      Download
      Find white papers
      Search by title or subject area
      View all white papers
  • Industry blogs
  • Digital Edition
Investment Week
Investment Week
Sponsored by BMO
  • Home
  • Sustainable Investment Week
  • Equities
  • Bonds
  • Multi-asset
  • Funds
  • Regulation
  • Diversity
  • People moves
  • logged-in-corporate-menuYou are currently accessing Investment Week via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
 
    • Account details
    • Newsletters
    • Contact support
    • Sign out
 
  • Trending
  • IW 12 Apr issue
  • Past IW issues
  • Canaccord deal
  • BlackRock AUM
  • Green bond surge
  • Fund managers

Event Voice: Your Questions Answered by Canada Life Asset Management at the Investment Week Fund Selector Briefing Scotland

  • David Arnaud Senior Fund Manager, Fixed Income at Canada Life Asset Management
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Share on Whatsapp
  • Send to  
0 Comments

Can you give a brief overview of your strategy in terms of what you are trying to achieve for investors, your investment process and the make-up of the investment team? 

The LF Canlife Global Macro Bond Fund is designed to provide investors with exposure to global interest rates, credit spreads and currencies within a high quality portfolio. We believe that adopting a truly global approach to fixed income allows the Fund to deliver significant return & diversification benefits for sterling investors, as part of a balanced fixed income allocation. Managed by David Arnaud & KJ Sinha, the Fund invests across six developed market currencies and its holdings are spread across investment grade government and corporate bonds, as well as countries, maturities and sectors.

The managers utilise top down macro analysis for setting interest rate and macroeconomic forecasts, which feeds into the Fund's duration and currency exposures. This is important as currency allocations are left unhedged, acting as a third return lever, alongside interest rates and credit spreads.  They then utilise the support of our experienced credit research team for selecting the securities held within the portfolio. Every bond held must be internally rated by the credit team and the fund managers will undertake relative value analysis on their most favoured names, seeking to hold the issues that offer the best risk/reward characteristics.

How have you been trying to weather the storm caused by the Covid-19 pandemic and what could be the longer-term implications for your strategy? 

The Fund is unusual compared to many of its UK peers in that all foreign currency exposure is left unhedged. This is because it can provide significant diversification & correlation benefits versus domestic sterling fixed income. It also gives us an additional return lever to pull. For example as the Covid-19 storm took hold in March last year, our holdings in government bonds and overweight position in ‘safe haven' currencies such as the US dollar and Japanese yen helped minimise losses during the sell-off. However, more importantly, these positions also gave us the liquidity to be able to take advantage of attractive opportunities within the corporate bond space. As companies came to market to issue debt and shore up their balance sheets, we were able to invest in some very high quality companies at very attractive yields. This will deliver long-term benefits to the Fund in the form of receiving higher coupons, interest income which will then be passed on to our investors.

Can you identify a couple of key investment opportunities for your fund you are playing at the moment in the portfolio? This could be at a stock, sector or thematic level.

Currently, all fixed income assets have come under pressure, as inflation expectations have increased markedly. This has been driven by the substantial fiscal and monetary responses by the Federal Reserve and the US government - as well as a global economic recovery of course - putting upward pressure on government bond yields. However, although we believe that we will see some one-time asset price rises, we do not believe there will be a sustained increase in inflation in the short to medium-term. This is because there is a great deal of hidden unemployment in the global economy at present - due to various government schemes - and this should keep a lid on wage increases. Without higher wages, it is very difficult to maintain inflationary pressures.

Therefore, we believe much of these inflationary fears are now priced into the market and that the higher yields now available across global fixed income markets will provide an attractive entry point for fixed income investors in the coming months. In this more normal economic environment, we continue to favour corporate bonds and are now overweight more cyclical, recovery currencies such as GBP and EUR, in an about turn from this time last year. We are also finding further value in subordinated bonds from investment grade issuers and we are prepared to accept a lower position in the capital structure to pick up extra yield from fundamentally strong, high quality companies.

Click here to learn more about Canada Life Asset Management.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Share on Whatsapp
  • Send to  
  • Topics
  • Fund managers
  • Event Voice
blog comments powered by Disqus
Back to Top
Trustpilot

 

  • Contact us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • Facebook
  • YouTube
  • Instagram

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading