Fixed Income Investments
Our fixed income strategies are designed to provide investors with stable, long-term returns by investing in a diversified mix of high-quality issuers with attractive valuations. This approach aims to offer steady income generation while managing risk effectively through expert credit analysis.
Foyston, Gordon & Payne Fixed Income Strategies
Explore our diverse range of fixed income strategies tailored to meet various investment needs and objectives.
Our Fixed Income Investment Philosophy
We believe that superior investment returns are achieved through a long-term, bottom-up, value-oriented approach based on detailed fundamental research and analysis. This disciplined method ensures consistency in performance across various market conditions.
Understanding Quality
Our quality assessment focuses on rigorous credit analysis to differentiate the level of risk between issuers and the securities they issue.
- We use a meticulous credit process to evaluate and differentiate the risk levels of companies and their issued securities.
- We seek to fully understand each business to appreciate how financial management and organizational structure impact overall risk.
- Our credit process culminates in the FGP Investment Grade Rating (IGR), an internal risk rating of a company and its securities.
Disciplined on Valuation
Our disciplined valuation approach leverages proprietary tools to invest in fixed income securities where we believe the risk/return profile is most favorable.
- We employ a proprietary risk-based valuation tool to select fixed income investments.
- Each security is assigned an internal rating based on our credit research, which guides our investment decisions.
- Using our internal rating, we apply the FGP Internal Spread Matrix to determine if the market valuation is attractive.
Investment Process
- Strategic Analysis: We assess the optimal duration, yield curve positioning, and allocation across federal, provincial, and corporate bonds to align with our clients’ objectives.
- Portfolio Construction: We carefully select specific bonds, considering factors like industry sector allocation, average quality rating, and whether the yield justifies the risk.
- Contrarian Investing: We’re not afraid to go against the market consensus. If we believe market sentiment is misaligned with our analysis, we’ll take a different approach to credit, duration, or other factors.
Investment Grade Rating
Our rating system is a comprehensive framework that evaluates companies based on:
- Rigorous credit evaluation
- Internal risk rating
- Proprietary spread matrix
- Comprehensive risk management
Insights
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