Fixed Income Strategies

We take a disciplined, team-based approach to our active management of fixed income mandates, seeking to add consistent value relative to portfolios’ benchmarks over a business cycle. The fixed income portfolio construction process is iterative, guiding both initial construction and subsequent modifications of the portfolio.

Our core process consists of the following pillars:

The investment research and portfolio construction methodology begin with the top-down macro-outlook that includes the team’s views on the economy, the central bank policy and research into historical cycles. The macro-outlook is based on our Growth, Liquidity and Valuation framework. These three components help the team determine where we are in the business cycle and what portfolio positioning is the most effective at that time.

We use proprietary models to conduct scenario analysis and stress-tests on portfolios to set risk budgets and help determine their optimal structure.

A key advantage of the Beutel Goodman portfolios is the strength and depth of our credit research. Our Fixed Income team has dedicated credit analysts who follow a disciplined and comprehensive approach to the analysis of credit risk. Our analysts act as sector experts and are responsible for assessing credit risk throughout the life cycle of a credit. This includes initiation of coverage and ongoing fundamental and relative value monitoring.

Our credit research process includes: