Portico's investment style and process

Portico's fixed-income management style is consistent, measured and disciplined.

A consistent approach to fundamental market research and credit analysis
We believe in a multi-factor approach to analyze interest rates, yield-curve scenarios and credit markets, reflecting economic fundamentals, market flows, investor sentiment and exogenous factors.

Markets are continually monitored for emerging opportunities, while the structure and sustainability of industries are thoroughly assessed to help identify an optimal mix across corporate industry, individual provinces, municipalities and other fixed income investment vehicles.

Quantitative research ensures a measured approach to portfolio construction
Our investment process is designed to continually generate opportunities that capture incremental gains relative to the given benchmark and/or mandate objective. Proprietary portfolio construction tools are used to help determine the duration and sector structure of a portfolio. Our quantitative research is designed to:

  • Capitalize on the volatile nature of today's bond markets
  • Lead us to find valuation opportunities along the yield curve
  • Guide our sector and industry analysis, and security selection

Discipline ensures risk management is always top of mind
Risk tolerance, target ranges and limits on exposure are established based on the investment policy of each mandate. Risk is monitored by Portico's investment team every day on an absolute and relative basis against the appropriate benchmark.

Portico's investment process is an iterative one, in which we reassess the portfolio as the market and/or our view of the market changes over time.