As opposed to their Canadian equity portfolio management brethren,
Canadian bond managers should do reasonably well after the FPL is removed.
It is not uncommon for
Canadian bond managers to have 5 - 10 % invested in the bonds of each of the five major Canadian banks.
While our outlook might sound grim, we believe there will be substantial value - added opportunities for
Canadian bond managers.
Not exact matches
The median MER of a
Canadian bond fund is about 1.5 %, and while that's lower than most equity funds,
bonds offer fewer opportunities for active
managers to add value.
(1) Canso's Investment Grade and Broad Corporate
bond mandates are in the top quartile of the Pavilion ™ Performance Appraisal Report of
Canadian fixed income
managers since inception in 1997.
We are well known as a specialty
manager of
Canadian corporate
bond portfolios.
Derek Brown is a sub-adviser and portfolio
manager for Fiera Capital, one of the primary
managers of the Horizons Active
Canadian Bond ETF (HAD).
Bond Markets Pimco Sells
Canadian Provinces After Worst Rout Since «94 Fascinating 2c everything hit after shift in Fed Lingo $ $ Jul 05, 2013 Fund
Manager Ducks Mortgage Trouble — at His Peril...
Ed Devlin, head of
Canadian portfolio management at Pimco, among the world's biggest
bond managers, has warned for years that
Canadian bonds are among the least diversified and most expensive in the world.
But here's where the debate starts to heat up: Though your financial adviser would have kittens at the thought of it, Bernstein and others, such as Stephen Jarislowsky, the billionaire
Canadian money
manager, say that if you plan to hold a large sum of money outside of an RRSP for a long period of time, you may indeed want to ditch the
bonds altogether and go 100 % stocks.
Canso Investment Counsel Ltd. is a specialty
manager of
Canadian corporate
bond portfolios for some of Canada's most sophisticated investors.
Although they might restrict foreign currency and interest rate exposure,
Canadian retirement and pension plan sponsors no longer will require their
bond managers to restrict their portfolios to
Canadian issuers.
Pension and RRSP registered accounts largely used their scarce foreign property availability for foreign equities and limited their
bond managers to
Canadian issuers.
As we explained above,
Canadian plan sponsors have traditionally restricted their
managers to investment grade
bonds, particularly rated A or higher.
The fund's largest holdings include the usual suspects — government
bonds, a couple of ETFs (
Canadian Dollar hedged, of course), and banks that aren't Bank of Montreal, because apparently this fund
manager WANTS to get fired.
Moreover,
Canadian asset
manager Brookfield Asset Management Inc. owns about $ 1 billion and Bruce Berkowitz, president of securities investment firm Fairholme, purchased $ 500 million of the company's unsecured debt, including $ 394 million in convertible
bonds, a $ 110 million tranche loan and $ 94 million in Rouse
bonds.