The LF Canlife Corporate Bond Fund invests mainly in sterling-denominated investment grade corporate bonds and seeks to capitalise on their additional income relative to UK government bonds.
Canada Life Investments possesses an experienced credit team and a longstanding investment process which focuses on fundamental credit research, believing this is the best way to add value for clients and generate superior returns. The LF Corporate Bond Fund is co-managed by Senior Fund Manager, Michael Count and Fund Manager, Kshitij ‘KJ’ Sinha.
Michael joined Canada Life Investments from university in 2004 as a credit analyst and was promoted to fund manager in October 2007. He is the senior fund manager on the LF Canlife Short Duration Corporate Bond Fund and the LF Canlife Corporate Bond Fund. KJ joined Canada Life Investments in 2016 and also co-manages the LF Canlife Global Macro Bond Fund. Prior to joining Canada Life Investments, KJ traded European investment grade and crossover corporates as a market maker at Morgan Stanley. He is a CFA charterholder.
Senior Fund Manager, Fixed Income
Michael joined Canada Life Investments from university in 2004 as a credit analyst and was promoted to fund manager in October 2007.
Michael holds an MA in Maths and Management Studies and a Postgraduate Diploma in Computer Science and Economics from Cambridge University. He is a CFA charterholder and a member of the CFA Society of the UK.
Fund Manager, Fixed Income
Kshitij (KJ) joined Canada Life Investments in 2016 as a fund manager.
Prior to joining Canada Life Investments, KJ traded European investment grade and crossover corporates as a market maker at Morgan Stanley. KJ holds an MSc in Operational Research from the London School of Economics. He is a CFA charterholder.
Central to the management of the LF Canlife Corporate Bond Fund is the team’s strong belief that the avoidance of bad credits is critical to success. They have a conservative, low risk style, focusing on capital preservation and sustainable income. The Fund has the following core characteristics:
The managers’ approach is flexible within a framework. They do not attempt to track the benchmark, the iBoxx £ Corporate All Maturities Index, but are always aware of the Fund’s positioning against it.
Firstly, the team considers global trends in macro factors, such as interest rates and inflation, and analyses the domestic influences on UK bond markets. Each quarter they conduct a detailed macro review and make forecasts for interest rates and bond yields in the key markets of the UK, US and Europe. The whole fixed income team meet on a weekly basis to review a range of economic and market information including: commodity prices, inflation expectations, currencies, equity markets, sovereign CDSs, short-term rates, 10 year bonds, economic data releases, new issues coming to the government and corporate bond markets.
The portfolio is then constructed via a bottom-up approach, with the managers ensuring that the Fund’s sector exposure is sufficiently diversified, as well as reflective of the teams’ macro views. Within each sector, they seek the best-value companies, review valuations on three levels:
We seek to invest in corporate bonds that look attractive from a risk/return perspective and which are capable of delivering attractive yields to investors. As a result, the Fund aims to provide investors with an above-inflation income, through investment in companies that we believe offer the best long term value
Our philosophy is founded on the strong belief that the avoidance of bad credits is critical to success. Therefore, the managers have a conservative, low-risk style, focusing on capital preservation and sustainable income
A FOCUS ON FUNDAMENTALS
Particular attention is devoted to corporate dynamics and strategy, balance sheet strength, liquidity, leverage and management quality. Our team favours issuers displaying a number of different characteristics – including solid profitable businesses with long track records, limited ratings downsides, positive cash flows, low debt levels, clear disclosures and bonds offering structural seniority.
The Fund is actively managed and well diversified, and aims to offer a lower volatility and drawdown profile relative to the benchmark. For example, it has protected capital on the downside more effectively than the iBoxx £ Corporate All Maturities Index over recent years
Past performance is not a guide to future performance. The value of investments may fall as well as rise and investors may not get back the amount invested. Income from investments may fluctuate. Currency fluctuations can also affect performance. Performance figures are on a bid to bid with net income reinvested basis. Valuations are based on the previous day's prices.
Interested in this fund and would like to find out more?
Contact our team who will be happy to answer any questions you may have about this fund.
+44 (0)20 7415 6546
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CANADA LIFE INVESTMENTS HEAD OFFICE
T: +44 (0)20 7415 6546