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Celebrating 5 Years of Outstanding Returns

RP Alternative Global Bond Fund
 All Weather Liquid Bond Strategy


RP Alternative Global Bond Fund (“AGB”) is an alternative bond strategy that can generate attractive risk-adjusted returns and diversify a traditional portfolio while providing daily liquidity. The Fund invests primarily in investment grade securities of corporations and financial institutions in developed markets.

The Fund’s relentless focus and proven track record exploiting inefficiencies in developed bond markets can allow investors to:

  1. Enhance absolute and risk-adjusted returns
  2. Preserve capital during volatile interest rate periods

  3. Diversify traditional bond risk factors and increase portfolio resiliency

Since its launch 5-years ago, the Fund has reliably generated positive returns every calendar year.

The performance is a testament to our active trading approach, which allows our team to capitalize on the idiosyncratic nature of credit, proving AGB's strength amid volatile market conditions.

AGB has also outperformed traditional corporate bonds in a sophisticated, risk-adjusted manner by employing multiple layers of protection to the portfolio and tactically managing interest rate exposure.

Positive Total Returns Each Year Since Inception

Source: RPIA. Data as of September 20, 2024.

High Risk-Adjusted Returns

Source: RPIA, eVestment. Data as of August 31, 2024. Risk-free rate = FTSE Canada 91-Day TBill Index. Post-Covid = post March 2020. SI = July 2019.


Historical Fund Performance

Fund Code: RPD210YTD1 YR2 YR3 YR5 YRSince Inception
RP Alternative Global Bond Fund (Class F)7.9%14.0%9.3%5.7%6.6%6.7%
Bloomberg Global Corporate (CAD Hedged)4.7%11.0%6.5%-1.5%0.8%1.2%
Peer Group Average*6.4%10.3%7.0%2.8%4.0%3.9%
# of Funds in Peer Group302926241313

Source: RPIA, Bloomberg. Morningstar Direct. Data as of September 20, 2024. Returns greater than 1 YR are annualized. SI = July 19, 2019.
*Peer Group Average is internally calculated based on the daily liquid, Class F, Canadian dollar mutual funds within the Canada Fund Alternative Credit Focused category.

 

How AGB Does It

1. Interest Rate Management

AGB’s enhanced toolkit enables the investment team to dynamically navigate ever-changing markets and shift the portfolio’s exposure faster and more efficiently than traditional bond portfolios. The goal is to strike a balance between participating in compelling capital appreciation opportunities when rate exposure (duration) appears very attractive while protecting the downside from rising bond yields and adverse rate movements.

2. Relative Value Opportunities

The additional yield received over the risk-free rate is referred to as the “credit spread,” which is an inefficiently priced risk factor. We have a long and successful track record of generating repeatable and consistent returns from this area of the bond market using our specialized credit expertise and security selection process.

Once we have decided that an issuer is attractive through in-depth fundamental credit research, we leverage our proprietary technology and the expertise of our trading team to precisely identify what we view as the best security from that issuer for maximizing our return potential from the trade.

3. Managing Risk with Hedges

AGB uses a dynamic set of hedging tools to optimize and control credit risk. From single-name issuer shorts to options on volatility products, the portfolio’s hedges embed downside protection and provide the investment team with the confidence to employ our best ideas seamlessly.


A High-Quality Alternative Global Bond Strategy

How AGB Diversifies Portfolios
AGB Portfolio Fit

For illustrative purposes only and must not be viewed as an investment recommendation. Investors should always speak with a registered advisor to understand how the fund may impact their overall portfolio.

Less Coupon Clipping | Higher Activity

AGB has the potential to enhance traditional fixed income portfolios, but also serve as a low-volatility equity alternative for outcome-based conservative portfolios. It employs a highly active strategy that relies less on coupon clipping than traditional bond strategies and manages its exposure to interest rate volatility.

Less Sensitive to Interest Rates

AGB has a lower exposure to the uncertain path of interest rates than traditional bonds and is committed to a thoughtful relative value approach. We believe AGB is well-positioned to continue delivering positive risk-adjusted returns in various market environments moving forward.

Why RPIA

What sets us apart

At RPIA, we have developed an institutional-quality, active investment approach through close collaboration between our trading, research, and risk teams. Our team has been helping Canadian investors achieve their investment objectives for 15 years by delivering innovative fixed income solutions. We generate value for our investors in three primary ways:

Truly Active Management

We have deep, longstanding relationships with dealer desks globally, allowing us to quickly identify and execute our best ideas and actively capture value for our investors.

Providing Global Diversification

Our team of 27 investment professionals has the expertise to capture additional alpha and diversify portfolios beyond the limits of the Canadian market while minimizing currency risk.

Robust Risk Management

Our experienced Risk Management team is involved in every step of the investment process, engaging with research and execution portfolio managers to manage implicit and explicit risks.

 

 

Firm Overview

Get in Touch With Us

 

 

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RPIA

43 Hazelton Avenue
Toronto, Ontario M5R 2E3

Advisor Enquiries: 647-776-2565 | [email protected]

 

 

Indices Used

Source: eVestment | CAD Aggregate: FTSE Canada Universe Bond | CAD IG Corporate: FTSE Canada All Corporate | Global IG Corporate: Bloomberg Global Aggregate Corporate Bond (CAD Hedged) | US IG Corporate: Bloomberg US Corporate Investment Grade (CAD Hedged) | US HY Corporate: Bloomberg US Corporate High Yield (CAD Hedged) | CAD Preferred: S&P/TSX Preferred Share | CAD Equity: S&P/TSX Composite | US Equity: S&P 500

RP AGB Inception = July 8, 2019.

 

Important Information

Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the funds facts and simplified prospectus before investing. Indicated rates of return include changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information presented is for informational purposes only. It does not provide financial, legal, accounting, tax, investment, or other advice and should not be acted or relied upon in that regard without seeking the appropriate professional advice. Always consult with your registered investment advisor before making any investment decision. 

Performance presented for RP Alternative Global Bond Fund is for Class F of the respective fund. Class F units do not include embedded sales commissions, which results in higher performance relative to Class A units of the fund. The benchmark performance comparisons presented are intended to illustrate the historical performance of the fund with that of the specified index or peer group benchmark over the indicated period. The comparison is for illustrative purposes only and does not imply future performance. There are various differences between the benchmarks and the fund that could affect the performance and risk characteristics of each, including but limited to investment objectives, composition, sector, geographic and currency exposure, as well as the impact of fees and expenses on the performance of the fund vs that of an index or peer group. The Sharpe Ratio is a widely used method to measure the risk-adjusted returns of an investment, and is defined as the difference between the returns of the investment (i.e. the fund) and a risk-free return, divided by the standard deviation of the fund’s returns. A higher ratio means a higher risk-adjusted return. The ratio can serve as a useful tool for comparing investment returns that account for the historical risk or volatility associated with the investment.