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Institutional Investors

 
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Our Solutions

Our Solutions

We serve a broad range of investors through a variety of solutions catering to their unique investment goals. We apply our differentiated active skillset in all our strategies, which vary from low-risk to higher-risk. Although our toolkit and risk/return levels vary across our suite of products, our credit expertise, proprietary technology, and rigorous risk management is applied throughout. We have collaborated closely with institutional investors in developing several of our strategies to ensure that the portfolio mandate aligns with their long-term investment objectives.

RPIA Develops Carbon-Reduced Fixed Income Solution

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Investment Process

Investment Process

RPIA's approach is to apply a highly active, dynamic investment process that enables us to consistently extract value from the global credit market, driven by security selection. Investors do not need to compromise on credit quality or sacrifice liquidity to improve their portfolio returns. Our active approach can be distilled into four steps:

1. The Investment Committee uses their expertise and experience to collaborate and identify a key theme based on prevailing macroeconomic conditions.

2. The Credit Research Team conducts deep-dive research to determine the most compelling issuer, drawing from their knowledge of the sectors each team member covers.

3. We utilize our proprietary technology and expertise to identify the most attractively priced bond within that issuer's capital structure

4. The Portfolio Management Team sizes the position accordingly within the strategy based on factors such as conviction level, existing exposures, and liquidity considerations to name a few.

The entire process is overseen by our independent Risk Management Team and Committee who analyze policy constraints, stress testing, and concentrations across strategies.

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Our Strategies

Our Strategies

RPIA offers a range of investment strategies reflecting our investors' diverse risk and return objectives. Our flagship institutional long-only strategy is RP Broad Corporate Bond, which has evolved into a suite of strategies for specific goals in collaboration with investors. In addition to our institutional-focused mandates, we also offer absolute return-focused strategies.

1. Long-Only Strategies

  • RP Broad Corporate Bond
  • RP Broad Corporate Bond (BBB, Carbon-Reduced)

2. Alternative Credit & Fixed Income

  • RP Debt Opportunities
  • RP Select Opportunities
  • RP Fixed Income Plus

3. Mutual Funds

  • RP Strategic Income Plus Fund
  • RP Alternative Global Bond Fund
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ESG

ESG

RPIA considers Environmental, Social, and Governance ("ESG") factors when making investment decisions for all the strategies we manage. When we include these factors alongside traditional financial metrics, we can think more broadly about risk and make more prudent investment decisions. In other words, it is in the best interests of our investors to integrate ESG into our process. Through our in-depth credit research, we are in regular communication with the management teams of the issuers in which we invest. We have also partnered with an institutional investor to design a strategy that targets specific ESG outcomes and, in this case, an Environmental outcome. We have been a signatory to UN PRI since 2018 and have several other industry memberships ( learn more).

Download Our ESG Policy Read Our 2021 Sustainability Report

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Explore Our Funds

RP Broad Corporate Bond

This actively managed credit strategy's primary objective is to outperform the FTSE Canada All Corporate Bond Index net of fees in a risk-controlled manner. The strategy aims to add value through superior credit selection across global credit markets and avoid uncompensated interest rate risk by remaining duration-neutral versus the benchmark.

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RP Broad Corporate Bond (BBB, Carbon Reduced)

An actively managed credit strategy whose primary objective is to outperform the FTSE Canada Corporate BBB Index net of fees by 100 bps on an annualized basis. The strategy extends on our longstanding Broad Corporate Bond investment process by including explicit ESG targets. Investments in tobacco and munitions are prohibited, and the strategy aims to keep the carbon intensity at least 30% lower than the index.

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Market Commentary

Continued Firsts for the Canadian SLB Market

February, 2022

Tamarack Valley Energy ("TVECN") set several firsts for the Canadian sustainability-linked bond ("SLB") market today. Not only were they the first Canadian oil and gas exploration issuer to enter the SLB market, but they were also the first Canadian high yield company to tie financing costs to their ESG targets.

The instrument incorporated two key targets for the company, which, if missed, would result in an increase in coupon:

  1. 39% reduction in carbon intensity by 2025 (measured as Scope 1 & 2 emissions per sales in barrel oil equivalent)
  2. 6% representation of Indigenous people in the company's workforce by 2025 (from a 2020 base of 3.5%)
"It is encouraging to see that Tamarack Valley ties its financing to their carbon intensity target, but they will need to execute on operational efficiencies." – Aaron Young, Associate Portfolio Manager, Credit Research (as quoted in the Bloomberg article, Tamarack Sells First SLB From a North American Oil Producer)

This is especially important given the company's uptick in carbon intensity between 2019 and 2020 (due to acquisitions, new Scope 1 methodology, and lower output from the pandemic). In addition, Scope 3 for the Oil and Gas producers remains a huge hurdle, representing a significant amount of the sector's overall carbon footprint.

TVECN's target for Indigenous workforce representation is a positive development and a welcome KPI that we have discussed with other issuers in the Energy and Utility sectors. The 6% target by 2025 is ambitious versus comparable targets set by larger companies. 

Well done, TVECN… who's next?

RPIA is encouraged to see the development in TVECN tying their financing to impact a broader demographic, and we hope debt issuers continue to expand their diversity disclosures in 2022. We believe that the DE&I focus also needs to include statistics and targets in areas such as ethnicity, disability, and (especially important to Canada) the impact on Indigenous groups. We also think there is an opportunity to expand these measurements beyond just workforce representation to include Indigenous participation across seniority levels, pay gap analysis, and quantifying mobility for Indigenous peoples within the organization.

Finally, we note that part of the proceeds of the transaction are being used to pay down the company's existing sustainability-linked-loan ("SLL") facility. We think this use of proceeds may signal a trend in Canada as more companies rotate some of their capital stack from SLLs to SLBs.

 

 

 

ESG Articles

Continued Firsts for the Canadian SLB Market

February, 2022

Tamarack Valley Energy ("TVECN") set several firsts for the Canadian sustainability-linked bond ("SLB") market today. Not only were they the first Canadian oil and gas exploration issuer to enter the SLB market, but they were also the first Canadian high yield company to tie financing costs to their ESG targets.

The instrument incorporated two key targets for the company, which, if missed, would result in an increase in coupon:

  1. 39% reduction in carbon intensity by 2025 (measured as Scope 1 & 2 emissions per sales in barrel oil equivalent)
  2. 6% representation of Indigenous people in the company's workforce by 2025 (from a 2020 base of 3.5%)
"It is encouraging to see that Tamarack Valley ties its financing to their carbon intensity target, but they will need to execute on operational efficiencies." – Aaron Young, Associate Portfolio Manager, Credit Research (as quoted in the Bloomberg article, Tamarack Sells First SLB From a North American Oil Producer)

This is especially important given the company's uptick in carbon intensity between 2019 and 2020 (due to acquisitions, new Scope 1 methodology, and lower output from the pandemic). In addition, Scope 3 for the Oil and Gas producers remains a huge hurdle, representing a significant amount of the sector's overall carbon footprint.

TVECN's target for Indigenous workforce representation is a positive development and a welcome KPI that we have discussed with other issuers in the Energy and Utility sectors. The 6% target by 2025 is ambitious versus comparable targets set by larger companies. 

Well done, TVECN… who's next?

RPIA is encouraged to see the development in TVECN tying their financing to impact a broader demographic, and we hope debt issuers continue to expand their diversity disclosures in 2022. We believe that the DE&I focus also needs to include statistics and targets in areas such as ethnicity, disability, and (especially important to Canada) the impact on Indigenous groups. We also think there is an opportunity to expand these measurements beyond just workforce representation to include Indigenous participation across seniority levels, pay gap analysis, and quantifying mobility for Indigenous peoples within the organization.

Finally, we note that part of the proceeds of the transaction are being used to pay down the company's existing sustainability-linked-loan ("SLL") facility. We think this use of proceeds may signal a trend in Canada as more companies rotate some of their capital stack from SLLs to SLBs.

 

 

 

Relationship Team

 
Headshot of Liam O'Sullivan

Principal, Co-Head of Client Portfolio Management

Headshot of Ann Glazier Rothwell

Principal, Co-Head of Client Portfolio Management

Headshot of Zach Barsky

Vice President, Client Portfolio Management