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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.

RPIA Proprietary Technology Chart
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

Protecting Capital in an Inflationary Environment

February, 2022

Typically, equity and bond prices move in opposite directions. However, 2022 has begun with both assets moving lower together. This recent behaviour stems from changing expectations around monetary policy and is driven by changes in the pace of inflation, higher probabilities of interest rate hikes, and other policies that could drive bond yields higher (and prices lower).

The latest US CPI reading released today showed a year-over-year inflation increase of 7.5%, leading US markets to now expect a 50bps increase in rates in March and approximately 6 to 7 rate hikes in 2022 in total.

Closer to home, the Bank of Canada decided not to raise rates during its meeting in January, which was a surprise to markets. Notwithstanding its decision, inflation in Canada continues to rise and recently peaked at 4.8%, causing a gap between this measure and the overnight rate.

Inflation vs. BoC Overnight Rate
Source: Bank of Canada, Statistics Canada


We have reduced the interest rate risk in our strategies over the past 6 months during this volatile period, which has led to meaningful amounts of capital preservation relative to traditional bond indices. 
We are not trying to time the bottom of the rates cycle, but rather patiently waiting and keeping risk levels at or near their lows.

We have begun using the volatility and dispersion in credit markets to extend our highest conviction themes, including:

1. Banks and financials that benefit from higher rates and have strong regulatory frameworks,
2. Companies with solid funding profiles and a high chance of a ratings upgrade, and

3. Improving credits that are still benefiting from re-opening exposure globally.

Geographically, we have reduced our exposure to EUR-denominated credit markets given the expectation that the European Central Bank would need to become more focused on withdrawing stimulus and increasing rates later this year. 

This is an exciting time for us as bond investors, and the coming months should give us the opportunity to demonstrate our focus on capital preservation and allow us to search for compelling return opportunities for our investors.

 



 

 

 

 


Important Information

The information herein is presented by RP Investment Advisors LP (“RPIA”) and is for informational purposes only. It does not provide financial, legal, accounting, tax, investment, or other advice and should not be acted upon or relied upon in that regard without seeking the appropriate professional advice. The information is drawn from sources believed to be reliable, but the accuracy or completeness of the information is not guaranteed, nor in providing it does RPIA assume any responsibility or liability whatsoever. The information provided may be subject to change and RPIA does not undertake any obligation to communicate revisions or updates to the information presented. Unless otherwise stated, the source for all information is RPIA. The information presented does not form the basis of any offer or solicitation for the purchase or sale of securities. Products and services of RPIA are only available in jurisdictions where they may be lawfully offered and to investors who qualify under the applicable regulation. RPIA managed strategies and funds carry the risk of financial loss. Performance is not guaranteed and past performance may not be repeated. “Forward-Looking” statements are based on assumptions made by RPIA regarding its opinion and investment strategies in certain market conditions and are subject to a number of mitigating factors. Economic and market conditions may change, which may materially impact actual future events and as a result RPIA’s views, the success of RPIA’s intended strategies as well as its actual course of conduct.

 

ESG Articles

Protecting Capital in an Inflationary Environment

February, 2022

Typically, equity and bond prices move in opposite directions. However, 2022 has begun with both assets moving lower together. This recent behaviour stems from changing expectations around monetary policy and is driven by changes in the pace of inflation, higher probabilities of interest rate hikes, and other policies that could drive bond yields higher (and prices lower).

The latest US CPI reading released today showed a year-over-year inflation increase of 7.5%, leading US markets to now expect a 50bps increase in rates in March and approximately 6 to 7 rate hikes in 2022 in total.

Closer to home, the Bank of Canada decided not to raise rates during its meeting in January, which was a surprise to markets. Notwithstanding its decision, inflation in Canada continues to rise and recently peaked at 4.8%, causing a gap between this measure and the overnight rate.

Inflation vs. BoC Overnight Rate
Source: Bank of Canada, Statistics Canada


We have reduced the interest rate risk in our strategies over the past 6 months during this volatile period, which has led to meaningful amounts of capital preservation relative to traditional bond indices. 
We are not trying to time the bottom of the rates cycle, but rather patiently waiting and keeping risk levels at or near their lows.

We have begun using the volatility and dispersion in credit markets to extend our highest conviction themes, including:

1. Banks and financials that benefit from higher rates and have strong regulatory frameworks,
2. Companies with solid funding profiles and a high chance of a ratings upgrade, and

3. Improving credits that are still benefiting from re-opening exposure globally.

Geographically, we have reduced our exposure to EUR-denominated credit markets given the expectation that the European Central Bank would need to become more focused on withdrawing stimulus and increasing rates later this year. 

This is an exciting time for us as bond investors, and the coming months should give us the opportunity to demonstrate our focus on capital preservation and allow us to search for compelling return opportunities for our investors.

 



 

 

 

 


Important Information

The information herein is presented by RP Investment Advisors LP (“RPIA”) and is for informational purposes only. It does not provide financial, legal, accounting, tax, investment, or other advice and should not be acted upon or relied upon in that regard without seeking the appropriate professional advice. The information is drawn from sources believed to be reliable, but the accuracy or completeness of the information is not guaranteed, nor in providing it does RPIA assume any responsibility or liability whatsoever. The information provided may be subject to change and RPIA does not undertake any obligation to communicate revisions or updates to the information presented. Unless otherwise stated, the source for all information is RPIA. The information presented does not form the basis of any offer or solicitation for the purchase or sale of securities. Products and services of RPIA are only available in jurisdictions where they may be lawfully offered and to investors who qualify under the applicable regulation. RPIA managed strategies and funds carry the risk of financial loss. Performance is not guaranteed and past performance may not be repeated. “Forward-Looking” statements are based on assumptions made by RPIA regarding its opinion and investment strategies in certain market conditions and are subject to a number of mitigating factors. Economic and market conditions may change, which may materially impact actual future events and as a result RPIA’s views, the success of RPIA’s intended strategies as well as its actual course of conduct.

 

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