We deliver fixed income enhanced returns

Optimal beta exposure, as well as the profile of excess return, vary according to the fixed income investor’s needs and appetite. While long only portfolios may display stable returns under reasonable circumstances, alpha can display interesting tail payoffs in regimes of higher volatility. We dedicate ourselves to offer a product line which can meet many of the challenges met by the investors community.

BETA+ OFFERING

OUR LONG-ONLY ENHANCED FIXED INCOME PLATFORM

Whether you are an institutional investor, a family office or an accredited investor, effective asset management of the fixed income portion of your portfolio often involves tracking a suitable benchmark, with a sound investment framework, and with the right budgeting of risk factors. Building on a 20 year tradition of excellence in fixed-income investment management, our Beta+ platform offers an opportunity to meet these challenges. As a credit specialist, our fund offering is dedicated to replicating standard or bespoke fixed income indices at low cost, using proprietary technology, a distinctive investment approach, and an infrastructure designed to outperform benchmarks.

UNLEVERAGED, LONG-ONLY

While preserving a long-only management style, value investing overlay creates synthetic long/short strategies through the weighting of components, whether at the level of candidate bonds or risk buckets.

MACRO/MICRO

The added value of BETA+, over traditional benchmarking, comes from a full coverage of both macro and micro factors embedded in the index. This includes both a strong control on interest rate risk and credit exposure, and especially a micro knowledge of the indices constituents including their corporate specificities and bonds mechanics.

DIFFERENTIATED OFFERING

To beat the benchmark, our excess returns are generated through a credit-centric relative value investment approach that is not often found in the industry. When entrusting your fixed income exposure to our Beta+ products, you are benefiting from a more diversified asset allocation than with traditional managers.

OUR LONG-ONLY ENHANCED FIXED INCOME PRODUCTS

INCOME+ Canadian Universe

Razorbill Advisors INCOME+ strategy strives to offer a moderate risk portfolio benefiting from added value through a well diversified exposure to high grade and higher yielding credit centric instruments with reduced duration risk.

MORE ABOUT INCOME+

BOND+ Canadian Universe

Razorbill BOND+ Canadian Universe strategy is an enhanced replication strategy aimed at tracking the traditional Canadian Universe indexes while employing active management and an average asset rotation. Added value generation is concentrated around asset selection, sector allocation and to a lesser extent curve duration deviation.

MORE ABOUT BOND+

PREFS+ Canadian Universe

Razorbill Advisors PREFS+ is a long only strategy designed to generate income with a low correlation to traditional fixed income instruments. We use a credit centric approach to make a targeted selection within the asset class.

MORE ABOUT PREFS+

PORTABLE ALPHA OFFERING

OUR EXCESS RETURNS PLATFORM FOR INSTITUTIONAL BETA STRATEGIES

Our portable alpha platform is dedicated to replicating investors’ fixed income targets with optimal funding usage, using the excess cash to fund absolute return strategies. The enriched portfolio provides the investor the yield required to meet its investment objectives while seeking to reduce the benchmarked fixed income component volatility and tail risk. While the investment process is designed to segregate overall market exposure from the value added by active management, portable alpha, as offered by our fixed income and interest rate specialists that blends fundamental and quantitative approaches, comes with many advantages.

FINANCING

Portable excess returns can be embedded in a self-financing vehicle via bond-lending. The extra cash on hand allows the investor to efficiently fulfill some liquidity needs or allow him to enhance his index return via alpha.

RISK MITIGATION

When the alpha-generating component has low correlation with the beta component, the investor gains a diversification advantage. Such a low correlation can be pursued through Razorbill alpha. Negatively correlated platforms, also offered by our alpha team, can be viewed as efficient insurance against tail events.

MANAGEABILITY

Formal separation of the alpha and beta investment platforms makes it easy to customize the size of the overlay to suit the investors’ preferences. In addition, it enables the investor to quickly shift his or her beta exposure for strategic or tactical purposes.

TRANSPARENCY

While favoring transparency in the assessment of liquidity, risk and investment guidelines, segregation of alpha and beta components also ensures that the advisor’s fees are indexed on the alpha portion, not the beta portion of the mandate. The beta component is isolated and only charged with a negligible fee.

ALPHA OFFERING

OUR ABSOLUTE RETURNS PLATFORM

Our alpha offering, available through commingled flagship platforms, blends an alloy of quantitative and fundamental analysis, depending on the investment theme. While striving to avoid synthetic beta and significant drawdowns, particularly in the case of systemic shifts, Razorbill alpha incorporates value from combinations of fixed income arbitrage, capital structure arbitrage and long/short credit strategies. For investors that need tailored risk guidelines, the platform is also available through segregated managed accounts.

CAPITAL STRUCTURE ARBITRAGE

Capital Structure investing links corporate equity and debt through arbitrage pricing models which view both types of instrument as derivatives of the same underlying asset value. The goal is to exploit the discrepancy in views about the future prospects of the companies implied by both markets.

FIXED INCOME ARBITRAGE

Fixed income arbitrage includes all investments that takes advantage of price discrepancies across the corporate credit term structure or between credit default swaps and the underlying corporate bonds. Structured credit activity, loan hedging, rating and regulatory changes are examples of market forces that bring fixed income arbitrage opportunities.

CREDIT LONG/SHORT

Credit long/short includes all investments that takes advantage of price discrepancies across the corporate credit term structure between reference entities. Merger and acquisitions, rating changes and recapitalizations are examples of market forces that bring credit long/short opportunities.

OUR ABSOLUTE RETURNS PRODUCTS

CROSS ASSETS RELATIVE VALUE – CARV

Razorbill Advisors CARV strategy is a levered strategy designed to generate high returns with a low to negative correlation to equity and to traditional fixed income instruments. You can register to receive our daily and monthly newsletters if you are a Quebec or Ontario accredited investor or institutional investor by reaching out to us.

MORE ABOUT RAZORBILL CARV

FX & RATES GLOBAL MACRO

The foundation of our alpha is built on three pillars: A quantitative credit analysis engine deployed throughout our products, a thorough fundamental analysis of corporate credits and a global macro approach of foreign exchanges and interest rates. Our GLOBAL MACRO alpha product capitalize on our global macro alpha generation pillar.

MORE ABOUT RAZORBILL GLOBAL MACRO