CI / Nexus can manage the portfolio directly against liability cash flows and against multiple dimensions of interest rate risk – ensuring one is fully immunized with no equity exposure. Even in a basic cash flow matching strategy, our risk-optimized approach adds significant value as our process can enhance the portfolio yield beyond a straight immunization.
Many clients may wish to retain a traditional asset mix, for example 60% invested in equities and 40% invested in bonds. CI/Nexus can add significant value to the bond portion by offering a risk-optimized segmented fund. This approach has several advantages over a pooled bond fund.
The equity allocation may remain invested in any asset manager though CI has historically delivered significant alpha on a range of equity solutions.
Interest Rate Swap / Bond Future Overlay