Fixed Income Program

The program offers a diverse range of products, including government and corporate bonds, as well as private debt investments. Our strategies include the use of duration, yield curve, and credit spread positioning with a focus on sector and security selection.

All strategies are actively managed and follow a disciplined investment approach underpinned by robust research.

We Invest In

Our fixed income program invests in public and private market debt, oversees our exposure to foreign currency, and manages BCI’s Funding Program to deliver leverage.

Credit

We invest in publicly traded corporate debt across the full credit spectrum (i.e. investment grade and high yield) with a focus on the U.S. and Canada.

Rates

We engage in active management of interest rate exposure, using both duration and yield curve positioning.

Foreign Exchange

We use a centralized and client-driven approach to currency exposures, incorporating clients’ strategic, long-term, hedge ratios with a tactical currency hedging overlay.

Funding Program

We employ both secured and unsecured financing to deliver capital to clients with strategic allocations to total portfolio leverage. Read more about our Funding Program.

Private Debt

We offer private debt with the Principal Credit Fund, through internal management and partnerships with external managers, which lends to mid-sized companies in North America/Europe that are generally unrated and private equity owned.

Investment & Performance

Our fixed income program invests $87.1 billion in public and private market debt and manages foreign currency – a key consideration as we expand our global investment reach. It includes money market and bond portfolios, as well as foreign exchange hedging and trading.

$
0
B

ASSETS UNDER MANAGEMENT1

0
%

PERCENTAGE OF BCI’s TOTAL ASSETS UNDER MANAGEMENT1

0
%

5-YEAR RETURN AGAINST A BENCHMARK RETURN OF (0.2%)2

1 AUM and % includes Private Debt as at March 31, 2024.
2 Fixed income program returns include the leverage liability portfolio and exclude private debt.
FIXED INCOME PROGRAM PERFORMANCE1 (%)

 

 

1 Fixed income program returns include the leverage liability portfolio and exclude private debt.
 
PRIVATE DEBT PROGRAM PERFORMANCE (%)

 

 

FIXED INCOME PORTFOLIO ASSETS1 (%)

 

 

1 The values presented above do not reflect certain pool funds held within other asset classes. As at March 31, 2024 this amounted to approximately $1.8 billion in money market funds and $19.2 billion in floating rate funds.
 
PRIVATE DEBT PORTFOLIO ASSETS (%)

 

 

1 Other includes not classified, real estate, and utilities.
 
CORPORATE BOND PORTFOLIO ASSETS (%)

 

 

1 Other includes ETFs and utilities.