Burgundy approaches bond investing the same as we approach equities. We conduct original credit analysis on individual companies. Burgundy believes a company’s intrinsic value has more influence over its bond yield potential than the economy, interest rate direction, bond ratings or macroeconomics.

Burgundy looks for companies that are able to fulfill their bond obligations (even though they have lower bond ratings) and with the potential to earn incremental yield. Burgundy makes independent decisions rather than relying on bond agency ratings, which are available to all investment managers.

Building on a base of Government of Canada and provincial bonds, we add corporate bonds only when our relative assessment demonstrates that our clients will be compensated for the associated inherent risks. Just as in our equity investing, capital preservation is paramount. An emphasis on corporate lending, using rigorous corporate credit analysis, represents the best risk-reward proposition.