The ABCs of MAC: Seeking enhanced income potential with investment grade-like risk

Canadian pension plans and institutional investors continue to navigate a complex and shifting economic backdrop, marked by uneven regional growth, sector-specific pressure and ongoing geopolitical uncertainty. In this environment, generating consistent income while managing risk has become a growing priority for plan sponsors. 

A new white paper from Manulife | CQS Investment Management examines how a flexible multi-asset credit (MAC) strategy can offer high levels of income-driven returns through market cycles .  To help complement traditional, rate-sensitive, fixed income allocations, a MAC strategy  seeks to tap into a broader credit universe , giving managers the flexibility to pursue some of the best relative value opportunities—wherever they emerge. 

Key takeaways: 

• A MAC strategy can help investors navigate shifting market conditions by capturing income opportunities across a broad range of credit sectors and instruments
• MAC investing can be explained through a simple framework focused on accessing income, identifying the best relative value, and preserving capital to help support long-term portfolio objectives 
• Active credit managers can pursue attractive risk-adjusted returns and respond to market dislocations through dynamic asset allocation and sector rotations
• There are potential benefits to employing a globally diversified credit approach that can identify opportunities across regions, sectors, and instruments as conditions evolve 
• Disciplined, bottom-up research and prudent risk management matter for investors pursuing income and growth objectives amid ongoing uncertainty 

Download the white paper today to find out how a dynamic, high-income multi-asset credit strategy could help strengthen your existing credit allocations across market cycles.

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