Integra Capital
Integra’s Alpha Beta Strategies (Integra ABS) provides a diverse array of absolute return strategies driven by a combination of our internal resources and the demonstrated strengths and experience of our international investment partners. These strategies include:
- Liability Driven Investment Solutions – using portable alpha as a means of implementation.
- Pure Alpha Solutions – to enhance portfolio management efficiency.
- Risk Management Solutions – using currency and other hedging strategies.
Strategic solutions are specific to the return needs and the degree of risk management required by each institutional investor. These strategies bridge both Beta (policy) and Alpha (strategy) in creating the appropriate solution for the requirements of the institutional investor.
Liability Driven Investment
Do you have an unfunded pension liability, especially on a solvency test basis?
Are your pension contributions costing too much?
These are questions that plan managers must face daily and for which they are answerable to their board, their shareholders and their stakeholders.
Liability Driven Investment (LDI) Strategies are tailored specifically to meet these needs and provide a level of confidence that your plan will be adequately funded to meet liabilities over the longer term as well as addressing cashflow needs in the more volatile short term.
Liability Driven Investing seeks to minimize the volatility in the funding ratio of the pension fund. In a perfect world, any external investment shock on the asset side is matched by a similar and opposite impact on the liability side, thus rendering the funding ratio immune to the shock. As we do not live in a perfect world, it may be prudent to consider moving in the direction of reducing funding shocks with the design of a well thought out investment approach using LDI. Integra can provide this, in a straight forward manner, to the benefit of its clients.
Integra has partnered with a select group of specialty global investment management organizations focusing on alpha generation within an environment where Beta (policy) and Alpha (strategy) are clearly separable. Integra offers very refined solutions for specific problems that confront institutional investors.
An overview of some of our strategies and the role they can play in your portfolio:
Market Neutral
Many plan sponsors want an investment alternative that will provide a higher incidence of positive returns without incurring incremental investment risk. Market neutral strategies offer this solution. Investors looking for risk effective sources of alpha are advised to consider the Integra Market Neutral Fund. This fund is designed to generate a rate of return that is equal to the Canadian T-Bill rate of return plus an additional absolute rate of return of 5%.
Funds of Hedge Funds
Institutional investors are actively considering how to employ hedge fund strategies in their portfolio mix of investments. Due to their unfamiliarity with these complex strategies, they recognize that the most efficient way to utilize these hedge fund strategies is to start with a Fund of Funds approach. Integra provides excellent turnkey solutions in this area.
Alpha Extraction
Alpha extraction solutions are new ways to earn skill based return – a different approach from traditional investment strategies. Used appropriately, they can have considerable effect in reducing particular risks in portfolios and stabilizing positive returns. Integra, with its investment partners, offers a number of these innovative solutions.
Currency Hedging Strategies
Institutional investors are turning to currency hedging solutions with increasing frequency given the elimination of foreign property rules and the increased level of investment outside of Canada. Frequently, plan sponsors do not wish to incur the currency risk involved with foreign investments and seek to hedge the risk away. Integra offers a number of ways to achieve this.
Asset Class Hedging
Often plan sponsors are not comfortable with the strategic disconnect between their asset mix policy and short term market events. They want to hedge exposure away from underperforming asset classes while at the same time maintaining exposure to safe harbour asset classes. Integra’s tactical asset allocation strategies provide time tested solutions to deal with these risks.
Alpha Beta Strategies
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Contact Us
To learn more about these various strategies and explore how they might best address your investment requirements please contact:
Tristram (Tris) Lett
Managing Director
Integra Alpha Beta Strategies
Direct: (905) 829-7335
Toll free: (800) 363-2480
Email: tlett@integra.com
Bruce MacDonald
Partner
Integra Capital Management Corp.
Direct: (905) 829-7283
Toll free: (800) 363-2480
Email: bmacdonald@integra.com
