“Too often conventional fixed income products have been designed to focus on a single category rather than meeting clients’ needs or managing risk in their portfolios. Our unconstrained mandate allows us to manage these types of risks more effectively.”
Scott Colbourne
Co-Chief Investment Officer
Senior Portfolio Manager

In today's persistent low yield environment, conventional bond fund managers are struggling to add value without adding unwanted risk. Sprott unconstrained bond strategy is designed to be an alternative. The strategy gives the Manager greater freedom to find new ways to generate income and manager risk.

Here are the seven “performance levers” Scott Colbourne and his team can use in pursuit of better investment outcomes for the clients.
  1. Asset allocation – freedom from benchmark gives the managers ability move freely among fixed income asset classes to capture best investment opportunities.
  2. Duration - the flexibility to shorten or lengthen duration as needed to capture upside potential or reduce risk.
  3. Credit - freedom to enhance risk-adjusted returns through overlooked credit opportunities.
  4. Geography - ability cross borders to capture the 95% of fixed income opportunities that lay outside Canada.
  5. Currency – ability to add alpha by buying bonds denominated in almost any currency.
  6. Short selling – freedom to “sell high and buy low” to seek profits and limit losses.
  7. Options – flexibility to be defensive or opportunistic by buying and selling put and call options.


Generate reasonable returns with acceptable level of risk

Protect against inflation risk

Protect against interest rate risk

Provide increased tax efficiency of Corporate Class structure*

An ideal core portfolio solution to address the challenges of today’s low yield environment.


*The tax efficiency refers to the tax treatment on the interest income form the underlying fund’s bond holdings and, for Series T, the tax-efficient treatment of distributions. The 2016 Federal Budget proposes to amend the Income Tax Act so that switches between classes of shares of a mutual fund corporation are considered to be a disposition for tax purposes. The change is expected to take effect on October 1, 2016.