Commentaries

Highlights Several of our shorter duration holdings experienced solid gains in April, including secured bonds of Greystar Real Estate Partners LLC (private) and Life Time Group Holdings Inc. (NYSE: LTH). In banks, our focus was on AT1 securities issued by the two largest Canadian banks trading prices of 75% of par or lower. We established […]

Highlights The Fund returned 2.6% in the first quarter. Over the last three years, performance has been strong at 17.3%1. One of the major areas of market concern during the quarter was the meltdown of Silicon Valley Bank. We do not own any U.S regional banks in the Fund, nor any banks for that matter. […]

Highlights A positive development during the month was banks returning to provide buyout debt financing. March was the peak month of SPAC maturities for 2023 with the industry now fully lapping the peak of the 2020/21 SPAC bubble by the typical two-year maturity date. As the size of the SPAC sector and the number of […]

Highlights Small-cap stocks have historically traded at a premium to large caps given their higher growth potential. However, we are now in a market when small caps trade at a significant discount to large caps.  We are continuing to rotate our portfolio into higher quality companies where we see the best risk/reward profiles such as […]

Highlights For the three months ended March 31, 2023, the Fund generated a 1.9% return.[1] Several high-quality, defensive, relatively longer-dated lines, such as Loblaw Companies Ltd., Verisign Inc. and Bell Canada Enterprises Inc. bolstered performance. There are signs suggesting the hiking cycle is nearing its peak. Should the rate hikes to date slow the economy […]

The Pender Corporate Bond Fund returned -0.5%[1] in March. Although the period was a strong one for the high-grade part of the portfolio, a few idiosyncratic events in particular lines and widening spreads in lower-tier credit holdings led to a net negative result for the month. Highlights Most of the Fund’s investment grade holdings were […]

Highlights The Fund added back a position in Valvoline Inc. 4.25% 2030 (NYSE:VVV) that we had sold out of in February. This bond is expected to be called in Q1 2024 with the proceeds from the already-completed asset sale to Saudi (Aramco).  We exited our position in Rogers Communications Inc. special mandatory redemption bonds, as […]

Highlights 2023 is seeing deals materialize from a more diverse range of sectors. We expect technology sector M&A to continue representing a leading share of deal flow over the next year. The relative slowdown in M&A activity this year is a likely consequence of the current macro environment, marked by higher inflation, interest rates and […]

Highlights The Fund’s positioning was very defensive to start the month and finished with more market exposure compared to the end of January. However, we remain positioned defensively as spreads are tighter than the historic average, with near-term risks for asset prices skewed to the downside in our view. We added to holdings that are […]