Commentaries

HIGHLIGHTS We expect a further easing of inflation pressures as consumers and companies digest the impact of significantly higher rates. We find the prices of relatively strong corporate credits in the three to seven-year tenors to be very attractive. There are plenty of excellent issuers with credit yields of more than 6%. What could happen […]

Highlights The Fund initiated a position in the Twitter acquisition by Elon Musk. While this deal was a relatively bumpy ride, it’s also a great example of the contractual and legal strength of a definitive merger agreement. We believe we are now at the peak of the SPAC maturity cliff. Hundreds of SPACs, which were […]

Highlights There was a significant bounce in most asset classes, as dip buyers emerged following significant repricing from mid-August to mid-October Large macro moves have created pockets of dislocation within credit markets, especially between Investment Grade and High Yield credits We believe that a large driver of the divergence between investment grade and high yield […]

Highlights During October there were some bright spots and some challenges, the latter from lower prices across the investment-grade bond complex reacting to a higher yield curve. Bright spots included our positions in McDermott International, Ltd., PetSmart, Inc. The Fund’s flexible mandate opens up opportunities across a variety of security types (term loans, straight bonds, […]

Highlights Policymakers in most parts of the world have raised rates this year with the count and pace continuing to mount. The US Bond Market has had a -0.3% annualized return over the last five years, the first negative five-year return in US bond market history. Global bond markets have been even worse. Against this […]

Dear Unitholders, The Pender Alternative Arbitrage Fund (PAAF) was down 1.1% in September, bringing year-to-date performance to 1.1% with one-year performance of 2.9%[1]. Download PDF M&A Market Update M&A activity stalled in Q3 with a steep 55% decline in deal activity vs. the record M&A boom of last year. After eight consecutive quarters with over […]

Fellow unit holders, The Pender Small Cap Opportunities Fund returned -12.5% in September, bringing returns so far this year to -34.8%[1]. This was a challenging period for the Fund, which was up against a difficult market environment, particularly for the small/micro-cap and technology companies that we own in the Fund. In Canada, the broad-based S&P/TSX […]

Highlights: September proved to be another challenging month for markets. It was the third worst month for the high-yield market since 2008. Early September presented the Fund with some good relative value trading opportunities. If there were a significant spread-widening event for large, well-capitalized Canadian banks, we expect to be buyers on weakness. It was […]

Highlights: The Fund has thus far held above the summer lows, all the while seeing much improved forward-looking returns available in credit markets. The four factors to identify good entry points are: price, positioning, flows and sentiment…we believe those factors are looking very positive, especially for the higher quality strata of the bond market. We […]