A Market Isn’t Always Just One Thing Forever
In this episode, Laura Baker, Associate Portfolio Manager at Pender, sits down with Lead Portfolio Manager, Fixed Income Geoff Castle, Portfolio Manager Emily Wheeler and Associate Portfolio Manager Parul Garg to discuss the recent recognition of two of Pender’s fixed income funds with 2025 LSEG Lipper Fund Awards. The team shares the drivers behind their consistent performance, their disciplined investment process and their outlook on risks and opportunities in the evolving credit landscape.
00:55
Pender Corporate Bond Fund recognized for 3-, 5-, and 10-year returns; Pender Bond Universe Fund recognized for 3-year performance. The LSEG Lipper Awards recognize consistently strong, risk-adjusted returns compared with peers.
02:10
Geoff Castle discusses the importance of teamwork, discipline and a value-focused approach. The Fund’s success is attributed to a collaborative effort, rigorous research, and a culture of “asking paranoid questions about what can go wrong”.
03:48
Adapting to shifting markets: The team’s strategy has evolved over the years, from oil and gas to preferred shares, investment grade bonds and geographic diversification. Consistency is maintained by focusing on top issuers and maintaining close relationships with management.
06:27
Emily Wheeler highlights the research-driven process, including detailed credit reports and a counter-cyclical approach to credit and duration. The team’s track record includes a high percentage of upgrades and no downgrades among current holdings.
08:28
Differentiating the funds: The Pender Corporate Bond Fund offers broad credit exposure, while the Pender Bond Universe Fund maintains a higher allocation to investment grade for a lower risk profile.
10:30
Parul Garg explains the Pender Credit Opportunities Fund’s focus on stressed and distressed credit, leveraging in-house expertise and a philosophy of “yield to value”. The Fund benefits from idiosyncratic risk and opportunities that peers may overlook.
13:30
Themes and contributors: The team seeks value across sectors, with recent successes in clean energy and EVs. Each credit is analyzed for its unique story and risk/reward profile.
15:35
Risks and outlook: The team is monitoring the private asset marketplace, the impact of leverage in private equity and the potential for spread widening events. Geographic diversification and nimble execution are key to managing uncertainty.
20:30
Opportunities ahead: From distressed situations to long-duration investment grade, the team identifies compelling investments across the credit spectrum. Spread widening could unlock further opportunities for alpha generation.
26:10
Closing reflections: The LSEG Lipper Awards underscore the discipline, teamwork, and creativity of Pender’s fixed income approach.
