Fixed Income Funds

Parul Garg, Pender’s distressed credit expert in default securities, reorganizations and recapitalizations, discusses the impending catalysts for generating meaningful alpha in distressed debt in the next 3-to-5 years, and how a public credit strategy complements investing in private credits. She explains the various approaches to creating value and managing risk in both the Pender Credit […]

Highlights Key performance contributors included convertible bonds in Revance Therapeutics Inc., OPKO Health Inc., and Cineplex Inc. Key detractor was Stem Inc. We added weight to several lines of existing credits including Crowdstrike Holdings Inc, which we consider an extremely strong credit, and to our existing holdings of Canadian real return bonds. The Pender Corporate […]

Highlights Key contributors included Desktop Metal Inc. convertible bonds, Emergent BioSolutions 2028 notes, Lucid Group and OPKO Health convertible bonds. New positions included: Spirit Airlines 2025 secured notes, 5.75% convertible notes of PNM Resources, and 2027 notes of Energean PLC. The Pender Corporate Bond Fund enjoyed another profitable period in July, returning 2.6%[1]. Several specific […]

Dear Investor, We sincerely appreciate your continued support of Pender Credit Opportunities Fund I (PCOF I). Since its launch, the Fund has delivered an impressive return of 19.8%, net of all fees and expenses, outperforming both the High Yield Market (ICE BofA US High Yield TR USD returned 8.9%) and the CCC index (ICE BofA […]

As published in BPM on 15 July, 2024. Benjamin Graham, the “father of value investing” and author of the classic The Intelligent Investor, wrote: “Successful investing is about managing risk, not avoiding it.” Few strategies capture this idea better than stressed and distressed debt. These assets offer investors attractive risk/return propositions but there is no […]

Highlights Strength in Q2 was partially attributable to a rally in response to the Bank of Canada’s decision to reduce the overnight lending rate. Areas of focus over the quarter were defensive sectors including Utilities and Consumer Staples. The Fund is underweight in non-Investment Grade. After a slow start to the quarter, the Fund posted […]

Highlights Performance drivers included our positions McDermott International Ltd and Hughes Satellite Systems Corp. Detractors included issuers active in producing materials for clean energy industries, including platinum group miner Sibanye Stillwater and rare earths processor MP Materials. We view the sector as a long-term growth industry and continue to build positions here. Portfolio additions included […]

A unique value proposition – what we do and what we don’t do. In this discussion, Parul Garg sheds light on the risk and rewards of investing in stressed and distressed credits in public markets and how the portfolio management team leverages a nimble approach to capitalize on unique opportunities often overlooked by larger funds. […]

As published in the Financial Post on 23 June 2024. Credit spreads serve as a premium offered to investors to offset the risks associated with bankruptcy. This quarter, high-yield credit spreads hit a decade-low of 3.05%. Narrower spreads reflect reduced demand for compensation against credit risk, indicating the market's confidence in low credit risk ahead. […]