PenderFund

Pender Corporate Bond Fund

The Pender Corporate Bond Fund is an income fund that is both conservatively managed to preserve capital, as well as opportunistic to generate returns. The Fund is focused on key credit characteristics – coverage, seniority and duration. It is driven by bottom up fundamental analysis, the Fund seeks to use its nimble size to invest in opportunities large or index based funds cannot. This advantage could provide investors with an attractive cash yield, while maintaining positions in attractively valued securities that provide a margin-of-safety for investors.

  • Monthly
    Pender Corporate Bond Fund - Fact Sheet - CAD

    Annual (POS)
    Pender Corporate Bond Fund - Fund Facts - CAD (A Class)
    Pender Corporate Bond Fund - Fund Facts - USD (A Class)
    Pender Corporate Bond Fund - Fund Facts - CAD (D Class)
    Pender Corporate Bond Fund - Fund Facts - CAD (F Class)
    Pender Corporate Bond Fund - Fund Facts - USD (F Class)
    Pender Corporate Bond Fund - Fund Facts - CAD (H Class)
    Pender Corporate Bond Fund - Fund Facts - CAD (I Class)

    Other
    Portfolio Manager's In Depth Evaluation

    Reasons to Invest in the Pender Corporate Bond Fund

  • Geoff CastlePortfolio Manager

    • Geoff Castle

      Mr. Castle is the Portfolio Manager of the Pender Corporate Bond Fund. He is an experienced investor with over 14 years of fund management experience in both public mutual funds and proprietary investment fund management for ultra-high net worth individuals. In addition, Mr. Castle’s background includes more than five years of industry experience in trade credit and general corporate management.

      As a fixed income manager, his focus has been on seeking enhanced yield opportunities in situations where substantial margins of safety exist. In particular he has earned strong fixed income returns for clients in the recent low interest rate environment by focussing on “non-conforming” situations where yield opportunities existed despite otherwise attractive credit fundamentals.

      Read full biography

      Mr. Castle’s philosophy in the current low yield environment involves controlling risk through careful consideration of credit duration and fixed charge coverage, and the fair valuation of each security class on an as-liquidated basis. Beyond this analytical discipline, he draws from strong industry-specific experience he has acquired from his years as a management consultant, as well as from his participation on corporate boards and advisory boards. Mr. Castle holds a Bachelor of Arts degree from UBC (1989) and a Master of Business Administration from the Richard Ivey School of Business at the University of Western Ontario (1996).

      In 1996 he joined global top-tier strategy consulting firm, Bain & Co where he spent four years advising clients on issues relating to mergers and acquisitions, strategic cost analysis, and capital expenditure optimization. Bain clients included Fortune Global 500 firms in the consumer durables, retail and transportation sectors. In 2000, he was recruited to AIC Limited where he spent nearly seven years as a senior analyst and portfolio manager on a variety of mutual fund portfolios, including situations that involved portfolio manager transitions.  In 2003 he became co-manager of three international investment portfolios including the AIC Global Balanced fund which expanded by more than five-fold over his tenure and, in 2004, was the second highest returning fund out of 400 funds in this category in Canada.

      Upon returning to Vancouver, Mr. Castle worked at McElvaine Investment Management and was subsequently recruited to Powerex Corp., where he focused on evaluating the creditworthiness of counterparties in the North American energy industry and was active in reviewing credit provisions of high value, long-term custom energy trading contracts. Recently, Mr. Castle spent four years at the family office of a Vancouver-based high net worth individual where he managed fixed income investments and other asset classes.

      He sits on the board of directors of Amerigo Resources Ltd, a publicly traded resource recovery company based in Vancouver and is a member of the board of advisors of Vancouver-based Vonigo Software Ltd. He is a member of the CFA Institute and in 2013 and 2014 was industry mentor to the UBC team in the Institute’s Investment Research Challenge, with those teams each reaching the top 16 teams in North America.

    • Pender Corporate Bond Fund – Manager’s Commentary – February 2017

      The Pender Corporate Bond Fund returned 0.8% in February. We view this  return as reasonable for the period, given the lower credit spread environment, combined with our own more cautious risk positioning. Our February returns were roughly evenly split between interest accrual and capital appreciation. On the capital side of things, positive moves by our positions in the discounted bonds of Grupo Famsa, Jakk’s Pacific Holdings and Restoration Hardware were offset, to a degree, by a decline in Global Brokerage Inc. notes (formerly FXCM), as that company was impacted by regulatory action. February saw a change in the direction of some key long-term government interest rates, with both longer-dated US Treasuries and Government of Canada bonds trading to slightly lower yields. Credit markets were a little stronger as the major high yield indices continued to tighten their spreads to US Treasuries. In general, we view North American credit markets as now having moved towards the expensive side of the range. In response, we have begun to add more high quality credit to the portfolio mix, while maintaining relatively short duration. Adjusting the Mix for Lower Credit Risk One of the main changes in the Fund composition in 2017 has been the re-introduction of ... Continue Reading

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in net asset value and assumes reinvestment of all distributions and are net of all management and administrative fees, but do not take into account sales, redemption or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.