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
    Pender Corporate Bond Fund - Fact Sheet - USD

    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)

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  • Geoff CastlePortfolio Manager

    • Geoff Castle Geoff-castle

      Mr. Castle is the Portfolio Manager of the Pender Corporate Bond Fund. He began his investing career in 2000 and has 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 or capital appreciation opportunities existed despite strong collateral coverage and otherwise attractive credit fundamentals.

      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.

      On his return to Vancouver, Mr. Castle worked at 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. Subsequently, he spent four years at the family office of a Vancouver-based high net worth individual where he managed fixed income and equity investments.

      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 – November 2017

      The Pender Corporate Bond Fund returned 0.1% in November, a result lower than the potential run-rate return we see in the portfolio but, within the context of a choppy market, not altogether disappointing. Contributors in November included our positions in PRA Group convertible notes, which rallied on strong quarterly results, newly acquired bonds of Treehouse Foods which recovered from concerns regarding a CEO resignation, and George Weston preferred shares which gained on their attractive after-tax yield profile. Offsetting portfolio gains, to a degree, was a decline in our recently acquired position in Puerto Rico general obligation bonds. This is a holding in which we see enormous value potential, but one for which higher volatility comes as part of the package. November Credit Market Environment As months go, this one presented one of the more hostile credit environments we have seen since 2015. We observed in November both a widening in credit spreads and a rise in short and intermediate term risk free rates. Neither the spread widening event nor the yield curve increase were particularly strong, but both presented headwinds and, in combination, created jittery market conditions. As an indication, the second week of November saw over $1B of net outflows from “JNK” ... 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.