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)

    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.

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      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 – March 2017

      The Pender Corporate Bond Fund returned 1.8% in March. This was a good result, especially given the general weakness in credit markets during the period. The Fund benefited from strength in a number of discounted credits including Restoration Hardware, whose bonds rallied on an improved earnings outlook. Also contributing were our position in Orexigen Therapeutics, whose weight loss drug showed significant growth in prescription activity, and Enernoc, with the demand-side management electricity firm announcing a strategic review that may result in the sale of the company. Some New Positions While markets, on average, have seen relatively tight spreads in 2017, the month of March saw a decent amount of volatility and good entry points in certain credits. In the lower risk, most liquid portion of the Fund, we were able to source a position in the 2023 bonds of Masonite International, yielding more than 5%. Masonite, which makes and distributes doors used in residential and commercial construction, is very well capitalized, with over a $3 Billion equity market cap sitting beneath its $600 Million bond obligations. The company’s one year Bloomberg default risk probability was recently 0.04%, a level similar to some of the highest investment grade credits. We also continued to find ... 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.