Why Corporate Bonds?

Timely — The current corporate debt market is extremely attractive with yield spreads near all time highs.

Opportunity — In the current economic climate, corporate bonds can generate risk-adjusted equity-like returns through a combination of high current yield and capital appreciation.

Paid to Wait — Investors are paid a high current yield while the global economy gains strength and corporations pay down debt.

Safer — Debt has a higher ranking in the corporate capital structure than stocks. In the current low growth economic environment companies are buying back debt by reducing dividends, issuing equity and/or eliminating growth expenditures.

Why Invest in Pender's Corporate Bond Fund?

Agile – Pender Corporate Bond Fund  is a more “nimble” fund. This means the fund is well positioned to buy smaller bond issues. Other funds are often too big to be interested in the smaller bond issues, irrespective of the performance opportunity, because they can’t buy enough to hold meaningful positions. As value-based investors we believe this is where the market is the most inefficient and therefore where many of the best opportunities can be found. 

Avoid Over-Diversification – Pender Corporate Bond Fund intends to have no more than 25 to 40 names. A smaller number of carefully selected holdings allows us to closely monitor all investments and avoid over-diversification.

Management Discipline – The Manager uses a fundamental, bottom-up, value approach to investing, as opposed to relying on the rating of a company. The Manager is focused on finding bonds issued by companies with a business model that can survive the current economic crisis by generating free cash-flow and/or which possess undervalued assets.

Experienced Manager – Matt Shandro brings 15 years of investment experience. He was a high-yield analyst with Vancouver-based Deans Knight before moving to Toronto to work at Marret Asset Management and CI Investments where he was co-manager of the award winning Signature High-Income Fund. On returning to Vancouver, Mr. Shandro joined Great Pacific Capital Corp., a subsidiary of Jim Pattison Ltd before  establishing Fulcra Asset Management Inc. and becoming the Portfolio Advisor to the Fund.