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Pender Corporate Bond Fund – Manager’s Commentary – December 2016

Written on . Posted in Commentaries, Pender Corporate Bond Fund

The Pender Corporate Bond Fund returned 2.2% in December and 23.7% for the full year 2016. This was a very good result, well ahead of our benchmark and, frankly, ahead of our own expectations. During the year, we came upon a large number of opportunities where the price of the bond was much lower than our estimation of the workout value, even given default. Once purchased, a large number of these opportunities worked out well, with some doing so extremely quickly. As a result, the returns the Fund generated in 2016 were about three-quarters capital appreciation and one-quarter coupon-based income.

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Pender Corporate Bond Fund – Manager’s Commentary – November 2016

Written on . Posted in Commentaries, Pender Corporate Bond Fund

The Pender Corporate Bond Fund returned 0.8% in November. This was a reasonably good result, given the state of the bond market in general. During the month, yields on longer-dated bonds rose significantly, continuing a price correction that began in the mid-summer. The 10 year US Treasury bond declined in price more than 5% during the month of November, with many corporate issues faring worse. Our benchmark, the FTSE TMX Canada Bond Universe, had a total return of -2.1% for the month.

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Manager’s Quarterly Commentary – Felix Narhi – Q3 2016

Written on . Posted in Commentaries, Pender Strategic Growth and Income Fund, Pender US All Cap Equity Fund

 “Nothing is so painful to the human mind as a great and sudden change.” ― Mary Shelley

Although we live in a world where change is constant, it seems to be getting increasingly unpredictable. In the first quarter, global markets simultaneously swooned on concerns of a big slowdown in China. Then during the second quarter, UK citizens surprised the world in a stunning rebuke to the status quo when they voted for Brexit. Not to be outdone, Americans soon embraced their own brand of populism by voting in Donald Trump as the 45th President of the United States. These events may be a harbinger of things to come with unforeseeable global implications. Citizens and investors alike are now trying to understand the implications of a President who thrives on unpredictability and is constantly shifting his positions. A Trump victory was widely expected to send the markets into a tailspin. But instead of plunging, US markets have remained remarkably resilient as investors shifted their bets on the potential winners and losers from “Trumponomics”.

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Pender Corporate Bond Fund – Manager’s Commentary – October 2016

Written on . Posted in Commentaries, Pender Corporate Bond Fund

The Pender Corporate Bond Fund returned 2.9% in October, a very good result. Driving the strong performance during the month were a couple of key events: first was Sandridge Energy’s October 7 emergence from bankruptcy and simultaneous equity relisting on the New York Stock Exchange, which delivered a bump of approximately 20% to our position in Sandridge debt securities; and second, the decision by Lowe’s Companies to tender for all of the outstanding Rona preferred shares at a sharp premium to the prevailing market price. These events, in concert with broad based strength in our higher yielding, short duration holdings, helped the Fund perform strongly in what was otherwise a very weak month in bond markets.

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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 assume 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. This content is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter and is provided for your information only. Every effort has been made to ensure the accuracy of its contents.