Panera Bread – When News of a Take-Out at a Premium is Bittersweet

Written on . Posted in Featured Company, Pender Blog

As we reflect on the announcement that Panera Bread, a holding in several of Pender’s funds, is about to go private thanks to a takeover by European holding company JAB, we are left feeling somewhat bittersweet. While this development is probably perceived as terrific news by most market participants, we believe some investors with a longer time horizon may feel differently.  So why would the take-out of Panera, at a decent premium, be less-than-ideal news?

Continue Reading

Pender Book Review: The Undoing Project by Michael Lewis

Written on . Posted in Book Reviews, Pender Blog

I recently read The Undoing Project: A Friendship That Changed Our Minds by Michael Lewis. When Lewis presented at the CFA Society Vancouver 50th Anniversary Dinner in November 2015, he mentioned that he was working on a book featuring the collaboration between Israeli psychologists, Daniel Kahneman and Amos Tversky. I had previously read Kahneman’s book Thinking, Fast and Slow and was excited to read about how he and Tversky had developed some of the ideas that led to that book.

Continue Reading

2016 FundGrade A+ Awards go to two Pender Funds

Written on . Posted in Other News & Reviews, Pender Blog

Congratulations to the Pender Investment Team and Portfolio Managers David Barr and Felix Narhi. Fundata Canada Inc has awarded two of Pender’s funds a FundGrade A+ Award for 2016.

The awards were presented in Toronto on January 25, 2017 and recognize “Canadian investment funds that have maintained an exceptional performance rating over the entire previous calendar year.”

Continue Reading

Pender’s Holiday Reading List 2016

Written on . Posted in Book Reviews, Pender Blog

“Warren Buffett credits many of his great money decisions to his voracious reading habit. He … estimates he spends as much as 80 percent of his day reading.” He says, “Read 500 pages … every day. That’s how knowledge works. It builds up, like compound interest.” 1

At Pender, we’re passionate about investing, but we’re also passionate about reading and we are already anticipating the chance to kick back over the holidays with a good book.

Here’s what’s on the reading lists of some of our Investment Team, along with their notes.

Continue Reading

Hitting the Sweet Spot: Low default risk and short duration are keys to attractive risk/reward in the current corporate credit market

Written on . Posted in Investment Strategy, Pender Blog

There are two different scenarios that we consider when we try to mitigate the effects of risk in the Pender Corporate Bond Fund.

The two chief risks in the bond market – credit risk and duration risk

  1. Credit risk is the risk that the company that is being lent money is unable to repay the obligation, and further, in the event of default, the risk that the sale of the business and its assets is insufficient to repay the obligation.
  2. Duration risk is the risk that the price of a bond goes down, based on an increase in its yield to maturity.
Continue Reading

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. 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.