The Pender Corporate Bond Fund returned 0.6% in April, a reasonably good result given the continuing upward bias of the trend in interest rates.
Strong performers for the Fund in April included our position in convertible notes of SunPower Corp, which rose multiple points on the company’s steps to acquire US-based manufacturing capacity, seen as a solution to current tariff concerns. We like prospects for solar power in the longer term and believe the SunPower position has further potential upside for the Fund. Also driving gains was our position in 2nd lien bonds of W&T Offshore as rating agencies upgraded the company’s credit in recognition of the progress the company has made in growing cashflows and de-leveraging. Other boosts were provided by a new position in Aceto converts, discussed below, and strength in Aimia preferred shares.Continue Reading