• Targeting Absolute Returns in a Volatile Environment

    Absolute return investing at Pender

It’s been a challenging time for fixed income investors recently. Increased market volatility due to rising interest rates, inflation, and economic uncertainty, have been headwinds for traditional fixed income strategies.

An active fixed income strategy offers investors the flexibility to protect capital from both macroeconomic and idiosyncratic risks while, at the same time, take advantage of attractive opportunities to generate favorable returns even during challenging market environments.

What is the Pender Alternative Absolute Return Fund?

The Pender Alternative Absolute Return Fund is a flexible, high-yield-focused, liquid alternative fund. The goal of the Fund is to generate high single-digit returns throughout market cycles with significantly less volatility and lower drawdowns than an investor would expect from a long-only mandate. The Fund offers investors an alternative to traditional fixed-income funds. It is a credit-focused, hedge fund alternative fund with the tools to manage exposures to the broad market.

Pender Alternative Absolute Return Fund

Justin Jacobsen

Portfolio Manager

Commentaries

Latest Commentary

Factsheet

Latest Factsheet

Performance

Latest Performance

Why invest in the Alternative Absolute Return Fund?

  • Potential to generate attractive returns from idiosyncratic opportunities while managing the exposure to various market risks.

  • Returns are uncorrelated to the broad market, allowing the strategy to provide diversification benefits to an overall portfolio.

  • Expected to deliver lower volatility, and minimise drawdowns with tools to hedge unwanted risk exposures.

  • Actively managed and able to adapt to changing market conditions to maximize the risk and return based on our views.

  • A differentiated strategy of a hedge fund but available with the convenience, liquidity and transparency of mutual fund structure.

The investment approach allows flexibility to adapt the portfolio’s positioning to changing market dynamics, taking advantage of opportunities and managing risks through heading. The focus on security selection is supported by a rigorous bottom-up investment process, that has been applied and tested through multiple market environments. This strategy is focused on uncovering the best risk-adjusted return opportunities in every market cycle and dynamically adjusts portfolio positioning for market environments to protect and grow capital.

Portfolio Manager

Justin Jacobsen, CFA

Investment Analyst

Rachel Zhang, CFA

Resources


Webinar (April 2024): Watch the Replay

Absolute Return Investing in the Current Fixed Income Landscape

in April 2024 Pender hosted a live webinar with Justin Jacobsen, who provided an update on the Fund and provided insight into the opportunities he is finding in the market.

If you missed this insightful live event, be sure to watch the replay.

For financial professionals only


What’s the difference between nominal and real returns and why does it matter?

December 8, 2023

Originally published in Financial Post

Podcast: PM Justin Jacobsen

SEPTEMBER 16, 2021

Recorded when the Fund launched in 2021, Geoff Scott welcomed Justin Jacobsen to the Pender Investment Team

Avoiding disaster – Is this the right time to hedge risk assets?

November 20, 2023

Originally published in Conseiller

Webinar

September 6, 2023

Justin Jacobsen provides an update on Pender Alternative Absolute Return Fund

Article: Resistance training – Testing market resilience

AUGUST 3, 2023

Originally published in CFA Institute Enterprising Investor

Justin Jacobsen

Justin Jacobsen

Portfolio Manager

Justin is the Portfolio Manager of the Pender Alternative Absolute Return Fund. He joined Pender in August 2021.

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