Overview
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Asset ClassFixed Income
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CIFSC CategoryAlternative Credit Focused
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Risk RatingLow to Medium
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Number of Securities (Long/Short)110/9
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Yield to Maturity6.5%
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Current Yield5.5%
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Average Duration2.0 Years
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Average Credit QualityA
Objectives
The Fund’s objective is to achieve long term capital growth by investing in, or gaining exposure to, a diversified portfolio composed primarily of debt and money market securities. The Fund will use alternative investment strategies such as engaging in short sales and purchasing securities on margin or with borrowed funds.
Investment Focus
The Fund is an alternative mutual fund that primarily invests in a diversified portfolio of corporate debt. The Fund may also sell securities short and deploy leverage to achieve its investment objectives. There are no limits on the percentage of the Fund that can be invested in securities rated below BBB. From time to time the Fund may also invest up to 20% in other securities such as convertible bonds, equities, or income trusts.
Fund Facts
December 31, 2023Inception Date | May 11, 2020 (offered on a private placement basis since March 31, 2014) |
Currency | CAD |
NAVPU | $10.10 |
Management Fee | 0.75% |
MER as of June 30, 2023 (unaudited) | 1.10% |
Minimum Initial Investment | $500 |
Minimum Subsequent Investment | $100 |
Liquidity | Monthly |
RSP Eligible | Yes |
Performance Fee | 20.00% |
Fund Net AUM | $44.2 Million |
Total Long AUM | $57.0 Million |
Total Short AUM | -$12.8 Million |
Next Subscription Deadline6 | January 31, 2024 |
Next Redemption Deadline7 | January 15, 2024 |
Subsequent Redemption Deadline7 | February 15, 2024 |
Portfolio Characteristics
Number of Securities (Long) | 110 |
Number of Securities (Short) | 9 |
Number of Issuers | 69 |
Average Term to Maturity (Years) | 3.6 |
Average Duration (Years) | 2.0 |
Average Coupon (%) | 5.1% |
Yield to Maturity (%) | 6.5% |
Current Yield (%) | 5.5% |
Average Credit Quality (long only)4 | A |
Cash Weighting | 0.7% |
Credit Quality Breakdown (Long only)
AAA | 34.8% |
AA | 6.0% |
A | 19.8% |
BBB | 16.7% |
BB | 7.7% |
B & Lower | 13.2% |
Not Rated | 1.8% |
Portfolio
Top 10 Holdings
Security | % of Fund | Rating |
---|---|---|
Canada RRB 0.5% Dec 1, 2050 | 13.4% | AAA |
Canada RRB 4.25% Dec 1, 2026 | 9.7% | AAA |
Air Canada 4.625% Aug 15, 2029 | 5.4% | BB+ |
BNS FRN Aug 4, 2026 (CORRA+54) | 4.1% | A |
Pacific Life Global Funding II FRN Feb 1, 2027 (Q CDOR+38) | 4.0% | AA- |
Manulife Financial Corp (AT1) 4.1% Mar 19, 2027/2082 | 3.8% | BBB+ |
TD Bank 4.477% Jan 18, 2028 | 3.7% | A+ |
Home Trust NHA MBS FRN (98004844) Nov 1, 2026 (M CDOR -10) | 3.4% | AAA |
Canada 0.5% Dec 01, 2030 | 3.2% | AAA |
CIBC FRN Jul 15, 2026 (CORRA+58) | 3.2% | A |
Total | 53.9% |
Geographic Breakdown
Canada | 74.0% |
USA | 19.5% |
South America | 2.8% |
Europe | 3.7% |
Performance
Inception Date
May 11, 2020
As of Date
December 31, 2023
Compound Returns
1 Month | 3 Months | YTD | 1 Year | 3 Year (Annualized) |
5 Year (Annualized) |
10 Year (Annualized) |
Since Inception (Annualized)3 |
1.4% | 2.2% | 4.1% | 4.1% | 5.0% | 8.8% | 5.9% | 10.7% |
Calendar Year Returns
Awards
FundGrade A+® Awards
The FundGrade A+® Award is given annually to investment funds and their managers who have shown consistent, outstanding, risk-adjusted performance through the year.
Alternative Credit Focused
Distributions
Distributions
Distribution Frequency | Quarterly |
Most Recent Distribution per Unit | $0.1598 |
12-Month Trailing Distribution Yield | 5.0% |
Next Record Date | March 21, 2024 |
Next Distribution Date | March 22, 2024 |
Quarterly Distributions
Record Date | Distribution Date |
---|---|
March 21, 2024 | March 22, 2024 |
June 20, 2024 | June 21, 2024 |
September 19, 2024 | September 20, 2024 |
December 19, 2024 | December 20, 2024 |
Distributions ($)/Unit5 | YTD* | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 |
---|---|---|---|---|---|---|---|---|---|---|
Total Distributions | 0.5093 | 0.7532 | 0.3959 | 0.6825 | 0.5177 | 0.1896 | 0.4794 | 0.4795 | 0.4539 | 0.3941 |
Interest | - | 0.1476 | 0.1705 | 0.2892 | 0.0755 | 0.1729 | 0.1889 | 0.3287 | 0.3831 | 0.2718 |
Dividends | - | 0.0316 | 0.0285 | 0.0249 | 0.0217 | 0.0167 | 0.0138 | 0.0170 | 0.0111 | 0.0007 |
Capital Gains | - | 0.5740 | 0.1971 | 0.3684 | 0.4205 | - | 0.2768 | 0.1338 | 0.0596 | 0.1219 |
Withholding Tax | - | - | (0.0002) | 0.0000 | - | - | (0.0001) | - | - | (0.0004) |