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)133/14
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Yield to Maturity6.6%
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Current Yield5.1%
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Average Duration1.9 Years
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Average Credit QualityBBB+
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
February 28, 2023Inception Date | May 11, 2020 (offered on a private placement basis since March 31, 2014) |
Currency | CAD |
NAVPU | $10.14 |
Management Fee | 0.75% |
MER as of June 30, 2022 (unaudited) | 1.05% |
Minimum Initial Investment | $500 |
Minimum Subsequent Investment | $100 |
Liquidity | Monthly |
RRSP Eligible | Yes |
Performance Fee | 20.00% |
Fund Net AUM | $56.1 Million |
Total Long AUM | $66.6 Million |
Total Short AUM | -$10.5 Million |
Next Subscription Deadline6 | March 31, 2023 |
Next Redemption Deadline7 | March 15, 2023 |
Subsequent Redemption Deadline7 | April 14, 2023 |
Portfolio Characteristics
Number of Securities (Long) | 133 |
Number of Securities (Short) | 14 |
Number of Issuers | 77 |
Average Term to Maturity (Years) | 4.4 |
Average Duration (Years) | 1.9 |
Average Coupon (%) | 4.6% |
Yield to Maturity (%) | 6.6% |
Current Yield (%) | 5.1% |
Average Credit Quality (long only)4 | BBB+ |
Cash Weighting | 7.9% |
Credit Quality Breakdown
AAA | 26.9% |
AA | 3.0% |
A | 18.3% |
BBB | 19.6% |
BB | 12.4% |
B & Lower | 17.9% |
NR | 1.9% |
Portfolio
Top 10 Holdings
Security | % of Fund | Rating |
---|---|---|
Air Canada 4.625% Aug 15, 2029 | 8.2% | BB |
Canada 0.25% Aug 1, 2023 | 7.6% | AAA |
Canada T-Bill Mar 30, 2023 | 7.2% | AAA |
US Treasury 1.625% Feb 15, 2026 (USD) | 6.2% | AAA |
BNS FRN Aug 4, 2026 (CORRA+54) | 3.2% | A |
Pacific Life Global Funding II FRN Feb 1, 2027 (Q CDOR+38) | 3.2% | AA- |
Home Trust NHA MBS FRN (98004844) Nov 1, 2026 (M CDOR -10) | 3.1% | AAA |
Manulife Financial Corp (AT1) 4.1% Mar 19, 2027/2082 | 3.0% | BBB+ |
American Airlines Inc. 11.75% Jul 15, 2025 144A (USD) | 2.9% | B |
TD Bank 4.477% Jan 18, 2028 | 2.8% | A+ |
Total | 47.4% |
Geographic Breakdown
Canada | 65.8% |
USA | 26.9% |
South America | 2.8% |
Europe | 4.5% |
Performance
Inception Date
May 11, 2020
As of Date
February 28, 2023
Compound Returns
1 Month | 3 Months | YTD | 1 Year | 3 Year (Annualized) |
5 Year (Annualized) |
10 Year (Annualized) |
Since Inception (Annualized)3 |
-0.1% | 1.5% | -0.6% | 1.7% | 9.2% | 6.1% | 6.9% | 11.0% |
Calendar Year Returns
Distributions
Distributions
Distribution Frequency | Quarterly |
Most Recent Distribution per Unit | $0.6891 |
12-Month Trailing Distribution Yield | 7.4% |
Next Record Date | March 30, 2023 |
Next Distribution Date | March 31, 2023 |
Quarterly Distributions
Record Date | Distribution Date |
---|---|
March 30, 2023 | March 31, 2023 |
June 29, 2023 | June 30, 2023 |
September 28, 2023 | September 29, 2023 |
December 14, 2023 | December 15, 2023 |
Distributions ($)/Unit3 | YTD* | 2022* | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 |
---|---|---|---|---|---|---|---|---|---|---|
Total Distributions | 0.0000 | 0.7532 | 0.3959 | 0.6825 | 0.5177 | 0.1896 | 0.4794 | 0.4795 | 0.4539 | 0.3941 |
Interest | - | - | 0.1705 | 0.2892 | 0.0755 | 0.1729 | 0.1889 | 0.3287 | 0.3831 | 0.2718 |
Dividends | - | - | 0.0285 | 0.0249 | 0.0217 | 0.0167 | 0.0138 | 0.0170 | 0.0111 | 0.0007 |
Capital Gains | - | - | 0.1971 | 0.3684 | 0.4205 | - | 0.2768 | 0.1338 | 0.0596 | 0.1219 |
Withholding Tax | - | - | (0.0002) | 0.0000 | - | - | (0.0001) | - | - | (0.0004) |