Performance




Month : June, 2020
Return Net of Fees 2.08% Fund Assets ($CA MM) 210.6
NAV per Unit ($CA) 4.1196 Inception Date 1998
Including Current Distribution 0.0343 Firm AUM ($CA MM) 220.4

MONTHLY HIGHLIGHTS

M&A

  • Added 6 new positions, all in sectors little impacted by the pandemic;
  • One situation, Cineplex, is cancelled by the buyer and is now the subject of a lawsuit while the market was expecting a lower price offer, and another deal was delayed for 3 months.

CONVERTIBLE SECURITIES

  • A positive month with convert valuations partially normalizing and on capital structure arbitrage which added 60bp and should continue to perform;
  • We remain very cautious and reduce risk as markets seem unwilling to account for economic and geopolitical risk.

FIXED INCOME ARBITRAGE

  • Positive performance across all vectors (credit, curve, CAN & US);
  • Credit spreads still in compression, and stable demand. The CAN market generally remains cheaper vs US and offers a high return on capital (ROC) on an historical basis;
  • Slight tactical increase, about half of our risk envelope is currently deployed. We still target 3 to 5 year agencies which now offer us a ROC greater than 10 %.

PAST PERFORMANCE