Performance




Month : June, 2018
Return Net of Fees 1.08% Fund Assets ($CA MM) 186.4
NAV per Unit ($CA) 4.5580 Inception Date 1998
Including Current Distribution None Firm AUM ($CA MM) 265.9

MONTHLY HIGHLIGHTS

M&A

  • Added 13 new positions. No deal failures;
  • M&A market is back to normal; transactions valuations are now more rational than fearful.

CONVERTIBLE SECURITIES

  • A very active month adding 8 converts, 3 called bonds, 4 M&A deals via bonds and 3 preferreds;
  • We remain very comfortable with our portfolio risk and continue to seek US convert “puts” to increase protection to a market correction;
  • Performance generated from modest gains across a diversified spectrum of strategies, valuation metrics, sectors, and liquidity events.

FIXED INCOME ARBITRAGE

  • Slightly negative performance mainly due to the strong underperformance of CAN vs US bonds at the end of the month, offsetting gains in early June;
  • Trump uncertainty and the looming trade war once again led to widening credit spreads;
  • No major changes in strategic positioning. We remain tactically short credit and maintain our CAN & US yield curve flatteners and our positioning long CAN vs US.

PAST PERFORMANCE