Portfolio Commentary

Portfolio Commentary for the Absolute Convertible Arbitrage Fund is provided on a quarterly basis. Additional information can be found within the shareholder letters in the Annual and Semi-Annual Reports. If you are a financial adviser and would like to be added to our e-mail distribution list, , contact us by e-mail.


2017 Portfolio Commentary

Please note that this commentary provides a very detailed analysis of the Fund’s strategy. Some of this analysis may be difficult for the average investor to fully understand. It is presented here for those who may have an interest in such a discussion and as always, we encourage investors to discuss questions with their financial adviser.

“…Higher interest rates could be a catalyst for higher equity volatility in 2018. Given the hybrid nature and short duration of convertibles, higher interest rates would have a small impact on valuations, especially for small and mid-cap companies where credit quality, volatility, supply and demand dynamics, and special situations drive prices. In fact, higher rates would be a welcome development as new issuers would be forced to pay higher coupons and the current yield in the portfolio would likely increase.” [read all]