Passer au contenu principal

Commentaire sur le revenu fixe : Au 31 mars 2022*

Source : Phil Mesman, CFA | Sam Acton, CFA
Date de publication : janv. 12, 2022
Temps de lecture : 3 minutes
Picton Mahoney Fixed Income Fund Class F icon     Picton Mahoney Fortified Income Alternative Fund Class F icon     Fund profiles icon   

In Q1, the Picton Mahoney Fortified Income Fund (Class F) returned -1.74% and the Picton Mahoney Fortified Income Alternative Fund (Class F) returned -1.43% significantly outperforming the blended benchmark composed of 75% ICE BofAML Global High Yield Index / 25% ICE BofAML Global Corporate Index (TR) (Hedged to CAD). Defensive positioning and portfolio hedging primarily drove the outperformance in the quarter.
During the first quarter we saw the U.S. Federal Reserve (the Fed) continue its hawkish tone in response to high inflation and a tight labour market. While geopolitical events created uncertainty on the growth outlook, the near-term impact of higher commodity prices put additional pressure on central bankers to push back against inflation. Despite the US 2-Year Treasury Yield rising 161 bps during the quarter2, risk assets including equities and credit spreads were only modestly weaker.
Given the Fed’s use of financial conditions as a policy transmission mechanism to the real economy, we believe the resilience of equities and credit creates an awkward setup for the Fed as they may need to be even more aggressive than current expectations to effectively combat the risk of higher inflation.
With these potential headwinds and still tight credit spreads, we have positioned the funds defensively with hedges in place to help protect against rate and credit volatility and with dry powder to take advantage as we see higher all-in yields on high quality credit.

Performance table for Picton Mahoney Fortified Income Fund (Cl.F), Picton Mahoney Fortified Income Alternative Fund (Cl.F) and their benchmarks
This material has been published by Picton Mahoney Asset Management (“PMAM”) on April 14, 2022. It is provided as a general source of information, is subject to change without notification and should not be construed as investment advice. This material should not be relied upon for any investment decision and is not a recommendation, solicitation or offering of any security in any jurisdiction. The information contained in this material has been obtained from sources believed reliable, however, the accuracy and/or completeness of the information is not guaranteed by PMAM, nor does PMAM assume any responsibility or liability whatsoever. All investments involve risk and may lose value.

This material may contain “forward-looking information” that is not purely historical in nature. These forward-looking statements are based upon the reasonable beliefs of PMAM as of the date they are made. PMAM assumes no duty, and does not undertake, to update any forward-looking statement. Forward-looking statements are not guarantees of future performance, are subject to numerous assumptions and involve inherent risks and uncertainties about general economic factors which change over time. There is no guarantee that any forward-looking statements will come to pass. We caution you not to place undue reliance on these statements, as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement made.

Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Alternative mutual funds can only be purchased through a registered dealer and are available only in those jurisdictions where they may be lawfully offered for sale.

There is no guarantee that a hedging strategy will be effective or achieve its intended effect. The use of derivatives or short selling carries several risks which may restrict a strategy in realizing its profits, limiting its losses, or, which cause a strategy to realize or magnify losses. There may additional costs and expenses associated with the use of derivatives and short selling in a hedging strategy.

This material is confidential and is intended for use by accredited investors or permitted clients in Canada only. Any review, re-transmission, dissemination or other use of this information by persons or entities other than the intended recipient is prohibited.

® Registered trade-marks of Picton Mahoney Asset Management.
© 2022 Picton Mahoney Asset Management. All rights reserved.