Fulcra Credit Opportunities Fund

Performance

as of October 30, 2020

1M3MYTD1Y3Y5Y10YSince Inception
1M
0.40%
3M
3.32%
YTD
-2.06%
1Y
-0.88%
3Y
1.73%
5Y
7.79%
10Y
5.58%
Since Inception
6.70%

*Returns are based on class B unit. Inception July 2009

*Net of fees and includes reinvested distributions

INVESTMENT OBJECTIVES & STRATEGY

The Fulcra Credit Opportunities Fund generates consistent absolute returns through investing in bonds, loans and other fixed income securities but may hold equity and other equity-like securities. The Fund’s investment objective is to generate superior long term, risk adjusted investment returns. Our preference for bonds stems from both their seniority in the capital structure and their term certainty. Equity like returns, without equity like risks.

Our size gives us a unique opportunity to be involved with companies underneath the radar and focus of many larger funds. We believe a fairly concentrated portfolio of companies provides the best long-term results. We are ratings agnostic, non-levered and currency hedged. We manage the portfolio to a consistently short duration to avoid the negative effects of interest rate fluctuations and since we are highly opportunistic, we are rarely fully invested, keeping cash or near cash for inevitable opportunities that arise from market dislocations, ratings events or merger and acquisition situations.

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Fund Information
Fund Information
Inception Date
July 1, 2009
Fund Information
Minimum Investment
$150,000
Fund Information
Distribution
DRIP Quarterly, Cash Optional
Fund Information
Subscription Options
FundSERV, Direct Investment
Fund Information
Offering Document
Offering Memorandum
Fund Information
RSP/TFSA Eligibility
Yes
Fund Information
Pricing/Redemption
Monthly
Fund Information
Lockup
No
Fund ClassABCD
Fund Class
FundSERV Code
A
FAM 100
B
FAM 200
C
FAM 300
D
FAM 400
Fund Class
Management Fee
A
1.5%
B
0.75%
C
1.5%
D
0.75%
Fund Class
Performance Fee
A
-
B
15%
C
-
D
15%
Fund Class
Hurdle Rate
A
-
B
5%
C
-
D
5%
Fund Class
High Water Mark
A
-
B
Yes
C
-
D
Yes
Fund Class
Advisor Trailer Fee
A
-
B
-
C
Yes
D
Yes
SERVICE PROVIDERS
SERVICE PROVIDERS
Custodian
CIBC Mellon
SERVICE PROVIDERS
Prime Broker
BMO Capital Markets
SERVICE PROVIDERS
Auditor
KPMG LLP
SERVICE PROVIDERS
Valuation Administrator
SS&C CommonWealth

CUMULATIVE RETURN SINCE INCEPTION (CLASS B UNIT)

STRATEGY BREAKDOWN

Quality Yield are short duration investment grade and “hard” yield to call high yield bonds.

Core investments are bonds with little interest rate risk and there is a definable asset that protects us in the unlikely situation that the cash flow generation capability of the business is compromised.

Event Driven bonds are associated with a company that is currently or prospectively pursuing an asset divestiture or merger/acquisition path.

Opportunistic Value bonds were, in most cases, purchased well below par and issued by a company that, in our opinion, can successfully recover from the situation that created the opportunity.

Deep Value bonds are those where the probability of bankruptcy or a consensual capital structure restructuring, and owning the pro forma equity, is reasonably high.

FULCRA CREDIT OPPORTUNITIES FUND VERSUS COMMON INDICES

Fulcra Credit Opportunities FundCanadian Corporate Bond Index ETFU.S. High Yield Bond Index ETF CAD-HedgedS&P/TSX Composite Index ETFU.S. Small Cap Index ETF CAD-Hedged
Fulcra Credit Opportunities Fund
Canadian Corporate Bond Index ETF
(Ticker: XCB)
U.S. High Yield Bond Index ETF CAD-Hedged
(Ticker: XHY)
S&P/TSX Composite Index ETF
(Ticker: XIC)
U.S. Small Cap Index ETF CAD-Hedged
(Ticker: XSU)
Beta
Fulcra Credit Opportunities Fund
Canadian Corporate Bond Index ETF
0.57
U.S. High Yield Bond Index ETF CAD-Hedged
0.42
S&P/TSX Composite Index ETF
0.30
U.S. Small Cap Index ETF CAD-Hedged
0.16
Correlation
Fulcra Credit Opportunities Fund
Canadian Corporate Bond Index ETF
0.44
U.S. High Yield Bond Index ETF CAD-Hedged
0.62
S&P/TSX Composite Index ETF
0.60
U.S. Small Cap Index ETF CAD-Hedged
0.51
Volatility
Fulcra Credit Opportunities Fund
5.79%
Canadian Corporate Bond Index ETF
4.53%
U.S. High Yield Bond Index ETF CAD-Hedged
8.72%
S&P/TSX Composite Index ETF
11.65%
U.S. Small Cap Index ETF CAD-Hedged
18.87%
Annualized Return
Fulcra Credit Opportunities Fund
6.70%
Canadian Corporate Bond Index ETF
4.70%
U.S. High Yield Bond Index ETF CAD-Hedged
5.38%
S&P/TSX Composite Index ETF
6.67%
U.S. Small Cap Index ETF CAD-Hedged
10.49%
Sharpe Ratio
Fulcra Credit Opportunities Fund
0.94
Canadian Corporate Bond Index ETF
0.76
U.S. High Yield Bond Index ETF CAD-Hedged
0.50
S&P/TSX Composite Index ETF
0.51
U.S. Small Cap Index ETF CAD-Hedged
0.56
Positive Months
Fulcra Credit Opportunities Fund
78.7%
Canadian Corporate Bond Index ETF
65.4%
U.S. High Yield Bond Index ETF CAD-Hedged
64.3%
S&P/TSX Composite Index ETF
64.0%
U.S. Small Cap Index ETF CAD-Hedged
65.4%
Max Drawdown
Fulcra Credit Opportunities Fund
-13.73%
Canadian Corporate Bond Index ETF
-7.61%
U.S. High Yield Bond Index ETF CAD-Hedged
-17.05%
S&P/TSX Composite Index ETF
-22.46%
U.S. Small Cap Index ETF CAD-Hedged
-35.15%
Months To Recover
Fulcra Credit Opportunities Fund
3 Months
Canadian Corporate Bond Index ETF
6 Months
U.S. High Yield Bond Index ETF CAD-Hedged
6 Months
S&P/TSX Composite Index ETF
25 Months
U.S. Small Cap Index ETF CAD-Hedged
16 Months
Worst Month
Fulcra Credit Opportunities Fund
-13.46%
Canadian Corporate Bond Index ETF
-7.41%
U.S. High Yield Bond Index ETF CAD-Hedged
-14.84%
S&P/TSX Composite Index ETF
-17.72%
U.S. Small Cap Index ETF CAD-Hedged
-23.15%
Duration
Fulcra Credit Opportunities Fund
2.08
Canadian Corporate Bond Index ETF
6.88
U.S. High Yield Bond Index ETF CAD-Hedged
4.58
S&P/TSX Composite Index ETF
-
U.S. Small Cap Index ETF CAD-Hedged
-
Distribution Yield
Fulcra Credit Opportunities Fund
8.04%
Canadian Corporate Bond Index ETF
2.79%
U.S. High Yield Bond Index ETF CAD-Hedged
5.09%
S&P/TSX Composite Index ETF
3.36%
U.S. Small Cap Index ETF CAD-Hedged
0.84%