EdgePoint Opportunistic Credit Portfolio
A concentrated portfolio that seeks to provide long-term capital appreciation and income generation by investing in corporate debt and income producing equities. Effective February 1st, 2023, EdgePoint Variable Income Portfolio is renamed to EdgePoint Opportunistic Credit Portfolio. We believe the new name better reflects the profile of the Portfolio. The investment strategy, approach and objectives remain the same.
Portfolio Characteristics
As at December 31, 2023
Risk profile - Based on the Canadian Securities Associationʼs mutual fund risk classification methodology. EdgePoint may exercise its discretion and assign the Fund a higher risk classification than indicated by the CSA methodology.
Portfolio Information
Investment approach
The Portfolio seeks to provide long-term capital appreciation and income generation by investing in corporate debt and income producing equities.
The opportunity
We believe that a bottom-up, fundamental investment approach like ours is well positioned to take advantage of mis-pricings caused by volatility.
The portfolio is designed to generate attractive fixed income returns, while conservatively managing interest rate and credit risk. There is always a business that’s out of favor or misunderstood and we aim to identify these opportunities and develop a proprietary insight about them.
We believe the portfolio is attractive both on a standalone basis and relative to its alternatives and credit indices. Our portfolio is not managed like an index – it is concentrated in our best ideas, which will likely result in a unique collection of investments in different parts of the capital structure. At the same time the portfolio is diversified by business idea as we go to great lengths to ensure that the underlying drivers of the businesses are not based on the same or similar ideas.
Our approach
The Portfolio was created to use our skillset at analyzing business and take advantage of opportunities across the capital structure. We seek fixed-income securities that provide an attractive return through coupon payments and capital appreciation. Since corporate bonds are not traded on exchanges, they can be more prone to pricing inefficiencies. We believe that a skilled credit manager can turn these inefficiencies into opportunity.
Investment Team
Your investment team brings diverse investment experience, perspectives and skills to the table. They work together, take ownership of their investment ideas and tap into their past experiences where they fulfilled a variety of diverse mandates. Their team-based mindset also allows them the time and freedom to conduct the kind of extensive legwork required to really get to know a business inside and out.
Click below to find out more about the team's members.
Alex O'Hara, Andrew Pastor, Claire Thornhill, Derek Skomorowski, Frank Mullen, Geoff MacDonald, George Droulias, Jason Liu, Jeff Hyrich, Jinhyung Kwon, Lee Matheson, Steven Lo, Sydney Van Vierzen, Tracey Chen, Tye Bousada
Portfolio Allocation
EdgePoint of View
Investment results: We measure investment success over periods of ten years or more and believe it takes considerable skill to consistently add value over the long term.
Structure: The offering memorandum structure provides two distinct advantages: a flexible mandate and the ability to manage liquidity as the Portfolio can only be redeemed quarterly.
| Series | Fund code | Performance fee |
|---|---|---|
| PF | EDG909 | See performance fee structure below |
Performance fee structure
A performance fee will be calculated and charged at the end of each calendar year only when the NAV (adjusted for distribution) exceeds the previous high-water mark.
The high-water mark is the higher of initial purchase price or highest previous calendar year-end NAV (adjusted for distribution).
| Calendar-year total return | Tier fee (% of return) | |
|---|---|---|
| < 0% | 0% | |
| Tier 1 | 0% to %5 | 10% |
| Tier 2 | > 5% | 20% |
Investment results
We measure investment success over periods of ten years or more and believe it takes considerable skill to consistently add value over the long term. As such, we place little value in the short-term investment results shown.
| Series | YTD | 1-Year | 3-Year | 5-Year | Since Inception |
|---|
| Series | 2023 | 2022 | 2021 | 2020 | 2019 | 2018* |
|---|