Sprott Strategic Fixed Income Fund
Co-Chief Investment Officer; Senior Portfolio Manager
Co-Chief Investment Officer; Senior Portfolio Manager
Scott joined Sprott Asset Management LP in March 2010 and brings over 25 years of global fixed income and currency market experience to the firm. He is a four-time winner of the Best Foreign Bond Fund* at the Morningstar Canadian Investment Awards.
Previously, Scott was Senior Vice President and Portfolio Manager at AGF Funds Inc. where he managed all of the fixed income mandates and co-managed balanced funds. Scott was also a managing director and partner at a Canadian firm focusing on global fixed income and currency management. Prior to joining Sprott, Scott was a Senior Fixed Income Portfolio Manager at TD Asset Management, where he was part of a team that managed all the firm’s active fixed income institutional, retail and private client assets.
Scott began his career at the Bank of Canada where he worked in both research and trading which assisted in the execution of monetary policy. Scott is a CFA charterholder and has an MBA from University of Toronto and an Honours BA from Queens University.
- Four-time award winner, Best Foreign Bond Fund*, Morningstar Canadian Awards (2002–2005)
- Senior Portfolio Manager at TD Asset Management – oversaw $30 billion of fixed income portfolios (2007–2010)
- Head of Fixed Income at AGF (1996–2006)
- Extensive experience managing fixed income and foreign currency portfolios over his 25-year career
Michael Craig joined Sprott Asset Management LP in May 2010 and brings 12 years of experience developing fixed income analytics, tactical asset allocation and fixed income management. Michael previously worked at Phillips, Hager and North where he developed the analytics and research systems used by the fixed income team. Prior to joining Sprott, Michael was a Vice President at TD Asset Management where he was a Portfolio Manager for the Managed Asset Programs and he also led the portfolio analytics group. Michael obtained his Masters in Financial Risk Management from Simon Fraser University (2006) and his Bachelor of Commerce from the University of British Columbia (1999). Michael is a CFA charterholder.
- At TD Asset Management, Michael was the co-manager for over $11 billion of assets for various asset allocation programs (2006–2010)
- Led the development of a leading portfolio analytics platform in Canada at TD Asset Management
- Built the analytics platform for Phillips, Hager & North
Ben joined Sprott Asset Management LP in May 2011 as an Associate Portfolio Manager. He has over 12 years of experience in bond and credit analysis. Ben began his career at DBRS as a credit analyst where he researched and analyzed bonds for various industries across the credit spectrum. Most recently, he was a Vice-President at TD Asset Management where he was part of a team that managed the firm’s active high yield fixed income assets, including the TD High Yield Bond Fund. From 2006-2008, Ben was an Investment Analyst at CI Investments Inc. where he was part of a team that managed all of the active high yield fixed income assets in the Signature Funds group. Ben is a CFA charterholder and obtained his Bachelor’s degree from the University of Western Ontario.
- Former member of TD Asset Management (2008–2011). Member of team responsible for all of the firm’s active high yield assets, including TD High Yield Bond Fund
- Investment Analyst, CI Investments Inc. (2006–2008)
- Credit Analyst, DBRS (2000–2006)
|Issue Price||$10.00 per unit|
|Distributions||Monthly Tax Advantaged|
|Type of Fund||Closed-end Fixed Income|
|Performance Fee||15% over 3-month Canadian Bankers Acceptance Rate + 3.8%|
|Eligible for Registered Plans||Yes|
0.50% p.a., paid quarterly
Fund Objectivei. Maximize absolute total returns to holders of Units (the "Unitholders") with lower volatility relative to traditional, long only bond funds; and ii. Provide Unitholders with monthly tax-advantaged distributions.
Fund Performance as at October 31, 2013
|MTD*||YTD*||1 YR||3 YR||5 YR||10 YR||Inception1
1 Performance since inception does not take into account $0.56 per share, or 5.6% of the inception NAV, in agency and issue fees incurred at the launch of the Fund.
- The Sprott Strategic Fixed Income Fund (the “Fund”) declined by 2.09% during the third quarter, compared with a gain of 1.26% by its custom benchmark index (CDOR +3.8%).
Contributors to Performance
Long government bond holdings contributed to the Fund’s performance during the quarter. However, the Fund’s government bond position is tactical and likely will be reduced during the fourth quarter.
Detractors from Performance
- The Fund’s short positions in emerging markets detracted from performance during the quarter, particularly in September.
- Our credit default swap hedges on high-yield bonds were also negative contributors during the quarter, but we continue to believe the upside for high-yield is limited and maintain our CDS positions.
Fixed-Income markets are on edge due to ongoing US Federal Government closure and the looming debt ceiling. In the absence of a default, which would be catastrophic for all asset classes, we expect the Bank of Japan to provide additional stimulus to the markets on October 31. We also believe that weakness in certain emerging markets will continue while core government bond yields will remain stable. High Yield Bonds are likely the most attractive fixed income asset class at the current time but we think the upside here is limited and will maintain our CDS hedges. The Fund continues to maintain a high degree of liquidity.
The indicated rates of return for series A/class A securities of the Funds are based on the historical annual compounded total returns including changes in unit/share value and reinvestment of all distributions or dividends and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds.