Chou Bond Fund

Investment Objectives

  • The Fund's objective is to provide conservation of principal and income production, along with capital appreciation.
  • The Fund invests primarily in Canadian and US fixed income instruments. These fixed income instruments include, but are not limited to Government of Canada, provincial, municipal and corporate issues, including convertibles and high yield fixed income instruments. Investments may be made in fixed income instruments outside of Canada and U.S.
  • The fundamental investment objectives of the Fund may only be changed with the approval of the holders of a majority of the units of the Fund given at a meeting called for that purpose.

Investment Strategies

The Fund seeks to achieve its investment objectives by investing in securities that it believes are undervalued. The Fund will generally be fully invested. A combination of investment strategies will be utilized in managing the portfolio including relative value trades, yield enhancement strategies and interest rate anticipation traces.

The Fund will primarily invest in securities issued by governments, municipalities, provinces and corporations in Canada and the United States but can invest anywhere in the world.

The Fund may invest in a wide variety of fixed income instruments including government bonds, corporate bonds (both investment grade and non-investment grade), preferred securities, income trusts, bank debt, commercial paper, repurchase agreements, mortgage backed securities, convertible securities and credit default swaps.

No more than 35% of the net assets of the Fund, at the time of purchase, will be invested in fixed income securities outside of Canada and U.S. Investments made by the Fund are not guaranteed. Fixed income securities issued by governments may decrease in value as a result of changes in interest rates. Fixed income securities issued by corporations may decrease in value due to general market conditions or credit risks associated with the issuer.

Geographic Profile as at December 31, 2023