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Aston Hill has cultivated a diverse suite of products spanning sectors, geographies and asset classes in order to deliver funds that meet the varying needs of our investors.

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Mutual Funds

Aston Hill Corporate Bond FundJanuary 31, 2017

Fund Manager(s): Barry Morrison
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Closed to new Purchases

Investment Objectives

The Fund’s investment objective is to generate income and the potential for capital appreciation by investing in a diversified portfolio of primarily Canadian corporate bonds and other fixed income securities.

To achieve its objective, the Fund will invest primarily in investment grade Canadian corporate bonds that are rated BBB- or above but may also invest, to a lesser percentage of its assets, in other Canadian and non-Canadian issuers of fixed income securities, including but not limited to federal and provincial government bonds, sovereign government bonds, non-investment grade bonds, real return bonds, floating rate notes, bank loans, convertible debentures, bonds backed by mortgages and other income generating securities.

Why Buy This Fund?

  • Aims to protect capital in a rising interest rate environment
  • Expected average yield between 3% - 4%
  • Investment Grade (>BBB-) plus high yield (up to 20%)

Performance Review

(Series A)

Monthly Performance (%)

JanFebMarAprMayJunJulAugSepOctNovDecYear
2017-0.7           -0.7
2016-2.00.02.60.52.60.92.40.11.80.8-2.61.48.7
2015-2.7-1.5-0.3-1.00.1-1.6-2.3-1.20.51.40.1-2.6-10.7
20141.62.10.50.42.70.51.7-0.1-0.30.00.2-0.78.9
20131.60.80.51.1-0.1-6.70.0-1.80.00.02.11.4-1.5
20123.84.43.8-1.7-1.50.80.81.00.4-1.32.92.116.3
20112.72.10.51.82.20.0-0.1-1.1-2.32.6-1.4-0.56.7
2010 2.3-0.51.11.0-0.5-4.03.2-2.0-0.11.1-0.51.0

This Fund was previously a closed end fund called Build America Investment Grade Bond Fund. The Fund underwent a restructuring, name change and change to objective and strategy effective Feb. 27, 2015. The Portfolio Manager also changed from Aston Hill Capital Markets Inc. to Barry Morrison (Aston Hill Asset Management Inc.). The month by month performance, Compound Return information and Growth of $10,000 chart shown herein prior to Feb. 27, 2015 is the track record for Build America Investment Grade Bond Fund Series A from inception (Feb. 18, 2010) to Feb. 27, 2015. Series A then changed to Series X on February 27, 2015. Performance from Mar-2015 onward is for Aston Hill Corporate Bond Fund Series A. Performance between different series may vary due to different fee structures including different management fees. Future return expectations should not be based on past performance. The Fund's benchmark is the FTSE TMX Canada All Corporate Bond Total Return Index. Total returns in local currency. Source: RBC IS, Bloomberg, PerTrac.

Compound Returns (%)

Fund/Index1 mo3 mo6 mo1 yr2 yr3 yr5 yrIncep.
Corporate Bond-0.7-2.00.710.1-0.51.13.03.8
Benchmark*0.4-1.0-0.64.11.64.04.14.9
chart

Risk/Reward Analysis

FundBenchmark*
Annualized Compound ROR3.8%4.9%
Annualized Std. Deviation6.3%2.9%
Winning Months59.5%75.0%
Average Monthly Gain1.5%0.7%
Average Monthly Loss-1.3%-0.5%
Sharpe Ratio (1.5%)0.41.2
Correlation0.2-
Alpha0.2%-
Beta0.4-
*Benchmark is the FTSE TMX Canada All Corporate Bond Total Return Index

Expected Allocation

The Portfolio Review shown is the expected allocation as determined by the portfolio manager and does not represent the actual allocation of the Fund as of November 30, 2016.

Sector Breakdown

Pipelines & Infrastructure
25.5%
Financials
16.7%
Materials
15.9%
Oil & Gas Production
15.8%
Utilities
7.5%
Industrials
6.6%
Consumer Discretionary
6.5%
Cash & Equivalents
2.1%
Telecommunications
2.0%
Consumer Staples
0.7%
Health Care
0.7%

Asset Class Breakdown

Corporate Debt US
40.0%
Corporate Debt CAN
58.0%
Corporate Debt EURO
0.0%
Cash & Equivalents
2.0%

Bond Rating

BBB-
81.0%
BB
2.0%
B
13.0%
CCC
3.0%
NR
1.0%

Priority

Secured or Most Senior Debt
88.0%
Senior Unsecured
10.0%
Holco/Subordinated
0.0%
Cash
2.0%

Summary

Investment Grade/Cash
80.0%
Non-Investment Grade
20.0%

Term Structure

Cash & Equivalents
2.0%
1-5 Years
6.0%
5-10 Years
94.0%
Over 10 Years
0.0%

Duration5.4 years
Term to Maturity6.6 years

Average Credit QualityBBB
Yield to Maturity5.9%
Current Yield5.8%

Top Holdings

Enbridge Inc. 4.000% 2023 
Fairfax Financial 5.800% 2021 
Alliance Pipeline 6.996% 2019 
TransAlta Corp. 4.500% 2022 
DCP Midstream 5.350% 2020 
Canadian Oil Sands Limited 7.900% 2021 
Glencore Finance 4.000% 2022 
Continental Resources, Inc. 7.125% 2021 
Agrium Inc. 3.500% 2023 
SESI 7.125% 2021 

Fund Facts

CIFSC Category:Canadian Fixed Income
NAVPS:$10.72 (Fund, Series A)
Inception:February 18, 2010
AUM (Jan. 31, 2016):$3.2 million
Minimum Purchase:$2,000 Initial, $50 Subsequent

Fund Codes

CAD  
Series A (FE) AHF320  
Series A (LSC) AHF321  
Series F AHF322  

Risk Rating

When you invest in a fund, the value of your investment can go down as well as up. Aston Hill Asset Management Inc. has rated this Fund's risk as low.
For a description of the specific risks of this Fund, see the Fund's simplified prospectus.

Commissions, trailing commissions, management 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 securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Please correct the following errors:

Minimum Investment Requirements

The AHF Credit Opportunities Fund is generally available to investors that can meet a certain minimum amount of money to invest. The minimum initial investment for residents in any province or territory in accordance with applicable securities laws is set out below:

All provinces and territories $125,000 or $25,000(1)
BC, NB, NS and NL Only: $5,000(2)

Notes:

(1) A minimum purchase of $25,000 is available to residents who meet certain requirements.
(2) A minimum purchase of $5,000 is available to residents who meet certain requirements and reside in BC, NB, NS and NL by way of the prescribed OM.
Investors should contact their investment dealer or Financial Advisor for more information.

If you can comfortably invest the minimum dollar amount required in your province or territory, please accept the disclaimer below to learn more about the AHF Credit Opportunities Fund.


Disclaimer: Information pertaining to AHF Credit Opportunities Fund is not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units in the AHF Credit Opportunities Fund is made pursuant to its offering memorandum only to those investors in jurisdictions of Canada who meet certain eligibility requirements. Please read the offering memorandum carefully before investing.

Minimum Investment Requirements

The Aston Hill Opportunities Fund is generally available to investors that can meet a certain minimum amount of money to invest. The minimum initial investment for residents in any province or territory in accordance with applicable securities laws is set out below:

All provinces and territories $150,000 or $5,000(1)
BC, NB, NS and NL Only: $5,000(2)

Notes:

(1) A minimum purchase of $5,000 is available to residents who meet certain requirements.
(2) A minimum purchase of $5,000 is available to residents who meet certain requirements and reside in BC, NB, NS and NL by way of the prescribed OM.
Investors should contact their investment dealer or Financial Advisor for more information.

If you can comfortably invest the minimum dollar amount required in your province or territory, please accept the disclaimer below to learn more about the Aston Hill Opportunities Fund.


Disclaimer: Information pertaining to Aston Hill Opportunities Fund is not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units in the Aston Hill Opportunities Fund is made pursuant to its offering memorandum only to those investors in jurisdictions of Canada who meet certain eligibility requirements. Please read the offering memorandum carefully before investing.

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