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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 Strategic Yield Fund & Class  October 31, 2014

Fund Manager(s): Sandy Liang, President, AHF Capital Partners Inc.
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Investment Objectives

The Fund’s investment objective is to seek and to provide investors with a high yield by investing primarily in fixed income securities of corporate issuers located in Canada or the United States. The Fund's focus is on asset value protection with the priority being the return of principal. Investment in convertible bonds is primarily for high coupon payments. A significant component of the portfolio is denominated in U.S. dollars and substantially hedged to Canadian dollars. 

 

Sandy Liang took over as portfolio manager on January 1, 2012. 

Why Buy This Fund?

  • Actively managed; focused on asset value protection; priority being return of principal. 
  • Pays a monthly distribution of ~ 5.3% ($0.0425/unit).
  • U.S. high yield market over $1.5 trillion plus another $1.5 trillion in loans versus Canadian market of $20B

Performance Review

Monthly Performance (%)

JanFebMarAprMayJunJulAugSepOctNovDecYear
20141.81.40.70.50.60.5-0.10.0-1.0-0.2  4.1
20132.00.91.01.10.2-2.21.50.20.51.90.10.88.3
20122.42.51.40.50.00.71.00.91.21.40.81.615.5
2011       1.3-3.83.3-2.21.3-0.4

The returns of the Fund are tax-advantaged until December 9, 2014. Performance is for Series A of Aston Hill Strategic Yield Fund. Sandy Liang took over as portfolio manager on January 1, 2012.  Risk/Reward Analysis is from 01-01-2012 onwards. Total returns in local currency. The Fund's benchmark is a blend comprised of 70% BAML US HY Master II Index, 20% Merrill Lynch US Corporate Master Index, and 10% Credit Suisse Levered Loan Index. Monthly performance for Aug. - Oct. 2011 was adjusted due to incorrect information provided by an external source vendor. Source: RBC IS, PerTrac.

Compound Returns (%)

Fund/Index1 mo3 mo6 mo1 yr2 yr3 yrIncep.
Strategic Yield-0.2-1.3-0.35.17.58.98.5
Benchmark*1.00.31.15.55.87.96.9
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Risk/Reward Analysis

FundBenchmark*
Annualized Std. Deviation3.2%3.9%
Winning Months85.3%79.4%
Sharpe Ratio (1.5%)2.41.7
Correlation0.8-
Alpha0.3%-
Beta0.6-
*70% BAML US HY Master II Index, 20% Merrill Lynch US Corporate Master Index, and 10% Credit Suisse Levered Loan Index

Portfolio Review

Sector Breakdown

Consumer, Cyclical
25.1%
Financials (including REITs)
17.4%
Cash & Equivalents
13.9%
Industrials
13.8%
Energy
13.0%
Basic Materials
8.6%
Consumer, Non-Cyclical
3.8%
Communications
2.1%
Diversified
1.9%
Utilities
1.8%
Technology
0.4%
Treasury Short
-1.8%

Asset Class Breakdown

Bank Debt US
0.0%
Corporate Debt US
78.2%
Corporate Debt CAN
8.8%
Corporate Debt EURO
0.0%
Corporate Debt Private Placement
0.0%
Convertible Debt US
0.8%
Convertible Debt CAN
0.0%
Preferred Shares US
0.0%
Treasury Short
-1.8%
Cash & Equivalents
13.9%

Bond Rating

Cash/A-Rated (Net of Short)
12.1%
BBB
2.3%
BB
7.7%
B
59.3%
CCC
16.5%
NR
2.0%

Priority

Secured or Most Senior Debt
47.4%
Senior Unsecured
40.4%
Holdco / Subordinated
0.0%
Treasury Short
-1.8%
Cash
13.9%

Summary

Investment Grade/Cash
14.5%
Non-Investment Grade
85.5%

Term Structure

Cash & Equivalents
13.9%
1-5 Years
27.9%
5-10 Years
58.1%
Over 10 Years
0.0%

Duration:3.2 years
Term to Maturity:4.9 years

Average Credit Quality:B
Yield to Maturity:7.9%
Current Yield7.2%

Top Holdings

(in alphabetical order, comprises ~ 31% of the Fund) 
24 Hour Holdings III LLC 8.000% 2022 
Air Canada 7.750% 2021 
Air Canada 8.750% 2020 
Century Aluminum Co. 7.500% 2021 
CEVA Group PLC 9.000% 2021 
Claire's Stores Inc. 9.000% 2019 
Eletson Holdings Inc. 9.625% 2022 
Emeco Pty Ltd. 9.875% 2019 
Enova International Inc. 9.750% 2021 
Greektown Holdings LLC 8.875% 2019 
Harbinger Group Inc. 7.750% 2022 
Hunt Companies, Inc. 9.625% 2021 
Jefferies Financial LLC 7.375% 2020 
Mood Media Corp. 9.250% 2020 
Stackpole International Co. 7.750% 2021 

Fund Facts

Asset Class:High yield fixed income fund
NAVPS:$9.38 (Series A)
Inception:Aug. 2011 (Series A)
AUM (Strategic Yield Strategy*):$337.9 million
Distribution:SY: $0.0425/unit, SYII: $0.0454/unit
MER (June 30, 2014):SY: 2.19%, SYII: 2.00% (Sr A)
Minimum Purchase:$2,000 Initial, $50 Subsequent
Yield:~ 5.3%

Fund Codes

Strategic Yield II Fund:Strategic Yield II Fund:Strategic Yield II Class:
CADUSDCorporate Class
Series A (FE) AHF704Series UA AHF764Series A (FE) AHF511
Series A (LSC) AHF705-Series A (LSC) AHF512
Series F AHF702Series UF AHF765Series F AHF513

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 medium.


For a description of the specific risks of this Fund, see the Fund’s simplified prospectus.

*The AUM of the Strategic Yield Strategy is comprised of the following fund AUMs, both of which are managed by Sandy Liang: Aston Hill Strategic Yield Trust, and Aston Hill Strategic Yield II Fund.

Aston Hill Strategic Yield Fund has been capped for new purchases. To access the Aston Hill Strategic Yield strategy managed by portfolio manager Sandy Liang, new purchases should use the fund codes for Aston Hill Strategic Yield II Fund & Class. 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 Aston Hill 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)

Notes:

(1) A minimum purchase of $5,000 is available to residents who meet certain requirements. 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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