Picton Mahoney Fortified Core Bond Fund: A Beacon of Stability in Turbulent Markets

Investors seeking reliable income and protection against market volatility need look no further than the Picton Mahoney Fortified Core Bond Fund. In an era marked by tariff uncertainty, geopolitical tensions, and shifting interest rates, this fund has consistently delivered 7.46% annualized returns since inception, outperforming the FTSE Universe Bond Index (TR) by 1.57 percentage points (5.89% for the benchmark). Its strategic focus on Canadian investment-grade bonds, coupled with a razor-thin 0.65% expense ratio, positions it as a cornerstone holding for income-focused portfolios.

Outperformance That Defies Volatility
The fund’s track record speaks for itself. Over the past year, it returned 9.27%, nearly matching the FTSE’s 9.13%, while its since-inception annualized return of 7.46% underscores its long-term resilience. This outperformance isn’t a fluke:

Even in volatile periods, such as early 2025—when tariff concerns rattled markets—the fund maintained its steady pace. In April alone, it gained 0.41% versus the FTSE’s -0.65%, showcasing its ability to navigate turbulence.

The Cost Advantage: A 0.65% Expense Ratio
While many bond funds levy fees of 1% or higher, Picton Mahoney’s 0.65% expense ratio ensures more of your returns stay in your pocket. This low cost isn’t just a perk; it’s a strategic edge. Over five years, the savings from avoiding a 0.5% higher fee could add up to nearly 3% in additional gains, all else equal.

12x Annual Dividends: Cash Flow You Can Count On
Income investors thrive on consistency, and Picton Mahoney delivers. With monthly distributions of CAD 0.0297 per unit, the fund provides 12 steady payouts annually, offering predictable cash flow. This reliability is underscored by its focus on Canadian investment-grade bonds, which combine safety with competitive yields.

Strategic Allocation: Where Risk Meets Reward
The fund’s outperformance stems from disciplined sector positioning:
- Overweight in Real Estate and Energy: These sectors have thrived amid inflationary pressures and global energy demand.
- Underweight in Financials and Industrials: Prudent avoidance of sectors sensitive to rate hikes and economic slowdowns.

This strategy, paired with shorter-duration bonds and yield-curve arbitrage, has insulated the fund from broader market selloffs. In 2024, while the FTSE’s returns dipped to 4.23%, Picton Mahoney soared to 6.57%, proving its tactical agility.

Why Act Now?
With the Bank of Canada’s rate cuts and a steepening yield curve creating uncertainty, investors need fixed-income solutions that blend safety, yield, and flexibility. The Picton Mahoney Fortified Core Bond Fund checks all boxes:

• Safety: 100% investment-grade bonds shield against credit risk.
• Yield: Outperforms the FTSE by over 1.5% annually.
• Cost Efficiency: A 0.65% fee leaves more capital working for you.

Final Call to Action
In a world where volatility is the norm, the Picton Mahoney Fortified Core Bond Fund isn’t just a bond fund—it’s a risk-averse income machine. Its track record, low fees, and strategic allocations make it indispensable for portfolios needing stability and growth.

Don’t wait for the next market storm. Allocate now and secure a steady stream of dividends while capitalizing on its proven outperformance.

Past performance is not indicative of future results. Always conduct thorough research or consult a financial advisor before investing.