Ewing Morris Flexible Fixed Income Fund Celebrates Fifth Anniversary

The Ewing Morris Flexible Fixed Income Fund, an alternative high yield fixed income fund, has reached its fifth anniversary during the first quarter of 2021. Established by John Ewing and Darcy Morris in September 2011, the fund has delivered a 7.2% net return, exceeding its original target of 5-7%. The fund's unique approach to managing risk through hedging individual bond holdings by shorting the equity of the same company has allowed it to outperform its high yield and corporate bond benchmarks by 70 and 280 basis points, respectively.

Key Takeaways:

• The Ewing Morris Flexible Fixed Income Fund, an alternative high yield fixed income fund, has reached its fifth anniversary with a five-year return of 7.2% net of fees, exceeding its original target of 5-7%.
• The fund's unique approach to managing risk through hedging individual bond holdings by shorting the equity of the same company has allowed it to outperform its high yield and corporate bond benchmarks by 70 and 280 basis points, respectively.
• The fund has been ranked in the top 10 managers in the Fixed Income High Yield category by Backstop BarclayHedge, outperforming 73 other funds in the same category.
• As of January 31, 2021, the fund had $360 million in assets under management.
• The fund's investment team, led by portfolio manager Randy Steuart, has employed a flexible investment approach to produce satisfactory absolute returns in the challenging current market environment.
• Ewing Morris & Co. Investment Partners Ltd. aims to achieve preservation and growth of capital for its Limited Partners by focusing on inefficient markets and employing fundamental analysis, high conviction, and flexible capital.

Statistics:

• 7.2%: The net return of the Ewing Morris Flexible Fixed Income Fund since its inception in February 2016.
• 5-7%: The original net return target of the fund.
• 70 basis points: The outperformance of the fund over its high yield benchmark.
• 280 basis points: The outperformance of the fund over its corporate bond benchmark.
• 83: The total number of funds evaluated by Backstop BarclayHedge for the ranking.
• 5 years: The anniversary milestone of the Ewing Morris Flexible Fixed Income Fund.

Sources:

• Ewing Morris & Co. Investment Partners Ltd. (www.ewingmorris.ca)
• Backstop BarclayHedge (www.BarclayHedge.com)
• iShares U.S. High Yield Bond Index ETF (CAD-Hedged)
• iShares Canadian Corporate Bond Index ETF