At the end of July, Yield Trust was invested in 45.2% Cash, 33.8% Corporate Bonds and 21.0% Convertibles/Debentures/Preferred Shares. On a Yield-to-Maturity (“YTM”) basis, the duration of the Fund was approximately 2.1 years and the gross yield was approximately 2.9%. On a Yield-to-Worst (“YTW”) basis, the duration of the Fund was approximately 1.5 years and the gross yield was approximately 2.5%. The Fund had 46.8% of its assets invested in securities that come due in less than 1 year, 34.2% in securities that come due within 1-5 years and 19.0% in securities that come due in 5-10 years. Our top 10 issuer names consisted of Quebecor Media/Videotron, IBI Group, Brookfield Residential Properties, Russel Metals, Great Canadian Gaming, Cascades, Air Canada, Holloway Lodging, 5N Plus and Partners Value.
Last month we indicated that the overall fixed income environment remains challenging and this viewpoint played out in July. During the month the Canadian Universe Bond Index was down 1.9%. All subsectors within the Canadian Universe Bond Index were weak with federal and provincial bonds down 1.56% and 2.67%, respectively while corporate bonds were down 1.38%. The only place to hide during the month was cash. We are specifically monitoring Canadian investment grade, high yield, convertible and preferred share markets to see if any opportunities arise from the recent selloff.