Third party asset backed commercial paper (ABCP) has been the subject of attention in the investment press recently, as some issuers have experienced problems finding funding for their maturing debt. The Steadyhand Savings Fund does not hold any of this short-term paper and has therefore been immune to the current liquidity problem impacting the money market.

The manager of the fund, Connor, Clark & Lunn Investment Management Ltd., has never been comfortable with the third party/collateralized debt obligation (CDO)-backed conduits, so they have never owned any of this non-bank sponsored paper. This is a reflection of our intention to keep things simple with this fund, which echoes our thoughts on investing in general. For further information on the fund’s investment objectives and strategies, visit its Overview page.