Portland Global Banks Fund


portfolio manager
Chris Wain-Lowe, BA, MBA
Chief Investment Officer, Executive Vice-President and Portfolio Manager

Chris Wain-Lowe has 35 years of business management and global financial services experience – living and working in four continents: Europe, Asia, Africa, North America as well as the Caribbean, which also embraced corporate experience in the energy, natural resources and utility industries.

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fund details
Fund Net Assets $7.3 million
CIFSC* Asset Class Financial Services Equity
Risk Tolerance High
Distributions Monthly


KEY reasons to invest
  • Capital growth and income generation
  • Global banks (ex Canada) trade on value multiples that are a fraction of their 15-year averages
  • As a sector, global financials underperformed the market for 5 years (2007-2012). However, with sovereign, capital, regulatory and econcomic challenges now in the spotlight, the sector’s strongest banks are, we anticipate, poised for longer-term out performance
  • Monthly distributions, targeting 5.4% per annum which are intended to be funded and characterized as mostly return of capital***
  • Tax-efficient structure, currently housing tax losses of approximately $159 million
  • Management fee from 1.0% per annum for Series F Units


how the fund is managed
  • Focused primarily on a portfolio of global bank equities
  • Selective use of options to generate additional returns towards distributions
  • Currency hedging all or some of the Fund’s non Canadian dollar $ exposure

POTENTIAL RISKS

The Manager believes the following risks may impact the performance of the Fund: active management risk, currency risk, equity risk, regulatory risk and derivatives risk. Please read the “Risk Factors” section in the Simplified Prospectus for a more detailed description of all the relevant risks.


geographic mix
As at April 30, 2017
United States 65.8%
United Kingdom 23.9%
Netherlands 3.7%
France 3.5%
Sweden 2.4%
Norway 1.5%
Japan 0.3%
Other Net Assets (Liabilities)1 -0.3%
Currency Forwards -0.8%


sector mix
As at April 30, 2017
Diversified Banks 81.9%
Investment Banking & Brokerage 12.4%
Regional Banks 3.7%
Asset Management & Custody Banks 3.1%
Other Net Assets (Liabilities)1 -0.3%
Currency Forwards -0.8%


top holdings
As at April 30, 2017
Long Positions
JPMorgan Chase & Co. 19.6%
Citigroup Inc. 16.7%
Barclays PLC 13.2%
Bank of America Corporation 10.1%
The Goldman Sachs Group Inc. 10.1%
Royal Bank of Scotland Group PLC 6.0%
Standard Chartered PLC 3.9%
ING Groep N.V. 3.7%
BNP Paribas S.A. 3.5%
State Street Corporation 3.1%
Citizens Financial Group Inc. 2.5%
Nordea Bank AB 2.4%
Morgan Stanley 2.3%
DNB ASA 1.5%
Fifth Third Bancorp 1.2%
HSBC Holdings PLC 0.8%
Cash 0.3%
Sumitomo Mitsui Financial Group, Inc. 0.3%
Wells Fargo & Company 0.2%

Short Positions
Royal Bank of Scotland Group PLC, Put 4, 19/05/2017 0.0%
Deutsche Bank AG, Put 14, 19/05/2017 0.0%
State Street Corporation, Put 67.5, 19/05/2017 0.0%
Citigroup Inc., Call 70, 19/05/2017 0.0%
Citigroup Inc., Call 67.5, 19/05/2017 0.0%
JPMorgan Chase & Co., Call 100, 19/05/2017 0.0%
fund codes
Fund Name Series Code - Initial Sales Charge Code - DSC Code - LL
Portland Global Banks Fund
A
n/a 512 513
Portland Global Banks Fund
A2
511 n/a n/a
Portland Global Banks Fund
G
n/a 542 543
Portland Global Banks Fund
F3
008 n/a n/a
Portland Global Banks Fund
O
057 n/a n/a

- Fundserv Management Company Code: “PTL”
company briefs of Possible Holdings


DISCLAIMER


* Canadian Investment Funds Standards Committee

***The portfolio is expected to generate income from dividends, interest and option writing income , which after deduction of expenses, will be distributed by the Fund to unitholders. The targeted quarterly distribution amount is reset at the beginning of each calendar year to provide an approximate yield of 5% per annum based on the NAV per Series A Unit as at December 31 of the prior year. Assuming the expected level of income is received, the portfolio would not be required to appreciate. If the level of income is less than the amount necessary to meet the target distribution, the Manager may either pay out a lower distribution or supplement the amount needed through net realized capital gains from the portfolio or may return a portion of the capital of the Fund to unitholders in which case the distribution would not have been fully funded as the net asset value would be reduced. Distributions are reinvested automatically in additional units of the Fund. No commissions are payable upon automatic reinvestment of distributions.

1 Other Net Assets (Liabilities) refers to all other assets and liabilities in the Fund excluding portfolio investments.

2 Where the Fund holds less than 25 long and short holdings, all investments have been disclosed. There may be other assets and liabilities which are not included, and therefore the summary does not add up to 100%

3 Generally available through dealers who have entered into a Portland Series F Dealer Agreement

4 Annualized. .

RISK TOLERANCE

Risk tolerance measures the degree of uncertainty that an investor can handle regarding fluctuations in the value of their portfolio. The amount of risk associated with any particular investment depends largely on your own personal circumstances including your time horizon, liquidity needs, portfolio size, income, investment knowledge and attitude toward price fluctuations. Investors should consult their financial advisor before making a decision as to whether this Fund is a suitable investment for them.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. The indicated rates of return are the historical annual compounded total returns including changes in units [share] value and reinvestment of all distributions [dividends] and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. The rates of return are used only to illustrate the effects of the compound growth rate and are not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Information presented in this material should be considered for background information only and should not be construed as investment or financial advice. Please consult a Financial Advisor. Every effort has been made to ensure the utmost accuracy of the information provided. Information provided is believed to be reliable when posted. All information is subject to modification from time to time without notice. Consent is required for any reproduction, in whole or in part, of this piece and/or of its images and concepts. Please read the Prospectus before investing. PORTLAND INVESTMENT COUNSEL and the Clock Tower Design are registered trademarks of Portland Holdings Inc. used under licence by Portland Investment Counsel Inc.