Portland Global Income 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 $6.7 million
CIFSC* Asset Class Global Equity Balanced
Risk Tolerance Low to Medium


KEY reasons to invest
  • Monthly distributions, targeting 5.0%**** per annum - intended to be fully funded, plus potential for capital appreciation
  • The power of dividend investing combined with the benefits of global investing and asset class diversification for the potential to reduce volatility
  • The benefits of active and passive management are aligned to help reduce volatility
  • Tax-efficient structure, currently housing tax losses of approximately $23 million
  • Management fee from 0.85% per annum for Series F units


how the fund is managed
  • Common shares of large global companies with attractive dividend-payout ratios and a history of rising dividends over the long term, selected primarily from the members of the S&P Europe 350 Dividend Aristocrats, the S&P 500® Dividends Aristocrats and the S&P/TSX Dividend Aristocrats
  • Primarily investment grade** preferred shares of North American companies
  • Balanced mix of fixed income ETFs with an emphasis on investment grade*** corporate bonds
  • Selective use of options to generate additional returns towards distributions and 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, credit risk, currency risk, debt securities and equity risks, ETF risk, interest rate risk and derivatives risk. Please read the “Risk Factors” section in the Simplified Prospectus for a more detailed description of all the relevant risks.


company profiles

asset allocation
As at May 31, 2017
Equity 38.1%
Preferred Equity 28.7%
Exchange Traded Fund 16.2%
Corporate Bonds 8.6%
Other Net Assets (Liabilities)1 8.5%
Currency Forwards -0.1%


geographic allocation
As at May 31, 2017
Canada 34.7%
United States 25.1%
United Kingdom 11.1%
Bermuda 10.0%
Other Net Assets (Liabilities)1 8.5%
Switzerland 4.0%
Australia 3.1%
France 1.6%
Sweden 1.3%
Jersey 0.7%
Currency Forwards -0.1%


sector allocation
As at May 31, 2017
Financials 23.3%
Exchange Traded Funds 16.2%
Energy 11.9%
Utilities 10.3%
Other Net Assets (Liabilities)1 8.5%
Corporate Bonds 7.2%
Consumer Discretionary 6.7%
Materials 5.5%
Telecommunication Services 4.3%
Consumer Staples 2.8%
Industrials 1.9%
Health Care 1.5%
Currency Forwards -0.1%


top holdings
As at May 31, 2017
Long Positions
Cash 8.9%
iShares International Select Dividend ETF 3.9%
Digicel Group Limited 6.75% March 1, 2023 3.9%
BCE Inc., Preferred, Series AE, Floating Rate 3.7%
Brookfield Property Partners L.P. 3.2%
Royal Dutch Shell PLC 3.1%
SPDR S&P 500 ETF Trust 2.9%
Thomson Reuters Corporation, Preferred, Series B, Floating Rate 2.8%
Energy Select Sector SPDR Fund 2.6%
Brookfield Office Properties Inc., Preferred, Series V, Floating Rate 2.4%
iShares MSCI Japan ETF 2.2%
The Bank of Nova Scotia, Preferred, Series 19, Floating Rate 2.2%
Fifth Street Senior Floating Rate Corp. 2.2%
Valeant Pharmaceuticals International Inc. 6.750%, Callable, August 15, 2018 2.1%
BHP Billiton PLC 2.1%
TransAlta Corporation, Preferred, Series E, Fixed-Reset 2.0%
First National Financial Corporation, Preferred, Series 1, Fixed-Reset 1.9%
Ares Capital Corporation 1.7%
Northland Power Inc., Preferred, Series 1, Fixed-Reset 1.7%
Total SA 1.6%
Chevron Corporation 1.6%
Barclays PLC 1.5%
ECN Capital Corp., 6.25% June 30, 2022 1.4%
Nestlé SA 1.4%
Brookfield Renewable Power Inc., Preferred, Series 2, Floating Rate 1.4%

Short Positions
Barrick Gold Corporation, Put 15, 21/07/2017 0.0%
Crescent Point Energy Corp., Put 10, 21/07/2017 0.0%
Barclays PLC, Put 10, 15/09/2017 0.0%
ABB Ltd, Put 22, 16/06/2017 0.0%
Crescent Point Energy Corp., Put 13, 19/01/2018 0.0%
Barclays PLC, Put 10, 16/06/2017 0.0%
Archer-Daniels-Midland Company, Put 39, 16/06/2017 0.0%
Fifth Street Senior Floating Rate Corp., Put 7.5., 16/06/2017 0.0%
Brookfield Property Partners L.P., Put 28, 21/07/2017 0.0%
Fifth Street Senior Floating Rate Corp., Put 7.5., 15/09/2017 0.0%
Whitecap Resources, Inc., Put 8, 21/07/2017 0.0%
iShares MSCI Japan ETF, Put 50, 16/06/2017 0.0%
WPP PLC, Put 100, 18/08/2017 0.0%
ABB Ltd, Put 22, 16/06/2017 0.0%
Gilead Sciences, Inc., Call 77.5, 19/05/2017 0.0%
Barrick Gold Corporation, Call 23, 19/05/2017 0.0%
fund codes
Fund Name Series Code - Initial Sales Charge Code - DSC Code - LL
Portland Global Income Fund
A
n/a 532 533
Portland Global Income Fund
A2
531 n/a n/a
Portland Global Income Fund
F3
010 n/a n/a
Portland Global Income Fund
O
059 n/a n/a

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


DISCLAIMER


* Canadian Investment Funds Standards Committee

** Investment grade means Pfd 3/P-3 or higher

*** Investment grade means BBB- or higher

****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 monthly 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 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. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions [dividends] and does not take into account sales, redemption, distributions or optional charges or income taxes payable by any securityholder in respect of a participating fund that would have reduced returns. 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.