Portland Value Plus Fund


portfolio manager
Michael Lee-Chin, B.Eng., LLD (Honorary)
Executive Chairman, Chief Executive Officer and Portfolio Manager

Mr. Lee-Chin has over 35 years industry experience.

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portfolio manager
Dragos Berbecel, CFA, MBA
Portfolio Manager

Dragos has 18 years of experience, both as an investment professional and a business executive.

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investment objective

The investment objective of the Portland Value Plus Fund is to achieve and above average rate of return over the long term.


how the fund is managed

To achieve the investment objectives, the Manager will employ the following core techniques:

  • focused portfolio (generally no more than 15 names).
  • Emphasis on companies which resemble private businesses.
  • Investments selected from liquid, large cap stocks, domiciled in long-term growth industries.
  • Buying companies which we believe are undervalued.
  • Holdings may also have the potential of increased returns due to activist investor campaigns.
  • Using leverage to enhance long-term capital appreciation and dividends.


Activist investing
The Fund is expected to leverage activist investing select ideas.

Activist investors:

  • Are value investors with a push; looking for opportunities to demand a change in a company’s strategy in order to unlock shareholder value.
  • Achieve their goals by cooperating with other institutional investors, acquiring board representation and/or changing the management of the target company.
  • Instead of speculating about future performance, activists are pushing for change to drive future performance.

Access to low cost borrowing

Benefiting from the Portland family office’s financial strength and reputation, the Portland Value Plus Fund has access to attractive low cost of borrowing.

The Portland Value Plus Fund will utilize this low cost of borrowing to potentially enhance capital gains and income.

the offering

Please see the Offering Memorandum for fees and specific details on the offering.

OFFERING MEMORANDUM
SUBSCRIPTION AGREEMENT


fund details
- As at October 31, 2017
Introduction Date Jan. 30, 2015
Fund type Alternative Strategies
Offer document Offering Memorandum
Legal type Unit Trust
Eligible for registered plans Yes
Eligible for PAC Plans Yes, monthly minimum of $500
Purchases and redemptions Monthly
Valuation Frequency Monthly on Portland's website
Minimum investment term None
Notice period for redemptions None
Redemption fee None
Transaction processing Fundserv
Administrator CIBC Mellon Global Securities Services Company
Prime broker RBC Dominion Securities Inc.
Auditor PricewaterhouseCoopers LLP
Legal counsel Borden Ladner Gervals LLP


fund facts by series
Series A F2 N
Min. initial investment, accredited investors3 $2,500 $2,500 $2,500
Min. initial investment, non-individuals4 $150,000 $150,000 $150,000
Min. subsequent investment $500 $500 $500
Management fee 2.00% 1.00% 2.00%
Fundserv code - CAD PTL970 PTL980 PTL966
Fundserv code - USD PTL870 PTL880 PTL866

POTENTIAL RISKS

The Manager believes the following risks are key to the Fund’s performance: leverage, interest rate changes, dividend yields, highly volatile markets and equity risk. Please read the “Risk Factors” section in the Offering Memorandum for a more detailed description of all the relevant risks.


geographic allocation
As at October 31, 2017




sector allocation
As at October 31, 2017




Top Holdings
As at October 31, 2017

Liberty Global PLC LiLAC 14.8%
Nomad Foods Limited 11.3%
Whitecap Resources, Inc. 9.9%
Brookfield Business Partners L.P. 8.6%
Crescent Point Energy Corp. 8.4%
Pershing Square Holdings, Ltd.  8.3%
Berkshire Hathaway Inc. 7.9%
Baytex Energy Corp. 7.9%
Brookfield Asset Management Inc. 7.3%
Linamar Corporation 6.3%
Hertz Global Holdings, Inc. 4.8%
Walgreens Boots Alliance, Inc. 4.5%
company briefs of Possible Holdings

DISCLAIMER

Portland Value Plus Fund was formally known as Portland Advantage Plus - Value Fund.

1. Annualized.

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

3. Accredited Investors as defined under National Instrument 45-106.

4. For investors who are not Accredited Investors, the additional investment must be in an amount that is not less than $500 if the investor initially acquired Units for an acquisition cost of not less than $150,000 and, at the time of the additional investment, the Units then held by the investor have an acquisition cost or a net asset value equal to at least $150,000, or another exemption is available.

5. Values are shown as a percentage of total assets (portfolio investments) and does not take into account other net assets (liabilities).

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. Please read the “Risk Factors” section in the Offering Memorandum for a more detailed description of all the relevant risks.

Commissions, trailing commissions, management fees and expenses all may be associated with investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemptions, distributions or optional charges or income taxes payable by any securityholder in respect of a participating fund that would have reduced returns. Funds are not guaranteed, their values change frequently and past performance may not be repeated.

The Portland Value Plus Fund (the “Fund”) is not publicly offered. It is only available under Offering Memorandum and other exemptions to investors who meet certain eligibility or minimum purchase requirements such as “accredited investors”. You will only be permitted to purchase Units if your purchase qualifies for one of these exemptions. A list of criteria to qualify as an accredited investor is set out in the subscription agreement delivered with the Offering Memorandum and generally includes individuals who have net assets of at least $5,000,000, or financial assets of at least $1,000,000, or personal income of at least $200,000, or combined spousal income of at least $300,000 in the previous two years with reasonable prospects of same in the current year, or an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a registered adviser or dealer.

Information herein pertaining to the Fund is solely for the purpose of providing information and is not to be construed as a public offering in any jurisdiction of Canada. The offering of Units of the Fund is made pursuant to an Offering Memorandum and the information contained herein is a summary only and is qualified by the more detailed information in the Offering Memorandum.

Portland Investment Counsel Inc. has not independently verified all the information and opinions given in this material. Accordingly, no representative or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this material. 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 published. 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. PORTLAND, PORTLAND INVESTMENT COUNSEL and the Clock Tower Design are registered trademarks of Portland Holdings Inc. Used under license by Portland Investment Counsel Inc.