Portland Global Balanced Fund


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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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Portfolio Manager

Kyle Ostrander, CFA
Portfolio Manager

Kyle Ostrander is a Portfolio Manager at Portland Investment Counsel Inc. In June 2014, Kyle joined as an Investment Associate Trainee after completing his Honours Bachelor of Commerce with a Minor in Mathematics from the DeGroote School of Business at McMaster University.

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Performance
As at October 31, 2022

Year to Date 1 Month 3 Months 1 Year 3 Year2 5 Year2 10 Year2 Since Inception2
Portland Global Balanced Fund - Series A (5.67%) 5.83% 1.35% 1.08% 4.07% 0.71% 5.55% -
Portland Global Balanced Fund - Series F (4.76%) 5.93% 1.66% 2.26% 5.27% 1.84% - 4.11%

Asset Allocation

Common Equity 84.32%
Preferred Shares 9.70%
Cash & Other Net Assets (Liabilities)1 5.98%
Bonds 0.00%

Geographic Allocation

United States 56.29%
Canada 11.18%
United Kingdom 7.73%
Switzerland 5.99%
Cash & Other Net Assets (Liabilities)1 5.98%
Denmark 3.31%
Germany 2.20%
Ireland 1.98%
France 1.91%
Bermuda 1.72%
Spain 1.71%

Sector Allocation

Consumer Staples 26.27%
Utilities 19.25%
Health Care 16.35%
Consumer Discretionary 12.42%
Cash & Other Net Assets (Liabilities)1 5.98%
Financials 5.13%
Materials 3.66%
Real Estate 3.65%
Industrials 3.63%
Exchange Traded Funds 1.87%
Energy 1.79%

Top Holdings3

Cash & Cash Equivalents 6.62%
Johnson & Johnson 4.87%
Consolidated Edison, Inc. 4.43%
Walmart Inc. 4.43%
Genuine Parts Company 3.68%
McDonald's Corporation 3.57%
SJW Group 3.56%
The Procter & Gamble Company 3.41%
Coloplast A/S 3.31%
PepsiCo, Inc. 3.03%
Hormel Foods Corporation 2.82%
American States Water Company 2.73%
The Coca-Cola Company 2.69%
Cincinnati Financial Corporation 2.60%
California Water Service Group 2.39%
Fresenius SE & Co KGaA 2.20%
Bunzl PLC 2.20%
Compass Group PLC 2.12%
Emera Incorporated, Preferred, Series H, Fixed-Reset 2.12%
Roche Holding AG 2.10%
Linde Public Limited Company 1.98%
Novartis AG 1.96%
Nestle S.A. 1.93%
Sanofi 1.91%
American Tower Corporation 1.83%

Fund Info

Series Net Asset Value Per Unit Management Fee Series Start Date
Portland Global Balanced Fund - Series A $8.2390 1.55% Feb. 18, 2005
Portland Global Balanced Fund - Series F $9.2147 0.55% Dec. 17, 2013
Fund Brief Brochure Presentation Performance Matters

Fund Details

Fund Net Assets $2.7 million
CIFSC* Asset Class Global Equity Balanced
Risk Tolerance Low to Medium
MER8 Series A: 2.3%, Series F: 1.2%

Investment Objective

  • The Fund’s objective is to provide positive long-term total returns, consisting of both income and capital gains by investing primarily in a portfolio of global fixed income and equity securities.

Key Reasons To Invest

Close adherence to Framework:
Five Laws of Wealth Creation:

  • Own a few high quality businesses
  • Thoroughly understand these businesses
  • Ensure these businesses are domiciled in strong, long-term growth industries
  • Use other people’s money prudently
  • Hold these businesses for the long run

Tax-efficient structure, currently housing tax losses of approximately $24 million

How The Fund is Managed

  • Common shares of large global companies with 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® Dividend Aristocrats® and the S&P/TSX Dividend Aristocrats®
  • Preference towards defensive sectors (Utilities and Consumer Staples) and low beta4 securities in order to minimize volatility and to increase the realized Sharpe Ratio5
  • Primarily investment grade6 preferred shares of North American companies
  • Selective use of options to generate additional returns
  • Currency exposures that approximately match those of the benchmark to minimize tracking error

Potential Risks

  • The Manager believes the following risks may impact the performance of the Fund: concentration risk, currency risk, equity risk and debt securities risk. Please read the “What are the risks of investing in the Fund?” section in the Simplified Prospectus for a more detailed description of all the relevant risks.

Disclosure

Use of any third party quotations does not in any way suggest that person endorses Portland Investment Counsel Inc. and/or this product.

* Canadian Investment Funds Standards Committee

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

2 Annualized.

3 Where the Fund holds less than 25 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%.

4 Beta is a measure of the volatility, or systematic risk, of an individual stock in comparison to the unsystematic risk of the entire market. In statistical terms, beta represents the slope of the line through a regression of data points from an individual stock’s returns against those of the market.

5 The Sharpe Ratio is a measure for calculating risk-adjusted returns. It is calculated by subtracting the risk-free rate from the return of the portfolio and dividing that result by the standard deviation of the portfolio’s excess return.

6 Investment grade means Pfd 3/P-3 or higher.

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

8 MER or management expense ratio is after absorptions as at March 31, 2022. MER is updated on a semi-annual basis and the Manager may absorb operating expenses of the Fund at its discretion but is under no obligation to do so.

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, tax 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 is a registered trademark of Portland Holdings Inc. The Unicorn Design is a trademark of Portland Holdings Inc. Used under license by Portland Investment Counsel Inc. Buy. Hold. And Prosper. is a registered trademark of AIC Global Holdings Inc. used under license by Portland Investment Counsel Inc.