Portland Global Balanced Fund


lee-chin

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.

More
lee-chin

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.

More

Performance
As at September 30, 2020

Series Start Date MER
(after absorptions
as at March 31, 2020)
Net Asset
Value Per Unit
(as at September 30, 2020)
Portland Global Balanced Fund - Series A Feb. 18, 2005 2.38% $8.1800
Portland Global Balanced Fund - Series F Dec. 17, 2013 1.20% $8.8462
1 Month 3 Months 1 Year 3 Year1 5 Year1 10 Year1 Since Inception1
Portland Global Balanced Fund - Series A 1.3% 5.4% 1.3% (2.0%) 2.9% 2.5% -
Portland Global Balanced Fund - Series F 1.4% 5.7% 2.5% (0.9%) 3.9% - 3.3%
Index Composite2 (3.0%) 6.9% 9.7% 7.5% 10.2% 9.1% 8.0%

Geographic Allocation
As at September 30, 2020

Foreign Equity 57.7%
Canadian Equity 11.6%
Cash & Other Net Assets (Liabilities)1 10.6%
Canadian Fixed Income 9.9%
Canadian Preferred 8.5%
Foreign Preferred 1.7%

Sector Allocation
As at September 30, 2020

Consumer Staples 21.3%
Utilities 21.0%
Cash & Other Net Assets (Liabilities)1 10.6%
Exchange Traded Funds 9.9%
Financials 6.5%
Health Care 6.3%
Real Estate 6.0%
Consumer Discretionary 5.8%
Industrials 5.2%
Materials 4.4%
Energy 3.0%

Top Holdings4
As at September 30, 2020

Cash & Cash Equivalents 10.4%
iShares Canadian Short Term Bond Index ETF 9.9%
Consolidated Edison, Inc. 4.0%
Cincinnati Financial Corporation 3.2%
Brookfield Property Partners L.P. 2.8%
Canadian National Railway Company 2.7%
Walmart Inc. 2.7%
TransAlta Renewables Inc. 2.6%
Bunzl PLC 2.5%
Royal Bank of Canada 2.4%
The Procter & Gamble Company 2.4%
Johnson & Johnson 2.3%
Nestle S.A. 2.1%
Metro Inc. 2.1%
McDonald's Corporation 1.8%
Fortis, Inc. 1.8%
Hormel Foods Corporation 1.8%
Brookfield Infrastructure Partners LP, Preferred, Series 9, Fixed-Reset 1.7%
Croda International PLC 1.7%
AusNet Services 1.7%
Emera Incorporated, Preferred, Series H, Fixed-Reset 1.6%
Pembina Pipeline Corp, Preferred, Series 23, Fixed-Reset 1.6%
SJW Group 1.6%
Linde Public Limited Company 1.5%
PepsiCo, Inc. 1.4%
Option Positions
AT&T Inc., Put 26, 11/20/20 0.0%
Consolidated Edison Inc., Put 65, 10/16/20 0.0%
National Grid PLC, Put 50, 10/16/20 0.0%
Cincinnati Financial Corporation, Call 95, 12/18/20 0.0%
The Clorox Company, Call 240, 11/20/20 0.0%
Federal Realty Investment Trust, Put 65, 11/20/20 0.0%
The Coca-Cola Company, Put 45, 11/20/20 0.0%
McCormick & Company, Incorporated, Call 220, 10/16/20 0.0%
Walmart Inc., Call 170, 11/20/20 0.0%
Fund Brief Brochure Presentation

Fund Details

Fund Net Assets $4.3 million
CIFSC* Asset Class Global Equity Balanced
Risk Tolerance Low to Medium

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 $23 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 beta5 securities in order to minimize volatility and to increase the realized Sharpe Ratio6
  • Primarily investment grade7 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.

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 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.

2 The blended benchmark consists of 90% S&P Global 1200 Index and 10% FTSE Canada Short Term Overall Bond Total Return Index.

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

4 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%

5 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.

6 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.

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

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

On April 17, 2020, Portland Global Income Fund (“PGIF”) was renamed Portland Global Balanced Fund.

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. BUY. HOLD. AND PROSPER. is a registered trademark of AIC Global Holdings Inc. used under license by Portland Investment Counsel Inc.