Portland Global Aristocrats Plus 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.
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.
Performance
As at December 31, 2020
| Series Start Date | Net Asset Value Per Unit (as at December 31, 2020) |
|
|---|---|---|
| Portland Global Aristocrats Plus Fund - Series A | Jun. 30, 2016 | $50.3604 |
| Portland Global Aristocrats Plus Fund - Series F | Jun. 30, 2016 | $50.8299 |
| 1 Month | 3 Months | 6 Months | 1 Year | 3 Year** | Since Inception** | |
|---|---|---|---|---|---|---|
| Portland Global Aristocrats Plus Fund - Series A | 0.0% | 0.1% | 4.9% | 1.2% | 0.3% | 4.2% |
| Portland Global Aristocrats Plus Fund - Series F | 0.1% | 0.4% | 5.5% | 2.4% | 1.4% | 5.4% |
| MSCI World TR Index* | 2.5% | 8.7% | 15.1% | 13.9% | 11.2% | 13.0% |
Geographic Allocation5
As at December 31, 2020
| United States | 58.6% |
| Canada | 18.2% |
| Japan | 4.4% |
| Switzerland | 3.9% |
| United Kingdom | 3.7% |
| Denmark | 2.8% |
| Bermuda | 2.4% |
| Germany | 1.7% |
| Ireland | 1.6% |
| Spain | 1.4% |
| France | 1.3% |
Sector Allocation5
As at December 31, 2020
| Consumer Staples | 25.4% |
| Utilities | 15.8% |
| Exchange Traded Funds | 9.4% |
| Private/Alternative Funds | 8.5% |
| Consumer Discretionary | 8.3% |
| Health Care | 7.4% |
| Real Estate | 6.6% |
| Industrials | 6.4% |
| Financials | 4.2% |
| Communication Services | 3.6% |
| Materials | 3.5% |
| Information Technology | 0.9% |
Top Holdings5
As at December 31, 2020
| iShares MSCI World ETF | 10.5% |
| Portland Private Income Fund – Preferred Series F USD | 9.7% |
| Consolidated Edison, Inc. | 3.7% |
| Coloplast A/S | 3.2% |
| Target Corporation | 3.2% |
| Federal Realty Investment Trust | 3.0% |
| Cincinnati Financial Corporation | 2.9% |
| The Procter & Gamble Company | 2.9% |
| Fortis, Inc. | 2.7% |
| Brookfield Property Partners L.P. | 2.7% |
| Johnson & Johnson | 2.6% |
| Hormel Foods Corporation | 2.4% |
| Canadian National Railway Company | 2.3% |
| McDonald's Corporation | 2.2% |
| BCE Inc. | 2.2% |
| Genuine Parts Company | 2.1% |
| SJW Group | 2.1% |
| California Water Service Group | 2.1% |
| Metro Inc. | 2.1% |
| American States Water Company | 2.1% |
| Leggett & Platt, Incorporated | 2.1% |
| Colgate-Palmolive Company | 2.1% |
| Croda International PLC | 2.1% |
| PepsiCo, Inc. | 2.1% |
| Nestle S.A. | 2.1% |
Fund Information by Series
| Series | ||
|---|---|---|
| A | F1 | |
| Min. initial investment, accredited investors2 | $2,500 | $2,500 |
| Min. initial investment, non-individuals3 | $150,000 | $150,000 |
| Min. subsequent investment | $500 | $500 |
| Management fee | 2.00% | 1.00% |
Fund Details
| Introduction Date | June 30, 2016 |
| 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 | Available daily 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 |
Investment Objective
The investment objective of the Portland Global Aristocrats Plus Fund is to provide income and achieve, over the long term, preservation of capital and a satisfactory return.
To achieve this investment objective, the Fund will employ the following core techniques:
-
Time in the Market: investing in a diversified portfolio of securities positions focused on growing dividends; and
-
Timing the Market: prudent use of leverage by purchasing securities on margin.
Key Reasons To Invest
Time in the Market
-
The power of dividend investing combined with the benefits of global investing and asset class diversification for the potential to reduce volatility
-
Monthly distributions, targeting 5.0% per annum for Series F and 4.0% per annum for Series A based on the opening price of $50 - intended to be fully funded, plus potential for capital appreciation4
Timing the Market
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Use of leverage to enhance the power of dividends
-
Embedded product leverage is non-recourse to individual investors
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® Dividend Aristocrats® and the S&P/TSX Dividend Aristocrats®
-
Primarily investment grade preferred shares of North American companies
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Partially hedging the Fund’s non Canadian Dollar exposures
-
Utilizing low cost borrowing to purchase securities on margin and facilitate opportunistic investments during market volatility and irrational market valuations
The Offering
-
Please see the Offering Memorandum for fees and specific details on the offering.
Potential Risks
-
The Manager believes the following risks may impact the performance of the Fund: leverage, highly volatile markets, interest rate changes, equity risk, and currency and exchange rate risk. Please read the “Risk Factors” section in the Offering Memorandum for a more detailed description of all the relevant risks.
disclaimer
* Since the Fund does not necessarily invest in the same securities as the benchmark or in the same proportion, the performance of the Fund may not be directly comparable to the benchmark. In addition, the Fund’s returns reflect the use of leverage. The use of a benchmark is for illustrative purposes only, and is not an indication of performance of the Fund.
** Annualized
1. Generally available through dealers who have entered into a Portland Series F Dealer Agreement.
2. Accredited Investors as defined under National Instrument 45-106.
3. 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.
4. The Manager reserves the right to change the targeted annual distributions at its discretion.
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 Global Aristocrats 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. BUY. HOLD. AND PROSPER. is a registered trademark of AIC Global Holdings Inc. used under license by Portland Investment Counsel Inc.