These Funds are suitable for investors who seek above average capital growth with a low correlation to the market and have average risk tolerance. They invest in both small and large cap stocks, and always maintain a partial hedge of short positions to offset the volatility inherent in the long portfolio.
Canadian Long/Short Equity Fund
Fund Fact Sheet (PDF)
The investment objective of the Fund is to provide a rate of return on capital in excess of Canadian equities over a three-year period with a low correlation to, and volatility equal to or less than, the S&P/TSX Composite Index. The Canadian Long/Short Fund invests a minimum of 80% of its Total Assets primarily in a diversified selection of at least 50 Canadian corporations and trusts trading on major Canadian stock exchanges with at least CAD $50 million market capitalization at the time of purchase or short sale. The Fund maintains a Net Market Exposure between 20% and 70% at all times with aggregate short positions maintained at a minimum of 25% of its Total Assets. No equity holding of a single corporation or trust trading on a major Canadian stock exchange, either through direct holdings or indirectly through an investment in another investment fund, will exceed 5% of its Total Assets. The Fund may use derivative instruments, in order to protect against losses from changes in market indices and for non-hedging purposes as a substitute for direct investment. The total value of such transactions will not exceed 5% of its Total Assets. Leverage is limited to a maximum of two times the Fund’s Net Asset Value.
Global Long/Short Equity Fund
Fund Fact Sheet (PDF)
The investment objective of the Fund is to provide a rate of return on capital in excess of global equities over a three-year period with a low correlation to, and volatility equal to or less than, the MSCI World Index. The Fund invests primarily in a diversified selection of at least 50 corporations and trusts trading on major stock exchanges and which, at the time of purchase or short sale, have a market capitalization of at least US$50 million. The aggregate investment in corporations and trusts in any one country will not exceed 60% of Total Assets; The Fund maintains a Net Market Exposure between 20% and 70% at all times with aggregate short positions maintained at a minimum of 25% of its Total Assets. No equity holding of a single corporation or trust, either through direct holdings or indirectly through an investment in another investment fund, will exceed 5% of its Total Assets. The Fund may use derivative instruments, in order to protect against losses from changes in market indices and for non-hedging purposes as a substitute for direct investment. The total value of such transactions will not exceed 5% of its Total Assets. Leverage is limited to a maximum of two times the Fund’s Net Asset Value.