Hillsdale Enhanced Income Fund
Fund Fact Sheet (PDF)
The Hillsdale Enhanced Income Fund invests a minimum of 40% of its assets in investment trusts, equity and equity related securities of at least 20 issuers listed on major stock exchanges which, at the time of purchase, have a market capitalization of at least CAD$50 million. The Fund invests a minimum of 20% of its assets in higher yielding corporate bonds, government debt and fixed income securities, principally through the use of ETFs listed on major stock exchanges. No less than 50% of the portfolio will be invested in Canadian dollar denominated securities. The Fund may write covered call options or cash secured put options to enhance income, provided that the total value of such transactions will not exceed 10% of its assets. The Fund will invest in inverse ETFs in order to protect against losses from changes in market indices. The Fund will not hold securities of a single corporation or trust, excluding ETFs, either through direct holdings or indirectly through investment in another investment fund, which will exceed 10% of its assets. The Fund limits its use of leverage to two times the Fund’s Net Asset Value.
Suitable for investors who seek a stable income stream, prefer minimal equity exposure and have below average risk tolerance, the Fund targets a volatility level similar to that of traditional high yield bonds. It invests in high dividend stocks and high yield bonds and hedges against market risk. Different from traditional dividend funds, it is specifically designed to profit from high volatility environments.