Portland Global Balanced 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.

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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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fund details
Fund Net Assets $4.6 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

  • Monthly distributions, targeting 5.0% per annum4 - intended to be fully funded
  • The power of dividend investing combined with the benefits of global investing and asset class diversification for the potential to reduce volatility
  • The benefits of active and passive management are aligned to help reduce volatility
  • Management fee from 0.55% per annum for Series F units
  • 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.



geographic allocation
As at April 30, 2020
Foreign Equity 46.3%
Canadian Fixed Income 30.6%
Canadian Equity 10.9%
Canadian Preferred 7.7%
Cash & Other Net Assets (Liabilities)1 3.1%
Foreign Preferred 1.4%


sector allocation
As at April 30, 2020
Utilities 19.3%
Government Bonds 18.0%
Consumer Staples 15.8%
Exchange Traded Funds 12.6%
Real Estate 7.2%
Health Care 4.8%
Financials 4.7%
Consumer Discretionary 4.7%
Industrials 4.1%
Materials 3.3%
Cash & Other Net Assets (Liabilities)1 3.1%
Energy 2.4%


Top Holdings²
As at April 30, 2020

Province of Ontario Bond 1.875% May 21, 2020 18.0%
iShares Canadian Short Term Bond Index ETF 12.6%
Cash & Cash Equivalents 11.3%
Consolidated Edison, Inc. 3.4%
Brookfield Property Partners L.P. 3.1%
TransAlta Renewables Inc. 2.5%
Johnson & Johnson 2.3%
Emera Incorporated, Preferred, Series H, Fixed-Reset 2.1%
Bunzl PLC 2.1%
The Procter & Gamble Company 2.0%
Royal Bank of Canada 2.0%
Canadian National Railway Company 2.0%
Cincinnati Financial Corporation 2.0%
Walmart Inc. 1.9%
Metro Inc. 1.8%
Hormel Foods Corporation 1.7%
Fortis, Inc. 1.7%
McDonald's Corporation 1.5%
AusNet Services 1.5%
Brookfield Infrastructure Partners LP, Preferred, Series 9, Fixed-Reset 1.4%
Coloplast A/S 1.3%
American Tower Corporation 1.3%
Roche Holding AG 1.3%
Nestle S.A. 1.3%
Novartis AG 1.2%

Option Positions
Colgate-Palmolive Company, Call 77.5, 05/15/20 0.0%
Genuine Parts Company, Call 110, 05/15/20 0.0%
Hormel Foods Corporation, Call 52.5, 06/19/20 0.0%
Leggett & Platt, Incorporated, Call 60, 06/19/20 0.0%
fund codes
Fund Name
Series
Code - Initial Sales Charge
Code - DSC
Code - LL
Portland Global Balanced Fund
A
PTL531
PTL538
PTL539
Portland Global Balanced Fund
F
PTL010
n/a
n/a


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 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%

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

4 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.

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.

On April 17, 2020, Portland Global Income Fund (“PGIF”) was renamed Portland Global Balanced Fund. Portland Global Balanced Fund was converted from being a closed-end investment fund into an open-end mutual fund on December 13, 2013. Prior to the conversion, Portland Global Balanced Fund was named Global Banks Premium Income Trust (“GBP”). Upon the conversion of GBP, PGIF, a then-existing Portland mutual fund, merged into GBP such that unitholders of PGIF became unitholders of GBP.

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.