w Portland Global Balanced Fund | Portland Investment Counsel Inc.

Portland Global Balanced Fund


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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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Performance
As at March 31, 2024

Year to Date 1 Month 3 Months 1 Year 3 Year2 5 Year2 10 Year2 Since Inception2
Portland Global Balanced Fund - Series A 4.78% 1.77% 4.78% 0.55% 3.76% 2.86% 2.60% -
Portland Global Balanced Fund - Series F 5.08% 1.86% 5.08% 1.70% 4.95% 4.04% 3.66% 4.04%

Asset Allocation

Common Equity 86.79%
Cash & Cash Equivalents 13.07%
Other Net Assets (Liabilities)1 0.14%
Bonds 0.00%

Geographic Allocation

United States 55.97%
Cash & Cash Equivalents 13.07%
United Kingdom 9.62%
Switzerland 6.60%
Denmark 4.57%
Canada 4.03%
Ireland 3.52%
France 2.48%
Other Net Assets (Liabilities)1 0.14%

Sector Allocation

Consumer Staples 30.81%
Health Care 16.09%
Cash & Cash Equivalents 13.07%
Utilities 11.30%
Consumer Discretionary 11.22%
Materials 5.05%
Industrials 4.77%
Financials 3.99%
Real Estate 1.98%
Exchange Traded Funds 1.58%
Other Net Assets (Liabilities)1 0.14%

Top Holdings3

Cash & Cash Equivalents 13.07%
Walmart Inc. 4.69%
Johnson & Johnson 4.57%
Coloplast A/S 4.57%
McDonald's Corporation 4.21%
The Procter & Gamble Company 3.72%
Genuine Parts Company 3.65%
Linde PLC 3.52%
Compass Group PLC 3.36%
PepsiCo, Inc. 3.33%
Consolidated Edison, Inc. 3.13%
The Coca-Cola Company 3.13%
Bunzl PLC 2.96%
SJW Group 2.92%
Novartis AG 2.64%
Cincinnati Financial Corporation 2.49%
American States Water Company 2.49%
Sanofi 2.48%
Colgate-Palmolive Company 2.43%
Hormel Foods Corporation 2.40%
Nestle S.A. 2.13%
California Water Service Group 2.04%
American Tower Corporation 1.98%
Roche Holding AG 1.83%
The Clorox Company 1.83%

Fund Info

Series Net Asset Value Per Unit Management Fee Series Start Date
Portland Global Balanced Fund - Series A $7.8905 1.55% Feb. 18, 2005
Portland Global Balanced Fund - Series F $8.9879 0.55% Dec. 17, 2013
Fund Brief Brochure Presentation Performance Matters Income Matters

Fund Details

Fund Net Assets $2.4 million
CIFSC* Asset Class Global Equity Balanced
Risk Tolerance Low to Medium
MER8 Series A: 2.31%, Series F: 1.17%

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 annum9 - intended to be fully funded

Tax-efficient structure, currently housing tax losses of approximately $24 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 beta4 securities in order to minimize volatility and to increase the realized Sharpe Ratio5
  • Primarily investment grade6 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.

Disclosure

* Canadian Investment Funds Standards Committee

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

2 Annualized.

3 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%.

4 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.

5 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.

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

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

8 MER or management expense ratio is after absorptions as at September 30, 2023. MER is updated on a semi-annual basis and the Manager may absorb operating expenses of the Fund at its discretion but is under no obligation to do so.

9 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. 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.

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.

Use of any third party quotations or images does not in any way suggest that the person and or company endorses Portland Investment Counsel Inc. (“Portland”) and/or its products.

Use of any third party material may not reflect the views and opinions of Portland. Portland makes no representation or warranty, express or implied, in respect thereof, takes no responsibilities for errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this material or its content.

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, tax 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 is a registered trademark of Portland Holdings Inc. The Unicorn Design is a trademark 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.