Portland Replacement of Fossil Fuels Alternative Fund
Portfolio Manager
Michael Lee-Chin, B.Eng., LLD (Honorary)
Executive Chairman, Chief Executive Officer and Portfolio Manager
Mr. Lee-Chin has over 40 years industry experience.
Portfolio Manager
Dragos Berbecel, CFA, MBA
Portfolio Manager
Dragos Berbecel has over 20 years of experience, both as an investment professional and a business operator.
Performance
As at October 31, 2024
| Year to Date | 1 Month | 3 Months | 1 Year | Since Inception4 | |
|---|---|---|---|---|---|
| Portland Replacement of Fossil Fuels Alternative Fund - Series A | 40.86% | 20.56% | 25.49% | 46.97% | 27.06% |
| Portland Replacement of Fossil Fuels Alternative Fund - Series F | 41.94% | 20.62% | 25.79% | 48.38% | 28.36% |
| Blended Benchmark | 5.83% | (5.16%) | 0.11% | 17.94% | (5.65%) |
Geographic Allocation
| United States | 50.98% |
| Canada | 18.98% |
| Cash & Cash Equivalents | 10.76% |
| South Korea | 6.45% |
| United Kingdom | 4.35% |
| France | 4.13% |
| Australia | 3.44% |
| Romania | 1.57% |
| Czech Republic | 1.29% |
| Other Net Assets (Liabilities)1 | (1.95%) |
Sector Allocation
| Industrials | 37.61% |
| Energy | 29.41% |
| Utilities | 18.18% |
| Cash & Cash Equivalents | 10.76% |
| Information Technology | 3.44% |
| Materials | 2.55% |
| Other Net Assets (Liabilities)1 | (1.95%) |
Top Holdings2
| Cameco Corporation | 15.61% |
| Centrus Energy Corp. | 13.80% |
| NuScale Power Corporation | 12.72% |
| Cash & Cash Equivalents | 10.76% |
| Constellation Energy Corporation | 7.86% |
| Oklo Inc. | 7.46% |
| BWX Technologies, Inc. | 6.07% |
| Assystem | 4.13% |
| Silex Systems Limited | 3.44% |
| Sprott Physical Uranium Trust | 3.37% |
| KEPCO Engineering & Construction Company, Inc. | 3.31% |
| Doosan Enerbility Co., Ltd. | 3.14% |
| Johnson Matthey PLC | 2.55% |
| ITM Power PLC | 1.80% |
| Plug Power, Inc. | 1.63% |
| Societatea Nationala Nuclearelectrica SA | 1.57% |
| Bloom Energy Corporation | 1.44% |
| CEZ, a.s. | 1.29% |
Fund Info
| Net Asset Value Per Unit | Management Fee | Performance Fee | Series Start Date | |
|---|---|---|---|---|
| Portland Replacement of Fossil Fuels Alternative Fund - Series A | $14.3603 | 1.75% | 10% above high water mark | April 28, 2023 |
| Portland Replacement of Fossil Fuels Alternative Fund - Series F | $14.5842 | 0.75% | 10% above high water mark | April 28, 2023 |
Key Reasons To Invest
Close adherence to Framework:
Five Laws of Wealth Creation:
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Own a few high quality businesses
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Thoroughly understand these businesses
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Ensure these businesses are domiciled in strong, long-term growth industries
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Use other people’s money prudently
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Hold these businesses for the long run
Exposure to a secular growth sector in industries that will help drive the transition from traditional to sustainable energy sources, with a specific focus on nuclear energy.
The focus area of nuclear energy leads to investments in companies that are embedded within the industry’s supply chain and making an impact in the development of the nuclear energy industry.
Professional use of a variable amount of leverage with the potential to outperform the benchmark.
Embedded product leverage is non-recourse to individual investors.
Management fee from 0.75% per annum for Series F units.
Potential Risks
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Portland believes the following risks may impact the performance of the Fund: commodity risk, nuclear energy and sustainable energy sector investment risk, geopolitical risk, energy crisis risk, concentration risk, currency risk, equity risk and leverage 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.
Fund Details
| Fund Net Assets | $8.4 million |
| CIFSC* Asset Class | Alternative Equity Focused |
| Risk Tolerance | Medium |
| MER5 | Series A: 2.53%, Series F: 1.41% |
Investment Objective
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The Fund’s objective is to provide positive long‐term total returns by investing primarily in a portfolio of securities focused on businesses active in industries which will drive the transition from traditional energy (primarily based in fossil fuels) to sustainable energy sources, which will include the area of nuclear energy.
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The Fund seeks to provide capital growth by primarily investing in a portfolio of equities/ American Depository Receipts and may also invest in exchange traded funds.
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The Fund’s investments currently focus on the area of nuclear energy. The Fund may also engage in borrowing for investment purposes.
How The Fund is Managed
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The investable universe is global, with a focus on innovative companies active in the area of nuclear energy or supporting the broader effort towards the energy transition.
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In making its investment selection, Portland leverages 1) its existing track record of private placements in companies active in areas of nuclear medicine, 2) its network of industry contacts, and 3) its affiliate’s industry-specific collaboration agreements.
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Investment decisions incorporate fundamental analysis and apply to a value discipline.
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Investments are managed with a long term focus.
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The result is a relatively low turnover, concentrated portfolio.
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 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 Annualized.
5 MER or management expense ratio is presented excluding performance fees and is after absorptions as at March 31, 2024. 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. The MER including performance fees and absorptions was 4.10% and 3.50% for Series A and Series F, respectively, as at March 31, 2024.
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.
The Fund is not designated as an ESG (Environmental, Social, and Governance) fund therefore the Fund does not assess, measure, or monitor the ESG performance or outcomes of its investments.
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.