Portland Value Plus Fund
Portfolio Manager
Michael Lee-Chin, B.Eng., LLD (Honorary)
Executive Chairman, Chief Executive Officer and Portfolio Manager
Mr. Lee-Chin has over 35 years industry experience.
Portfolio Manager
Dragos Berbecel, CFA, MBA
Portfolio Manager
Dragos Berbecel has 20 years of experience, both as an investment professional and a business operator.
Performance
As at July 31, 2020
| Series Start Date | Net Asset Value Per Unit (as at July 31, 2020) |
|
|---|---|---|
| Portland Value Plus Fund - Series A (CAD) | Jan. 30, 2015 | $5.0738 |
| Portland Value Plus Fund - Series F (CAD) | Jan. 30, 2015 | $4.8247 |
| 1 Month | 3 Months | 6 Months | 1 Year | 3 Years1 | 5 Years1 | Since Inception1 | |
|---|---|---|---|---|---|---|---|
| Portland Value Plus Fund - Series A | 1.4 | (1.1%) | (39.9%) | (40.1%) | (23.1%) | (21.9%) | (24.8%) |
| Portland Value Plus Fund - Series F | 1.5% | (0.8%) | (39.5%) | (39.4%) | (22.3%) | (21.0%) | (24.0%) |
| S&P Global 1200 Index2 | 3.2% | 8.4% | 0.7% | 10.0% | 10.5% | 8.9% | 9.7% |
Geographic Allocation3
As at July 31, 2020
| Cayman Islands | 100.0% |
Sector Allocation3
As at July 31, 2020
| Private/Alternative Funds | 100.0% |
Top Holdings4
As at July 31, 2020
| EnTrustPermal Special Opportunities Fund IV Ltd. | 98.0% |
| Cash & Cash Equivalents | 2.0% |
Fund Information by Series
| Series | |||
|---|---|---|---|
| A | F5 | N | |
| Min. initial investment, accredited investors6 | $2,500 | $2,500 | $2,500 |
| Min. initial investment, non-individuals7 | $150,000 | $150,000 | $150,000 |
| Min. subsequent investment | $500 | $500 | $500 |
| Management fee | 2.00% | 1.00% | 2.00% |
Fund Details
| Introduction Date | January 30, 2015 |
| Fund Type | Alternative Strategies |
| Offer document | Offering Memorandum |
| Legal type | Unit Trust |
| Eligible for registered plans | Yes |
| Eligible for PAC Plans | Yes, monthly minimum of $500 |
| Purchases and redemptions | Monthly |
| Valuation Frequency | Monthly |
| Minimum investment term | None |
| Notice period for redemptions | None |
| Redemption fee | None |
| Transaction processing | Fundserv |
| Administrator | CIBC Mellon Global Securities Services Company |
| Prime broker | RBC Dominion Securities Inc. |
| Auditor | PricewaterhouseCoopers LLP |
Investment Objective
The investment objective of the Portland Value Plus Fund is to achieve and above average rate of return over the long term.
How The Fund is Managed
To achieve the investment objectives, the Manager will employ the following core techniques:
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focused portfolio (generally no more than 15 names).
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Emphasis on companies which resemble private businesses.
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Investments selected from liquid, large cap stocks, domiciled in long-term growth industries.
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Buying companies which we believe are undervalued.
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Holdings may also have the potential of increased returns due to activist investor campaigns.
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Using leverage to enhance long-term capital appreciation and dividends.
Activist Investing
The Fund is expected to leverage activist investing select ideas.
Activist investors:
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Are value investors with a push; looking for opportunities to demand a change in a company’s strategy in order to unlock shareholder value.
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Achieve their goals by cooperating with other institutional investors, acquiring board representation and/or changing the management of the target company.
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Instead of speculating about future performance, activists are pushing for change to drive future performance.
Access to low cost borrowing
Benefiting from the Portland family office’s financial strength and reputation, the Portland Value Plus Fund has access to attractive low cost of borrowing.
The Portland Value Plus Fund will utilize this low cost of borrowing to potentially enhance capital gains and income.
The Offering
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Please see the Offering Memorandum for fees and specific details on the offering.
Potential Risks
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The Manager believes the following risks are key to the Fund’s performance: leverage, interest rate changes, dividend yields, highly volatile markets and equity risk. Please read the “Risk Factors” section in the Offering Memorandum for a more detailed description of all the relevant risks.
disclaimer
Effective the end of business day on July 31, 2020, Portland Value Plus Fund (formerly known as Portland Advantage Plus - Value Fund) merged into Portland Special Opportunities Fund. The conversion rate was 0.114453 for Series A and 0.105881 for Series F.
1. Annualized.
2. Since the Fund does not necessarily invest in the same securities as the benchmark or in the same proportion, the performance of the Fund may not be directly comparable to the benchmark. In addition, the Fund’s returns reflect the use of leverage. The use of a benchmark is for illustrative purposes only, and is not an indication of performance of the Fund.
3. Values are shown as a percentage of total assets (portfolio investments) and does not take into account other net assets (liabilities).
4. Values are shown as a percentage of net asset value and does not take into account other net assets (liabilities).
5. Generally available through dealers who have entered into a Portland Series F Dealer Agreement.
6. Accredited Investors as defined under National Instrument 45-106.
7. For investors who are not Accredited Investors, the additional investment must be in an amount that is not less than $500 if the investor initially acquired Units for an acquisition cost of not less than $150,000 and, at the time of the additional investment, the Units then held by the investor have an acquisition cost or a net asset value equal to at least $150,000, or another exemption is available.
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. Please read the “Risk Factors” section in the Offering Memorandum for a more detailed description of all the relevant risks.
Commissions, trailing commissions, management fees and expenses all may be associated with investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemptions, distributions or optional charges or income taxes payable by any securityholder in respect of a participating fund that would have reduced returns. Funds are not guaranteed, their values change frequently and past performance may not be repeated.
The Portland Value Plus Fund (the “Fund”) is not publicly offered. It is only available under Offering Memorandum and other exemptions to investors who meet certain eligibility or minimum purchase requirements such as “accredited investors”. You will only be permitted to purchase Units if your purchase qualifies for one of these exemptions. A list of criteria to qualify as an accredited investor is set out in the subscription agreement delivered with the Offering Memorandum and generally includes individuals who have net assets of at least $5,000,000, or financial assets of at least $1,000,000, or personal income of at least $200,000, or combined spousal income of at least $300,000 in the previous two years with reasonable prospects of same in the current year, or an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a registered adviser or dealer.
Information herein pertaining to the Fund is solely for the purpose of providing information and is not to be construed as a public offering in any jurisdiction of Canada. The offering of Units of the Fund is made pursuant to an Offering Memorandum and the information contained herein is a summary only and is qualified by the more detailed information in the Offering Memorandum.
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