Palos Equity Income Fund
For daily performance, please visit globefund.com or morningstar.com
Please note that commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The Fund is not guaranteed, its value changes frequently, and past performance may not be repeated.
Efficient Portfolio Strategy
The Palos Equity Income Fund is a mutual fund sold by prospectus, available to all Canadian residents. This Fund attempts to mirror the investment strategies of our flagship fund, the Palos Income Fund L.P.
This fund is eligible to be held in both non-registered accounts and registered accounts such as an RRSP or TFSA.
- Dividend equity focused
- Canadian (Some US)
- Theme driven
- Fundamental analysis
- Company management meetings and onsite visits
- Medium to long term holding period
- Dynamic asset allocation
- Large & mid capitalization
Fixed Income Strategy
- Provides investors with a steady stream of income generated from a portfolio’s balance
- Bonds, preferred stocks, and CD’s all pay a steady dividend and interest payments
- Consistent cash inflows
PALOS MANAGEMENT INC.
Order Management System
SGGG Fund Services Inc.
Administrator, Transfer Agent and Record Keeper
SGGG Fund Services Inc.
Auditor (firm and funds)
Prime Broker and Custodian
The Management Process
The Investment Committee
Involves daily meetings to remain up to date with current news. Additionally, it includes the discussion of economic factors, company specific factors, investment themes, and investment rationale.
Involves conducting Bloomberg research & analysis, external research, fundamental analysis. Includes meetings with management, such as on-site visits and analyst meetings with experts.
Review and Reassessment
Involves monitoring portfolio weightings, analyzing market movements, stock screening, additional fundamental analysis, and risk management. Further revision and adjustments are made if needed.
The Monitoring Process
Value At Risk (VAR)
- VAR is used to analyze equity market risk during all market hours. VAR is targeted to be equal to or lower than the TSX.
- Monte Carlo Simulation estimates expected equity shortfall by sector against the TSX benchmark
- Scenario Analysis/Stress Test used during periods of market volatility to better understand the portfolio under various adverse market conditions
- Gross, net exposure, leverage and cash are monitored (metrics provided by SGGG, front office system).
- 90% of the portfolio can be liquidated within 1 day
- Front office system SGGG provides transparency on all trades since January 1, 2013
- Third party fund administration, recordkeeping and NAV valuation by one of the world’s largest independent administrators
- Independent annual audit of firm and funds done by a major international firm. Business Continuity Plan and Internal Control and Compliance Manual are in place