Opportunity
Investment markets in Canada and abroad are experiencing increased volatility due to macroeconomic developments and the evolving roles of institutional and retail investors in the marketplace. There is a clear opportunity for a well-managed fund generating yield for its investors and carrying the tactical tools to counter volatility and profit from it.
Strategy
By investing in an active tactical balance of equities and fixed income securities, the fund capitalizes on the changing macro-economic environment to make active management count in countering volatility. The fund enjoys a "no handcuffs" strategy where performance is driven by capital gains, dividends, and income from security selection, market cap selection, geographic selection, trend or sector selection, and short term opportunities. The fund pays a 4% annualized tax-advantaged yield to act as a shock absorber for the market's short term volatility.
The Norrep tactical advantage
Making active management count: The portfolio managers build and maintain an active tactical portfolio that is not the index and is not intended to resemble the broad market indices. To ensure that the best ideas count, the portfolio managers run a concentrated portfolio of 25-30 equities and fixed income securities.
Unique tactical ability to go where the value is: The portfolio managers have a broad mandate to invest in the best risk/reward opportunities in Canada and abroad. Beyond a core weight in Canadian dividend-paying equities, the fund has the ability to go almost anywhere to access yield and growth at a reasonable price.
Tactical expertise based on long term value: The portfolio managers focus on long term prospects to identify short term situations where the "issue of the day" pushes valuations below their fair value. Short term market turbulence is often viewed as an opportunity to identify economically-sensitive equities with solid balance sheets and strong "bounce potential" when the issue of the day calms down.