Manager Letter

2019 Q2 Manager Letter

June 30, 2019



 

Monthly Manager Update
Current News and Performance Updates 

June 2019

News and Updates

John Kim and James Telfser on BNN Bloomberg
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In case you missed it, Aventine Portfolio Manager, John Kim, made an appearance on BNN Bloomberg’s Market Call on June 21st to share his market outlook.  We thought you might enjoy this short clip – please click on the imagine below to view. 

Additionally, James Telfser, Managing Partner and Portfolio Manager at Aventine, will be on BNN Bloomberg’s Market Call on Tuesday, July 16th at 6PM sharing some of his top stock picks.  We hope you’ll set your PVRs and enjoy! 

“We are at elevated levels and should be cautious going forward”
– John Kim



Click above image to view video (5 mins)

 
Aventine Canadian Equity Fund
Quarterly Manager Letter
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The Aventine Canadian Equity Fund, managed by James Telfser and Jim Pottow, finished the quarter up 4.4% bringing the year to date return to 13.0%. During the quarter, the ACE Fund began to take a more defensive stance and added a new position which we discuss in our Q2 commentary. 

 
Aventine Stable Income Fund
Quarterly Manager Letter
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The Aventine Stable Income Fund, managed by John Kim, finished the quarter down 0.2% bringing the year to date return to 4.8%.  In our Q2 Manager Letter we reflect on the Fund’s performance and highlight specific positions that contributed to, and detracted from, its quarterly return. 

Current Information on our Investment Strategies

Aventine Total Wealth Composite
Inception: June 1, 2009

Aventine Total Wealth is our core portfolio for separately managed accounts following a “balanced” mandate. It is an actively managed, endowment-style balanced portfolio that offers investors diversified exposure to a broad variety of markets and asset classes. The primary goal of this strategy is to outperform our peer index on a risk-adjusted basis while minimizing the potential for portfolio losses.

CURRENT PERFORMANCE SUMMARY
Month YTD Annualized Since Inception, Annualized
June 2019 5 Year Return Risk
Aventine Total Wealth Composite  0.2% 7.4% 3.9% 7.0% 6.3%
The Inception Date of this Strategy is June 1, 2009.
Additional performance information and disclosures on composite construction available on our website: www.aventine.ca.





Aventine Stable Income Fund
Inception: December 1, 2008

Aventine Stable Income is an actively managed, low volatility income portfolio with a principal focus on bonds, preferred shares and high quality dividend paying equities. The primary goal of this Fund is to provide investors with a high level of tax effective income, while also generating consistently positive investment returns overall. The Fund seeks exposure to a variety of income sources and seeks to balance current yield with both capital preservation and long term inflation protection.

CURRENT PERFORMANCE SUMMARY
Month YTD Annualized Since Inception, Annualized
June 2019 5 Year Return Risk
 Aventine Stable Income Fund 0.9% 4.8% 2.0% 6.4% 5.3%
Blended Income Benchmark 1.4% 6.7% 1.9% 5.8% 5.3%
The Inception Date for the Stable Income Fund is January 13, 2017.
Performance prior to this date is for to the Aventine Stable Income Composite, launched December 1, 2008.
Additional performance information and disclosures available upon request.





Aventine Canadian Equity Fund
Inception: March 31, 2014

Aventine Canadian Equity is a concentrated, all-cap equity Fund that targets an annualized return on investment in excess of 10% over the market cycle, net of fees. The Fund follows a catalyst-oriented “Active Value” approach, utilizing the expertise of its managers to identify undervalued companies that are experiencing positive fundamental change. The Fund may invest up to 10% of its capital in foreign securities, hold short positions and use options for downside protection.

CURRENT PERFORMANCE SUMMARY
Month YTD Annualized Since Inception, Annualized
June 2019 5 Year Return Risk
Aventine Canadian Equity Fund  0.7% 13.0% 5.2% 6.0% 10.6%
S&P/TSX TR Benchmark 2.5% 16.2% 4.7% 5.7% 9.0%
The Inception Date of this Fund is March 31, 2014.
Additional performance information and disclosures available upon request.





WEB: AVENTINE.CA     |     EMAIL: INFO@AVENTINE.CA     |     PHONE: 416.847.1767

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Annualized Since Inception Return to the Aventine Stable Income Fund is a linked track record which includes performance generated by the Aventine Stable Income Composite prior to January 2017.
This email communication is intended to provide you with information about the Aventine Total Wealth Strategy (the “Strategy”), the Aventine Canadian Equity Fund and the Aventine Stable Income Fund (the “Funds”) managed by Aventine Management Group Inc. The Strategy and the Funds are distributed by prospectus exemption in various jurisdictions across Canada, please contact Aventine Management Group Inc. to discuss if you may be eligible to invest.  Important information about each Fund and Strategy is contained in its Offering Memorandum which should be read carefully before investing and may be obtained from Aventine Management Group Inc. upon request. The Offering Memorandum does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer or solicitation is not authorized, or to any person to whom it is unlawful to make such an offer or solicitation. All investors should fully understand their risk tolerances and the suitability of the Strategy and the Funds prior to making any investment. Rates of return presented for all periods greater than one year are the historical annualized compound total returns for the period indicated. For periods less than one year the rates of returns are a simple period total return. Rates of return do not take into account income taxes payable that would have reduced net returns. The performance presented for the Funds is the performance of the target series of F Class units. The value of the Strategy and the Funds is not guaranteed and will change frequently. Past performance may not be repeated. All credited third party information contained herein has been obtained from sources believed to be reliable at the time of writing but Aventine Management Group Inc makes no representations as to its accuracy.
Copyright © 2019 AVENTINE MANAGEMENT GROUP INC., All rights reserved.
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