Manager Letter

Aventine Asset Management: April 2017 Manager Letter

May 12, 2017

 

May 12, 2017

 



Performance Update and Manager Commentary

For the Month of April 2017

Monthly Performance Summary
Fund performance is for F Class Units and presented net of all fees and expenses. 

  Fund vs. Benchmark April 2017 YTD Since Inception, Annualized
Return Volatility
  Aventine Canadian Equity 1.2% 6.6% 10.3% 11.1% 
       Benchmark 0.4% 2.9% 5.8% 8.0%
  Aventine Stable Income  0.2% 2.8% 8.4% 5.1%
       Benchmark 0.6% 2.8% 6.9% 5.4%
Additional performance information available on our website at  www.aventine.ca.

Aventine Canadian Equity Fund
A concentrated, all-cap equity fund with a focus on undervalued, catalyst rich stocks and downside protection.  This Fund was launched on March 31, 2014.

Executive Summary

April was another solid month for the ACE Fund as we continued to see positive contributions from all our major investment themes as well as the Fund’s short book. We are in the thick of Canadian earnings season and benefited from positive earnings surprises in many of our largest positions.  The Fund finished the month +1.2% which compared favourably to the S&P/TSX Composite Index Total Return of +0.4%.  Year-to-date our return of +6.6% continues to rank in the top 1% of Canadian Equity funds.

Additional Fund Information
  Fund Presentation Offering Memorandum Subscription Agreement

Aventine Stable Income Fund
A low volatility tax-effective income portfolio with a focus on bonds, preferred shares and high quality dividend growth stocks. This Fund was launched on January 13, 2017, based on a strategy managed by Aventine since December 1, 2008. 

 

Executive Summary

The Aventine Stable Income Fund rose 0.2% in April (F Class) as 3 of Fund’s 4 investment strategies generated positive returns.  Year to date the Fund has returned 2.8% which includes paying $1.20 per unit in distributions.  Canadian markets were shaken in late April as a large non-bank mortgage lender buckled under allegations of fraud brought by the OSC.  Many investors, particularly foreigners, are questioning if this will crack the Canadian housing market and are losing their appetite for Canadian assets.  As a result, the TSX index is the worst performing major equity index in the world year to date. Still, our economy remains strong and corporate earnings have been solid.  We see this Canadian risk premium perhaps lingering into the summer, but ultimately leading to some great opportunities in income producing assets.

Additional Fund Information
Fund Presentation Offering Memorandum Subscription Agreement

Where To Find Us
 Andrew Shortreid
President
416.847-1737 x500
as@aventine.ca		 Jim Pottow
Partner
416.847-1737 x502
jp@aventine.ca		 James Telfser
Partner 
416.847-1737 x501
jt@aventine.ca		 Shannon Veitch
Investor Service
416.847-1737 x510
sv@aventine.ca
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This email communication is intended to provide you with information about the Aventine Canadian Equity Fund and the Aventine Stable Income Fund managed by Aventine Management Group Inc. (the “Funds”). 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 is contained in its Offering Memorandum which should be read carefully before investing and may be obtained from Aventine Management Group upon request, or by clicking on the link contained in this email. 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 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 ACE Fund is the performance of the target series of F Class units. The value of 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 © 2017 AVENTINE MANAGEMENT GROUP INC., All rights reserved.

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#3400, 2 Bloor Street West, Toronto, Ontario M4W 3E2

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