Aventine Asset Management: February 2017 Manager Letter

March 10, 2017


March 10, 2017


Performance Update and Manager Commentary

For the Month of February 2017

Monthly Performance Summary

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

  Fund February 2017 YTD Since Inception, Annualized
Return Volatility
  Aventine Canadian Equity 2.1% 4.2% 10.1% 11.4% 
  Aventine Stable Income 0.7% 0.9% 8.3% 5.1%
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

The Aventine Canadian Equity Fund is one month shy of its 3-year anniversary and we anticipate celebrating an exceptional result.  Strong year to date returns have been powered by a mix of positive earnings results and the realization of two friendly take-over offers for portfolio companies, welcome catalysts after a long drought.  Despite encouraging economic data, the market is in rich territory based on many different valuation metrics – the phrase “priced for perfection” comes to mind.  As a result we’ve been building up our cash position and book of hedges (downside protection) in the event that the recent rally runs out of steam and we can put some capital back to work at lower prices.

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

At the time of writing, the Aventine Stable Income Fund is just shy of two months old and is meeting all our expectations for performance and risk control.  Early days no doubt, but initial successes include the Fund’s NAV rising in 7 of its first 8 weeks, paying out our first monthly distribution of $0.40 to unitholders on February 27th, and solid performance despite having a significant cash drag from new money inflows. At the end of the month we were 85% invested, with the 15% cash position being a result of having some difficulty in finding attractively priced credits in an expensive bond market. We anticipate that US interest rate expectations will continue to rise and that expectations for a Canadian rate hike in 2017 are too low.  As such, the portfolio is positioned to moderately benefit from rising interest rates over this horizon.

Additional Fund Information
Fund Presentation Offering Memorandum Subscription Agreement

Where To Find Us
 Andrew Shortreid
416.847-1737 x500
Jim Pottow
416.847-1737 x502
James Telfser
416.847-1737 x501
Shannon Veitch
Investor Service
416.847-1737 x510
Strategies News & Media Twitter LinkedIn

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.

Our mailing address is:
#3400, 2 Bloor Street West, Toronto, Ontario M4W 3E2

unsubscribe from this list    update subscription preferences