Aventine Asset Management: July 2017 Manager Letter

August 18, 2017


August 18, 2017


Performance Update and Manager Commentary

For the Month of July 2017

Monthly Performance Summary

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

  Fund vs. Benchmark July 2017 YTD Since Inception, Annualized
Return Volatility
  Aventine Canadian Equity 1.3% 8.0% 9.9% 10.7% 
       Benchmark -0.1% 0.7% 4.7% 7.8%
  Aventine Stable Income  0.2% 2.7% 8.4% 5.0%
       Benchmark -0.3% 1.9% 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

ACE Fund Class F units increased 1.3% in July 2017 bringing the Fund’s year to date (“YTD”) return up to 8%, a very strong result compared to the S&P/TSX Composite Total Return Index which declined 0.1% in July and has risen only 0.7% YTD. The ACE Fund‘s track record has now grown to 40 months and our annualized return over that time period is 9.9% per year after all fees and expenses.  Since our launch the S&P/TSX Composite Total Return Index has gained only 4.7% per year, while the average Canadian Equity Fund tracked by Morningstar has returned 4.5% per year.  The Fund benefited from some exceptional gains by companies operating in….

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% net of fees and expenses in July and outperformed its Benchmark by 0.5%.  Year to date the Fund has generated a 2.7% total return and distributed $2.40 to unitholders.  The current yield of the underlying portfolio at the time of writing is 7.5%.  As expected in July, the Bank of Canada delivered on its well-telegraphed intention to increase the Overnight Rate by 0.25%, sending bonds and bond-like equities lower while providing a boost to rate reset preferred shares and more cyclical equities.  This supports our core thesis that Canadian economic activity will remain strong enough in the coming year to…

Additional Fund Information
Fund Presentation Offering Memorandum Subscription Agreement

Where To Find Us
 Andrew Shortreid
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Jim Pottow
416.847-1737 x502
James Telfser
416.847-1737 x501
Shannon Veitch
Investor Service
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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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