Aventine Asset Management: March 2017 Manager Letter

April 19, 2017


April 19, 2017


Performance Update and Manager Commentary

For the Month of March 2017

Monthly Performance Summary

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

  Fund vs. Benchmark March 2017 YTD Since Inception, Annualized
Return Volatility
  Aventine Canadian Equity 1.2% 5.4% 10.2% 11.2% 
       Benchmark 1.3% 2.4% 5.8% 8.1%
  Aventine Stable Income  1.7% 2.5% 8.4% 5.1%
       Benchmark 1.1% 2.2% 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

The results are in and they are pretty exciting!  Our first 3-year performance number has been ranked by Morningstar as the second highest return out of the 413 funds in the Canadian Equity category.  In other words, the ACE Fund has outperformed 99.5% of our competitors – both funds and ETFs – since inception.  The Fund also received a Morningstar 5-Star rating (their highest rating), which is determined from a combination of performance and Morningstar’s proprietary risk/reward metrics.

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 continues to perform very well and exceeded our expectations for new asset flows, investment returns and risk control during its first quarter. The Fund ended the first quarter of 2017 having gained 2.6% (F Class units) since its inception on January 9th. We outperformed despite (1) being moderately underweight Canadian preferred shares, the benchmark’s best performing component, and (2) managing the cash drag of large new fund flows during the Fund’s initial months. March saw us capture outsized contributions from both our “relative value” Preferred Share and “enhanced” dividend growth strategies en route to a 1.7% gain. The Fund has been living up to its “stable” moniker – through April 13th the Fund’s annualized volatility (realized since launch on January 13) is tracking at a meager 1.9%.

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
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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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