Each Healthcare Company comprising the portfolio must at the time of investment and at the time of each periodic reconstitution and rebalancing (i) have a market capitalization of at least U.S.$5 billion, and (ii) have options in respect of their equity securities listed on a recognized options exchange. After applying the above mentioned criteria, the Manager will select global Healthcare Companies which represent attractive investment opportunities for the Portfolio, giving consideration to the following:
Balance sheet strength; and
The Manager expects that between 20 and 30, but no less than 20, Healthcare Companies will comprise the portfolio. The portfolio will be rebalanced and reconstituted at least semi-annually, but may be rebalanced and reconstituted more frequently at the manager’s discretion.
Investors may elect to automatically reinvest their distributions in additional units of the Fund and realize the benefits of compound growth. Currently, no commissions or brokerage fees are allocated to plan participants. DRIP Plan
Units may be redeemed annually on the second to last Business Day of April (the “Annual Redemption Date”) commencing in 2017. In order to effect such redemption, the Units must be surrendered on or before the last Business Day of March prior to the applicable Annual Redemption Date. Unitholders whose Units are redeemed will receive, subject to certain conditions, a redemption price in an amount equal to 100% of the Net Asset Value per Unit on the Annual Redemption Date (less any costs and expenses associated with the redemption).
Covered Option Writing
The Manager will write covered call options from time to time on up to, but not more than, 33% of the Portfolio, in order to earn option premiums and lower the overall volatility of returns associated with owning a portfolio of equity securities. Call options will be written only in respect of the Portfolio Securities.
Management fee of 0.75% of net assets per annum. Management expense ratio of 1.22% for the period ended June 30, 2016.
Issuer Bid/Market Repurchases
The Fund may purchase up to 10% of the public float per annum at prices up to net asset value per unit.
Fair Investor Terms
Strong corporate governance
Commitment to low fees to improve overall investor returns.
No entrenched management provisions and a prohibition against dilutive equity offerings.
Eligible for RRSPs, DPSPs, RRIFs, RESPs, RDSPs and TFSAs.
The Fund has no termination date as investors can redeem their shares at net asset value less expenses annually. For daily liquidity investors can sell their units on the TSX.
PLEASE READ AND ACCEPT THESE IMPORTANT DISCLOSURES
You will usually pay brokerage fees to your dealer if you purchase or sell units of the investment fund on the Toronto Stock Exchange or alternative Canadian trading platforms (an “exchange”). If the units are purchased or sold on an exchange, investors may pay more than the current net asset value when buying units of the investment fund and may receive less than the current net asset value when selling them.
There are ongoing fees and expenses associated with owning units of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
This communication is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. The opinions contained in this report are solely those of Goldman Sachs Asset Management L.P. (“GSAM”) and are subject to change without notice. GSAM makes every effort to ensure that the information has been derived from sources believed to reliable and accurate. However, GSAM assumes no responsibility for any losses or damages, whether direct or indirect which arise from the use of this information. GSAM is under no obligation to update the information contained herein. The communication should not be regarded as a substitute for the exercise of your own judgment. Please read the fund’s offering documents before investing.
Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date December 15, 2015 and we assume no obligation to update or revise them to reflect new events or circumstances.
Fund holdings and allocations shown are unaudited, and may not be representative of current or future investments, should not be construed and research or investment advice, and are subject to risk.
Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or its securities. It should not be assumed that investment decisions made in the future will be profitable or will equal the performance of the securities discussed in this document.
Portfolio holdings may change by the time you view this. Portfolio holdings may not be representative of future investments. The securities discussed may not represent all of the portfolio's holdings and may not be deemed representative of the strategy’s future portfolio holdings. Future portfolio holdings may not be profitable.
The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.
No part of this material may, without Brompton and GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an authorized recipient. This material is intended for Investment Advisor use only.
I confirm that I have read, understood, and accept the above disclosures.