CEDF · 130/30 Global Equity
Calterra Global Enhanced Dividend Fund
A defensive way to hold global equities. Quality dividend payers carry the portfolio, and the short side is built to soften a drop. The goal is the market’s return with less of its swing.
Jason Isaac, CFA, CAIA · Chief Investment Officer
- Structure
- 130/30 global equity
- Fee
- 0.65% Series FS
- Distributions
- Quarterly
- Fundserv
- CAL201 FS · CAL203 A
The idea
Market returns at lower risk
The fund owns global companies with strong dividend growth and profitability, and it does not reach for yield. The income comes from businesses that can afford to raise the payment year after year. Those holdings do the compounding.
The short side is there to improve what the fund earns for the risk it takes. It is set against companies whose finances are weakening: cash flow that no longer covers the dividend, and debt building underneath it. Those positions are sized so the whole portfolio is designed to move less than the market, with a target of 70% to 90% of the global index’s movement. When markets fall, the fund expects the companies it is set against to fall further than the ones it owns, and the gap between the two is where the steadiness is meant to come from.
This describes how the fund is built, not how it will perform. There is no assurance it will meet its objectives.
The mechanics
The same $130/$30, aimed at steadiness
For every $100 invested, about $130 is held in the companies the research ranks highest and $30 is sold short against the ones it ranks lowest. The fund typically holds 60 to 100 companies on the long side, and a conviction long can reach 6% of the fund. The shorts are the opposite discipline, rarely more than half of one percent each, so no single one can do much damage if it is wrong. The fund’s net exposure to the market stays near the $100 you put in.
Honest expectations
Where this fund can struggle
There are markets this fund is not built for. One is a sharp rebound led by the companies it is set against, where those names rise fastest while quality holds back. It can also trail when the market’s gains concentrate in a handful of fast risers, or when steady, profitable companies are out of favour for a stretch.
- Benchmark
- 100% Morningstar® Developed Markets
- Access
- Priced daily · CAD · Fundserv
- Series FS
- 0.65% management fee
0.91% MER (est.)1 - Series A
- 1.90% management fee
2.16% MER (est.)1 - Performance fee
- None2
Next
The offering documents describe all of this in full.
They set out the fund’s objectives, strategies, risks and fees in full, and they are what governs the fund once you are invested. They will be available when the fund opens, directly or through your advisor.