CEGF · 130/30 Global Equity

Calterra Global Enhanced Growth Fund

A global growth fund that acts on both sides of its research: more of the companies expected to lead, short positions against the ones expected to lag. The extra reach is aimed at more return while staying near the market’s level of risk.

Derek VanGenderen, CFA · Portfolio Manager, Global Equities

Structure
130/30 global equity
Fee
0.65% Series FS
Distributions
Quarterly
Fundserv
CAL301 FS · CAL303 A

The idea

More return at market risk

Research into a growing company can end in one of three places: it can keep growing, it is priced for growth it will not deliver, or its results are weakening and the price does not yet reflect it. Only the first is a reason to own it. CEGF is built so the other two are worth finding as well, sold short against the holdings rather than filed away.

That extra reach does not come from taking more market risk. The cash the short sales raise buys more of the companies the research ranks highest, so the fund’s net exposure stays near the amount you invested. It is built to move 90% to 110% as much as the global index, and the positions are small and numerous so no single judgment decides the year.

This describes how the fund is built, not how it will perform. There is no assurance it will meet its objectives.

Active share

Past the ceiling a long-only fund cannot cross

Active share measures how far a fund’s holdings differ from its benchmark: zero is the index exactly, and the higher the number, the more of the portfolio is the manager’s own work. Only the part that differs from the index can earn a return different from the index’s, and whether you are looking for opportunities, diversification, or new ideas, that is the only part of a fund that can deliver it.

the long-only ceiling
0 100 150
where CEGF aims
Closet indexingHere the holdings sit close enough to the index that most of what you own, you would have owned anyway, whatever the fund is called.
Genuinely activeEnough of the fund differs from the index that the manager’s decisions, right or wrong, move what you earn.
Needs short positionsA fund that can only own things never gets here. Past 100, the difference has to come from companies the fund is set against rather than ones it holds.
Active share is measured from positions and weights; nothing in it is a return. A long-only portfolio cannot pass 100 by construction, and a 130/30 mandate lifts that ceiling.

Honest expectations

Where this fund can struggle

There are markets this fund is not built for. When the market rebounds, the companies that fell furthest often bounce highest, and those may be the ones that the fund holds short. A stretch where a few giant winners collect most of the market’s return is also hard on a wide portfolio, and so is one where the market stops rewarding the profitability and growth the fund selects for.

What happens in a bad year?

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 limits this fund runs under are set in writing.

Those limits, the fund’s objectives, its fees and its risks are all in the offering memorandum. It will be available when the fund opens, directly or through your advisor.

How to invest What 130/30 means