Ninepoint unveils new Canadian equity fund

Company’s co-CEO explains strategy behind new product

Ninepoint unveils new Canadian equity fund

Ninepoint Partners has launched its new Ninepoint Concentrated Canadian Equity Fund, which aims to bring in an annual return 4% above the TSX benchmark.

It will be run by Scheer Rowlett & Associates, a team responsible for managing $2.8 billion in assets for pension plans, corporations and high-net-worth investors to name just a few.

James Fox, co-CEO and managing partner at Ninepoint Partners, said they will bring an institutional-quality process to managing the fund.

He said: “One thing that we like, taking their top names, is that they are effectively going to be running with 20 positions, so a little more focused on alpha.”

He added: “They are a firm that is a specialist in this space; they have a strong institutional following and why not have a firm that is just dedicated to Canadian equities?”

Fox said the fact Canadian equities are engrained in the team’s DNA appealed to Ninepoint. The fund, which charges a management fee of 2.25% (Series A) and 1.25% (Series F), will seek companies whose intrinsic value has not been accurately reflected in its stock price.

He said: “It’s more of a value long-term fundamental approach; they lean towards companies that are just more value-oriented. You won’t get many high-multiple companies.

“They look for companies at discounted valuations and they think that good value never goes out of style. They use a quantitative screening process to look for their names and they determine the sustainability of their profitability, which leads them to their security selection.”

He added: “This is more appealing, for our firm at least, in trying to offer a more alpha-orientated Canadian equity allocation for advisors. It’s not [a case of] buy a Canadian equity fund and it’s going to be very close to the index, this is really the best ideas, using the value, long-term fundamental approach of a team that all they do is focus on Canadian equities.”

Fox refused to be drawn on whether he thought Canadian equities as a whole were undervalued, insisting that he would leave that to the advisors.

He said: “They are the asset-allocators. We’re here to provide funds or products that help them with their asset allocation – that will be their view. This team runs $2.8 billion, it’s all institutions and they go through rigorous due diligence to allocate capital.”


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