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About Class F (TGF130) and the Tralucent Global Alt (Long/Short) Equity Fund

Summary

The Fund has existed since March 2020 as an Offering Memorandum fund, offering A, M, and F classes. It is now being offered with a prospectus and an additional class on the TSX – symbol TGAF. The Fund offers immense value with its notable risk adjusted returns and very competitive fees.

Brief Overview and History

The Fund was created on March 31, 2020 as an Offering Memorandum fund under the name Tralucent Global Equity Fund with three original classes: Class A, M, and F. These three classes continue to be available on FundServ as TGF110, TGF120, and TGF 130 respectively.

On October 11, 2023 The Fund was relaunched after issuing a Simplified Prospectus as the Tralucent Global Alt (Long/Short) Equity Fund with one additional class - the ETF - to trade on the TSX. On November 16th, 2023, Tralucent launched the ETF class, listed on the Toronto Stock Exchange (TSX) under the ticker TGAF. The ETF is available for purchase by anyone with access to the TSX.

What does the Fund Contain?

The fund is 100% long and 40% short. It is comprised of over200 long positions – predominantly mid and large cap global US based companies – and 46 short positions.

Why Short?

Shorting allows the Fund to benefit from declining security prices, to potentially add to the rate of return, and to dampen the volatility when security prices are declining. Specifically, shorting activities between March 2020 and September 2023 have added almost 10 percentage points of value to the Fund’s unitholders. Most of this return came during 2022 when overall markets declined as much as 30 percent.

The Alt (Long/Short) – and why be Both

The Alt refers to Liquid Alternative. This is a type of mutual fund that allows the fund to take on leverage up to 300 percent of the value of the Fund. It also permits the Fund to short up to 50% of the value of the fund. By employing both strategies, the Fund is able to enjoy lowered volatility and an enhanced rate of return.

The Nature of What You Own and Short

The Fund buys – with very few exceptions – established companies from around the world, from various sectors and industries. These companies have strong management, are highly competitive in nature and can withstand the test of time.

Conversely, the Fund is short securities that do not present the potential to appreciate over time.

No Performance Fees

The Fund does not charge any performance fees. It charges management fees and trading costs.  Management fees vary by each class. The manager pays for all other administration charges. This may change in future without notice.

This class is available on FundServ and has a MER of 0.97%.
FundServ units are available thru advisers. Please ask your adviser if they are is able to purchase these units for you.

 

Please find below the performance of Class F Units since inception.

Historical Performance of TGF130 as at Mar. 28, 2024

CAD Return (%)
1 Month 3 Month 6 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception
TGF130 0.50% 7.62% 15.28% 7.62% 25.60% 13.90% -    -    22.14%
MSCI ACWI 2.93% 10.79% 20.34% 10.79% 23.31% 9.63% - - 15.96%

Prior to October 11, 2023, the Fund was offered via offering memorandum only and the Fund was not a reporting issuer during such prior period. The expenses of the Fund would have been higher during such prior period had the Fund been subject to the additional regulatory requirements applicable to a reporting issuer. Tralucent has obtained exemptive relief on behalf of the Fund to permit the disclosure of the prior performance data for the Fund for the time period prior to it becoming a reporting issuer. For greater clarity, the exemptive relief allows the Class E units of the Fund to disclose performance data that shows how the Class A units of the Fund have performed from March 31, 2020 to September 9, 2021 and the Class F units of the Fund have performed from September 9, 2021 to November 15, 2023.

 

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.