Portfolio Objective
The investment objective of the Fund is to provide Unitholders with long-term capital growth earning enhanced risk adjusted returns relative to the S&P TSX Composite Total Return Index by investing in a portfolio comprised primarily of the securities of Canadian companies.
To achieve the investment objective, the Fund will invest primarily in the securities of publicly traded Canadian companies, but may also invest in other securities. The Fund will invest in a concentrated portfolio of securities selected by the Portfolio Manager based (in part) on the recommendations of Veritas Investment Research using fundamental analysis utilizing forensic accounting-based principals. In constructing the investment portfolio of the Fund, the Portfolio Manager will seek to minimize volatility.
Why Invest With Us
Driven by award winning research.
High-conviction concentrated portfolio.
Low market correlation.
Index and sector agnostic.
Low turnover portfolio.
Strict risk management.
The Fund Details
-
Fund Code
VAM 201
-
Inception Date
May 1, 2018
-
Minimum Investment
$1,000 initial / $500 subsequent
-
Type
Fee based
-
Management Fee
0.95%
-
Firm AUM
$100.3 million
-
Total Assets (All classes)
$37.5 million
-
Total Number of Holdings
43
-
Related Parties AUM
$7.8 million
-
Category
Canadian Equity
-
Distribution Frequency
Annually if any
-
Volatility Risk Profile
Medium
Performance
Growth of $10,000 (since inception date)
Monthly Commentary
Class F of the Veritas Canadian Equity Fund generated a 3.2% return in September, bringing the Fund’s year-to-date return to 21.0% versus 17.2% for the S&P/TSX. Our annualized return since our May 30, 2018 inception date is 9.3%, achieved with 20% lower volatility than the index.
The Fund’s position in Aritzia Inc. (S&P/TSX: ATZ) was the largest contributor to performance in September. Revenue growth for U.S. clothing and accessory stores from June to August 2024 were up 2.5% year-over-year, suggesting a healthy demand environment for Aritzia’s Q2 F25 earnings, set for October 10th. We continue to like ATZ for its multi-year growth runway in the United States, which accounted for 57% of its revenues in its latest quarter.
The Fund’s position in RioCan REIT (S&P/TSX: REI.u) was the second largest contributor to fund performance in September. With interest rates beginning to come down, RioCan’s combination of yield and future development prospects is gaining traction. We expect the five condo projects currently being developed should yield ~$700M in cumulative sales revenue as they are completed in the next few years.
Our goal is to buy the best companies in sectors where we identify positive investment catalysts while avoiding poorly positioned companies in challenged industries. We evaluate each company’s ability to navigate good and bad economic environments, looking at the sustainability of cash flows; balance sheet strength; financial reporting transparency and governance.
Top holdings
Top Ten Holdings | Ticker | % Weight |
---|---|---|
Agnico Eagle Mines Ltd | AEM.TO | 3.69 |
Wheaton Precious Metals Corp. | WPM.TO | 3.61 |
Aritzia Inc. | ATZ.TO | 3.56 |
RioCan Real Estate Investment Trust | REI-UN.TO | 3.54 |
Bombardier Inc. | BBDb.TO | 3.41 |
Atco Ltd | ACO-X.TO | 3.15 |
Air Canada | AC.TO | 3.08 |
Maple Leaf Foods Inc. | MFI.TO | 3.08 |
Enbridge Inc. | ENB.TO | 2.98 |
Fortis Inc. | FTS.TO | 2.92 |
Risk measures
1 Year | 3 Year | 5 Year | Inception | |
---|---|---|---|---|
Fund Sharpe Ratio | 2.04 | 0.67 | 0.71 | 0.62 |
Index Sharpe Ratio | 1.74 | 0.57 | 0.88 | 0.58 |
Beta | 0.68 | 0.79 | 0.74 | 0.73 |
Correlation | 0.92 | 0.95 | 0.91 | 0.9 |
Fund Volatility (%) | 8.12 | 11.27 | 12.85 | 11.99 |
Index Volatility (%) | 11.02 | 13.64 | 15.73 | 14.93 |
Best Month (%) | 6.21 | 6.21 | 11.96 | 11.96 |
Worst month (%) | -0.69 | -7.37 | -13.7 | -13.7 |
Resources
Year-End Distributions
Regulatory Documents
Financial Statements
Management Reports of Fund Performance
Veritas Canadian Equity Fund Proxy Voting Information
Disclosures
The information contained herein is for general information purposes and does not constitute a solicitation for the purchase or sale of securities. The full details of the Fund, its investment strategies and the risks are detailed in the Fund’s current simplified prospectus and fund facts document, copies of which may be obtained from Sedar, your dealer, Veritas Asset Management Inc. (“VAM”) or at Veritasfunds.com. Please read the prospectus before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. All performance data assume reinvestment of all distributions or dividends and do not take into account other charges or income taxes payable by any unitholder that would have reduced returns. The performance of the Fund is not guaranteed, unit values change frequently and past performance may not be repeated. Performance is presented in Canadian dollars, unless otherwise stated, and is net of fees of Series F units of the Fund. VAM is an affiliate of Veritas Investment Research Corporation (“VIR”) by virtue of being under common control that may also from time to time have certain common directors, officers and/or employees. VIR produces and issues independent equity research regarding public issuers to investors and other capital markets participants. VAM is a client of VIR and receives research reports from VIR at the same time as VIR’s other clients. VIR and VAM have implemented policies and procedures to minimize the potential for and to address conflicts of interest, which are available upon request.
The S&P/TSX Composite Total Return Index is a Canadian dollar denominated, capitalization-weighted index that includes the largest float-adjusted stocks trading on the Toronto Stock Exchange, subject to inclusion criteria. The index provides the broadest representation of market-weighted returns for large capitalization Canadian-listed stocks, including reinvested dividends, making it an appropriate index for diversified portfolios that invest primarily in Canadian stocks, such as the Veritas Canadian Equity Fund. Contact Veritas Asset Management Inc. for more information regarding comparative indices.
Cautionary Note Regarding Forward-Looking Statements
Some information may contain forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that Veritas Asset Management Inc., the Portfolio Manager, or any affiliates thereof (the ‘Companies’) believe, expect, or anticipate will or may occur in the future (including, without limitation, statements regarding any targeted returns, projections, forecasts, statements, and future plans and objectives of the Companies) are forward-looking statements. These forward-looking statements reflect the current expectations, assumptions or beliefs of the Companies based on information currently available to the Companies. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Companies to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Companies.
For a list of factors that could cause actual results or events to differ materially from current expectations, please refer to our Prospectus and the section ‘Risk Factors’. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Companies disclaim any intent or obligation to update any forward-looking statement, whether as a result of new information, future events, or results or otherwise. Although the Companies believe that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.