EdgePoint Monthly Income Portfolio
A collection of predominantly high-quality Canadian fixed income securities that provides a combination of income growth and capital appreciation.
To achieve its investment objective, the Portfolio Manager seeks to invest primarily in fixed income securities that provide a return through coupon payments, dividend payments, interest, and capital appreciation while focusing on the borrower’s (bond issuer’s) ability to meet its debt obligations, through the payment of periodic coupons and the return of the principal at maturity.
Your investment team brings diverse investment experience, perspectives and skills to the table. They work together, take ownership of their investment ideas and tap into their past experiences where they fulfilled a variety of diverse mandates. Their team-based mindset also allows them the time and freedom to conduct the kind of extensive legwork required to really get to know a business inside and out.
Click below to find out more about the team's members.
Alex O'Hara, Andrew Pastor, Claire Thornhill, Derek Skomorowski, Frank Mullen, Geoff MacDonald, George Droulias, Jason Liu, Jeff Hyrich, Jinhyung Kwon, Lee Matheson, Steven Lo, Sydney Van Vierzen, Tracey Chen, Tye Bousada
September 30, 2023
Risk profile - Based on the Canadian Securities Associationʼs mutual fund risk
EdgePoint of View
Sector breakdown: Provided only because the industry feels it helps explain portfolio diversification and risk. We believe risk is best managed by diversifying by business idea rather than using traditional sector allocations.
Risk profile: Risk is typically defined as standard deviation or volatility compared to an index. While we follow this methodology due to regulatory requirements and classify the Portfolio risk as moderate, we view real risk as the potential for a permanent loss of capital. By this measure, we believe portfolio risk is further reduced.
Taxes: Outside of the management fee, taxes are the biggest component of the Portfolio’s management expense ratio (MER).
Low-cost operation: With a focused product offering and no expensive marketing campaigns, we’re able to pass on savings to our investors through lower MERs, ultimately resulting in higher investment returns.
Portfolio: We use “portfolio” rather than “fund” because we believe this better represents the diversification our products offer.
Alignment: EdgePoint employees are among our largest investors.
|Sales charge option||Fund code||2Management fee||Operating Expenses||3MER|
This component of the MER is what you pay us and your financial advisor for investment and financial services.3
A management expense ratio (MER) is what you pay to own a mutual fund. This fee compensates EdgePoint and your financial advisor for a range of services including operational costs and taxes. It's not charged directly to you but deducted from your investment returns.
Figures as at December 31, 2021.4
Series A is available to all retail investors on a front-end sales charge basis. EdgePoint pays trailing commissions to your financial advisor’s dealer.5
FE = Front end:
A negotiated sales charge between 0% and 5% paid to your financial advisor at the time of purchase and deducted from the amount you buy.6
Non-HST series are available only to investors in non-HST participating provinces. Learn why this matters.7
Series F is available to investors in a fee-based/advisory fee arrangement. EdgePoint doesn’t pay any trailing commissions to dealers.
For fee-based series codes starting with “5”, you pay an amount to your financial advisor’s dealer firm directly, as specified in your fee-for-service arrangement with them. For fee-based series codes starting with a “6”, the fee is collected by EdgePoint and paid directly to your financial advisor’s dealer through quarterly client account redemption of units.
The series’ annual management fee is a percentage of the series’ value and is determined at the beginning of each calendar quarter in accordance with the schedule of management fee tiers set out in the table below.
The daily average yield to maturity of the FTSE Canada Universe Bond Index in the preceding calendar quarter ended September 30, 2023 was 4.68%. Accordingly, the management fee for the 4th calendar quarter of 2023 should be 0.60% for Series F Units/Series F(N) Units and 1.20% for Series A Units/Series A(N) Units of the EdgePoint Monthly Income Portfolio based on the fee table.
EdgePoint decided to temporarily waive a portion of the applicable management fee such that the series’ management fee for 2023 and 2024 will not exceed 0.10% for Series F Units/Series F(N) Units and 0.70% for Series A Units/Series A(N) Units of the EdgePoint Monthly Income Portfolio, despite changes to the daily average yield to maturity of the FTSE Canada Universe Bond Index.
|Fee Tier||Reference rate* (%) FTSE Canada Universe Bond Index||Management Fee - Series F/F(N)||Management Fee - Series A/A(N)|
10-year Partner Program
To show our appreciation for our partners who have had the conviction and unwavering long-term view by staying invested with us for 10 or more years, the 10-year Partner Program offers lower management fees.
Throughout the year, EdgePoint Monthly Income Portfolio receives dividends and interest from fixed income securities and capital gains when securities are sold at a profit. Income and capital gains are paid out to investors in cash or reinvested in additional units at their discretion.
Portfolio distributions are paid monthly (income) and annually in December (capital gains).
For more information on distributions, see our articles:
Note: Only Portfolio series with distributions on the selected date are shown. Any Portfolio series or dates not shown did not have a distribution.
We measure investment success over periods of ten years or more and believe it takes considerable skill to consistently add value over the long term. As such, we place little value in the short-term investment results shown.