Launches Canada's first and only family of "long/short" mutual funds and wrap portfolios
TORONTO, March 1, 2013 /CNW/ - ONE Financial Corporation ("ONE Financial") announced today that it has successfully issued shares to all investors who have subscribed to-date for its All- Weather Profit Global Diversified Fund, the first mutual fund launched from its new "All-Weather Profit Family™" lineup. The new Family is Canada's first and only family of long/short mutual funds and wrap portfolios. The company expects to launch the other 9 mutual funds, 6 wrap portfolios, and 2 protected portfolios it has developed under the All-Weather Profit Family moniker in the coming months.
The All-Weather Profit Family is very different from traditional mutual funds, which can generally only profit in two ways - from stocks or bonds going up. The All-Weather Profit Family is a special class of mutual funds called "commodity pools". This classification enables them to diversify into four asset classes, and pursue profit in 8 ways - from stocks, bonds, commodities, and currencies, going up (called "long" investing) or down (called "short" investing).
"Spreading positions over four asset classes across 50-60 global markets, and investing both long and short, gives us far more opportunities to profit than traditional mutual funds. Markets trend both higher and lower, and we have the ability to profit from both scenarios." says ONE Financial's Lead Portfolio Manager, Stuart Campbell.
Previously, long/short investments were generally only available through hedge funds offered to large-scale investors such as institutions, pension funds, and high net worth investors. Hedge funds traditionally have high investment minimums, starting in the six figures or more. Through the All- Weather Profit Family, however, all Canadians can access these high-end investment strategies, with investment minimums starting at $500. On top of the comfort from knowing their investments seek profits from both up and down markets, investors in the Family also receive all the important benefits of traditional mutual funds. These include daily liquidity, transparency, and regulatory disclosure and audit requirements. The All-Weather Profit Family is audited by PricewaterhouseCoopers, and is eligible for RRSPs, RRIFs, RESPs, TFSAs and other registered investments.
"Stock markets have been extremely volatile over the last ten years. And low interest rates on safer investments don't even provide enough return to keep pace with the rising cost of living. This has made it very difficult for both income and growth investors to meet their goals. We created the All- Weather Profit Family to provide our investors high return potential similar to the stock markets, but without the same level of downside risk." commented ONE Financial's chairman, Jeffrey O'Brien.
The All-Weather Profit Family is also designed to provide a number of tax benefits, including the ability to switch amongst any of the funds or portfolios in its Family tax-free. This feature leaves more of investors' money in the Family to compound for additional growth, even if invested through a non-registered account. When gains are taxed on withdrawal from the Family, they are taxes as capital gains - half of the tax rate charged for ordinary income.
The Family also offers a variety of monthly tax-efficient income options, as high as 9% annually. According to O'Brien, there is generally no tax payable when monthly income is received.
"Often with income-producing products, payments you receive are taxed at the highest tax rate. With the All-Weather Profit Family however, monthly income distributions are expected to be in the form of return-of-capital, which lowers your adjusted cost base. As such taxes would generally not be payable when monthly income is received, but payable if the funds are sold later at a profit or if your adjusted cost base is at zero.", says O'Brien.
O'Brien added "With the market volatility that we have witnessed in the past decade, the traditional model for portfolio construction needs to be rethought. Holding solely long-only investments does not provide investors with any portfolio protection as markets decline, let alone an opportunity to profit."
To learn more about ONE Financial and its new All-Weather Profit Family visit www.onefinancial.com.
ABOUT ONE FINANCIAL
Since 2001, ONE Financial has been partnering with Canadian financial advisors to provide unique and innovative investment products to investors. Its products are designed to minimize risk while pursuing high income and growth. Canadians have responded to the unique benefits of ONE Financial's offering, and invested over $300 million under ONE Financial's care. With over a decade-long track record of delivering Canadian's first-to-market solutions, and a focus on downside protection, ONE Financial's presence is strong and growing. ONE Financial has offices located in Montreal and Vancouver, with its head office located in Toronto.
This offering is only made by prospectus (the "Family's Prospectus"). The Family's Prospectus contains important detailed information about the securities being offered. Copies of the Family's Prospectus may be obtained from ONE Financial by calling 1-866- 360-7888 or visiting onefinancial.com. An investment in the Funds or Protected Portfolios (the "Share Classes"), or by means of the Wrap Portfolio Service, is highly speculative and involves a high degree of risk, some not traditionally associated with mutual funds. An investor may lose a substantial portion or even all of the money that he or she invests. Investors should read the Family's Prospectus before making an investment decision, paying particular attention to the risks associated therewith including: No Assurance of Achieving Investment, Objectives/Suitability for Investment, Nonconventional Mutual Funds, Limited Operating History, Reliance on ONE Financial, Conflicts of Interest, and Investing in Derivatives.
This document should be read in conjunction with the Family's Prospectus. In the event of any inconsistency between this document and the Family's Prospectus, the Family's Prospectus shall govern. The information herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness. This document is for information only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. Certain statements included in this document constitute forward-looking statements, and such statements may be identified by the expressions "intend", "anticipate", "believe"," estimate", "deliver, "usually", "objective", "expect", "forecast", "may"," will", "project", "should", "outlook", "target", "pursue", "potential", "seek", and similar expressions (including negative and grammatical variations) to the extent they relate to the Funds, Protected Portfolios, Wrap Portfolios, Investment Pools or ONE Financial. In addition, any statement that may be made concerning the objectives, future performance, strategies and possible future actions of a Fund, Wrap Portfolio, Protected Portfolio, Investment Pool or ONE Financial is also forward-looking. Forward- looking statements are not historical facts but reflect current expectations or objectives regarding future results or events. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements. By their nature, forward-looking statements require the applicable Share Classes and ONE Financial to make assumptions about future events which include, among other things, that the Share Classes will continue to have sufficient assets under management to effect their investment strategy, the investment strategy will produce the results intended by the Share Classes, the markets will react and perform in a manner consistent with the investment strategy and ONE Financial and the lead portfolio manager continue to provide services to the Share Classes, and the Investment Pools. The Share Classes and the Manager believe the expectations reflected in forward-looking statements are reasonable. However, none of the Share Classes nor the Manager can assure that these expectations will prove to be correct, and an investor should not unduly rely on forward-looking statements included in, or incorporated by reference into, this document. These forward-looking statements speak only as of the date of this document.
There can be no assurances that any Share Class will be able to maintain its net asset value per Share at a constant amount or that the full amount of an investor's investment in any Share Class will be returned to them. Return-of capital distributions are not a rate of return. Monthly distributions on all Series of Shares may generally be a return of capital so long as there is sufficient capital attributable to the relevant series, and may also include capital gains. An investor's adjusted cost base will be reduced by the amount of any returns of capital. Taxes are also payable on monthly distributions of return-of-capital when received if an investor's adjusted cost base (ACB) is zero. The distribution rate of 9% is calculated as a % of average daily net asset value for each current month, and automatically reinvested unless otherwise requested. A Share Class' current variable distribution rate assumes that the fund has sufficient expected future performance in the Fund Manager's current determination to maintain sufficient assets to support such rate, which is therefore subject to being lowered should the Fund Manager's determination change.
The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering of tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on their specific circumstances before taking any action. Commissions, trailing commissions, management fees and expenses all may be associated with an investment in the Share Classes individually or in the Funds by way of the Wrap Portfolios. Please read the Family's Prospectus before investing. The Share Classes are not guaranteed, their values change frequently and past performance of any investment described herein may not be repeated and is not indicative of the future performance of the Share Classes.
The ONE Financial logo, All-Weather Profit Family logo, "ONE Financial", "All-Weather Profit", "wealth through innovation", and "seek profits from up and down markets" are trademarks of ONE Financial Corporation.
SOURCE: ONE Financial
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