Accelerate Enhanced Canadian Benchmark Alternative Fund

About the Fund

The Accelerate Enhanced Canadian Benchmark Alternative Fund (TSX: ATSX) combines exposure to the S&P/TSX 60 plus a long-short Canadian equity overlay designed to add incremental performance above the broad Canadian equity index.

Investment Objectives

  • Outperform the broad Canadian equity index
  • Provide volatility in-line with the broad Canadian equity index
QUICK FACTS

Type:
Alpha + beta

Structure:
Alternative ETF

Date Started:
May 10, 2019

Management Fee:
0.00%

Performance Fee:
1/2 of outperformance above S&P/ TSX 60 Total Return

Investment Manager:
Accelerate Financial Technologies Inc.

Distribution:
$0.10 per Quarter

Exchange:
TSX

Currency:
CAD

Risk Rating:
Medium

Reference Portfolio Performance

Investment Process

In addition to providing exposure to the broad Canadian equity index, either through derivatives, ETFs or the underlying equities, ATSX holds a diversified, long-short equity overlay portfolio of Canadian equities.
To select the long-short overlay portfolio, ATSX utilizes a systematic, proprietary multi-factor model to sort and rank all liquid Canadian stocks based on 5 principle factors:
  1. Value
  2. Quality
  3. Price Momentum
  4. Operating Momentum
  5. Trend

The Fund goes long a portfolio of the highest expected return stocks selected from the top decile ranking from the multi-factor model while going short a portfolio of the lowest expected return stocks selected from the bottom decile ranking. The portfolio is balanced on a monthly basis. The long portfolio is up to 50% of NAV and the short portfolio is up to -50% of NAV.

Performance as of 2020-Jul-31

1 Month3 MonthsYTD1 Year3 YearsSince Inception
ATSX4.5%15.0%9.9%5.5%n/a10.3%

Overlay Fund Characteristics as of 2020-Jul-31

LongShort
Number of Securities3941
Average Market Cap ($mm)$7,672$4,637
Beta1.01.3
EBITDA/EV13.2%9.9%
FCF/EV6.5%0.6%
Trailing Return25.3%-27.4%
Pct of 52 Week High86.8%69.4%
Return on Capital14.2%-2.1%
Gross Profits/Assets4.7%2.1%
50 DMA to 200 DMA108%91.3%
EPS Revision4.3%-1.8%
Change In Shares1.5%1.3%
Earnings Abnormal Return2.4%1.0%

Sector Weightings as of 2020-Jul-31

LongShort
Communication Services3.8%-1.2%
Consumer Discretionary6.2%-4.7%
Consumer Staples5.2%-2.3%
Energy3.8%-9.1%
Financials3.8%-3.5%
Health Care1.3%-2.4%
Industrials7.7%-4.7%
Information Technology3.9%-5.3%
Materials11.4%-12.2%
Real Estate2.6%-3.6%
Utilities1.3%0.0%
Overlay Equity Exposure51.2%-49.1%
S&P/TSX60 Index Exposure97.9%0.0%
TOTAL PORTFOLIO EXPOSURE149.0%-49.1%

Fund Holdings as of 2020-Jul-31

Long Security NameWeight
S&P / TSX 60 Index Futures89.1%
IShares S&P TSX 60 Index ETF8.7%
K92 Mining Inc1.6%
Teranga Gold Corp1.5%
Kinross Gold Corp1.5%
B2Gold Corp1.4%
Celestica Inc1.4%
Dundee Precious Metals Inc1.4%
Torex Gold Resources Inc1.4%
Computer Modelling Group Ltd1.4%
Real Matters Inc1.4%
AGF Management Ltd1.3%
Empire Co Ltd1.3%
Stantec Inc1.3%
Metro Inc1.3%
Gran Colombia Gold Corp1.3%
Canadian Tire Corp Ltd1.3%
Cogeco Communications Inc1.3%
Richelieu Hardware Ltd1.3%
Superior Plus Corp1.3%
Viemed Healthcare Inc1.3%
Equinox Gold Corp1.3%
BRP Inc1.3%
Transcontinental Inc1.3%
Enghouse Systems Ltd1.3%
CI Financial Corp1.3%
Corby Spirit and Wine Ltd1.3%
Alimentation Couche-Tard Inc1.3%
Quebecor Inc1.3%
Gibson Energy Inc1.3%
GDI Integrated Facility Services1.3%
DREAM Unlimited Corp1.3%
Westshore Terminals Investment1.3%
Cogeco Inc1.2%
Quarterhill Inc1.2%
Royal Bank of Canada1.2%
Exco Technologies Ltd1.2%
Martinrea International Inc1.2%
Hardwoods Distribution Inc1.2%
Parex Resources Inc1.2%
Aritzia Inc1.2%

 

Short Security NameWeight
Sierra Wireless Inc-1.7%
Ivanhoe Mines Ltd-1.4%
Resolute Forest Products Inc-1.4%
Lightspeed POS Inc-1.4%
Interfor Corp-1.3%
Morguard North American REIT-1.3%
Park Lawn Corp-1.3%
Canfor Corp-1.3%
IAMGOLD Corp-1.3%
Canadian Pacific Railway Ltd-1.3%
Osisko Gold Royalties Ltd-1.3%
Sienna Senior Living Inc-1.3%
Ag Growth International Inc-1.3%
Canaccord Genuity Group Inc-1.2%
Tourmaline Oil Corp-1.2%
MTY Food Group Inc-1.2%
Maple Leaf Foods Inc-1.2%
Aimia Inc-1.2%
BlackBerry Ltd-1.2%
PrairieSky Royalty Ltd-1.2%
Chartwell Retirement Residence-1.2%
SmartCentres REIT-1.2%
Pinnacle Renewable Energy Inc-1.2%
Magellan Aerospace Corp-1.2%
Cenovus Energy Inc-1.2%
Tricon Residential Inc-1.2%
Spin Master Corp-1.1%
Inter Pipeline Ltd-1.1%
Husky Energy Inc-1.1%
Sprott Inc-1.1%
Canfor Pulp Products Inc-1.1%
Restaurant Brands International-1.1%
Laurentian Bank of Canada-1.1%
Rogers Sugar Inc-1.1%
NFI Group Inc-1.1%
Stelco Holdings Inc-1.1%
Methanex Corp-1.1%
Cameco Corp-1.1%
Vermilion Energy Inc-1.1%
CGI Inc-1.0%
Teck Resources Ltd-1.0%
EXPLORE OTHER INVESTMENT SOLUTIONS