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

Historical Track Record

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 2021-May-31

1 Month3 MonthsYTD1 Year3 YearsSince Inception
ATSX0.1%8.3%10.3%12.7%n/a7.4%

Overlay Fund Characteristics as of 2021-May-31

Long Short
Number of Securities4141
Average Market Cap ($mm)$6,497$10,045
Beta1.3 1.1
EBITDA/EV17.8%2.9%
FCF/EV10.2%-1.1%
Trailing Return126.8%29.2%
Pct of 52 Week High92.6%84.1%
Return on Capital18.8%-1.4%
Gross Profits/Assets5.7%2.2%
50 DMA to 200 DMA125%104.4%
EPS Revision6.0%-0.9%
Change In Shares2.1%10.5%
Earnings Abnormal Return0.8%0.4%

Sector Weightings as of 2021-May-31

Long Short
Communication Services3.7%-1.1%
Consumer Discretionary7.2%-1.2%
Consumer Staples2.5%0.0%
Energy6.6%-3.4%
Financials7.9%-2.4%
Health Care1.3%-2.3%
Industrials9.7%-8.7%
Information Technology1.2%-7.5%
Materials9.3%-10.9%
Real Estate0.0%-5.8%
Utilities1.2%-6.0%
Overlay Equity Exposure50.8%-49.3%
S&P/TSX60 Index Exposure104.8%0.0%
TOTAL PORTFOLIO EXPOSURE155.6%-49.3%

Fund Holdings as of 2021-May-31

Long Security NameWeight
S&P / TSX 60 Index Futures97.7%
IShares S&P TSX 60 Index ETF7.1%
Alimentation Couche-Tard Inc2.2%
Parex Resources Inc2.1%
Canadian Pacific Railway Ltd1.6%
Computer Modelling Group Ltd1.5%
TFI International Inc1.5%
Cogeco Inc1.4%
IBI Group Inc1.3%
Hardwoods Distribution Inc1.3%
Cogeco Communications Inc1.3%
Champion Iron Ltd1.3%
Aritzia Inc1.3%
BRP Inc1.3%
K92 Mining Inc1.2%
West Fraser Timber Co Ltd1.2%
Colliers International Group I1.2%
CGI Inc1.2%
Celestica Inc1.2%
AGF Management Ltd1.2%
Richelieu Hardware Ltd1.2%
Westshore Terminals Investment1.2%
goeasy Ltd1.2%
North West Co Inc/The1.2%
Brookfield Infrastructure Corp1.2%
Sleep Country Canada Holdings1.1%
Superior Plus Corp1.1%
Transcontinental Inc1.1%
Northland Power Inc1.1%
Quebecor Inc1.1%
Viemed Healthcare Inc1.1%
B2Gold Corp1.1%
CI Financial Corp1.1%
PHX Energy Services Corp1.1%
CanWel Building Materials Grou1.1%
Canacol Energy Ltd1.1%
Empire Co Ltd1.1%
Real Matters Inc1.1%
Magna International Inc1.1%
Linamar Corp1.1%
Mullen Group Ltd1.0%
Torex Gold Resources Inc1.0%
Kinross Gold Corp1.0%
Metro Inc/CN1.0%
Dundee Precious Metals Inc1.0%
Parkland Corp/Canada1.0%
Gran Colombia Gold Corp0.9%
Calibre Mining Corp0.9%

 

Short Security NameWeight
Ag Growth International Inc-1.2%
Sierra Wireless Inc-1.2%
Tricon Residential Inc-1.2%
Sienna Senior Living Inc-1.1%
SmartCentres REIT-1.1%
Summit Industrial Income REIT-1.1%
RioCan REIT-1.1%
Pembina Pipeline Corp-1.1%
Inter Pipeline Ltd-1.1%
AltaGas Ltd-1.1%
PrairieSky Royalty Ltd-1.1%
Cominar Real Estate Investment-1.1%
Chartwell Retirement Residence-1.1%
Spin Master Corp-1.1%
MTY Food Group Inc-1.1%
Orla Mining Ltd-1.1%
Laurentian Bank of Canada-1.1%
Canada Goose Holdings Inc-1.1%
SilverCrest Metals Inc-1.1%
Morguard North American Reside-1.1%
Sandstorm Gold Ltd-1.1%
Seabridge Gold Inc-1.0%
Cenovus Energy Inc-1.0%
Lightspeed POS Inc-1.0%
NFI Group Inc-1.0%
SNC-Lavalin Group Inc-1.0%
Aimia Inc-1.0%
Osisko Gold Royalties Ltd-1.0%
Restaurant Brands International-1.0%
Enerflex Ltd-1.0%
Teck Resources Ltd-1.0%
Pinnacle Renewable Energy Inc-1.0%
Novagold Resources Inc-1.0%
Air Canada-1.0%
Osisko Mining Inc-1.0%
MEG Energy Corp-0.9%
Enerplus Corp-0.9%
CAE Inc-0.9%
Vermilion Energy Inc-0.9%
Methanex Corp-0.9%
Ivanhoe Mines Ltd-0.9%
BlackBerry Ltd-0.7%
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