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.