Builders Fund

September 30, 2019

Fund Overview

  • The Builders Fund is a fund-of-funds that invests mainly in Steadyhand’s four stand-alone equity funds — Steadyhand Equity Fund, Steadyhand Global Equity Fund, Steadyhand Small-Cap Equity Fund, and Steadyhand Global Small-Cap Equity Fund. Its primarily an all-stock portfolio designed for growth-oriented investors.
  • The underlying fund mix is managed by Salman Ahmed, with Tom Bradley as co-manager, and is a reflection of their views on market valuations.

Portfolio Specifics

  • Securities regulations prohibit us from discussing performance until the fund reaches the 1-year mark. Our discussion will focus instead on the fund’s composition.
  • 67% of the fund is invested in foreign stocks. The Global Fund and Global Small-Cap Fund have the most latitude to invest outside our borders. The Equity Fund and Small-Cap Fund are both Canadian-centric in nature, but the managers have the flexibility to invest a portion of the funds’ assets in foreign companies.
  • The fund is well diversified across industries and looks different than most Canadian portfolios. The largest sector weight, industrial goods & services, includes a diverse assortment of companies. Holdings include CAE (pilot training), Konecranes (manufactures lifting equipment), Teleperformance (outsourced customer service), and Ag Growth (grain and seed storage).
  • Other important sectors are also diverse in their makeup. In financial services, the fund owns TD Bank, Berkshire Hathaway (insurance), Challenger (annuities), Legg Mason (asset management), and Experian (credit ratings), among others. It’s a far cry from owning five Canadian banks and insurers. In energy, investments include Suncor Energy (integrated producer), Schlumberger (oil services), and Pason Systems (drilling data solutions). And in healthcare, holdings include Novartis (pharmaceuticals), Zimmer Biomet (medical devices), Orpea (nursing care) and Amplifon (hearing aids).
  • 30% of the fund is invested in Steadyhand’s two small-cap funds. These funds can experience more pronounced fluctuations over shorter periods but provide the opportunity for enhanced returns over the long term.
  • Investors should expect the fund to stay fully invested in our underlying funds a vast majority of the time. The fund is designed to build wealth over a long time frame. There will be some cash in the portfolio, most of which will be from the reserves held in the underlying funds. Their cash levels will fluctuate due to the managers waiting for the right price to buy stocks or because of a recent sale. In some cases, cash can build up when there is a dearth of new investment opportunities.

Positioning

  • Refer to the underlying funds for details on their positioning.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Important information about the Steadyhand funds is contained in our Simplified Prospectus. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.