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NDX Growth & Income Fund

 

NGI.UN
CLASS U

Fund Features

Objectives

The Fund’s investment objectives are to provide Unitholders with:

  1. stable quarterly cash distributions; and
  2. the opportunity for capital appreciation.

Investment Strategy

The Fund will invest in an actively managed portfolio of equity securities selected from the NASDAQ-100 IndexSM combined with selective covered call option writing designed to enhance portfolio income and mitigate downside risk.

To generate additional returns above the dividend income earned on the Fund's investment portfolio, the Fund will, from time to time, write covered call options in respect of a portion of the securities in its portfolio. In addition, the Fund may write cash covered put options and may invest up to 10% of net assets to purchase call options, both in respect of securities in which the Fund is permitted to invest.

The Manager may short securities from time to time. Short exposure in the Portfolio, for purposes other than hedging (as defined in NI 81-102), will not exceed 10% of the Net Asset Value of the Fund determined on a daily marked-to-market basis.

Option Strategy

The Fund employs Strathbridge’s proprietary SSO option strategy to generate additional returns above the distributions earned on its equity securities.

Click here for a detailed review of the Strathbridge Selective Overwriting (“SSO”) strategy.

Distributions

Class A distributions 0f $0.60 per Class A unit per annum are paid in the amount of $0.15 each calendar quarter.

Class U distributions of US$0.60 per Class U unit per annum are paid in the amount of US$0.15 each calendar quarter.

Distributions are not fixed but are reviewed and set annually at the discretion of the Fund.

Click here for a complete distribution history including the historical tax allocation.

Mandatory Market Repurchase Program

The Fund will undertake a mandatory market purchase program pursuant to which if the Class A Units close at a trading price that is less than 98% of the latest NAV per Class A Unit, the Fund will offer to purchase Class A Units thereafter if and to the extent that the Class A Units continue to trade at a price that is below 98% of the latest NAV per Class A Unit at the time.

Redemptions

The Units are redeemable annually in December of each year beginning in 2015 at 100% of each respective unit’s Net Asset Value less costs, at the option of the unitholder and monthly at a discount to market price. Redemption proceeds will be payable in Canadian dollars to holders of Class A Units and in U.S. dollars to holders of Class U Units.

Click to expand Redemption Details:

Redemption Deadlines
Units may be surrendered at any time for redemption, but will be redeemed only on a Redemption Date, being the last business day of any month. Units surrendered for redemption by a Unitholder on or before the first business day of December 2015 or any year thereafter (the “Annual Redemption Deadline”) will be redeemed on the last business day of December (the “Annual Redemption Date”). Units surrendered for redemption by a Unitholder at least ten business days prior to the last day of any other month (a “Monthly Redemption Date”), will be redeemed on such Monthly Redemption Date. Unitholders will receive payment for the Units on or before the 15th day following any such Redemption Date. If a Unitholder surrenders Units after 5:00 p.m. (EST) on the applicable cut-off date, the Units will be redeemed on the following Redemption Date. Redemption notices must be delivered to the Fund by an investor’s advisory firm in sufficient time to meet the deadline.

Annual Redemption
Beginning in December 2015, units surrendered for redemption on or before the first business day of December will be redeemed at 100% of each respective unit’s net asset value less costs, valued on the last business day of December being the redemption day. Costs may include an amount equal to the aggregate of all brokerage fees, commissions and other costs incurred by the Fund in connection with such payment, including, but not limited to, costs incurred in liquidating securities held in the Fund’s portfolio. Payment will be received on or before the 15th day following the redemption day. Redemption proceeds will be payable in Canadian dollars to holders of Class A Units and in U.S. dollars to holders of Class U Units.

Monthly Redemption
For Unitholders whose Units are redeemed on any other Redemption Date, the redemption price per Unit will be equal to the lesser of:
  1. a) 95% of the Market Price. For such purposes, “Market Price” means the weighted average trading price of the Units on the principal stock exchange on which the Units are listed for the ten trading days immediately preceding the applicable Redemption Date, and
  2. b) 100% of the Closing Market Price of the Units on the applicable Redemption Date, minus an amount equal to the aggregate of all brokerage fees, commissions and other costs incurred by the Fund in connection with such payment, including, but not limited to, costs incurred in liquidating securities held in the Fund’s portfolio. For such purposes, the “Closing Market Price” means the closing price of the Units on the principal stock exchange on which the Units are listed or, if there was no trade on the relevant date, the average of the last bid and the last asking prices of the Units on the principal stock exchange on which the Units are listed.

For Unitholders whose Class U Units are redeemed on a Monthly Redemption Date, the Redemption Price per Class U Unit will be the U.S. dollar amount calculated as the Class A Monthly Redemption Price (converted to U.S. dollars at the Reference Exchange Rate on the Monthly Redemption Date) multiplied by a fraction, the numerator of which is the NAV per Class U Unit and the denominator of which is the NAV per Class A Unit (converted to U.S. dollars at the Reference Exchange Rate on the Monthly Redemption Date).

Any unpaid distribution payable on or before the applicable Redemption Date in respect of Units tendered for redemption on such Redemption Date will also be paid on the applicable Redemption Payment Date.


Class U Conversion

A holder of Class U Units may convert such Class U Units into Class A Units on a weekly basis for liquidity purposes. It is expected that liquidity for the Class U Units will be obtained primarily by means of conversion into Class A Units and the sale of such Class A Units on the stock exchange. Class U Units may be converted in any week on the first Business Day of such week (the “Conversion Date”) by delivering a notice to the Manager and surrendering such Class U Units by 3:00 p.m. (Toronto time) at least five Business Days prior to the applicable Conversion Date.

For each Class U Unit so converted, a holder will receive that number of Class A Units equal to the Net Asset Value per Class U Unit as at the close of trading on the Business Day immediately preceding the Conversion Date divided by the Net Asset Value per Class A Unit as at such time. As the Units are denominated in different currencies, the Fund will utilize the applicable Reference Exchange Rate, or as nearly as practicable to, the Conversion Date. No fraction of a Class A Unit will be issued upon any conversion of Class U Units and any fractional amounts will be rounded down to the nearest whole number of Class A Units.

Leverage

The Fund will not employ leverage.

Termination

There is no fixed termination date as Class A units may be sold daily on the TSX or redeemed annually at net asset value per unit, while Class U units are convertible into Class A units on a weekly basis.

CUSIP ISIN

Class A

	CUSIP – 62900D102
	ISIN - CA 62900D1024

Class U

	CUSIP – 62900D110
	ISIN – CA 62900D1107

Eligibility

RRSPs, DPSPs, RRIFs, RESPs and TFSAs

Management Fees

The Fund pays a management fee of 1.0% of net asset value annually to Strathbridge Asset Management for acting as the Manager and the Investment Manager.

MER

The Fund’s Management Expense Ratio (“MER”) is the sum of all operating expenses, including management and service fees but excluding portfolio transaction costs, expressed as percentage of average net asset value.

Inception Date

12/19/2013

Manager

Strathbridge Asset Management

Hedging

The Fund may hedge its U.S. currency exposure on the Class A units back to the Canadian dollar at the discretion of the Manager.

 

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