Launches Canada's first and only family of "long/short" mutual funds and
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
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.
The Family also offers a variety of monthly tax-efficient income
options, as high as 9% annually. According to O'Brien, there is
generally no tax payable when monthly income is received.
"Often with income-producing products, payments you receive are taxed at
the highest tax rate. With the All-Weather Profit Family however,
monthly income distributions are expected to be in the form of
return-of-capital, which lowers your adjusted cost base. As such taxes
would generally not be payable when monthly income is received, but
payable if the funds are sold later at a profit or if your adjusted
cost base is at zero.", says O'Brien.
O'Brien added "With the market volatility that we have witnessed in the
past decade, the traditional model for portfolio construction needs to
be rethought. Holding solely long-only investments does not provide
investors with any portfolio protection as markets decline, let alone
an opportunity to profit."
To learn more about ONE Financial and its new All-Weather Profit Family
ABOUT ONE FINANCIAL
Since 2001, ONE Financial has been partnering with Canadian financial
advisors to provide unique and innovative investment products to
investors. Its products are designed to minimize risk while pursuing
high income and growth. Canadians have responded to the unique benefits
of ONE Financial's offering, and invested over $300 million under ONE
Financial's care. With over a decade-long track record of delivering
Canadian's first-to-market solutions, and a focus on downside
protection, ONE Financial's presence is strong and growing. ONE
Financial has offices located in Montreal and Vancouver, with its head
office located in Toronto.
This offering is only made by prospectus (the "Family's Prospectus").
The Family's Prospectus contains important detailed information about
the securities being offered. Copies of the Family's Prospectus may be
obtained from ONE Financial by calling 1-866- 360-7888 or visiting
onefinancial.com. An investment in the Funds or Protected Portfolios
(the "Share Classes"), or by means of the Wrap Portfolio Service, is
highly speculative and involves a high degree of risk, some not
traditionally associated with mutual funds. An investor may lose a
substantial portion or even all of the money that he or she invests.
Investors should read the Family's Prospectus before making an
investment decision, paying particular attention to the risks
associated therewith including: No Assurance of Achieving Investment,
Objectives/Suitability for Investment, Nonconventional Mutual Funds,
Limited Operating History, Reliance on ONE Financial, Conflicts of
Interest, and Investing in Derivatives.
This document should be read in conjunction with the Family's
Prospectus. In the event of any inconsistency between this document and
the Family's Prospectus, the Family's Prospectus shall govern. The
information herein, while obtained from sources believed to be
reliable, is not guaranteed as to its accuracy or completeness. This
document is for information only and does not constitute an offer to
sell or a solicitation to buy the securities referred to herein.
Certain statements included in this document constitute forward-looking
statements, and such statements may be identified by the expressions
"intend", "anticipate", "believe"," estimate", "deliver, "usually",
"objective", "expect", "forecast", "may"," will", "project", "should",
"outlook", "target", "pursue", "potential", "seek", and similar
expressions (including negative and grammatical variations) to the
extent they relate to the Funds, Protected Portfolios, Wrap Portfolios,
Investment Pools or ONE Financial. In addition, any statement that may
be made concerning the objectives, future performance, strategies and
possible future actions of a Fund, Wrap Portfolio, Protected Portfolio,
Investment Pool or ONE Financial is also forward-looking. Forward-
looking statements are not historical facts but reflect current
expectations or objectives regarding future results or events. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially
from those anticipated in the forward-looking statements. By their
nature, forward-looking statements require the applicable Share Classes
and ONE Financial to make assumptions about future events which
include, among other things, that the Share Classes will continue to
have sufficient assets under management to effect their investment
strategy, the investment strategy will produce the results intended by
the Share Classes, the markets will react and perform in a manner
consistent with the investment strategy and ONE Financial and the lead
portfolio manager continue to provide services to the Share Classes,
and the Investment Pools. The Share Classes and the Manager believe the
expectations reflected in forward-looking statements are reasonable.
However, none of the Share Classes nor the Manager can assure that
these expectations will prove to be correct, and an investor should not
unduly rely on forward-looking statements included in, or incorporated
by reference into, this document. These forward-looking statements
speak only as of the date of this document.
There can be no assurances that any Share Class will be able to maintain
its net asset value per Share at a constant amount or that the full
amount of an investor's investment in any Share Class will be returned
to them. Return-of capital distributions are not a rate of return.
Monthly distributions on all Series of Shares may generally be a return
of capital so long as there is sufficient capital attributable to the
relevant series, and may also include capital gains. An investor's
adjusted cost base will be reduced by the amount of any returns of
capital. Taxes are also payable on monthly distributions of
return-of-capital when received if an investor's adjusted cost base
(ACB) is zero. The distribution rate of 9% is calculated as a % of
average daily net asset value for each current month, and automatically
reinvested unless otherwise requested. A Share Class' current variable
distribution rate assumes that the fund has sufficient expected future
performance in the Fund Manager's current determination to maintain
sufficient assets to support such rate, which is therefore subject to
being lowered should the Fund Manager's determination change.
The information provided is general in nature and is provided with the
understanding that it may not be relied upon as, nor considered to be,
the rendering of tax, legal, accounting or professional advice. Readers
should consult with their own accountants and/or lawyers for advice on
their specific circumstances before taking any action. Commissions,
trailing commissions, management fees and expenses all may be
associated with an investment in the Share Classes individually or in
the Funds by way of the Wrap Portfolios. Please read the Family's
Prospectus before investing. The Share Classes are not guaranteed,
their values change frequently and past performance of any investment
described herein may not be repeated and is not indicative of the
future performance of the Share Classes.
The ONE Financial logo, All-Weather Profit Family logo, "ONE Financial",
"All-Weather Profit", "wealth through innovation", and "seek profits
from up and down markets" are trademarks of ONE Financial Corporation.
SOURCE: ONE Financial