Mississauga, Ont.-based Excel Funds Management Inc. announced on Thursday the launch of its Excel Billionaire Leaders Fund (billionaires fund), which invests in companies that are owned by billionaires.
"The billionaires fund is the only fund of its kind available in Canada. We believe that billionaire-owned businesses have visionary leaders who have had great success in wealth creation," says Bhim Asdhir, president and CEO of Excel Funds, in a statement. "That's why I believe the Billionaires Fund will create wealth for our clients."
The fund will have a global mandate and will invest in 40 to 50 billionaire-owned companies that are seen to have a sustainable competitive advantage in their respective sectors. It will strive to preserve the wealth of its investors, with a focus on long-term capital appreciation. The fund will be managed by Excel Investment Counsel Inc. (EIC)
A billionaire at the head of the company is not the only requirement as the fund's portfolio management team has strict stock selection criteria concerning multiple factors. These include looking for businesses with free cash flow, superior earnings per share growth and solid financial productivity as measured by return on equity, return on assets and return on invested capital, says Christine Tan, senior portfolio manager at EIC, in a statement.