Toronto-based Ninepoint Partners LP has expanded its fund lineup with the launch of Sprott International Small Cap Fund and Sprott Concentrated Canadian Equity Fund.
Both funds will be available for purchase at the beginning of March.
Ninepoint assumed portfolio management of the Canadian diversified assets of Sprott Asset Management LP following a management-led buyout of the diversified asset business from Sprott Inc.
Sprott International Small Cap Fund will invest in a diverse range of sectors and industry groups across the globe, limiting currency and industry specific risks.
The fund will be subadvised by Montreal-based Global Alpha Capital Management, an affiliate of Connor, Clark and Lunn Financial Group (CC&L).
“This will be one of a few funds in Canada that offer investors true exposure to non-North American small cap equities managed by a team that has provided significant alpha in running this strategy,” says James Fox, managing partner, Ninepoint, in a statement.
“This strategy has been running for approximately 10 years with institutional capital and has performed well,” adds Robert Beauregard, Global Alpha’s chief investment officer.
With a target portfolio composed of 50-70 stocks spread out over a minimum of nine sectors and 18 industry groups, no single industry will account for more than 10% of the fund.
Sprott Concentrated Canadian Equity Fund will focus on a concentrated portfolio of select Canadian companies and will be subadvised by Toronto-based Scheer, Rowlett & Associates, another CC&L affilliate.
The fund will use a comprehensive investment process that includes value screens, discount verification, profit sustainability analysis and security valuation to build a concentrated portfolio. Positions that don’t meet a minimum return threshold (relative to their fair value) will be excluded from the fund.
“We’re excited to partner with Scheer, Rowlett & Associates to launch this new fund,” says John Wilson, managing partner, Ninepoint, in a statement.. “They have an experienced and stable investment team with over 20 years of experience managing Canadian equity funds.