The primary objective of the Acker Finley Select US Value 50 Fund is to generate strong capital growth over the long term by systematically investing in, and regularly rebalancing, a portfolio of the stocks we calculate to be the most undervalued in the S&P 500 index.
The strategy is bottom-up and active. Holdings are selected on individual merits, then objectively added or removed from the portfolio as prices and valuations change. The strategy invests in a portfolio of between 40 and 50 large-capitalization stocks.
- The investment process is based on stock prices’ tendency to mean revert over time – that is, to return ultimately to a valuation that is more in line with the stock’s fundamental worth. By systematically investing in the most undervalued stocks in the market, the fund can be positioned for maximum gains while reducing risk.
- The primary measure of value is the Model Price, Acker Finley’s proprietary measure of how much each stock is worth.
- Half of the fund’s assets are invested equally among the 40 stocks in the S&P 500 with the highest upside to Model Price. The other half is invested equally in the 10 stocks among the largest 100 in the S&P 500 that have the highest upside to Model Price.
- Holdings are refreshed and rebalanced monthly – to benefit from long-term increases in value as well as short- and medium-term mean reversion gains that add significantly to returns.
- For Canadian mutual fund investors, we fully hedge the US dollar exposure back to Canadian dollars. This provides the price performance of US stock holdings with little or no effect from currency fluctuations.
1 Units of the fund are available to residents of any province of Canada except for the provinces of Quebec and Newfoundland and Labrador. For investors who qualify under the Accredited Investor Exemption the minimum purchase is $500. For investors purchasing under the Minimum Amount Exemption (not available to individuals) the minimum is $150,000.
2 Sales charges are negotiated between you and your investment dealer. There is no sales fee for units purchased in accounts held at Acker Finley.