TORONTO, May 20, 2020 /CNW/ – Galileo Global Equity Advisors Inc. (“Galileo”), the trustee and manager of Galileo High Income Plus Fund (the “Fund”), today announced that it will be terminating the Fund effective on or about July 31, 2020. Galileo believes it is in the best interests of unitholders to terminate the Fund, as the Fund’s net asset value is insufficient to warrant the cost of continuing the administration of the Fund.
Effective immediately, units of the Fund are no longer available for purchase. Unitholders will continue to be able to redeem their units until the termination date, and any units of the Fund that have not been redeemed prior to the termination date will be automatically redeemed on the termination date.
As at May 15, 2020, the annual compounded return of the Fund since its inception on November 7, 2006 was 6.11% for Class A units and 7.30% for Class F units (source: Morningstar). According to Morningstar1, the Fund (based on Class F units) ranked first in its category, Canadian Small/Mid Cap equity for the year to date (January 1, 2020 to May 15, 2020). The Fund earned a five-star overall rating from Morningstar for the three-year period ending May 15, 2020, and a four-star overall rating from Morningstar for the five- and ten-year periods ending May 15, 2020.
Morningstar Star Ratings reflect performance of Class F units of the Fund as of May 15, 2020 and are subject to change monthly. The ratings are a purely quantitative measure of the Fund’s historical risk-adjusted performance relative to other funds in its category. Only funds with at least a three-year track record are considered. The overall star rating for the Fund is a weighted combination calculated from the Fund’s 3, 5, and 10-year returns. The 10% of funds in each category with the highest risk-adjusted return receive 5 stars, the next 22.5% receive 4 stars, the middle 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.
Following the termination of the Fund, Michael Waring will continue to serve as the President, Chief Executive Officer and Chief Compliance Officer of Galileo with overall responsibility for the investment management activities of Galileo, including its management of Galileo Technology and Blockchain LP. The termination of the Fund will have no material effect on the conduct of business of Galileo Technology and Blockchain LP.
Going forward, Michael Waring is very excited about the outlook of the Galileo Technology and Blockchain LP (the “LP”), which is available to accredited investors and other qualified purchasers pursuant to prospectus exemptions. The LP offers a unique strategy that allows unitholders to diversify away from their traditional holdings in order to seek better risk adjusted returns in their respective portfolios. As the portfolio manager of the LP, Michael will continue to seek small/mid-cap equities that are listed outside Canada or have operations outside Canada in an effort to invest in more attractive growth opportunities than available here at home. Michael notes that ”we come across many attractive small/mid-cap companies in the United States and South East Asia with very attractive growth prospects.” The LP will look to take advantage of the continuing growth in E-commerce, the roll-out of 5G cellular networks and the movement of data to the Cloud. Michael said that “in our view, this is a very powerful global growth trend that will only be accelerated by the working from home evolution and increased everything online.” The LP invests in equities and private investments abroad that retail investors in Canada do not easily have access to.
SOURCE Galileo Global Equity Advisors Inc.