FUNDS Hesperian Capital Management Ltd. MONTHLY FUND SUMMARIES SEPTEMBER 30, 2013 Norrep Fund Norrep II Class Norrep All Cap Quant Class Norrep Income Growth Class Norrep Global Class Norrep Energy Class Norrep Entrepreneurs Class Norrep Market Neutral Income Fund www.norrep.com | 877.431.1407 Norrep Global Income Growth Class Norrep Tactical Opportunities Class Norrep High Yield Class Norrep Short Term Income Fund Norrep US Dividend Plus Class
Transcript
FUNDSHesperian Capital Management Ltd.
Monthly Fund SuMMarieSSeptember 30, 2013
Norrep Fund
Norrep II Class
Norrep All Cap Quant Class
Norrep Income Growth Class
Norrep Global Class
Norrep Energy Class
Norrep Entrepreneurs Class
Norrep Market Neutral Income Fund
www.norrep.com | 877.431.1407
Norrep Global Income Growth Class
Norrep Tactical Opportunities Class
Norrep High Yield Class
Norrep Short Term Income Fund
Norrep US Dividend Plus Class
1.877.431.1407www.norrep.com
CAPPEDNAV/Unit: $34.89
*Annualized
Performance
Five-Year Metrics^Beta Correlation R-Squared Standard
Deviation
0.85 0.91 83 22.9% ^ See glossary below
Up Months 4.8% average return in up months
Down Months -5.0% average return in down months
128
68
The fund invests primarily in small and mid cap Canadian equities using a proven and repeatable value methodology. The portfolio management team selects equities generating earnings growth, cash flow growth, and high returns on equity that are reasonably valued in regards to the historical norms for the equity, the sector, and the broad market. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams, clean balance sheets, and strengthening competitive positions in their industry. The fund is most suited to investors with an above average tolerance for volatility and a desire for long-term capital appreciation as an important component of their portfolio.
Norrep FundMonthly Fund Summary as at September 30, 2013
Profit from Hesperian’s proven and repeatable value methodology to make active management count
A well-managed small/mid cap equity fund has historically added tremendous long-term value
Risk is managed by building and maintaining specialist in-house small/mid cap equity expertise
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
$0
$25,000
$50,000
$75,000
$100,000
$125,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Value of $10,000 Invested in the Norrep Fund at Inception
CAPPED
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Code NRP 101
Net Assets $106.0 million
Inception May 31,1997
CIFSC Category
Canadian small/mid cap equity
ManagementFee
2.00%
Benchmark Index
BMO Small Cap Equity Only Weighted Total Return Index
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
Baytex Energy Corp. Descartes Systems Group Inc.
Black Diamond Group Limited Linamar Corporation
COM DEV International Ltd. Peyto Exploration & Development Corp.
Computer Modelling Group Ltd. Stella-Jones Inc.
Corus Entertainment Inc. TransForce Inc.
Top Ten Holdings Listed Alphabetically as at August 31, 2013*
Source: CPMS (of covered securities) 1BMO Small Cap Equity Only Weighted Total Return Index
* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largestpositions generally comprise 40-50% of the portfolio and are reported on a one-month lag to preserve the portfoliomanager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.
0
10
20
30
40
50
60
70
80
Worse than -5% -5% to Zero Zero to 5% Better than 5%
27
41
78
50
Distribution of Monthly Returns Since Inception
Norrep Fund
Distribution of Monthly Returns Since Inception
Energy (14.8%)
Basic Materials (12.9%)
Industrials (17.3%)
Consumer Discretionary (14.7%)
Healthcare (2.8%)
Financials (6.6%)
Information Technology (11.8%)
Net Cash (19.1%)
1.877.431.1407www.norrep.com
NAV/Share: MF Series $36.57 F Series $40.07
*Annualized, ^ F Series inception Jan 31/05
Performance
Five-Year Metrics^Beta Correlation R-Squared Standard
Deviation
0.89 0.93 87 23.3%^ See glossary below
Up Months 4.3% average return in up months
Down Months -4.5% average return in down months48
The fund invests primarily in small and mid cap Canadian equities using a proven and repeatable value methodology. The portfolio management team selects equities generating earnings growth, cash flow growth, and high returns on equity that are reasonably valued in regards to the historical norms for the equity, the sector, and the broad market. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams, clean balance sheets, and strengthening competitive positions in their industry. The fund is most suited to investors with an above average tolerance for volatility and a desire for long-term capital appreciation as an important component of a diversified portfolio.
Norrep II ClassMonthly Fund Summary as at September 30, 2013
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
Profit from Hesperian’s proven and repeatable value methodology to make active management count
A well-managed small/mid cap equity fund has historically added tremendous long-term value
Risk is managed by building and maintaining specialist in-house small/mid cap equity expertise
96
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Codes NRP 200 (F)NRP 201 (FE)NRP 202 (LSC)
Net Assets $167.7 million
Inception September 30, 2001
CIFSC Category
Canadian small/mid cap equity
ManagementFee (MF Series)
2.00%*
Benchmark Index
BMO Small Cap Equity Only Weighted Total Return Index
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
*Does not include performance bonus.
Baytex Energy Corp. Descartes Systems Group Inc.
Black Diamond Group Limited Intertape Polymer Group Inc.
COM DEV International Ltd. Linamar Corporation
Computer Modelling Group Ltd. Stella-Jones Inc.
Corus Entertainment Inc. TransForce Inc.
Top Ten Holdings Listed Alphabetically as at August 31, 2013*
Source: CPMS (of covered securities) 1BMO Small Cap Equity Only Weighted Total Return Index
* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largestpositions generally comprise 40-50% of the portfolio and are reported on a one-month lag to preserve the portfoliomanager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.
Distribution of Monthly Returns Since Inception
0
10
20
30
40
50
60
70
Worse than -5% -5% to Zero Zero to 5% Better than 5%
MF Series 9.4% 33.4% 16.9% 6.1% -44.0% 30.8% 15.3%
Five-Year Metrics^Beta Correlation R-Squared Standard
Deviation
0.96 0.95 106 16.7% ^ See glossary below
Up Months 3.3% average return in up months
Down Months -4.1% average return in down months
70
44
The fund invests in Canadian equities using a proprietary quantitative methodology driven by value and momentum metrics. After extensive quantitative screening, the portfolio management team selects a logical and disciplined portfolio of equities exhibiting earnings momentum, price momentum, low debt, and high returns on equity with a reasonable valuation in regards to the historical norms for the equity, the sector, and the broad market. In applying the quantitative methodology, the fund is nimble in adjusting positions as the metrics change. The fund is most suited to investors with an average tolerance for volatility and a desire for long-term capital appreciation as an important component of a diversified portfolio.
Norrep All Cap Quant ClassMonthly Fund Summary as at September 30, 2013
Offers investors valuable diversification for their Canadian equity allocation as the fund’s active share vs. index is high
Canadian equity fund applying a quantitative methodology to invest in companies with strong value and momentum metrics
Investors gain exposure to a portfolio of low multiple stocks with high growth, low debt, and strong momentum
$5,000
$10,000
$15,000
$20,000
$25,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Value of $10,000 Invested in the Norrep All Cap Quant Class at Inception
MF Series 2.6% 8.3% 6.9% 11.6% 13.5% 4.0% 2.8% 4.6%
F Series^ 2.7% 8.6% 7.5% 12.4% 14.6% 5.1% 4.0% 4.2%
*Annualized ^F Series inception March 23, 2005
12004 return begins with March 31 inception
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
2011 2012
MF Series -13.0% 3.2%
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Codes NRP300 (F)NRP301 (FE)NRP302 (LSC)
Net Assets $17.0 million
Inception March 31, 2004
CIFSC Category
Canadian Equity
ManagementFee (MF Series)
2.00%*
Benchmark Index
S&P/TSX Total Return Index
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
*Does not include performance bonus.
Canadian Imperial Bank of Commerce Power Financial Corporation
First National Financial Corp. Royal Bank of Canada
Great-West Lifeco Inc. Suncor Energy Inc.
National Bank of Canada Toronto-Dominion Bank
Nevsun Resources Ltd. Whitecap Resources Inc.
Top Ten Holdings Listed Alphabetically as at August 31, 2013*
Norrep All Cap Quant 13.4x 19.4% 8.2% 4.0% 0.71Index1 15.7x 14.5% 2.1% 3.1% 0.43Advantage 2.3x 4.9% 6.1% 0.9% 0.28
Equity Portfolio Attributes
Source: CPMS (of covered securities) 1S&P/TSX Total Return Index
* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largest positions are reported on a one-month lag to preserve the portfolio manager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.
F Series 3.2% 6.5% 5.5% 10.2% 10.7% 13.0% 14.1% 11.1%
NAV/Share: B Series $13.04 MF Series $13.18 F Series $14.06
*Annualized
Performance
2006 2007 2008 2009 2010 2011 2012
MF Series 13.8% 19.6% -33.6% 42.3% 32.6% 2.2% 12.6%
Five-Year Metrics (MF Series)^ Beta Correlation R-Squared Standard Deviation
0.93 0.89 80 16.8% ^ See glossary below
Up Months 3.4% average return in up months
Down Months -3.6% average return in down months
60
33
The fund invests primarily in dividend-paying small and mid cap Canadian equities with a minimum 10% weight in high yield fixed income. The portfolio manager selects equities generating earnings growth, cash flow growth, and high returns on equity that are reasonably valued and offer a high dividend yield. By targeting companies that pay out a low percentage of their earnings, yield stability is increased. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams, clean balance sheets, and strengthening competitive positions in their industry. The fund is most suited to investors requiring a high, stable tax-advantaged yield paid monthly with long-term growth upside from participation in the Canadian equity market.
Norrep Income Growth ClassMonthly Fund Summary as at September 30, 2013
To strengthen after-tax returns, investors receive a stable $0.06/share monthly tax-advantaged distribution ($0.72 annualized)
Canadian equity balanced fund investing primarily in small and mid cap dividend-paying equities with minimum 10% in fixed income
Over and above the yield, investors retain upside participation in the long-term growth of Canada’s equity market
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
� MF Series performance is for fund codes NRP 501 (Front End) and NRP 502 (Low Load). These codes closed to new investors in July 2011. B Series NRP 503 (Front End) and NRP 504 (Low Load) is open for purchase.
2 The MF Series is closed to new investors (the B Series is available for purchase). MF Series performance is shown as it has a longer term track record utilizing the same fund mandate and proven and repeatable investment methodology.
$0
$5,000
$10,000
$15,000
$20,000
$25,000
2006 2007 2008 2009 2010 2011 2012 2013
Value of $10,000 Invested in Norrep Income Growth (MF Series) at Inception2
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Codes NRP500 (F) NRP503 (FE) NRP504 (LSC)
Net Assets $133.0 million
Inception December 31, 2005^
CIFSC Category
Canadian Equity Balanced
ManagementFee (B Series)
2.00%*
Benchmark Index
75% S&P/TSX Total Return Index
25% DEX Universe Bond Index
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
^MF Series – B Series inception as at June 30, 2011 *Does not include performance bonus.
Badger Daylighting Ltd. Gamehost Inc.
Baytex Energy Corp. Peyto Exploration & Development Corp.
Black Diamond Group Ltd. The Royal Bank of Canada
Boyd Group Income Fund SIR Royalty Income Fund
Canaccord Financial Inc. Whitecap Resources Inc.
Top Ten Holdings Listed Alphabetically as at August 31, 2013*
* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largestpositions generally comprise 40-50% of the portfolio and are reported on a one-month lag to preserve the portfoliomanager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.
Distribution of MF Series Monthly Returns Since Inception
Energy (17.2%)Basic Materials (6.4%)Industrials (23.3%)Consumer Discretionary (20.4%)Financials (16.4%)Fixed Income (12.8%)Net Cash (3.5%)
Common Stock (83.7%)
Bonds (12.8%)
Cash (3.5%)
0
5
10
15
20
25
30
35
40
45
50
Worse than -5% -5% to Zero Zero to 5% Better than 5%
9
24
47
13
Distribution of Monthly Returns Since Inception
Income Growth - MF
1.877.431.1407www.norrep.com
NAV/Share: MF Series $10.73 F Series $11.67
*Annualized
Performance
2006^ 2007 2008 2009 2010 2011 2012
MF Series 13.1% -9.4% -34.9% 12.4% 24.1% -16.7% 14.3%
Five-Year Metrics^Beta Correlation R-Squared Standard
Deviation
1.00 0.94 83 19.9% ^ See glossary below
Up Months 3.6% average return in up months
Down Months -4.3% average return in down months
50
38
The fund invests primarily in small and mid cap global equities using a proven and repeatable value methodology. The portfolio management team selects equities generating earnings growth, cash flow growth, and high returns on equity that are reasonably valued in regards to the historical norms for the equity, the sector, and the broad market. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams, clean balance sheets, and strengthening competitive positions in their industry. The fund is most suited to investors with an above average tolerance for volatility and a desire for long-term capital appreciation as an important component of a diversified portfolio.
Norrep Global ClassMonthly Fund Summary as at September 30, 2013
Small/mid cap inefficiency is not limited to Canada and investors gain diversification into the other 95% of the world’s markets
Global small/mid cap equity fund accessing attractive global growth companies with reasonable valuations
Investors benefit from the fund’s focus on the “price of growth” to ensure that global growth is obtained at a reasonable price
MF Series 5.3% 10.4% 9.0% 21.2% 25.6% 8.6% 6.5% 1.0%
F Series 5.4% 10.5% 9.4% 21.9% 26.8% 9.6% 7.7% 2.1%
^ 2006 return begins with May 31 inception
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2007 2008 2009 2010 2011 2012 2013
Value of $10,000 Invested in the Norrep Global Class at Inception
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Codes NRP400 (F)NRP401 (FE)NRP402 (LSC)
Net Assets $33.5 million
Inception May 31, 2006
CIFSC Category
Global small/mid cap equity
ManagementFee (MF Series)
2.00%*
Benchmark Index
S&P Developed Small Cap Total Return Index
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
*Does not include performance bonus.
Brinker International Inc. Nokian Renkaat Oyj
First Pacific Company Limited PHI Inc.
General Mills Inc. TIBCO Software Inc.
Ingenico Ltd. The Timken Company
Koninklijke KPN N.V. GERRY WEBER International AG
Top Ten Holdings Listed Alphabetically as at August 31, 2013*
Portfolio Weightings
Current Year P/E Current Year ROE Current Year EV/EBITDA Current Year D/E
Source: Capital IQ 1S&P Developed Small Cap Total Return Index
* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largestpositions generally comprise 40-50% of the portfolio and are reported on a one-month lag to preserve the portfoliomanager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.
Distribution of Monthly Returns Since Inception
Geo
grap
hic
Sect
or
0
5
10
15
20
25
30
35
Worse than -5% -5% to Zero Zero to 5% Better than 5%
Europe (38.7%)North America (46.8%)Asia Pacific (ex. Japan) (14.5%)Japan (0.0%)
1.877.431.1407www.norrep.com
NAV/Share: MF Series $18.45 F Series $19.33
*Annualized
Performance
2009^ 2010 2011 2012
MF Series 35.1% 27.7% -5.6% -0.9%
Since Inception Metrics^Beta Correlation R-Squared Standard
Deviation
0.92 0.85 73 18.8%^ See glossary below
Up Months 4.9% average return in up months
Down Months -4.0% average return in down months
31
21
The fund invests primarily in equities of all market capitalizations in Canada’s energy sector using a value methodology commonly referred to as “growth at a reasonable price.” The portfolio management team selects equities with a high potential for share price appreciation that can be realized from a revaluation of the company, growth from developing a resource prospect, and/or exposure to rising commodity prices. Companies in the portfolio tend to have high quality management teams, trade below intrinsic value or at a discount to peers, and have above average growth prospects. The fund is most suited to investors with an above average tolerance for volatility and a desire for long-term capital appreciation as an important component of a diversified portfolio.
Norrep Energy ClassMonthly Fund Summary as at September 30, 2013
Investors gain a specialist Calgary-based portfolio management team with strong relationships in the core of Canada’s energy industry
Natural resources equity fund investing primarily in Canadian energy equities of all capitalizations
Investors obtain exposure to Canada’s energy -- large reserves, low geopolitical risk, and a fast-growing production profile
MF Series 2.6% 7.8% 9.0% 14.3% 16.4% 14.0% 10.7% 15.2%
F Series 2.7% 8.1% 9.5% 15.1% 17.6% 15.2% 11.6% 16.4%
^ 2009 return begins with May 31 inception
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
$22,000
2009 2010 2011 2012 2013
Value of $10,000 Invested in Norrep Energy Class at Inception
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower standard deviation the closer the data points are to the mean.
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Codes NRP 700 (F)NRP 701 (FE)NRP 702 (LSC)
Net Assets $50.9 million
Inception May 31, 2009
CIFSC Category
Natural resources equity
ManagementFee (MF Series)
2.00%*
Benchmark Index
S&P/TSX Capped Energy Total Return Index
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
*Does not include performance bonus.
Cenovus Energy Inc Secure Energy Services Inc.
DeeThree Exploration Ltd. Surge Energy Inc.
Manitok Energy Inc. Vermilion Energy Inc.
Raging River Exploration Inc. Whitecap Resources Inc.
RMP Energy Inc. Yoho Resources Inc.
Top Ten Holdings Listed Alphabetically as at August 31, 2013*
Sector Weightings
Fund Index1
Market Cap - Median ($Mm) $719 $2,640
EV/EBITDA 6.1x 6.3x
Producers’ Production - Median (Boe/d) 6,715 52,093
Producers’ Gas Weighting (%) 37% 31%
Equity Portfolio Attributes
Source: Bloomberg, CanOils 1S&P/TSX Capped Energy Total Return Index
* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largestpositions generally comprise 40-50% of the portfolio and are reported on a one-month lag to preserve the portfoliomanager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.
Distribution of Monthly Returns Since Inception
Large Cap (6.5%)
Mid Cap (52.9%)
Small Cap (19.6%)
Net Cash (21.0%)
0
5
10
15
20
25
Worse than -5% -5% to Zero Zero to 5% Better than 5%
7
14
22
9
Distribution of Monthly Returns Since Inception
Norrep Energy - MF
1.877.431.1407www.norrep.com
NAV/Share: MF Series $18.15 F Series $18.85
*Annualized
Performance
2010^ 2011 2012
MF Series 25.5% -2.0% 22.5%
Since Inception Metrics^Beta Correlation R-Squared Standard
Deviation
0.84 0.91 83 14.2% ^ See glossary below
The fund applies the same proven and repeatable methodology as Norrep Fund (1997 inception) and Norrep II (2001 inception) to invest primarily in Canadian and global micro capitalization equities. The portfolio management team selects equities generating earnings growth, cash flow growth, and high returns on equity. The equities must be reasonably valued in regards to the historical norms for the equity, the sector, and the broad market. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams and strengthening competitive positions in their industry. The fund is most suited to investors with an above average tolerance for volatility and a desire for long-term capital appreciation as an important component of a diversified portfolio.
Norrep Entrepreneurs ClassMonthly Fund Summary as at September 30, 2013
Investors gain professionally-managed access to the 70% of the Canadian equity market largely ignored by investment funds
Specialist fund investing primarily in Canadian and global micro capitalization equities (<$250 million market capitalization)
Risk is managed with specialist in-house expertise and the deep due diligence required to excel in the inefficient micro cap equity space
MF Series 3.6% 9.9% 11.0% 20.4% 26.1% 25.9% 18.6% 19.6%
F Series 3.6% 10.1% 11.5% 21.3% 27.3% 26.9% 20.0% 20.9%
^ 2010 return begins with May 31 inception
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
Up Months 3.9% average return in up months
Down Months -2.8% average return in down months
26
14
$7,000
$9,000
$11,000
$13,000
$15,000
$17,000
$19,000
2010 2011 2012 2013
Value of $10,000 Invested in Norrep Entrepreneurs Class at Inception
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Codes NRP 900 (F)NRP 901 (FE)NRP 902 (LSC)
Net Assets $12.6 million
Inception May 31, 2010
CIFSC Category
Canadian small/mid cap equity
ManagementFee (MF Series)
2.00%*
Benchmark Index
70% BMO Small Cap Equity Only Weighted Total Return Index, 30% S&P Developed Small Cap Total Return Index
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
*Does not include performance bonus.
AKITA Drilling Ltd. Novik Inc.
AutoCanada Inc. Pollard Banknote Limited
Boyd Group Income Fund Trimac Transportation Ltd.
Exco Technologies Limited Western Forest Products Inc.
Hardwoods Distribution Inc. Zedi Inc.
Top Ten Holdings Listed Alphabetically as at August 31, 2013*
Source: CPMS (of covered securities) 170% BMO Small Cap Equity Only Weighted Total Return Index, 30% S&P Developed Small Cap Total Return Index
* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largestpositions generally comprise 40-50% of the portfolio and are reported on a one-month lag to preserve the portfoliomanager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.
Distribution of Monthly Returns Since Inception
0
2
4
6
8
10
12
14
16
18
20
Worse than -5% -5% to Zero Zero to 5% Better than 5%
3
11
20
6
Energy (18.9%)
Basic Materials (6.9%)
Industrials (26.3%)
Consumer Discretionary (23.1%)
Consumer Staples (1.2%)
Financials (7.3%)
Information Technology (7.8%)
Net Cash (8.5%)
1.877.431.1407www.norrep.com
NAV/Share: Class A $11.06 Class F $11.38
Performance
What is the Norrep Market Neutral Income Fund?The fund’s objective is to eliminate the risk associated with directional moves in the stock market through a balance of long and short security positions. This investment style tends to outperform the equity markets when they are down or flat and tends to underperform in strong bull equity markets (although still providing a positive return). Returns of a market neutral fund reflect the difference between the long positions and the short positions regardless of market direction. Norrep has added an additional element to the traditional market neutral fund by introducing a distribution greater than the yield of the current five year Government of Canada note.
For each dollar invested in the Norrep Market Neutral Income Fund, the investor will own approximately $1 in a passively managed investment-grade corporate bond portfolio, $1 of a short portfolio of Canadian-listed securities and $1 of a long portfolio of Canadian-listed securities.
Norrep Market Neutral Income FundMonthly Fund Summary as at September 30, 2013
Low volatility fund with returns uncorrelated to the market
Opportunity to attain positive returns regardless of market direction
Earn a 4.0%* yield with downside protection
1 month 3 month 6 month YTD 1 year 2 year Inception*
Class A -1.0% -1.5% -0.6% 3.1% 2.0% 5.7% 7.9%
Class F -0.9% -1.2% -0.1% 3.8% 3.0% 6.7% 8.9%
*Annualized
S&P/TSX Return Norrep Market Neutral Income Return
The S&P/TSX experienced significant daily losses of more than -2.5% eight times since the Norrep Market Neutral Income Fund’s inception. The fund achieved positive returns on each of these days.
*Based on December 31, 2012 unit value
$8,000.00
$9,000.00
$10,000.00
$11,000.00
$12,000.00
$13,000.00
$14,000.00
2011 2012 2013
Value of $10,000 Invested in the Norrep Market Neutral Income at Inception
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Market Neutral Income Fund offering documents before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice. * See Offering Memorandum for complete list of exemptions.
Fund Codes NRP3100 (F)NRP3101 (A)
Net Assets $37.6 million
Inception Dec 31, 2010
Classification Canadian MarketNeutral
Management Fee
0.9% (F)1.9% (A)
Capped MER 2.25% excludingperformance bonus and taxes
Yield* 4.0%
2013 Paid Distributions
$0.33
2012 Paid Distributions
$0.40
2011 Paid Distributions
$0.45
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
Prime Broker Scotia Capital Inc.*Paid quarterly, based on December 31, 2012 unit value
Sold under the Accredited Investor Offering Memorandum and minimum purchase ($150,000) exemptions.*
The fund invests primarily in dividend-paying global equities of all market capitalizations with a minimum 10% weight in fixed income. The portfolio manager mainly selects equities generating earnings growth, cash flow growth, and high returns on equity that are reasonably valued and offer a high dividend yield. By targeting companies that pay out a low percentage of their earnings, yield stability is increased. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams, clean balance sheets, and strengthening competitive positions in their industry. The fund is most suited to investors requiring a high, stable yield paid monthly with long-term growth upside and diversification from participation in the global equity market.
Norrep Global Income Growth ClassMonthly Fund Summary as at September 30, 2013
Canadian investors gain currency-hedged geographic and sector diversification into the other 95% of the world’s markets
Global equity balanced fund investing primarily in dividend-paying equities with a minimum 10% weight in fixed income
Over and above the stable $0.04 per share monthly yield, investors retain long-term growth upside in the global equity market
2013 Paid Distributions $0.36
2012 Paid Distributions $0.48
*Annualized
2011^ 2012
MF Series -9.7% 11.8%
Since Inception Metrics^Beta Correlation R-Squared Standard
Value of $10,000 Invested in Norrep Global Income Growth at Inception
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Codes NRP1000 (F) NRP1001 (FE) NRP1002 (LSC)
Net Assets $37.4 million
Inception May 31, 2011
CIFSC Category
Global equity balanced
ManagementFee (MF Series)
2.00%*
Benchmark Index
75% MSCI World Index and 25% DEX Universe Bond Index
Top Ten Holdings Listed Alphabetically as at August 31, 2013*
Sect
ors
Portfolio Weightings
Current Year P/E Current Year ROE Current Year EV/EBITDA Current Year D/E Yield
15.8x 19.8% 9.5x 0.95 4.5%
Equity Portfolio Attributes
Source: Capital IQ
Com
posi
tion
* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largestpositions generally comprise 40-50% of the portfolio and are reported on a one-month lag to preserve the portfoliomanager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.
Geo
grap
hic
Distribution of Monthly Returns Since Inception
0
2
4
6
8
10
12
14
16
18
Worse than -5% -5% to Zero Zero to 5% Better than 5%
2
7
17
2
Norrep Global IG -MF
Common Stock (80.2%)
Bonds (15.6%)
Cash (4.2%)
Energy (2.3%)Basic Materials (2.0%)Industrials (17.2%)Consumer Discretionary (12.7%)Consumer Staples (8.1%)Healthcare (8.7%)Financials (25.0%)Information Technology (4.2%)Fixed Income (15.6%)Net Cash (4.2%)
1.877.431.1407www.norrep.com
NAV/Share: MF Series $12.52 F Series $12.76
*Annualized.
Performance
2011^ 2012
MF Series 3.3% 9.8%
Since Inception Metrics^Beta Correlation R-Squared Standard
Deviation
1.59 0.72 55 13.9% ^ See glossary below
Up Months 4.2% average return in up months
Down Months -2.0% average return in down months
14
10
The fund invests ~75% of its portfolio in income-producing securities to generate a 4% targeted annualized distribution paid to investors quarterly. The distribution is made in a tax-advantaged form to increase after tax return. The remaining ~25% focuses on high value, economically-sensitive equities with solid balance sheets and competitive metrics. Return potential is strengthened by a broad investment mandate allowing the fund to access securities offering the best value in Canada and abroad. The fund is best suited to investors with a high tolerance for volatility who are interested in an active investment approach that capitalizes on the changing macroeconomic environment.
Norrep Tactical Opportunities ClassMonthly Fund Summary as at September 30, 2013
1 month 3 month 6 month YTD 1 year 2 year Inception*
MF Series 3.1% 9.9% 10.8% 18.7% 27.4% 20.0% 15.7%
F Series 3.2% 9.6% 11.2% 19.4% 28.6% 21.1% 16.8%
^ 2011 return begins with September 16 inception. 1 Distribution of 1.0% per quarter.
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
Categorized as a tactical balanced fund with a broad mandate to invest in the best risk/reward opportunities in Canada and abroad
Investors benefit from a portfolio component of up to ten, heavily researched, contrarian ideas
Investors receive a shock absorber from the targeted 4% annualized tax-advantaged yield
2013 Paid Distributions $0.331
2012 Paid Distributions $0.42
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
$13,000
$14,000
$15,000
2012 2013
Value of $10,000 Invested in Norrep Tactical Opportunities at Inception
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Codes NRP1200 (F)NRP1201 (FE)NRP1202 (LSC)
Net Assets $84.1 million
Inception September 16, 2011
CIFSC Category
Tactical Balanced
ManagementFee (MF Series)
2.00%*
Benchmark Index
60% S&P/TSX TotalReturn Index, 20% Russell 3000 Index,20% DEX UniverseBond Index
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
*Does not include performance bonus.
Absolute Software Corporation H&R Real Estate Investment Trust
Canadian Imperial Bank of Commerce InnVest REIT
CIT Group Inc. Laurentian Bank of Canada
Crescent Point Energy Corp. SNC-Lavalin Group Inc.
Finning International Inc. Suncor Energy Inc.
Top Ten Holdings Listed Alphabetically as at August 31, 2013*
Portfolio Weightings
Equity Portfolio Attributes
Source: CPMS (of covered securities)
* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largestpositions generally comprise 40-50% of the portfolio and are reported on a one-month lag to preserve the portfoliomanager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.
Distribution of Monthly Returns Since Inception
0
1
2
3
4
5
6
7
8
9
10
Worse than -5% -5% to Zero Zero to 5% Better than 5%
1
9
10
4
Norrep Tactical -MF
Equi
ty S
ecto
rs
Com
posi
tion
Equities (66.9%)Fixed Income (12.9%)Cash (20.2%)
Energy (16.0%)Industrials (7.6%)Consumer Discretionary (-6.1%)Financials (43.6%)Information Technology (5.8%)Fixed Income (12.9%)Net Cash (20.2%)
The fund invests primarily in high yield corporate bonds and floating-rate senior secured loans to provide investors with a stable stream of monthly cash distributions. Distributions are paid in a tax-advantaged form to increase investors’ after tax return compared to heavily-taxed interest income distributions from traditional options. The fund may also invest in government bonds, investment grade corporate bonds, convertible bonds, and similar yield-paying securities. The portfolio manager selects securities based on top-down macroeconomic analysis blended with in-depth analysis of the issuer’s entire capital structure. The fund is most suited to investors requiring a high, stable yield paid monthly without sacrificing long-term capital gains potential.
Norrep High Yield ClassMonthly Fund Summary as at September 30, 2013
Capital gains potential over and above the stable stream of $0.06 per share monthly tax-advantaged distributions ($0.72 annualized)
Fixed income fund with a unique strategy of investing in both floating rate senior secured loans and high yield corporate bonds
Take advantage of an appealing risk reward environment where corporate default rates are at historical lows
2013 Paid Distributions $0.54
2012 Paid Distributions $0.72
NAV/Unit: MF Series $9.25 F Series $9.49
*Annualized
Performance
2011^ 2012
MF Series -1.5% 7.6%
Since Inception Metrics^Beta Correlation R-Squared Standard
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
$8,000
$9,000
$10,000
$11,000
$12,000
2012 2013
Value of $10,000 Invested in the Norrep High Yield Class at Inception
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Codes NRP800 (F)NRP801 (FE)NRP802 (LSC)
Net Assets $106.0 million
Inception May 31, 2011
CIFSC Category
High yield fixed income
ManagementFee (MF Series)
2.00%*
Benchmark Index
Merrill Lynch Canada High Yield Canadian Issuers Index
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
Portfolio Composition
Portfolio Attributes
Current Yield 7.9% Modified Duration 1.9 years
Yield to Maturity 7.6% Holdings 60
Spread 621 bps
Portfolio Ratings
Government bonds 0.0%
Investment grade bonds 0.0%
High yield bonds 45.5%
Senior loans 49.7%
Asset backed securities 0.0%
Net cash 4.8%
Short Positions 0.0%
Total 100.0%
0
5
10
15
20
25
Worse than -5% -5% to Zero Zero to 5% Better than 5%
0
6
22
0
Norrep High Yield- MF
Distribution of Monthly Returns Since Inception
*Does not include performance bonus.
BB (16.3%)
B (48.7%)
CCC (21.7%)
Not Rated (8.5%)
Net Cash (4.8%)
1.877.431.1407www.norrep.comNorrep Short Term Income
The fund is designed to provide unitholders with a portfolio of debt securities targeting a net 3% to 4% annualized yield and a duration below 3 years. The fund’s main objective is to achieve the target return while maintaining a high level of capital preservation and providing minimal unit price volatility. The portfolio will be invested across a wide variety of debt securities including government bonds, corporate bonds and floating rate senior secured loans. The portfolio manager selects securities by looking across the North American debt spectrum and investing in those that provide the best risk adjusted returns. This fund offers investors an alternative to other short-term income products such as government bonds which are currently generating yields near historical lows.
Norrep Short Term Income Fund Monthly Fund Summary as at September 30, 2013
2013 Paid Distributions $0.27
2012 Paid Distributions $0.36
NAV/Unit: MF Series $10.02 F Series $10.13
*Annualized
Performance
2011^ 2012
MF Series 0.7% 4.6%
Since Inception Metrics^Beta Correlation R-Squared Standard
Deviation
0.56 0.71 54 1.0% ^ See glossary below
Up Months 0.4% average return in up months
Down Months -0.8% average return in down months
23
1
1 month 3 month 6 month YTD 1 year Inception*
MF Series 0.3% 0.5% 0.6% 2.1% 3.5% 3.7%
F Series 0.3% 0.7% 0.9% 2.6% 4.1% 4.2%
^ 2011 return begins with September 16 inception
$9,000
$9,500
$10,000
$10,500
$11,000
2012 2013
Value of $10,000 Invested in Norrep Short Term Income Fund at Inception
Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
Fund pays a stable monthly distribution of $0.03 per unit
Fixed income fund investing in a wide range of debt securities that target a net 3% to 4% annualized return
Provides investors with a higher return than traditional short term income alternatives
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Norrep Short Term Income
Fund Codes NRP1100 (F) NRP1101 (FE)
Net Assets $68.6 million
Inception September 16, 2011
CIFSC Category
Miscellaneous - Income and Real Property
ManagementFee (MF Series)
1.25%
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
Portfolio Composition
Portfolio Attributes
Portfolio Ratings
0
5
10
15
20
25
Worse than -5% -5% to Zero Zero to 5% Better than 5%
01
23
0
Distribution of Monthly Returns Since Inception
Government bonds 0.0%
Investment grade bonds 9.4%
High yield bonds 35.9%
Senior loans 43.9%
Asset backed securities 1.5%
Net cash 9.3%
Total 100.0%
A (2.3%)
BBB (8.6%)
BB (38.8%)
B (35.6%)
Not Rated (5.4%)
Net Cash (9.3%)
Current Yield 5.5% Modified Duration 1.9 years
Yield to Maturity 5.2% Holdings 46
Spread 368 bps
1.877.431.1407www.norrep.com
NAV/Share: MF Series $12.37 F Series $13.42
*Annualized
Performance1
2006 2007 2008 2009 2010 2011 2012
MF Series 12.4% -15.6% -19.0% 6.3% 22.5% -12.3% 17.8%
Five-Year Metrics^Beta Correlation R-Squared Standard
Deviation
0.83 0.94 88 19.3% ^ See glossary below
Up Months 4.1% average return in up months
Down Months -4.6% average return in down months
53
40
The Fund seeks a balance of current income and long-term capital appreciation by investing in a diversified portfolio of primarily dividend-paying U.S. equities of all market capitalizations. Security selection follows a bottom-up approach combining aspects of both fundamental and quantitative analysis. Quantitative techniques help identify potentially attractive securities from a large investable universe based on a combination of attributes in areas such as valuation, growth, profitability, momentum and risk. Fundamental analysis incorporates careful company specific research - evaluating the financial condition, management and prospects of each company and its industry, in relation to the overall economy. The Fund is most suited to investors requiring stable monthly income with long-term growth upside from participation in the U.S. equity markets.
Norrep US Dividend Plus ClassMonthly Fund Summary as at September 30, 2013
Offering investors valuable diversification away from Resources into sectors not well represented in Canada
A core U.S. equity fund focusing primarily on dividend payers through a unique all-cap approach
Providing investors a stable $0.035/share monthly distribution with upside participation as the U.S. market continues to recover
MF Series 1.0% 2.0% 9.3% 22.4% 28.2% 13.4% 9.3% 3.1%
F Series 1.1% 2.1% 9.6% 23.0% 29.1% 14.4% 10.4% 4.2%
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
2006 2007 2008 2009 2010 2011 2012 2013
Value of $10,000 Invested in the Norrep US Dividend Plus Class at Inception
Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).
2013 Paid Distributions $0.280
1 On January 31, 2013, the investment objective of the Norrep US Class was changed from a focus on small and micro-capitalization U.S. equities to a broader mandate focused on dividend-paying U.S. equity securities of all capitalization. If the change had been in effect prior to January 31, 2013, the Fund’s performance could have been materially different. Also on this date, the Norrep US Class was renamed the Norrep US Dividend Plus Class and its benchmark was changed to the S&P 1500 Total Return Index in Local Currency.
1.877.431.1407www.norrep.com
The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.
Fund Codes NRP600 (F)NRP601 (FE)NRP602 (LSC)
Net Assets $8.3 million
Inception December 31, 2005^
CIFSC Category
US equity
ManagementFee (MF Series)
2.00%*
Benchmark Index
S&P Composite 1500 Total Return Index
Portfolio Manager
Hesperian Capital Management Ltd.
Auditor KPMG LLP
Custodian CIBC Mellon Trust Company
Transfer Agent and Registrar
CIBC Mellon Global Securities Services Company
^ The Norrep US Class mandate changed and the fund was renamed the Norrep US Dividend Plus Class on January 31, 2013.*Does not include performance bonus.
Cal-Maine Foods Inc. Occidental Petroleum Corporation
Cinemark Holdings, Inc. St. Jude Medical Inc.
FMC Corporation State Street Corporation
International Business Machines Corp Steris Corporation
Microsoft Corporation Texas Instruments Incorporated
Top Ten Holdings as at August 31, 2013*
Sector Weightings
Trailing P/E Current Year P/E Trailing ROE Trailing P/CF
Norrep US Dividend Plus Class 17.5x 16.2x 18.0% 11.3x
Equity Portfolio Attributes
Source: Capital IQ
* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largestpositions generally comprise 40-50% of the portfolio and are reported on a one-month lag to preserve the portfoliomanager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.
Worse than -5% -5% to Zero Zero to 5% Better than 5%
16
24
37
16
Distribution of Monthly Returns Since Inception
Benefits of norrep opportunities Corp.Norrep Opportunities Corp. is a multi-class corporation offering the benefit of tax-deferred switches between all open investment products under the Norrep Opportunities umbrella. All of the funds are rSp eligible and tFSA eligible.
The Norrep Market Neutral Income Fund resides outside of this corporate class structure and is available to accredited investors with a minimum investment of $5,000 or non-accredited investors with a $150,000 minimum investment by offering memorandum.
The Norrep Short Term Income Fund also resides outside the corporate class structure but is available to all investors for purchase with an initial minimum investment of $5,000 and subsequent purchases of $100. the same minimums apply to funds within the Corporate Class structure.
CONTACT US
Hesperian Capital Management Ltd. The Norrep Group of Funds
