January 2012
Investment Objective
The Alternative Growth Fund provides superior risk adjusted returns by delivering on three key objectives:
1. Protect capital in declining markets;
2. Generate a static return of 8-12% annually;
3. Provides participation in rising markets.
Strategy
McLean & Partners has partnered with Sherpa Asset Management (who specialize in alternative strategies) to offer this fund to our clients who are looking to diversify their portfolios. The fund invests in blue chip North American equities, listed primarily on the S&P 500 and S&P/TSX 60 Index. It also focuses on overlay option strategies and selects short positions to generate extra yield as well as to provide portfolio protection during market downturns.
Highlights
- Fund aims to provide lower downside relative to the market (in the 12 months from June 2008, Alternative Growth -6.0% vs. S&P 500 -34.4%)
- Fund aims to provide upside participation (2009 Alternative Growth 19.7% vs. S&P 500 23.5%)
- Fund hedges US Dollar exposure and maintains a US currency weighting in the 0-10% range
Monthly Performance
| 2012 | Jan-12 | Feb-12 | Mar-12 | Apr-12 | May-12 | Jun-12 | Jul-12 | Aug-12 | Sept-12 | Oct-12 | Nov-12 | Dec-12 | YTD | Inception** |
| McLean & Partners* | 2.27% | 2.27% | 17.68% | |||||||||||
| S&P 500*** | 3.21% | 3.21% | 2.59% | |||||||||||
| TSX*** | 4.37% | 4.37% | -5.68% |
| 2011 | Jan-11 | Feb-11 | Mar-11 | Apr-11 | May-11 | Jun-11 | Jul-11 | Aug-11 | Sept-11 | Oct-11 | Nov-11 | Dec-11 | 2011 |
| McLean & Partners* | 1.55% | 1.06% | 0.64% | 1.00% | 0.35% | -0.55% | -2.00% | -5.10% | -3.96% | 5.22% | 0.41% | 0.62% | -1.16% |
| S&P 500*** | 3.16% | -0.26% | 1.20% | 0.80% | 0.98% | -3.88% | -2.84% | -3.08% | 0.30% | 6.15% | 2.64% | 1.32% | 4.40% |
| TSX*** | 0.99% | 3.21% | 0.12% | -1.19% | -0.87% | -1.38% | -2.50% | -1.21% | -8.18% | 5.61% | 0.92% | -0.96% | -8.71% |
| 2010 | Jan-10 | Feb-10 | Mar-10 | Apr-10 | May-10 | Jun-10 | Jul-10 | Aug-10 | Sept-10 | Oct-10 | Nov-10 | Dec-10 | 2010 |
| McLean & Partners* | -0.44% | 2.57% | 2.16% | -0.14% | -3.78% | -0.80% | 4.02% | -0.59% | 3.64% | 1.86% | 0.54% | 2.79% | 12.15% |
| S&P 500*** | -2.68% | 0.82% | 2.27% | 1.64% | -4.89% | -2.38% | 3.98% | -0.95% | 3.60% | 2.96% | 1.05% | 2.21% | 8.33% |
| TSX*** | -5.35% | 2.90% | 2.93% | 0.64% | -3.47% | -2.13% | 3.96% | 1.90% | 3.30% | 2.68% | 2.46% | 2.52% | 17.62% |
| 2009 | Jan-09 | Feb-09 | Mar-09 | Apr-09 | May-09 | Jun-09 | Jul-09 | Aug-09 | Sept-09 | Oct-09 | Nov-09 | Dec-09 | 2009 |
| McLean & Partners* | -2.33% | -4.41% | 6.03% | 6.05% | 3.32% | 0.43% | 2.55% | 1.60% | 2.19% | -1.03% | 2.57% | 1.69% | 19.72% |
| S&P 500*** | -7.12% | -8.34% | 8.38% | 1.82% | -3.44% | 4.22% | 0.73% | 5.35% | 2.82% | 1.03% | 3.64% | 1.86% | 9.72% |
| TSX*** | -2.96% | -6.31% | 7.79% | 4.55% | 9.44% | -1.88% | 4.22% | 1.96% | 6.90% | -1.29% | 5.15% | 0.63% | 35.05% |
*For Class A Master Series Sherpa Diversified Returns Fund, gross of fees and expenses
**Since June 2008
***Source: Bloomberg in CAD Pricing
| 1. S&P 500 Index Securities | 6. Toronto Dominion Bank |
| 2. iShares S&P/TSX 60 Index Fund | 7. Energy Select SPDR ETF |
| 3. Canadian National Railway Co. | 8. Berkshire Hathaway Inc. |
| 4. Suncor Energy Inc. | 9. Teva Pharmaceutical |
| 5. iShares Russell 2000 Index | 10. General Electric Co. |
| Portfolio Manager: David Guarasci, CFA - Sherpa Asset Management |
| Legal Structure: Unit Trust |
| Redemption: Monthly |
| Unit Pricing: CAD |
| Prime Broker: Morgan Stanley, Royal Bank of Canada |
| Fund Administor: CIBC Mellon |
| Auditor: KPMG LLP |
| Legal: Norton Rose Group |
If you are interested in learning more about this fund, please contact
Russ MacKay at (403) 234-6103 or rmackay@mcleanpartners.com
Disclaimer: McLean & Partners provides independent research and advice to its clients on a fee for service basis. The company is not engaged in any investment banking, underwriting, consulting or financial services activities on behalf of any companies. McLean & Partners’ research reports are for the sole purpose of managing client portfolios on a managed and non-managed basis. The company may engage in proprietary trading to invest surplus corporate cash balances. The opinions expressed herein are those of the author and do not necessarily represent those of McLean & Partners Wealth Management Ltd. The information contained in this report has been obtained from sources believed to be reliable, however, we cannot represent that it is accurate or complete. McLean & Partners Wealth Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
