We manage the Fund to produce a mix of income and capital gains, while minimizing volatility.

Cowan Income Opportunities Fund

The Cowan Income Opportunities Fund is a fixed-income focused portfolio that invests in North American securities such as government debt, corporate bonds, high-yield bonds, preferred shares, and convertible debt.

Long-Term Investment Fund

We conduct fundamental, bottom-up credit analysis to identify mispriced, income-producing securities. When we purchase a security, our aim is to hold it until maturity. Our strategy is not to trade the Income Opportunities Fund’s holdings actively. We project each security issuer’s cash flows over an entire business cycle to check that the stream of income we are buying is solid. We consider whether a security’s total return is adequate based on these projections; we don’t try to make macroeconomic bets.

The Income Opportunities Fund's goal is to generate a long-term return greater than inflation while realizing lower volatility than an equity fund.

We look for companies with strong balance sheets and sustainable cash flows. All of our investments must incorporate a margin of safety. This applies to both the issuer’s ability to make its payments plus the price we are paying for these fixed-income securities.

Income Opportunities Fund Fees

Our relationship with Princeton Holdings Limited allows us to pass on economies of scale savings to our private clients. We understand the impact that fees can have on long-term returns, especially in today’s low-rate environment. We are committed to charging fees that are fair, to help give clients confidence that they are getting good value from their investment manager.

Performance Fee

The Income Opportunities Fund charges no performance fee.

Management Fee

Cowan Asset Management charges a management fee at the account level. It is calculated as a percentage of the assets under management in each account. For example, if the value of an account was $500,000, and the management fee was 1.00%, then a fee of $5,000 per year would be charged.

Performance

Ultimately, we want to generate attractive investment returns for our clients. Some investors believe the best way to predict the future returns of potential investments is to look at their historical returns. We disagree. We believe this is an example of outcome bias: evaluating the quality of a decision once the outcome of the decision is already known.

Instead, we believe that the best way to predict future returns of potential investments is to evaluate their fundamentals. This relates to the asset manager’s investment approach: whether it is repeatable over the long-term, not whether it has had success over the short-term.

We will never chase performance by adding securities to our portfolios solely because they have been successful recently. That is why we only partner with clients who believe in our fundamental investment approach – not those who are simply focused on chasing performance.

RSP Eligible

Yes

NAV Pricing Frequency

Monthly – last business day of each month.

Service Partners

We have partnered with industry leaders in the administration of the Cowan Income Opportunities Fund to help ensure that our clients enjoy the highest level of service from some of the most respected organizations in the industry.

Legal Counsel

Osler, Hoskin & Harcourt LLP

Trustee/Fund Custodian

CIBC Mellon Trust Company

Individual Account Custodian

National Bank Independent Network

Auditors

Ernst & Young LLP