Cowan Absolute Return Fund
Cowan Asset Management offers the Cowan Absolute Return Fund for clients who are seeking to increase their purchasing power over the long-term while making capital preservation the top priority.
The fund invests in a collection of equities plus securities that offer equity-like returns. We purchase securities that we believe offer attractive risk/reward characteristics on an after-tax basis. The portfolio generally holds a concentrated selection of securities that are purchased at a price below estimated intrinsic value. We are steadfast in the view that purchases must incorporate a margin of safety – the difference between our purchase price and the estimated intrinsic value of the security. This approach has traditionally been considered fundamental value investing. We buy securities with the view that the gap between our purchase price and the intrinsic value will be closed within three to five years.
We will look across companies’ entire capital structures – equity, debt, and preferred shares – for investment opportunities. The fund can invest in any industry or geography worldwide. This approach allows us the flexibility to have a portfolio of only our best ideas. We use a disciplined, bottom-up process with the aim of generating superior returns while exposing investors to low risk. We strive to have a low portfolio turnover that allows us to increase the after-tax efficiency of the fund.
As a result of our unique relationship with Princeton Holdings Limited, we are in a position to pass on economies of scale savings and charge fees that are fair to clients. The management fee is charged at the account level for our clients. The Absolute Return Fund's performance fee is charged at an annual rate of 5.00% of the gains the fund generates and is paid only if the high-water mark has been exceeded. Other costs related to custodial duties, brokerage fees, and HST are also subtracted from the fund’s assets; these costs vary and depend on a number of factors such as the volume of security transactions that are undertaken by the fund.
Additional information about the fees charged by the Cowan Absolute Return Fund plus an explanation of these terms can be found on the Fees section of this site.
NAV Pricing Frequency
Monthly – last business day of each month.
Cowan Asset Management has partnered with industry leaders in the administration of the Cowan Absolute Return Fund in order to 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 Correspondent Network
- Ernst & Young LLP