Acorn Disciplined Core Fund

Acorn Disciplined Core Fund
June 30th, 2014
Objective and Strategy
The investment objective of the Fund is to preserve capital while offering a balanced and prudent source of long-term growth across market regimes.
Traditional and alternative sources of income and growth are used to meet the investment objective through conservative investments in a highly diversified
selection of global asset classes.
At each regular rebalance interval, the portfolio is re-constructed to deliver the maximum ratio of expected returns per unit of risk given the most up-todate information about a universe of 12 global asset classes. Returns are estimated from a combination of techniques, and portfolio weights are determined
in several different but equally effective ways in order to maximize diversification and enhance portfolio stability.
To preserve a steady risk profile, optimal portfolios are managed to a target annualized portfolio volatility of 8% by increasing and decreasing overall
portfolio exposure vs. cash. The fund is constrained to long positions only, and all returns are hedged back to Canadian dollars.
Monthly Performance
(November 2012 - April 2014 - see disclaimer)
Jan
-1.30%
0.14%
2014
2013
2012
Feb
1.05%
-0.02%
Mar
-0.36%
0.79%
Apr
0.15%
1.49%
May
0.46%
-3.05%
Jun
1.91%
-1.34%
Jul
Aug
Sep
Oct
Nov
Dec
-0.03%
-0.01%
-0.61%
-0.26%
0.91%
0.62%
0.89%
-0.18%
Year
1.74%
-1.18%
0.45%
Sector Returns for the Month
3%
2%
1%
0%
-1%
Gold
UK Stocks
European Stocks
Emerging Markets
Canadian Stocks
Gold
UK Stocks
European Stocks
Emerging Markets
Canadian Stocks
Commodities
Intermediate
Treasuries
Japanese Stocks
Japanese Stocks
Intermediate
Treasuries
Long Treasuries
Long Treasuries
Int'l Real Estate
US Stocks
US Stocks
Int'l Real Estate
US Real Estate
US Real Estate
-2%
Current Exposure
120%
100%
80%
60%
40%
20%
Monthly Commentary
Commodities
0%
Slight revisions were made to the asset allocation model in late spring and we introduced two new Series, Series A and Series F to the Core Fund. We are
pleased with the refinements as the fund is now up over 2% since early May. Our trade filter triggered one day prior to our normal trade schedule in response
to a breakout in Canadian stocks, which worked out well, and serves as strong real-time validation of some of the new techniques we bring to bear in this fund.
It's often said that the problem with diversification is that it works - whether you want it to or not. June served as a good example, with gains in Canadian and
US equity markets offset by small losses in U.S. long duration Treasury assets and neutral performance across US and international real estate positions.
European equities also acted as a small marginal positive over the month.
Volatility continues to contract across global assets and currency markets, supporting full exposure to risky assets in portfolios. Our research endorses the view
that the strongest gains in markets are generally coincident with stable, low volatility regimes, and that's precisely what we've seen over the past several weeks.
Of course, as Hyman Minsky would be quick to point out, the necessary progenitor of high volatility is low volatility, so we are forever vigilant.
Program Information
Liquidity:
Min Investment:
Management Fee:
Performance Fee:
Service Providers:
Daily
$10,000
1.95%
none
Admin:
Auditor:
Legal:
Brokers:
Contact Information:
CIBC Mellon
KPMG
Fasken Martineau
Interactive Brokers
Website:
Email:
Phone:
Fax:
www.acorn.ca
[email protected]
(905) 257-0773
(888) 582-7863
Disclaimer
*PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The Acorn Disciplined Core Fund is
managed by Acorn Global Investments Inc. The performance presented here accurately reflects the
actual net performance of Series X of the Acorn Disciplined Core Fund until April 2014, and Series A of
the Acorn Disciplined Core Fund thereafter. Records which document and support this performance
are available upon request. The information contained here, including estimates, is subject to change
without notice and Acorn Global Investments Inc. will not be held liable for any inaccuracies or
misprints. Important information about the Acorn Disciplined Core Fund including risks, objective,
strategy and fees is contained in the offering memorandum. This is not and may not be used as a
recommendation or a solicitation.
Relationship Disclosure Information
For your information, a copy of our Relationship Disclosure document is posted to the website. To
review this document, please click here:
www.acorn.ca/AcornRelationshipDisclosure.pdf

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