Investment Objective
The investment objective of the Norrep Income Growth Class is to provide a stable stream of monthly cash distributions along with "measurably superior" long-term capital appreciation by investing in small and mid capitalization high-yield equities.
Small Cap Experts
Capitalizing on our proven track record as small cap experts, we focus on small and mid cap income trusts and dividend-paying equities. With the majority of income trusts qualifying as small and mid cap equities, this product applies our expertise to an underrepresented segment of the market. This income trust asse class continues to provide investors with one of the most favourable risk reward ratios.
Value Style Investment
We take a value approach to investing in income trusts and high-yield dividend paying equities. Our holdings tend to generate long-term earnings and cash flow growth, while having high returns on equity. Additionally, our companies must have a quality management team, a clean balance sheet, and a strong position in their respective industries. Fundamental analysis is supplemented with quantitative techniques, making it a unique and balanced portfolio. This focus on great portfolio metrics ensures a very attractive group of stocks in the Norrep Income Growth Fund.
Stable Monthly Cash Streams
We look for companies with growth potential that also happen to have a high dividend yield, rather than companies that pay a high yield and have few prospects for growth. As such, we target income trusts and equities with low payout ratios. This approach improves the likelihood of increased distributions and reduces the risk of potential distribution cuts in tough times.
*BMO research - September 2007 - As measured by Sharpe ratio.
Distribution Information
Eligible Dividend Designation
The Norrep Group of Funds advises that any dividends paid by Norrep Opportunities Corp. (NII Class, Norrep Q Class, Norrep Income Growth Class, Norrep US Class and Norrep G Class) are designated as eligible dividends" for Canadian Income Tax purposes, unless otherwise stated.
Current Year Distribution
The distribution noted to the left is the total distribution amount for the year. This distribution may consist of capital gains dividends and regular dividends. For the 2007 taxation year the distribution per share for the Norrep IG Class is comprised of the following: $0.54 capital gains dividend and $0.10 eligible dividend.
