CALGARY, ALBERTA--(Marketwired - April 14, 2014) - In keeping with Hesperian Capital Management Ltd.'s commitment to make performance its primary focus over asset gathering, we are pleased to announce the close of the Norrep Market Neutral Income Fund (the "Fund'), on April 30, 2014, to new investors. The Fund will remain open to existing investors.
Since the Fund's inception, we have promised our unit holders that we would cap the Fund at a level that we felt would not alter our investment strategy nor take away any investment opportunities. With current assets of approximately $80 million, we have decided to close the Fund to new investors in order to leave room for growth, as well as subsequent purchases by existing unit holders.
The Norrep Market Neutral Income Fund is designed to provide positive absolute returns, regardless of whether the market is up or down, through the pairing of long and short positions of stocks in the same sector and, in many cases, same sub-sector. The Fund is unique in that it is re-balanced daily to ensure that there is never any market exposure or sector exposure. The 4% tax-efficient dividend is another unique feature that we introduced to satisfy the need for income generation, which is important to investors today.
Since its inception on December 31, 2010, the Norrep Market Neutral Income Fund has been tested in both the weak markets of 2011 and the stronger markets of the past two years; however, it has still managed to exceed its target of 6% to 8% return per year with low volatility and no market correlation. More importantly, the Fund has been able to remain truly "market neutral" in every sense of the word, meaning that it has been able to provide positive returns regardless of the market direction, which is what this Fund was designed to do.
We appreciate the support of our unit holders and we look forward to continuing our quest of providing "sleep-at-night" returns to investors.
This press release is for information purposes only and is not a solicitation or offer to sell any securities in any jurisdiction where such solicitation or offer is not permitted by law. The Market Neutral Income Fund is only available to Canadian accredited investors or to residents of British Columbia, New Brunswick, Nova Scotia and Newfoundland and Labrador by offering memorandum.