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Terms & Conditions

Disclaimer

Information about specific issuers of securities has been made available by Value Partners Investments Inc. for the sole purpose of providing additional background information on the holdings in the Value Partners Pool(s) and is not intended to be investment advice about the merits of investing directly in these issuers. This information is based on information that is publicly available or that has been provided to Value Partners Investments Inc. by the portfolio managers of the Pools.

The complete holdings of a Pool are disclosed in its Statement of Investment Portfolio semi-annually. On a quarterly basis, each Pool discloses its top 25 holdings in its Summary of Investment Portfolio. Both these documents are available on our website. Value Partners Investments Inc. is a registered investment fund manager and has engaged registered portfolio managers to make decisions about the investments made by each Pool – these investment decisions are not made by Value Partners Investments Inc.

The information provided does not constitute individual, legal, investment or tax advice about any of the Pools or the issuers discussed therein. Please consult your own legal, investment and/or tax advisor prior to making a decision to invest in the Pools. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts documents and the prospectus of the Pools before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Message from the President

Partners,

Your Wealth Continues To Grow Uninterrupted 

How can I make that statement after the worst day in the stock market in 80 years?

Because there is a difference between a business and a stock. The value of a business is determined by its assets (both hard assets like land, buildings, manufacturing equipment, etc. and soft assets like people, processes, patents, intellectual property, access to financing) and its ability to generate profit with those assets. In contrast, the value of a stock is simply the price a bidder and seller (knowledgeable or otherwise) agree to transact at.

Every business you are invested in through Value Partners has assets that would be considered desirable to any reasonable person and profits that are likely to continue and grow for decades to come. The Coronavirus is not the first global health scare to affect these businesses (think SARS, Avian Flu, Norwalk virus) and it is certainly not one of the largest challenges they have faced in their decades (or centuries) of successful operation through world wars, economic depressions and technological revolution.

Today’s Actions Determine Tomorrow’s Circumstances 

This is true in the context of investor behaviour (if you sell and lock in a 20% loss, and then wait for the recovery before deciding to become a business owner again, your results will be radically worse than the investor who continues to participate in the profits of the wonderful businesses they own, or, increases their ownership stake at lower prices) but it is also true in the context of the actions the businesses themselves take!

The Coronavirus will not change humans' desire to travel and experience our incredible planet. It will not change our need for financing of a new home or growth capital to expand our business. It will certainly not reduce businesses drive for improved efficiency and increasing demand for capturing and interpreting data to improve the customer experience. What it will do is temporarily affect daily activities, creating pent-up demand AND it will create opportunities for those best positioned to create a better future.

Opportunities From Adversity

  1. Banks and credit card companies benefit from a move to contactless payments – the Coronavirus highlights the health risk posed by cash (read on to find out how dirty cash is!) 

    WHO Urges Switch To Contactless To Slow Virus Transmission 

  2. United Parcel Service is the only global logistics company with drones equipped to deliver time-sensitive vaccines and approval from the Federal Aviation Authority to do it! 

    UPS Gets FAA Approval Tor Drone Airline
    UPS Delivers Time Sensitive Vaccines To Those In Need

  3. Streaming services poised to benefit from self-isolation. While Disney gets punished for closing their theme parks (a temporary situation) it will likely speed up trial and adoption of their streaming service (an ongoing subscription cashflow stream).

Government and Central Bank Actions 

Around the world, governments are responding with increased spending, lower interest rates and potentially lower corporate taxes. All of these responses will serve to pour fuel on the natural recovery 6-12 months from now.

We do not know what the next 6 months hold, but we do know that this has been the fastest 20% drop in stock market in history. Intuitively that makes sense. We get impatient when we have to wait more than 5 minutes for anything these days and many investors have real-time access to their accounts. It takes emotional fortitude to ignore that fear, and it takes the mindset of a business-owner and wealth creator to focus on the true value of the assets and their ability to generate cash in order to see this situation for the opportunity it represents.

Thank you, 
Gregg Filmon 
President

This document has been provided by Value Partners Investments Inc. (Value Partners) for information purposes only. It is not an offer or solicitation with respect to the purchase or sale of any security or investment product. This document does not provide individual, legal, investment or tax advice. Please consult your own legal, investment and/or tax advisor prior to making an investment decision.

Value Partners is a registered investment fund manager, portfolio manager, and an exempt market dealer. Value Partners offers 7 Mutual Fund Pools (VPI Pools) and is responsible for making decisions about the investments in the VPI Canadian Equity Pool and VPI Value Pool. Value Partners has engaged external portfolio managers to make decisions about the investments made by the other Pools – these investment decisions are not made by Value Partners.

Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the fund facts document and the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. 

Date of Publication: March 13, 2020