Alternative Income Fund

Mandate Canadian Multi Strategy
Inception Date: January 22, 2019
Fund Codes: Class F NEW401
USD: NEW401U
Class G NEW403
USD: NEW403U
Management Fees: Class F 1%
Class G 2%
Performance Fee 15%
Liquidity Daily

The NewGen Alternative Income Fund was launched in January 2019 under Canada’s new “Liquid Alternatives” regulatory framework; i.e. a hedge fund strategy available to retail investors through a prospectus offering. The Fund provides investors with exposure to (1) an actively managed diversified portfolio of dividend/income paying securities with a target portfolio yield of 4-5% (paid monthly); (2) a portfolio of stock-specific Alpha shorts to generate additional return and preserve capital by reducing market Beta; and (3) a multi-strategy overlay that relies on a broad range of strategies and securities in order to enhance yield, generate Alpha, and provide additional diversification benefits to our investors.

The NewGen Alternative Income Fund is offered to Canadian Investors only. US and other
international investors are not eligible.

NewGen Alternative Income Fund: Growth of $10,000 Since Inception

NewGen Alternative Income Fund

JanFebMarAprMayJunJulAugSepOctNovDecYTD
2019NG Alt Inc4.06%4.91%0.76%0.13%-0.75%1.36%-1.10%-0.86%-1.39%-1.32%2.01%1.30%9.23%
S&P/TSX1.34%3.15%1.01%3.22%-3.06%2.53%0.34%0.43%1.69%-0.86%3.59%0.45%14.52%
2020NG Alt Inc1.25%-3.16%-7.53%5.38%2.81%0.91%3.62%2.66%-1.36%0.50%4.41%4.40%13.93%
S&P/TSX1.74%-5.90%-17.38%10.79%3.04%2.46%4.48%2.35%-2.06%-3.11%10.57%1.72%5.60%
2021NG Alt Inc2.10%2.19%1.52%1.53%0.49%0.84%-0.74%1.81%-0.42%1.81%-2.16%0.68%9.98%
S&P/TSX-0.32%4.36%3.87%2.39%3.44%2.48%0.80%1.63%-2.22%5.02%-1.62%3.06%25.09%
2022NG Alt Inc-1.15%1.34%0.85%-1.49%1.29%-3.09%2.53%-1.04%-2.96%1.18%-2.68%
S&P/TSX-0.41%0.28%3.96%-4.96%0.06%-8.71%4.66%-1.61%-4.26%5.57%-6.19%
1-MTHYTD1 -YR3-YR5-YRINCEPTION
1.18%-2.68%-4.13%8.01%n/a7.77%

The NewGen Alternative Income Fund began trading on January 22nd, 2019 – performance for the month reflects that.

Fund returns are presented net of fees and assume that monthly distirbutions are reinvested

The TSX Total Return Index comparative performance is provided for illustrative purposes only – it is a widely followed index but is not considered a benchmark due to differing holding composition compared to the NewGen Alternative Income Fund. The composition of the Funds’ portfolio could differ significantly from the index due to the investment strategy employed, and includes differences such as use of short positions, varying fund net exposure, varying sector exposure, and investing in small and mid capitalization stocks. Please see “Investment Strategies” in the Confidential Offering Memorandum for more details.

Jensen’s Alpha is a hypothetical measures of excess return (a risk-free rate of 1.5% is assumed)