The Amethyst Arbitrage Fund is a North American focused, low volatility investment fund with a multi-strategy arbitrage approach. The Fund employs event driven (mainly mergers & acquisitions), convertible securities (debentures, warrants, etc.), fixed income (mainly credit spreads between Canadian federal, provincial, municipal, and government agencies) and other arbitrage strategies (such as related pairs and SPACs) via an investment in the Amethyst Arbitrage International Master Fund (the “Master Fund”).
This Canadian Fund is available exclusively to Canadian residents. However, an international version of the fund available for non-Canadian resident investors. Click here for more information.
INVESTMENT OBJECTIVES
The investment objective of the Master Fund is to realize an absolute positive return:
- Return: 5 to 10% above 91d Can T-Bills
- Volatility: 5 to 7%, annualized
- Capital protection and near zero correlation with traditional asset classes.
INVESTMENT STRATEGIES
The Master Fund, principally employs three strategies but may also utilize other arbitrage strategies:
- EVENT DRIVEN ARBITRAGE opportunities
- Mergers & Acquisitions other “pure” arbitrage opportunities
- Private placements / subscription receipts / spin-offs / called bonds & preferred shares
- CONVERTIBLE SECURITIES ARBITRAGE opportunities
- Convertible debentures & synthetic convertible positions
- Warrants and other exchangeable securities
- FIXED INCOME ARBITRAGE opportunities
- Relative value (mainly spread strategies) using Canadian federal, provincial, municipal and agency backed government debt as well as investment grade corporate bonds
- Strategies on credit ratings, maturities, issuer types, liquidity profile, etc. with a very small directional component (opportunistic)
- OTHER ARBITRAGE opportunities
- Related pair arbitrage on the spreads between securities of the same issuer, or of a related issuer
- Special Purpose Acquisition Company (“SPAC”) arbitrage
- Other arbitrage opportunities
The relative weighting of each strategy will vary according to the opportunities available at any given time.
FUND FACTS
LIQUIDITY: | |
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$25K accredited ($25M Cl. I) |
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Yes - RRSP, TFSA, RRIF, etc. |
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Monthly |
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30 days (No Lockup) |
CLASS | CUSIP | FundSERV |
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03111T106 | CRY100 |
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03111T403 | CRY101 |
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03111T205 | CRY102 |
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03111T304 | CRY103 |
FUND STRUCTURE: | |
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Unit Trust |
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Computershare Canada |
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Amethyst Arbitrage International Master Fund |
DISTRIBUTIONS: | Quarterly (cash or reinvested units) |
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MANAGEMENT FEES*: | |
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1.75% |
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1.25% |
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2.00% (Includes 1% trailer) |
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1.00% (Fee based advisors) |
*0.75% is charged to the Amethyst Arbitrage International Master Fund with the balance charged to the Amethyst Arbitrage Fund |
PERFORMANCE FEES*: |
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*charged to the Amethyst Arbitrage International Master Fund |
SERVICE PROVIDERS: | |
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BMO Nesbitt Burns & Scotia Capital (Master Fund) |
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SS&C |
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McMillan LLC |
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PricewaterHouse Coopers LLC |