What Is FCLS?
The Fund invests primarily in long and short positions of equity securities of Canadian companies and may use leverage through the use of short selling, generally around 30% of its net asset value, but may short sell up to 50% of its net asset value. The Fund uses quantitative techniques in the construction of its portfolio. The Fund’s gross exposure, calculated as the sum of the following, must not exceed 300% of its net asset value: (i) the aggregate market value of securities sold short; (ii) the value of indebtedness under any borrowing arrangements for investment purposes; and (iii) the aggregate notional value of the Fund’s derivatives positions, excluding any derivatives used for hedging purposes.
Set it, forget it, let compounding do the heavy lifting. 💪