Crystalline launched the Topaz Multi Strategy Fund in January 2012, a tax efficient product designed to gain exposure to a diversified portfolio of lowly correlated strategies.

This version of the Fund is exclusively available to Canadian residents.  The non-Canadian resident offshore version is not yet available for distribution.

 


INVESTMENT OBJECTIVES

The primary investment objective of the Fund is to achieve a stable, superior rate of return while minimizing the probability of a negative outcome during any consecutive period of 24 months. More specifically, the Fund targets the following long term objectives:

  • A minimum annualized return of 10% to 12% above the 3 month US LIBOR rate, with an annualized volatility of 6% to 8%; and
  • A correlation below 0.40 with Canadian and US major bond and stock market indices, by investing in various hedging strategies aiming at extracting anomalous returns through arbitrage, relative valuations, security selection and market timing techniques, principally on North-American capital markets.

INVESTMENT OBJECTIVES

The Manager will consider investment strategies which include, but are not limited to:

  • arbitrage, including convertible securities, merger, credit, capital structure, volatility and various other opportunities between contractually related securities;
  • special situations, taking position in issuers’ securities undergoing, or facing the prospect of undergoing significant corporate events,
  • equity market neutral strategies, driven by either fundamental analysis and/or quantitative models of equities and equity derivatives relative valuations,
  • directional strategies involving bonds, equities and their derivatives, market indices, commodities and financial instruments.

The Topaz Multi-Strategy Fund is currently invested in the following strategies:

  • Approx. 85% Arbitrage (convertible debt, mergers & acquisitions, warrants, fixed income), through the Amethyst Arbitrage Fund (Fund details available here).
  • Approx. 15% Global-Macro (G-20 International exposure via 4 asset classes), through the Emerald Global-Macro Fund (Fund details to follow)

Other strategies will be added in the future. Ultimately, the Fund expects to be invested in a minimum of 3 strategies at all times.

FUND FACTS

MANAGEMENT FEES PERFORMANCE FEES
Topaz reference share 1.2% Topaz reference share 20% of positive return
(+) Topaz Series I + 0.3% High Watermark Yes
(+) Topaz Series C + 0.5% Early Redemption Fee 2% if within 6 months
(+) Topaz Series A + 1.05% (1.0% trailer)
(+) Topaz Series F + 0.05%
LIQUIDITY
Offered in All provinces of Canada Dealing Frequency Monthly
Valuation Currency $CA Valuation Frequency Monthly
Subscription Notice 5 days Redemption Notice 30 days
Minimum Subscription $25,000 for accredited investors
($150,000 otherwise)
Lockup Period none

PORTFOLIO MANAGERS

Marc Amirault acts as principal manager of the Topaz Multi-Strategy Fund, and is responsible for capital allocation between strategies.