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
    • Inter-listed Arbitrage between US and Canadian markets
    • 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:
  • Minimum subscription:
$25K accredited ($25M Cl. I)
  • Registered  Accounts:
Yes - RRSP, TFSA, RRIF, etc.
  • Dealing / Valuation:
Monthly
  • Subscription notice:
2 days
  • Redemption notice:
30 days (No Lockup)
CLASS CUSIP FundSERV
  • Class C
03111T106 CRY100
  • Class I
03111T403 CRY101
  • Class A
03111T205 CRY102
  • Class F
03111T304 CRY103
FUND STRUCTURE:  
  • Legal Structure:
Unit Trust
  • Trustee:
Computershare Canada
  • Underlying Portfolio:
Amethyst Arbitrage International Master Fund
DISTRIBUTIONS:  Quarterly (cash or reinvested units)
MANAGEMENT FEES:
Amethyst Arbitrage Fund       +       Amethyst Arb. Int’l. Master Fund
  • Class C: 1.00%
 

Plus 1.0%

  • Class I: 0.50%
  • Class A: 1.25% (Incl. 1% trailer)
  • Class F: 0.25% (fee based adv.)
PERFORMANCE FEES:
  • Amethyst Arb. Int’l Master Fund:
20% above 91d T-bill
  • High Water Mark:
Yes (perpetual)
SERVICE PROVIDERS:
  • Prime-Brokers:
BMO Nesbitt Burns & Scotia Capital
(Master Fund)
  • Administrator:
MUFG Investor Services
  • Legal:
McMillan LLC
  • Auditor:
PricewaterHouse Coopers LLC

 

PORTFOLIO MANAGERS