Chou Europe Fund




Investment Objectives

• The Fund's objective is to provide long-term growth of capital by investing primarily in the securities markets of Europe considered by the Manager to be undervalued. Investments may be made in securities markets outside of Europe.
• Investments may include common and preferred shares, convertible debentures, government and corporate bonds and short-term indebtedness.
• Unitholder approval is required in order to change the fundamental investment objectives of the Fund.

Investment Strategies

The investment process followed in selecting equity investments for the Funds is a value-oriented approach to investing that focuses on the European market. This involves a detailed analysis of the strengths of individual companies, with much less emphasis on short-term market factors. Far greater importance is placed upon an assessment of a company's balance sheet, cash flow characteristics, profitability, industry position, special strengths, future growth potential and management ability.

The investment strategy follows strong disciplines with regard to price paid to acquire portfolio investments. The level of investments in the company's securities is generally commensurate with the current price of the company's securities in relation to its intrinsic value as determined by the above factors. That approach is designed to provide an extra margin of safety, which in turn serves to reduce overall portfolio risk.

Once an investment is made, the Fund is expected to be a patient, long-term investor, which results in low portfolio turnover, reduced transaction costs and deferred realization of accrued capital gains. Portfolio holdings are typically concentrated within a limited number of companies, usually 25 to 35 per Fund portfolio. This helps to maintain awareness of corporate developments and communication for each company.

The Manager may decide to maintain a larger portion of the Fund's assets in short-term fixed income securities during periods of high market valuations and volatility. This temporary departure from the Fund's core investment strategy may be undertaken to protect capital while awaiting more favourable market conditions.

Fund Code CHO200
Fund Code USD CHO208
Fund Code F Class CHO204
Fund Code F Class USD CHO212
MER for Series A units


MER for Series F units 1.26%
Minimum Investment $5,000
Subsequent Investment $500
Redemption Fee 2% within 12 months


Geographic Profile as at September 30, 2016
United Kingdom
Continental Europe
Net Cash & Equivalents
Total Portfolio

Fund Facts August 31, 2016 (Series A) Fund Facts August 31, 2016 (Series F)

Total Holdings as at September 30, 2016

Management Report of Fund Performance June 30, 2016