The fund seeks capital appreciation in the long term by investing in companies across any size outside the United States.
The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the research team invests in securities of companies that are located around the globe and engaged exclusively in legal cannabis activities under applicable national and local laws, including U.S. federal and state law.
The fund considers a company to be a Cannabis Company if the company derives at least 50% of its revenue from the legal cannabis industry.
Then the team evaluates each Cannabis Company on the basis of long-term growth potential, price momentum, financial viability, branding and market exposure and management team experience.
The team then selects the highest-quality Cannabis Companies that have superior sustainable competitive advantage and exhibit the potential for excellent earnings and growth.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
Also, a large number of holdings within the portfolio will be securities of Canadian companies. The fund intends to concentrate its investments in the cannabis industry.
In addition, the fund may invest in shares of exchange-traded funds that invest substantially all of their assets in equity securities and equity interests in real estate investment trusts.
The fund may invest a majority of its net assets in foreign securities (including emerging market securities)
In addition, the fund may lend its portfolio securities to broker-dealers and other institutions as a means of earning additional income.
The fund is non-diversified, which means a relatively high percentage of its net assets may be invested in the securities of a limited number of companies that could be in the same or related economic sectors.
