Andiroo
04-07-2009, 09:01 PM
All
I have just found out that Denis Gartman (of the Gartman Letter) has a new ETF on the Toronto Stock Exchange (Symbol HAG) which tracks his portfolio based upon recommendations in the letter. As a long time admirer this seems to be a good and simlified way to track him - albeit possibly quite expensive. The cost is a fixed fee of 0.75% + a performance fee of 20% if the fund hits its "high water mark" which is defined as:
20% x (A – (B x C)) x Dwhere:
A equals the Adjusted NAV per Unit as at the last day of the period in respectof which the calculation is being made;
B equals the greater of: (i) $10.00; and (ii) the highest NAV per Unit
previously utilized for purposes of calculating a Performance Fee which waspaid pursuant hereto (the “High Water Mark”);
C equals 1 plus the average one (1) year Government of Canada Treasury Bill rate for the period in respect of which the calculation is being made pro-rated for the number of days in the period; and
D equals the number of Units outstanding as at the last day of the period in respect of which the calculation is being made.
For purposes of the Performance Fee calculation up to and including June 30, 2009, B x C shall equal $10.00.
No Performance Fee will be payable on any payable date unless A exceeds
B x C at that time.
LAWYERS YOU GOTTA LOVE 'EM
Anyway, other than i have not been fully model through what this would mean under different scenarios. I therefore thought i would ask people a lot more able than i to proffer an opinion of the costs side of this equation - rather than the merits of Mr Gartmans approach.
Details are here http://www.hapetfs.com/pdfs/gartman/Prospectus.pdf
and here http://www.hapetfs.com/gartman_cf.asp
Thanks for any thoughts and feedback.
Best
Arb
I have just found out that Denis Gartman (of the Gartman Letter) has a new ETF on the Toronto Stock Exchange (Symbol HAG) which tracks his portfolio based upon recommendations in the letter. As a long time admirer this seems to be a good and simlified way to track him - albeit possibly quite expensive. The cost is a fixed fee of 0.75% + a performance fee of 20% if the fund hits its "high water mark" which is defined as:
20% x (A – (B x C)) x Dwhere:
A equals the Adjusted NAV per Unit as at the last day of the period in respectof which the calculation is being made;
B equals the greater of: (i) $10.00; and (ii) the highest NAV per Unit
previously utilized for purposes of calculating a Performance Fee which waspaid pursuant hereto (the “High Water Mark”);
C equals 1 plus the average one (1) year Government of Canada Treasury Bill rate for the period in respect of which the calculation is being made pro-rated for the number of days in the period; and
D equals the number of Units outstanding as at the last day of the period in respect of which the calculation is being made.
For purposes of the Performance Fee calculation up to and including June 30, 2009, B x C shall equal $10.00.
No Performance Fee will be payable on any payable date unless A exceeds
B x C at that time.
LAWYERS YOU GOTTA LOVE 'EM
Anyway, other than i have not been fully model through what this would mean under different scenarios. I therefore thought i would ask people a lot more able than i to proffer an opinion of the costs side of this equation - rather than the merits of Mr Gartmans approach.
Details are here http://www.hapetfs.com/pdfs/gartman/Prospectus.pdf
and here http://www.hapetfs.com/gartman_cf.asp
Thanks for any thoughts and feedback.
Best
Arb