EuroPac
Gold Fund
EPGIX (I Share)
EPGFX (A Share)
Purpose
The EuroPac Gold Fund offers investors a precious metal strategy distinct from other funds in the space, by focusing on firms that create the most value over time.
Most funds will tend to gravitate to the larger producers in the industry and will not be substantially different that any of the ETFs that are offered at a lower fee. Unfortunately, if one examines history, these larger producers have had a tendency to destroy capital over time. From the end of 2007 to the end of 2022 (15 years), the price of physical gold has increased 121%, but the book value per share of companies in the NYSE Arca Gold Bugs Index (HUI)** has only increased 11%, and the enterprise value per share*** has decreased 46% (Bloomberg, 2023). In order to be successful investing in the precious metal producer space, a fresh approach is needed, and that is where the EuroPac Gold Fund comes in.
Our manager Adrian Day has been in the industry for over 40 years, and his approach to investing is to focus on the royalty businesses, rather than the large producers, as well as to use his expertise to assess and invest in what he views as the best of the smaller and more nimble exploration and prospecting businesses. This approach lends itself to the core of the portfolio being invested in firms that have generally been better allocators of capital, while also potentially benefiting from the potent upside potential of the exploration businesses.
We believe that over a long period of time, and through many cycles, this approach will result in superior risk adjusted returns in the precious metals space. If you are looking to invest in precious metals producers, but are concerned about companies in the industry growing value over time, then take a closer look at the EuroPac Gold Fund.
Process
Our process begins with a thorough and complete review of all investible companies within our universe. This review is both qualitative and quantitative, with the goal of identifying exceptional companies with strong balance sheets, that are positioned in industries with positive long-term prospects. The highest quality businesses are then valued and placed on a watch list. We will then patiently wait until a business on the watch list hits our target buy price, which incorporates a large margin of safety. By focusing on the long term and having a low portfolio turnover, we believe we are able to increase the chances of successful security selection.
Funds
Rating
Holdings
| Agnico Eagle Mines Ltd | 6.9% |
| Metalla Royalty & Streaming Ltd | 6.7% |
| Pan American Silver Corp | 6.2% |
| Fortuna Mining Corp | 6.0% |
| OR Royalties Inc | 5.4% |
| Franco-Nevada Corp | 5.2% |
| Wheaton Precious Metals Corp | 5.0% |
| Royal Gold Inc | 4.8% |
| Barrick Mining Corp | 4.8% |
| B2Gold Corp | 4.2% |
Regions
| Canada | 86.3% |
| United States | 12.7% |
| Other | 1.0% |
Sectors
| Materials | 99.4% |
| Other | 0.6% |
