At a Glance
As of June 30, 2023
0
%+
Invested in Gold Companies*
0
%
Canada Allocation
0
%
Materials Sector
About the Fund
EPGIX (I SHARE) | EPGFX (A SHARE)
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.
Investment Process
The Fund uses a top-down approach to screen for and select attractive markets and sectors, and a bottom-up valuation approach to select securities. The Fund focuses on a long-term investment horizon in order to realize value and adheres to a controlled investment process that has been similarly employed in separately managed accounts for over 20 years.
Top 10 Holdings
As of June 30, 2023 | % of Total Portfolio Holdings
| Osisko Gold Royalties Ltd | 7.0% |
| Franco-Nevada Corp | 6.0% |
| Fortuna Silver Mines Inc | 5.5% |
| OceanaGold Corp | 5.5% |
| Barrick Gold Corp | 5.4% |
| Agnico Eagle Mines Ltd | 5.4% |
| B2Gold Corp | 5.3% |
| Wheaton Precious Metals Corp | 5.3% |
| Pan American Silver Corp | 5.2% |
| Metalla Royalty & Streaming Ltd | 5.1% |
Geographic Allocation
As of June 30, 2023 | % of Total Portfolio Holdings
| Canada | 78.2% |
| United States | 6.9% |
| Australia | 6.4% |
| South Africa | 4.2% |
| Britain | 3.0% |
| Other | 1.3% |
Sector Diversification
As of June 30, 2023 | % of Total Portfolio Holdings
| Materials | 98.3% |
| Carbon Neutral | 0.9% |
| Financials, Diversified | 0.8% |
*The Fund’s advisor defines securities of gold companies as equity securities of companies that derive at least 50% of gross revenue or profit from mining, processing, or dealing and investing in gold, as well as companies whose primary business is exploring for gold or that provide services to the gold industry.
**The NYSE Arca Gold BUGS Index is a modified equal-dollar weighted index. It tracks gold-mining companies that engage in relatively limited hedging of their forward gold production.
***Enterprise value per share is a modification of market capitalization that incorporates debt and cash for determining a company’s value. It is calculated by dividing the enterprise value (EV) by the number of outstanding shares.
Fund Strengths
Goal
While the Fund may invest in different types of precious metals, 80% or more of net assets will be invested in securities in gold companies.
Valuation
The fund manager looks across the entire precious metals sector, not just the major producers, to find those firms with unlocked or unrecognized value
Strength
The fund is distinct in that it focuses on the royalty businesses and smaller producers and exploration companies, which in our opinion, produce higher returns over the long-run.
Management
The fund manager, Adrian Day, has over 30 years of investment experience and a deep knowledge of the precious metals sector. The fund manager uses this knowledge to dive deep into each company's fundamentals and find potential value where others cannot.
