The Fund
EuroPac International Dividend Income Fund
EPDIX
&
EPDPX
At a Glance
As of June 30, 2023
0
Number of Holdings
$
0
B
Weighted Average Market Cap*
0
%
Consumer Staples Sector
About the Fund
EPDIX (I SHARE) | EPDPX (A SHARE)
The EuroPac International Dividend Income Fund offers investors a potentially low volatility fund, focused primarily on sustainable and growing dividend income.
We are distinct from other dividend funds in that rather than focus on the highest yield, we focus on a firm’s ability to reliably pay their dividends, and grow them over time. Too often, companies appear to have a high yield because the market is pricing in a dividend cut. When investors chase these companies, and a cut eventually takes place, the investors sell the stock further, often resulting in a capital loss for the investors and a reduced dividend – which is the real true risk in dividend investing. By performing throughout due diligence and focusing on a company’s ability to pay a dividend and grow it over time, we believe we are adding only the highest quality dividend payers to our portfolio, resulting in a less volatile product overall with more consistent income and reduced risk for capital impairment.
In addition to focusing on sustainable dividends that grow, we also strive to add stocks only when they are trading at a discount to fair value. Our holding period is long-term, meaning we may be a more tax-efficient option for investors.
If you are looking to diversify your foreign currency exposure into a portfolio of high quality firms, with potentially low volatility and an ability to pay their dividends and growth them over time, the EuroPac Dividend Fund is a good investment vehicle to look more closely at.
Investment Process
Our process begins with a thourghout 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.
Top 10 Holdings
As of June 30, 2023 | % of Total Portfolio Holdings
| British American Tobacco PLC | 3.3% |
| Shell PLC | 3.3% |
| Engie SA | 3.1% |
| Vodafone Group PLC | 3.0% |
| Barrick Gold Corp | 2.9% |
| Roche Holding AG | 2.8% |
| Bayer AG | 2.8% |
| Algonquin Power & Utilities Corp | 2.6% |
| Enel SpA | 2.4% |
| BP PLC | 2.4% |
Geographic Allocation
As of June 30, 2023 | % of Total Portfolio Holdings
| Canada | 20.0% |
| Britain | 17.7% |
| France | 10.2% |
| Germany | 7.1% |
| Spain | 7.0% |
| Australia | 6.3% |
| Brazil | 5.7% |
| Norway | 5.5% |
| Switzerland | 4.6% |
| Singapore | 4.5% |
Sector Diversification
As of June 30, 2023 | % of Total Portfolio Holdings
| Consumer Staples | 25.0% |
| Basic Materials | 20.6% |
| Utilities | 16.9% |
| Energy | 13.2% |
| Communications | 11.7% |
| Financial | 10.6% |
| Consumer Discretionary | 1.1% |
| Technology | 0.9% |
*Weighted average market capitalization is a type of market index in which each component is weighted according to the size of its total market capitalization. Market capitalization is the sum of the total value of a company’s outstanding shares multiplied by the price of one share.
**Portfolio turnover is a measure of how quickly securities in a fund are either bought or sold by the fund’s managers, over a given period of time.
Note: Dividends are not guaranteed and may fluctuate.
Fund Strengths
Goal
The Fund primarily seeks out companies that pay or are likely to pay high, sustainable distributions relative to their peers that will grow over time.
Valuation
The fund seeks to add high-quality franchises when they are trading at prices below their intrinsic value, that exhibit attractive dividend yields. The management pays particular attention to not just the dividend level, but the ability to continue to pay the dividend and grow it over the long-run.
Strength
The Fund selects companies with strong balance sheets to reduce capital risk and earnings volatility. The Fund also believes undervalued companies with strong balance sheets are most likely to have the ability to unlock value when attractive opportunities present themselves.
Management
The fund managers have over 40 years of investment experience combined, and both have been with the fund since its inception. We pride ourselves on our generalist approach, as we feel it enables us to find value where others cannot.
