The Wingate Technology Performance Fund
Wingate launched its first fund, the Wingate Technology Performance Fund, in the fall of 2003. As a specialty North American Technology Fund, the vast majority of its equity holdings were U.S. denominated stocks trading on the NASDAQ or NYSE. Investors were able to subscribe to the Fund in either Canadian or US dollars. The Fund's Net Asset Value was calculated on a monthly basis by external accountants in both currencies. Investors who elected to subscribe in either Canadian or US dollars would receive funds in the designated currency at the time of redemption.
Over the first four years from inception (September 30 2003), the Fund's Net Asset Value increased by 48%. Over 2008, Wingate generated negative returns in concert with distressed global capital markets. Wingate's performance recovered sharply over 2009 (+18.7% in C$ and +38.8% in US$). This performance recovery continued in 2010 (+16.7% in C$ and + 22.8% in US$), but the Fund experienced negative annual returns over 2011 (- 8.9% in C$ and - 10.9% in US$). The Fund was wound up at the end of 2011.
Despite unsettled and more volatile capital markets through and following the 2008 debt crisis, foreign exchange played a significant role in the calculation of C$ returns. Measured in US$ which matched the currency of the shares typically traded in Fund, the Fund generated a net return of +14.6% from Sep 30, 2003 to Dec 31, 2011. However, the net return from inception to the Fund's closing was - 12.5% when measured in C$. During the life of the Fund, the US$ depreciated against the C$ from $1.3504 on Sep 30, 2003 to $1.0170 on Dec 31, 2011. The decline in the value of the US$ against the C$ over the life of the Fund negated the appreciation in US$ net asset value.
© 2008 Wingate Investment Management Ltd.
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