FOLCO REAL ESTATE

Persistent, high quality, high income strategy

FOLCO Real Estate Strategy

The strategy offers exposure to a diversified portfolio of high quality real estate equities with the objective of providing high and consistent income in a risk-controlled framework. Listed commercial real estate provides consistent income streams, leverage to economic growth and offers potential hedge against inflation.

Strategy Information

Offers investors a persistent high yield, through a tax-efficient monthly distribution, combined with long term capital gains potential. Canadian real estate investments trust (REITs) are occasionally mispriced and provide opportunities for tactical asset allocation shifts.

Investment objective

10% annual returns (net of fees)

Risk rating

Low to Medium

Style

Long real estate equities with a contrarian bias

Process

Top-down/Bottom-up combination using fundamental and technical analysis

Low market correlation

Focuses exclusively on REITs and exhibits a very low correlation to the overall equity markets; 0.16 since inception (Apr 2015)

Proven expertise

Strategy with an extensive audited track record managed by experienced and dedicated specialists in the REITS and real assets industries.

Advanced risk management

Structured, objective and predetermined risk management methodology.

Performance

%
Annualized returns since inception (Apr 2015)

Prudence

.
Correlation to canadian equity markets

High Yield

%
Distribution Yield

Alpha

.%
Average Value-Added
(Since Inception)

Performance Metrics

Since Inception (04/2015), as of 12/2017 Folco Real Estate TSX Real Estate
Geometric return 14.02% 5.09%
Annualized standard deviation 9.34% 9.27%
CVAR (95%) 5.81% 5.41%
Downside deviation 1.89% 1.91%
Sharpe Ratio 1.47 0.54
Sortino Ratio 7.31 2.52
Information Ratio 6.99 0.00
Kurtosis 0.73 0.73
Skewness -0.50 -0.21
Correlation to TSX Composite 0.16 0.37

Annual Returns

5
Calendar returns 04/2015 2016 2017 Arithm. Avg
Value added +22.14% -9.30% +2.35% +5.06%
Folco Real Estate 17.49% 8.82% 12.20% 12.83%
S&P/TSX Capped Real Estate Index -4.65% 18.12% 9.86% 7.78%
Note: Historical performance was audited by KPMG before December 31, 2015, and by Interactive Brokers since January 1, 2016.

Portfolio Manager

François-Olivier Laplante

François-Olivier Laplante

Partner
Portfolio Manager, Alternative Investments

From 2003 to 2014, Mr. Laplante served as Vice-President, Director and Head of Liability Trading on the Institutional Equity Trading team at Desjardins Securities, part of a $260 billion financial institution. He was in charge of managing the firm’s liability book, covering telecoms, REITs, industrials, rails, energy infrastructure, independent power producers, pipelines and utilities. He facilitated equity block transactions by pricing potential trades and managing the firm's trading capital to encourage activity among Desjardins institutional clients. Mr. Laplante's extensive experience, gained from years of deploying large amounts of risk capital on both the long and short sides, enable him to execute multiple trading strategies successfully with an overriding focus on risk management. He served previously with National Bank Financial, where he worked as an equity proprietary trader and institutional equity liability trader from 2000 to 2003. Mr. Laplante holds a bachelor's degree in business administration from Laval University where he was a starter for the Rouge et Or basketball team.

Disclaimer

This information does not reflect the expected performance of the fund (s) and is provided solely for the purpose of illustrating the experience of Nymbus Capital Group Inc. and estimated past results of its investment activities. This information is not and should not be interpreted as representing the future performance of the securities or the amounts, if any, distributed by the fund (s). They are provided for illustrative purposes only and should not be construed as forecasts or projections. Past performance is not indicative of future performance. Certain statements included in this document constitute forward-looking statements, including but not limited to statements that include the words "anticipate", "plan", "should" or similar expressions to the extent they relate to strategies. Forward-looking statements are not historical facts but reflect current expectations of Nymbus Capital Group Inc. with respect to future results or events. They are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Groupe Nymbus Capital inc. believes that these forward-looking statements are based on reasonable assumptions, forward-looking statements are not guarantees of future performance. Accordingly, the reader is cautioned not to place undue reliance on these statements, given the uncertainty associated with them. Nymbus Capital Group Inc. undertakes no obligation to update or revise any forward-looking statement or information in light of new information, future events or any other factors that may affect such information, except as required by law. All information is from sources believed to be reliable, but its accuracy is not guaranteed. All company names, brand names and logos are the property of their respective owners. Bloomberg is a trademark and service mark of Bloomberg Finance L.P., a limited partnership of Delaware, or its subsidiaries. The Standard & Poor's S&P 500® Index and the S & P / TSX Composite Total Return Index are registered trademarks of Standard & Poor's, a division of McGraw-Hill Companies, Inc. "FTSE®", "Russell®" , "MTS®", "FTSE TMX®" and "FTSE Russell" and other trademarks and service marks related to the FTSE or Russell Indices are registered trademarks of the London Stock Exchange Group.

The Folco Real Estate strategy represents an efficient and modern solution to collect a consistent high income real estate exposure.