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Dear Fintax Investor

Please find attached last month’s fund fact sheets and commentary by the MGIM team. The Balanced Fund declined by 2.3% and the Growth Fund declined by 2.8% in a month where global equities declined by 4.1%. Thus far this month, the Fintax funds have delivered +1.9% (Balanced) and +2.8% (Growth), respectively. Over the prior 12 months, the Balanced Fund delivered +17.1% and the Growth Fund +24.4%.

In August we noted the imminent switching out of the Japanese Nikkei 225 passive ETF position to a new active value-focused Japan manager named Morant Wright with MGIM electing to invest in the Morant Wright Fuji Yield Fund. Remarkably, the underlying companies (ex-financials) held in this fund have an aggregate net cash balance that forms 60% of their market capitalization. For the latest fund commentary please click on the below link:

https://www.morantwright.co.uk/system/files/newsletter/fuji_yield_newsletter_september_2021_0.pdf

The infrastructure position in the Balanced Fund is also being reviewed for potential replacement or supplementation. It is currently made up of the Maple-Brown Abbott Infrastructure Fund and the Sequoia Economic Infrastructure Fund. These will be replaced or supplemented by funds that are focused on digital infrastructure and energy storage which are aligned with key long term trends, while continuing to pay healthy dividends in the region of 6%. Like Chrysalis, the current options considered are listed closed-end funds, with concentrated holdings, and would therefore only be appropriate in small sizes. More information will be available once MGIM have completed their due diligence process.

Growth Fund Fact Sheet – September 2021

Balanced Fund Fact Sheet – September 2021

Manager Commentary