acceptances and short term bank paper or short term corporate paper issued by
Canadian companies (Money Market Instruments).
(b)
Mid PFI Fund: The Mid PFI Fund seeks to achieve total return by providing
income while preserving capital over the long term, by investing primarily in a
diverse portfolio of private and public fixed income assets. The Mid PFI Fund seeks
to take advantage of pricing inefficiencies often found in the private fixed income
market. Examples of investments include long term debt financing for power
projects such as hydro, wind, co-generation and solar; public private partnership
(P3) infrastructure projects including hospitals, bridges, roads, detention facilities,
court houses and public transit systems; senior secured and unsecured loans to high
credit quality large corporate borrowers; debt financing of real assets, which may
include real property, with access to stable and enduring cash flow streams through
the monetization of contractual payments or through loans secured by cash flow
generating real assets that are difficult to replicate; senior loans to mid-market
companies which generally do not access the public debt markets; and investments
in securitized lease/loan obligations supported by well diversified pools of assets
such as manufacturing equipment and transportation assets with added levels of
credit enhancement. The Mid PFI Fund considers investment opportunities from a
range of developed markets, including Canada and the United States. The Mid PFI
Fund also invests in a wide range of Public Assets to seek to achieve positive active
returns, neutralize exposure to unintended risks relative to the Mid PFI Fund’s
benchmark, enhance liquidity and manage the Mid PFI Fund’s duration. Positions
in Public Assets work in conjunction with core private fixed income and floating
rate asset positions to reflect SLC’s fundamental credit research views and SLC’s
forecasts for interest rates, yield curves, and credit sectors/industries. The Mid PFI
Fund may also invest in Money Market Instruments.
(c)
Long PFI Fund: The Long PFI Fund seeks to achieve total return by providing
income while preserving capital over the long term, by investing primarily in a
diverse portfolio of long term private and public fixed income assets. The Long PFI
Fund seeks to take advantage of pricing inefficiencies often found in the private
fixed income market. Examples of investments include long term infrastructure
debt financing for power projects such as hydro, wind, co-generation and solar;
public private partnership (P3) infrastructure projects including hospitals, bridges,
roads, detention facilities, court houses and public transit systems; long term senior
secured and unsecured loans to corporate borrowers; debt financing of real assets,
which may include real property, with access to stable and enduring cash flow
streams through the monetization of contractual payments or through loans secured
by cash flow generating real assets that are difficult to replicate; and infrastructure
debt financing of long term care facilities. A material portion of the Long PFI
Fund’s private assets are expected to benefit from strong government sponsorship.
The Long PFI Fund considers investment opportunities from a range of developed
markets, including Canada and the United States. The Long PFI Fund also invests
in a wide range of Public Assets to seek to achieve positive active returns, neutralize
exposure to unintended risks relative to the Long PFI Fund’s benchmark, enhance
liquidity and manage the Long PFI Fund’s duration. Positions in Public Assets work
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