CANIX — Cannabis Growth Fund
Data updated: 2021-09-28
CANIX — Cannabis Growth Fund. Emerging Markets Growth Thematic Equity · $4.39M AUM · 1.24% expense ratio. Holdings, fees, performance and SEC filings.
CANIX Fund Overview
CANIX — Cannabis Growth Fund is a US mutual fund managed by Investment Managers Series Trust II, categorised as Emerging Markets Growth Thematic Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Investment Managers Series Trust II
- Category: Emerging Markets Growth Thematic Equity
- Assets under management: $4.39M
- 1-year return: 64.4%
- Ticker: CANIX
- SEC CIK: 0001587982
- SEC series ID: S000063425
- Share class ID: C000212610
CANIX Investment Objective and Strategy
Cannabis Growth Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Investment Managers Series Trust II.
Investment objective
The investment objective of the Cannabis Growth Fund (the Fund) is to seek long-term capital appreciation.
Principal investment strategy
Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in exchange-traded equity securities of companies around the globe engaged in legal cannabis-related businesses (Cannabis Companies). For purposes of this investment policy, the Fund may invest in shares of exchange-traded funds (ETFs) that have a policy to invest at least 80% of their assets in securities of Cannabis Companies and in derivatives that have economic characteristics similar to such securities. Cannabis Companies may participate in the following activities, so long as permitted by law: Agriculture technology: Companies that support the innovation and development of equipment required to cultivate cannabis, such as automated fertilizer systems, greenhouse technologies and improved lighting systems.
Ancillary products and services: Companies that offer products that complement the cannabis industry as a whole, which can include products like a cannabis breathalyzer and laboratories that test cannabis products. This also includes companies that provide insurance to cultivators as well as those that create consumer packaging for products. Biotechnology: Companies that focus on the pharmaceutical applications of cannabis by developing treatments to target illnesses and diseases. Cannabis products and extracts: Companies that sell cannabidiol (better known as CBD) products, edibles, topicals, drinks and other products. Consulting services: Companies that respond to the complexity of rules and regulations regarding cannabis in different jurisdictions. They may provide services to assist with licensing, zoning or advising on operational processes.
Consumption devices: Companies that create products that people use to consume cannabis. Cultivation and retail: Companies that grow and sell cannabis, and are often the types of businesses that most people think of when discussing the cannabis industry. Industrial hemp: Companies that provide products using industrial hemp, which is different than cannabis and may have numerous applications and uses, including creating consumer products like paper and clothing, as well as building materials, fuel and foods. The Fund considers a company to be a Cannabis Company if the company derives at least 50% of its revenue from the legal cannabis industry. The Fund will only directly invest in Cannabis Companies that supply products and/or perform activities that are legal under applicable national and local laws, including U.S.
federal and state laws, as described in more detail below. The Fund may invest a majority of its net assets in foreign securities (including emerging market securities) if the Funds advisor, Foothill Capital Management, LLC (the Advisor), believes that such securities have the potential to outperform U.S. securities. It is anticipated that a large number of holdings within the Funds portfolio will be securities of Canadian companies. While the Fund may invest in companies of any market capitalization, including mid-, small- and micro-capitalization, the Fund will invest in companies with market capitalizations of at least $100 million at the time of purchase. The Fund intends to concentrate its investments in the cannabis industry. The Fund may invest a significant portion of its assets in ETFs that invest substantially all of their assets in equity securities of Cannabis Companies and derivatives or other instruments that have economic characteristics similar to such securities.
While the Fund does not intend to directly invest in swaps, certain ETFs in which the Fund invests may utilize total return swaps to obtain exposure to the price movements of securities of Cannabis Companies without owning or taking physical custody of such security. The Fund may also invest in equity interests in real estate investment trusts (REITs). The Fund may also purchase and write (i.e., sell) call and put options on individual securities, indexes and ETFs, to manage the position size of individual security holdings, and to seek to enhance the Funds return and reduce volatility. When evaluating options, the Advisor considers the amount of the premium received or invested (which is a function of the implied volatility of the underlying security, the strike price, and the time to expiration), the valuation of the underlying security at the exercise price, the weighting of the security in the portfolio if exercised, and the expiration date.
The Fund may write (sell) covered call options on securities the Fund holds in its portfolio. In addition, the Fund may lead its portfolio securities to broker-dealers and other institutions as a means of earning additional income. The Funds direct equity investments will consist only of exchange traded equity securities of companies that are engaged exclusively in legal activities under applicable national and local laws, including U.S. federal and state laws. All such equity securities will be listed on exchanges that require the issuing companys compliance with all laws, rules and regulations applicable to its business, including U.S. federal and state laws. The Fund will not directly or indirectly hold ownership in any companies that engage in cannabis-related business unless permitted by national and local laws of the relevant jurisdiction, including U.S.
federal and state laws. Investors should be mindful of the Cannabis-related risks described below. The Advisor employs a strategy that first seeks to identify a universe of exchange-traded securities of companies engaged in the legal cannabis industry across the globe. Utilizing the Advisors proprietary screening process, the Advisor evaluates each Cannabis Company using certain criteria such as: (i) long-term growth potential, (ii) price momentum, (iii) financial viability, (iv) branding and market exposure and (v) management team experience. The Advisor also considers the liquidity of a security prior to the Fund buying a position in that security. The Advisor then selects the highest-quality Cannabis Companies that it believes have the strongest sustainable competitive advantage within the universe and offer the potential for strong earnings and growth.
The Fund expects to frequently and actively trade its portfolio securities. The Fund is classified as non-diversified for purposes of the Investment Company Act of 1940 (the 1940 Act), which means a relatively high percentage of the Funds assets may be invested in the securities of a limited number of companies that could be in the same or related economic sectors. The Advisor will sell all or a portion of a position of the Funds portfolio holdings, when in its opinion, one of more of the following occurs, among other reasons: (i) the company no longer meets the definition of Cannabis Companies as defined above; (ii) a particular security has achieved its investment expectations; (iii) the reason(s) for maintaining the position are no longer valid; (iv) the Advisors view of the business fundamentals or management of the underlying company changes; (v) a more attractive investment opportunity is found; (vi) general market conditions trigger a change in the Advisors assessment criteria; (vii) for other portfolio management reasons; or (viii) the Fund requires cash to meet redemption requests (in instances when the Fund does not meet redemption requests in-kind).
CANIX Holdings
Top 10 holdings of Cannabis Growth Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Blackrock Liquidity Funds Fed Fund Portfolio | 30.34% |
| Cronos Group Inc | 14.59% |
| Canopy Growth Corp | 12.44% |
| GW Pharmaceuticals PLC | 10.12% |
| Aphria Inc | 8.09% |
| Fire & Flower Holdings Corp | 5.54% |
| Innovative Industrial Properti | 4.88% |
| Valens Groworks Corp | 4.58% |
| MediPharm Labs Corp | 4.14% |
| Organigram Holdings Inc | 3.62% |
CANIX Portfolio Allocation
Asset-class allocation of Cannabis Growth Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Equity | 81.1% |
| Cash & Equivalents | 32.6% |
| Other | 15.0% |
CANIX Performance
Total returns for CANIX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 64.4% |
CANIX Risk Information
Risk metrics for CANIX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 67.4%
CANIX Costs and Fees
CANIX costs about $124 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.24%
- Gross expense ratio: 14.13%
- Portfolio turnover: 177%
- Brokerage commissions: 54.96 bps of average net assets (SEC N-CEN)
CANIX Cashflows
Over the 12 months to 2021-07, Cannabis Growth Fund had net inflows of $13.16M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2021-07 | $285.88K |
| 2021-06 | $364.23K |
| 2021-05 | $715.96K |
| 2021-04 | $1.08M |
| 2021-03 | $3.22M |
| 2021-02 | $2.54M |
CANIX Debt Constituents
No individual debt constituents are reported in Cannabis Growth Fund's latest SEC N-PORT filing.
CANIX Prospectus and SEC Filings
Official Cannabis Growth Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2020-06-10
- Prospectus supplement (497) — filed 2021-06-04
- Prospectus supplement (497) — filed 2019-11-20
- Portfolio holdings (N-PORT) — filed 2021-09-28
- Portfolio holdings (N-PORT) — filed 2021-06-25
- Portfolio holdings (N-PORT) — filed 2021-03-29
- Annual census (N-CEN) — filed 2021-04-15
- Annual census (N-CEN) — filed 2020-04-13
Related Funds
Other Emerging Markets Growth Thematic Equity funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.