Criterion Investments Ltd. today announced the launch of Criterion U.S. Buyback Currency Hedged Fund.

The fund will invest in equity securities of 30 U.S. public companies “with the best record of net share buyback activity in their market cap segment over the previous calendar year,” the Toronto-based investment management firm says.

“The fund is focused on companies that are investing in themselves at a time when they believe the market hasn’t yet realized their true value, and reducing their number of outstanding shares on the market as a result.”

The fund’s portfolio will be rebalanced quarterly and reset annually to capture the latest batch of companies with the highest share repurchases. The fund’s holdings will be diversified across the market capitalization spectrum.

The fund is currency-hedged for Canadian investors to reduce the volatility associated with swings in currency exchange rates. An unhedged version of the fund is also available.

“The U.S. is the largest market in the world and cannot be ignored, however advisors across Canada tell us they are looking for defensive strategies to adopt for their clients’ U.S. equity exposure,” says Ian McPherson, president of Criterion. “This fund not only follows a value-style approach, but the disciplined, rules-based strategy also removes all unnecessary emotion from investing.”

The fund is RRSP-eligible and will be accessible through licensed financial advisors in all Canadian provinces, with a minimum $500 investment.

Criterion is an affiliate of VenGrowth Asset Management Inc.