This strategy is a well-diversified portfolio with exposure to all economic sectors. The return objective is to outperform the index and peers by at least 100 basis points on rolling three-year periods.
100% S&P/TSX Small Cap Index
Philosophy and process
The strategy aims to achieve added value to its reference benchmark with a level of risk that is equal to or less than that of the benchmark.
The investment process is based on fundamental analysis and combines a bottom-up approach, researching companies with favourable growth opportunities from all sectors of the market, with a top-down approach (macroeconomic analysis). This is complemented by a robust risk-management oversight process.
Up to 10% of the portfolio can be invested in the U.S. market to complement current portfolio holdings.
The portfolio holds 150 securities on average.
The valuation process is based on extensive cash-flow analysis combined with a qualitative framework emphasizing strong business models, management quality, and ESG strengths.
Why invest in these strategies?
Predominantly Canadian Small Cap Equity exposure with a proven track record by a stable management team and strong risk-adjusted returns.
Growth and return-enhancing complement to a Canadian Core holding by adding greater exposure to higher-risk, smaller capitalizations.
In time of global economic expansion, this strategy is well-exposed to commodities and resources companies with elevated return potential.
Opportunity to invest alongside a Brendan Wood International 2021-2022 Top Gun Investment Minds team.