American Equity
The American All Capitalization Equity product is a flexible American equity mandate investing in a broad range of medium and large capitalization American stocks. The investment objective is to provide strong long-term growth of capital and to surpass over time the performance return of the S&P 500 Index, the main American equity benchmark.
It is a single asset class investment product diversified across the various sectors of the American equity market. Sector weight limits are a function of the importance of each sector in the benchmark index and sector weightings can differ markedly from those of the comparative benchmark. The portfolio is focused and owns 50 to 75 holdings, these positions tend to be equally weighted. The American All Capitalization Equity product may hold substantial cash reserves during falling markets.
The value added relative to the S&P 500 index is primarily derived from security selection (alpha) as the beta of the product is below 1. Superior performance is thus not achieved by assuming additional market risk.
Investment Performance
