Canadian All Capitalization Equity
The Canadian All Capitalization Equity product is a flexible Canadian equity mandate. It is an investment product seeking high total return primarily through growth of capital from a broad capitalization range of Canadian stocks and income trusts.
The investment performance objective of the Canadian All Capitalization Equity product is to surpass over time the return from the S&P/TSX Composite Index, the primary Canadian equity benchmark. It is a single asset class investment product diversified across the various sectors of the Canadian equity market.
The maximum and minimum sector weight limits allowed are a function of the importance of each sector in the comparative index and sector weightings can differ markedly from those of the comparative benchmark. The portfolio is always focused through 40 to 60 holdings chosen among the best medium to large Canadian companies. Small capitalization equities and income trusts, defined as securities not included in the TSX Composite index, may also be included and represent from 0% to 15% of the Canadian All Capitalization Equity product. Individual holdings tend to be equally weighted at the time of purchase. The Canadian All Capitalization Equity product may hold significant cash reserves.
The value added compared to the S&P/TSX Composite index is generated primarily through stock picking (alpha) as the beta of the portfolio is, on average, below 1. Superior performance is thus not achieved by assuming more market risk.
Investment Performance
