Canadian Small Capitalization Equity
The Canadian Small Capitalization Equity product is an equity mandate investing in the stock securities and trust units of small Canadian companies and trust organizations in order to achieve rapid growth of capital. The investment performance objective of the Canadian Small Capitalization Equity product is to surpass over time the return from the BMO Small Capitalization Weighted Index, the preferred and best recognized small capitalization Canadian equity benchmark. A secondary investment objective is to outperform the TSX Composite Index of large Canadian companies to reward investors for assuming more investment volatility in the niche small capitalization equity market.
The portfolio invests in 40 to 60 small companies and trusts and actively seeks diversification across sectors and industries. 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 Canadian Small Capitalization Equity product tends to be fully invested over time, but may occasionally hold significant cash reserves.
The investment product is careful to avoid any upward capitalization drift in the basket of securities held. Winning positions are sold whenever they reach three times the median float capitalization of the benchmark Index. No exceptions are made.
Investment Performance
