Canadian Large Capitalization Equity
The Canadian Large Capitalization Equity product invests exclusively in the largest public companies and trusts in Canada, selecting almost exclusively from a universe of 120 securities, comprised of the 60 stocks and income trusts in the TSX 60 Index and the next 60 largest stocks and income trusts in the TSX Completion index. It is a style neutral investment product seeking capital appreciation and dividend income from the most important Canadian securities. The investment performance objective of the Canadian Large Capitalization Equity product is to surpass over time the return from the S&P/TSX Composite index, the primary Canadian equity benchmark, and the return from the S&P/TSX 60 index. It is a single asset class investment product diversified across the various sectors of the Canadian equity market. Sector weightings in the portfolio track closely the sector weights of the S&P/TSX Composite index and the portfolio is usually fully invested. Individual positions differ in size, with each selected security in the portfolio overweighted relative to its index weighting. The portfolio is very focused through 35 to 45 holdings.
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, very close to 1. The Canadian Large Capitalization Equity product has a market risk equal to the market.
Investment Performance
