EAFE Equity
The Europe Australasia Far-East Equity Portfolio is a flexible equity product investing in a broad range of foreign large capitalization companies located outside Canada and the United States. The Portfolio invests in these foreign corporations through their American Depositary Receipts (“ADRs”) trading on the New York stock exchange; with each ADR representing a set number of the underlying common stock of the foreign corporation trading on a stock exchange in its home country. The investment objective of the EAFE Portfolio is medium to long-term growth of capital.
The performance of the EAFE Portfolio is measured against the EAFE Morgan Stanley Composite Index and the aim is to surpass over time the return from that index. (The EAFE MSCI is recognized as the primary index worldwide for large companies outside of Canada and the United States).
The Triasima EAFE Portfolio is invested through 25 to 60 holdings. It is a single asset class investment product diversified across the various sectors of the equity market. Sector weightings can differ markedly from those of the comparative benchmark and positions tend to be equally weighted. The EAFE Portfolio may hold significant cash reserves at times.
The value added compared to the EAFE MSCI is generated primarily through stock picking (alpha) as the beta of the portfolio is, on average, below 1.0. Superior performance is thus not achieved by assuming more market risk.
