The Canadian Core Equity (SRI) strategy seeks to provide significant long-term capital appreciation through investment primarily in equity securities of Canadian corporations that conduct themselves in a socially responsible manner. Supported by research provided by Sustainalytics, the investment team will avoid the securities of companies that are engaged primarily in the production and distribution of alcohol, gaming, weapons, adult entertainment, cannabis, and tobacco. Qualitative screening criteria are applicable to areas such as community, corporate governance, employee relations, environment, human rights, and product and business practices. The investment team reviews all new investments, and regularly reviews existing investments.
- Experienced team of sector specialists led by two portfolio managers
- Core large cap Canadian equity portfolio, complemented by small cap stocks and dedicated gold stock management
- Emphasis on identifying companies creating long-term value through quality growth opportunities
- Proprietary fundamental research is the key to security selection
- ESG is fully integrated into the investment philosophy and process
- Qualitative and exclusionary SRI screens applied using pre-defined methodology and investment principles
Investment philosophy and style
- Growth at a responsible price (GARP) strategy
- Integrates ESG factors throughout the investment process
- Invests primarily in securities of companies that conduct themselves in a socially responsible manner through quantitative and exclusionary SRI screens
- Bottom-up, fundamental research is focused on the belief that high-quality businesses outperform through proven management, sustainable competitive advantages, and attractive capital allocation.
- The team thinks in scenarios, not a specific right answer. Outcomes are inherently uncertain and the processes anticipate uncertainty and incorporate buy triggers to take advantage of volatility.
- ESG analysis embedded in investment process.
- Qualitative and exclusionary SRI screens applied using pre-defined methodology and investment principles.
- Through their various proprietary tools, the team ranks every company in the index on Quality, Return, and Conviction drivers.
- From there, approximately two-thirds of the portfolio is made up of the highest quality/conviction ideas, while the rest of the portfolio comes together from a risk management perspective to ensure that the strategy is not taking any unintended sector or style exposures.
- As a result, the highest conviction investment ideas are expected to have the largest impact on performance, and unwanted risks are accurately measured and carefully managed.
- ESG considerations are integral to the team’s overall fundamental analysis. The team actively engages companies’ management and boards to better understand potential ESG risks, as well as the underlying processes the companies have in place to deal with or mitigate such risks.