CC&L Fundamental Canadian Equity

Investment Objective

• Maximize long-term total return by investing in a diversified portfolio of Canadian equity securities.
• Generate returns equal to or greater than the return of the benchmark S&P/TSX Capped Composite Index plus 2.0% over rolling four-year periods.

Highlights

• Core approach. Diversified and carefully risk managed
• All-cap. Full universe of opportunities
• Fundamental, bottom-up security selection
• Proprietary database covering 400+ stocks
• Deep, stable team with long track record

Investment Philosophy

• Macroeconomic themes influence markets over longer term.
• Opportunities exist when fundamentals vary from consensus expectations.
• All capitalization coverage maximizes breadth of opportunities.
• Disciplined fundamental approach is basis of security selection.
• Price attractiveness and valuations are key.
• Risk management is an integral component of process.

Investment Process

• Fundamental ranking system: Universe ranked on key factors including financial and management strength, profitability, growth and price attractiveness
• Independent bottom-up research: Understanding companies’ business models and long-term operating strategies
• Management interviews: Confidence gauged through management interviews, on-site visits and discussions with customers and competitors
• Strategic outlook: Each business evaluated in context of its industry and competitive environment
• Target prices: Price targets established and reviewed weekly to ensure consistent application of buy and sell disciplines
• Top-down overlay: Historical and current valuations and macroeconomic factors shape sector overweight or underweight decisions

Portfolio Construction & Risk Management

• Portfolio is weighted toward stocks with the greatest upside potential.
• Fundamental analysis assesses business risk, liquidity and valuation risk.
• Risk management is part of the investment process, not an afterthought
• Proprietary risk models are calibrated to each client’s objectives.
• There are strict position limits on individual security weights.