CC&L Group Canadian Q Growth

Investment Objective

• Generate returns equal to the return of the benchmark, S&P/TSX Composite Index, plus 2% per annum over a market cycle.
• Maximize long-term total return while prudently managing investment risk relative to the benchmark.

Highlights

• Quantitative approach: emphasis on growth characteristics
• Disciplined and objective investment process
• Broad diversification
• Focus on companies with strong fundamental characteristics
• Proprietary database covering 14,000 stocks
• Proprietary risk model and portfolio construction process
• Deep, stable and experienced management team

Investment Philosophy

• Philosophy is based on sound fundamental investment principles.
• Informational and behavioural inefficiencies can be exploited within equity markets.
• Investment process is rigorous, objective and applied with consistency and discipline.
• Investment opportunities are dynamically assessed across industries and stocks on a daily basis.
• Risk management reduces the potential negative impact of unexpected market volatility.
• A significant commitment to the ongoing research and development enhances the process.

Investment Process

• Quantitative process: Disciplined, risk-controlled investment approach
• Fundamental ranking system: Evaluation of investment opportunities based on key investment themes, assessment of financial statements, analyst estimates, stock price and trading information
• Evaluation of full investment universe: Continuous evaluation of all opportunities in the investment universe
• Forecasts for return and risk: Fundamental rankings are grouped into four key investment themes and used daily as input to develop risk and return forecasts
• Disciplined risk management process: Stock and sector exposures as well as overall portfolio risk are managed using state of the art risk management techniques
• Proprietary industry classifications: All stocks grouped into industry sectors, custom classifications provide appropriate peer comparisons, better investment decisions
• Ongoing research: Markets are in constant evolution, significant commitment to the ongoing enhancement of investment process and quantitative investment techniques

Portfolio Construction & Risk Management

• Stock positions are determined using a proprietary portfolio construction process.
• Daily optimization ensures that portfolios profit from new opportunities as they arise.
• Transactions costs are explicitly factored into investment decision-making.
• Proprietary factor-based risk model generates daily risk forecasts.
• Portfolio is optimized relative to client specific benchmarks.
• There are explicit position limits; portfolio is well diversified.