CC&L Q Emerging Markets Equity

Investment Objective

• Maximize long-term total return by investing in a diversified portfolio of emerging market equity securities.
• Generate returns equal to the return of the MSCI Emerging Markets Index (CAD) (net) plus 3% over rolling four-year periods.

Highlights

• Emerging markets universe spanning approximately 3,000 stocks in 23 countries.
• Integrated global investment framework.
• Disciplined and objective investment process.
• 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 countries, industries and stocks on a daily basis.
• Risk management reduces the potential negative impact of unexpected market volatility.
• A significant commitment to 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.
• Integrated global framework: Investment opportunities assessed across countries, industries and stocks on a daily basis.
• Proprietary industry classifications: All stocks grouped into industry sectors, custom classifications provide appropriate peer comparisons, better investment decisions.
• Disciplined risk management process: Stock, sector and country exposures as well as overall portfolio risk are managed using state-of-the-art risk management techniques.
• Ongoing research: Markets are in constant evolution, significant commitment to the ongoing enhancement of investment process and quantitative investment techniques.

Portfolio Construction & Risk Management

• Daily optimization ensures that portfolios profit from new opportunities as they arise.
• Stock positions are determined using a proprietary portfolio construction process.
• Transaction 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.