CC&L Q Emerging Markets Equity

Investment Objective

• Generate returns equal to the return of the benchmark, MSCI Emerging Markets Index (CAD) (net), plus 3% per annum over a market cycle.
• Maximize long-term return while prudently managing investment risk relative to the benchmark.

Highlights

• Diversified emerging market equity exposure managed within a proprietary quantitative return, risk and portfolio construction framework.
• Fully integrated global model employing systematic evaluation of countries, industries and stocks using a broad array of fundamental indicators.
• Universe covering approximately 18,000 stocks spanning 23 developed and 27 emerging markets.
• ESG considerations integrated into the strategy.

Investment Philosophy

• A portfolio of companies exhibiting steady growth and attractive valuations is expected to deliver strong investment returns over the long term.
• The investment process must be rigorous, objective and applied with consistency and discipline.
• Research must be driven by a strong synergistic relationship between three key elements: investment fundamentals, quantitative theory and empirical evidence.

Investment Process

• Continuous quantitative evaluation of fundamentals across stocks, industries and countries.
• Proprietary return forecasts assess investment fundamentals and the opportunities created when these fundamentals change.
• Proprietary risk model assesses systematic influences and stock-specific characteristics and events.
• Portfolio construction seeks to optimize risk and return with consideration of transaction costs.
• Daily evaluation and portfolio rebalancing ensures portfolios respond to new fundamental and pricing information on a timely basis.
• Strict position limits.