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Fundamental Perspective

PCJ Sustainable Canadian Equity

Product Highlights

  • Focus on investment opportunities with a positive social impact
  • Long only, all-cap Canadian Equity strategy
  • Bottom up fundamental security selection
  • Leverages PCJ’s fundamental research and ESG infrastructure
  • Experienced team focused on Canadian equities

Investment Objective

  • The strategy is designed to deliver strong investment performance while at the same time making a positive impact. The investment team is committed to engage companies to drive positive change and allocate capital to companies that align with the strategy’s core values

Core Values

  • Revenue exposure alignment with the United Nation’s Sustainable Development Goals (SDG)
  • Transition toward a low carbon economy (Scope I & II emissions)
  • Best-in-class performance on Environmental, Social, and Governance (PCJ scoring)

Investment Philosophy

  • Market inefficiencies provide opportunities to add value
  • Earnings growth ultimately drives stock prices
  • Concentrated portfolios maximize value from manager insights
  • Catalysts for organic growth are best identified through independent fundamental research
  • Risk management is integral to creating long-term value

Investment Process

  • Identify high quality companies with opportunities for organic growth
  • Identify catalysts for future growth, e.g.; earnings announcements, restructuring
  • Each stock is assigned a price target and downside risk, as well as an ESG score
  • Company meetings: Validate research, confirm confidence in management
  • Restricted from investing in Energy (oil, gas and coal), Mining & Resource Extraction, Alcohol, Gambling, Adult Entertainment, Tobacco and related products, and Weapons
  • Revenue alignment with SDG for the majority of assets; regular assessment of carbon exposures

Portfolio Construction and Risk Controls

  • Optimize rewards for risk taken
  • Portfolio concentrated on impact content (minimum of 50%)
  • Sector weights evaluated relative to macro market themes
  • Absolute and relative stock and sector limits
  • Continuous monitoring of security specific and total portfolio risk
  • Dynamic risk allocation is used to lock in profits and reduce risk

Quick Facts

Inception Date
August 31, 2020
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