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