A mid- and large-cap growth-style fund seeking long-term capital appreciation.
Is this fund right for you?
- You want your money to grow over a longer term.
- You want to invest in Canadian equities and in short-term fixed income securities.
- You're comfortable with a medium level of risk.
Risk Rating
How is the fund invested?
(as of December 31, 2024)
Asset allocation (%)
|
Name |
Percent |
|
Canadian Equity |
91.6 |
|
US Equity |
4.4 |
|
Income Trust Units |
2.7 |
|
Cash and Equivalents |
1.3 |
Geographic allocation (%)
|
Name |
Percent |
|
Canada |
93.8 |
|
United States |
4.4 |
|
Bermuda |
1.8 |
Sector allocation (%)
|
Name |
Percent |
|
Financial Services |
30.7 |
|
Technology |
13.9 |
|
Energy |
10.6 |
|
Industrial Services |
10.5 |
|
Basic Materials |
10.3 |
|
Consumer Services |
9.0 |
|
Real Estate |
6.5 |
|
Industrial Goods |
3.6 |
|
Utilities |
1.8 |
|
Other |
3.1 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of December 31, 2024)
| Top holdings |
% |
| Royal Bank of Canada |
7.9 |
| Constellation Software Inc |
5.0 |
| Shopify Inc Cl A |
4.6 |
| Canadian Natural Resources Ltd |
3.7 |
| Brookfield Corp Cl A |
3.7 |
| Canadian Pacific Kansas City Ltd |
3.3 |
| National Bank of Canada |
3.0 |
| Pembina Pipeline Corp |
2.9 |
| Bank of Montreal |
2.7 |
| Canadian Imperial Bank of Commerce |
2.6 |
| Total allocation in top holdings |
39.4 |
| Portfolio characteristics |
|
| Standard deviation |
12.1% |
| Dividend yield |
1.8% |
| Average market cap (million) |
$117,483.5 |
Understanding returns
Annual compound returns (%)
| 1 MO |
3 MO |
YTD |
1 YR |
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| 3 YR |
5 YR |
10 YR |
INCEPTION |
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Calendar year returns (%)
|
2024 |
2023 |
2022 |
2021 |
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|
2020 |
2019 |
2018 |
2017 |
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Range of returns over five years
(February 1, 2001 - February 28, 2025)
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
15.8% |
Oct. 2007 |
-3.9% |
May 2012 |
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
5.4% |
86.1% |
198 |
32 |
Q4 2024 Fund Commentary
Market commentary
The Canadian and U.S. equity markets rose over the quarter, supported by interest-rate reductions from the U.S. Federal Reserve Board and Bank of Canada. The U.S. election results contributed to U.S. equity market strength as investors favoured risk assets, like equities. The outperformance of large-cap U.S. information technology stocks fuelled strength in related Canadian stocks.
Later in the quarter, concerns about tariffs grew, especially their potential impact on Canadian sectors and companies exposed to the U.S. market. The Canadian dollar fell by more than 6% against the U.S. dollar. Canadian political uncertainty further contributed to market volatility.
Performance
The Fund’s overweight exposure to Descartes Systems Group Inc. and ARC Resources Ltd. had a positive impact on performance. Lack of exposure to BCE Inc. and Barrick Gold Corp. was also positive. Underweight exposure to Shopify Inc. had a negative impact on performance.
Descartes Systems Group Inc. continues to grow and is expected to benefit from supply chain disruptions if the U.S. imposes tariffs. Shares of ARC Resources Ltd. rose as natural gas stocks performed well during the quarter. Large-cap stocks BCE Inc. and Barrick Gold Corp. underperformed the broad Canadian equity market.
Shares of Shopify Inc. outperformed, rising strongly in tandem with U.S. information technology stocks.
At the sector level, the Fund’s underweight exposure to communication services and overweight exposure to information technology had a positive impact on performance. Stock selection in the consumer discretionary and real estate sectors was also positive.
Stock selection in energy, financials and information technology had a negative impact. In energy, the Fund had underweight exposure to the traditionally lower-growth pipeline industry. In financials, the Fund had underweight exposure to insurance companies. Both of these industries performed well.
The sub-advisor added Aritzia Inc. and Canadian Imperial Bank of Commerce to the Fund. Aritzia Inc. has returned to growth, driven by store openings and e-commerce success. Canadian Imperial Bank of Commerce was added because of its improved earnings, return on equity, and capital generation.
The sub-advisor increased Mastercard Inc., Descartes Systems Group Inc. and Pembina Pipeline Corp. to increase exposure to financials, information technology and pipelines, respectively.
The sub-advisor decreased Intact Financial Corp. and Royal Bank of Canada on share price strength. Toronto-Dominion Bank was trimmed given uncertainty surrounding anti-money-laundering penalties. Underperforming holdings in Canadian Pacific Kansas City Ltd., Canadian National Railway Co. and Rogers Communications Inc. were also reduced.
Outlook
The sub-advisor has a positive outlook on Canadian equities. The sub-advisor expects continued strong performance from key growth sectors, including information technology, industrials and consumer discretionary, and select financial services companies. However, the sub-advisor believes volatility could increase in the Canadian economy, equity market and commodity markets.
The Fund maintains holdings across the market-capitalization spectrum.