The fund seeks long-term capital growth by investing primarily in equities of global small- to mid-capitalization companies, either directly or through other investment funds.
Is this fund right for you?
- Are looking for a global equity fund to hold as part of their portfolio.
- Want a medium- to long-term investment.
- Can handle the volatility of the stock market.
Risk Rating
How is the fund invested?
(as of November 30, 2024)
Asset allocation (%)
|
Name |
Percent |
|
US Equity |
63.2 |
|
International Equity |
29.9 |
|
Cash and Equivalents |
4.8 |
|
Canadian Equity |
2.2 |
|
Other |
-0.1 |
Geographic allocation (%)
|
Name |
Percent |
|
United States |
63.2 |
|
Canada |
7.0 |
|
Bermuda |
5.0 |
|
Japan |
4.8 |
|
United Kingdom |
3.9 |
|
Singapore |
2.6 |
|
Israel |
2.3 |
|
Australia |
1.2 |
|
Italy |
1.2 |
|
Other |
8.8 |
Sector allocation (%)
|
Name |
Percent |
|
Financial Services |
26.0 |
|
Technology |
15.6 |
|
Industrial Services |
11.6 |
|
Industrial Goods |
10.1 |
|
Basic Materials |
7.9 |
|
Cash and Cash Equivalent |
4.8 |
|
Consumer Goods |
4.6 |
|
Consumer Services |
3.2 |
|
Real Estate |
2.9 |
|
Other |
13.3 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of November 30, 2024)
Top holdings |
% |
Cash and Cash Equivalents |
4.8 |
Kyndryl Holdings Inc |
2.8 |
Academy Sports and Outdoors Inc |
2.5 |
Assured Guaranty Ltd |
2.3 |
International General Insurance Holdings Ltd |
2.3 |
Kulicke and Soffa Industries Inc |
2.2 |
Advance Auto Parts Inc |
2.1 |
Barrett Business Services Inc |
2.0 |
Hackett Group Inc |
2.0 |
Healthcare Services Group Inc |
2.0 |
Total allocation in top holdings |
25.0 |
Portfolio characteristics |
|
Standard deviation |
13.0% |
Dividend yield |
1.7% |
Average market cap (million) |
$5,483.4 |
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
Best return |
Best period end date |
Worst return |
Worst period end date |
Data not available based on date of inception
|
Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
Data not available based on date of inception
|
Q4 2024 Fund Commentary
Market commentary
Although the U.S. Federal Reserve Board cut interest rates in the fourth quarter, long-term yields rose towards the end of the quarter. Yields were supported by a relatively healthy economy, high inflation expectations, and anticipation of new policies from the incoming U.S. administration.
A steepening U.S. Treasury yield curve and strong U.S. dollar were negative for Southeast Asian equity markets because of higher borrowing costs and risks to capital outflows. (When the yield curve steepens, long-term yields rise more quickly than short-term yields.) The threat of higher tariffs negatively affected exporters and trade-dependent countries in Asia.
The Chinese government announced stronger fiscal support but without the details investors were seeking. Chinese equities fell from their early October peak, although A-shares were more resilient than Hong Kong listed stocks.
Geopolitical uncertainty weighed on European economies. Weakness in German manufacturing and a lost vote of confidence in the German Chancellor put pressure on Europe’s largest economy. Moody’s downgraded France’s sovereign credit rating as it expects the country’s incoming government to struggle with tackling its deficit.
Performance
The Fund’s relative exposure to ExlService Holdings Inc. had the most positive impact on performance. The company performed well because of its role in artificial intelligence and strong client engagements.
Relative exposure to Cirrus Logic Inc. had a negative impact on performance because of the stock’s sensitivity to reports on Apple iPhone sales.
At the sector level, stock selection in health care had a positive impact on performance. Underweight exposure to the materials sector and overweight exposure to information technology were also positive. However, stock selection in information technology and financials, and overweight exposure to health care, had a negative impact on performance.
Regionally, stock selection in China was positive for performance, while stock selection in Japan and the U.S. was negative.
The sub-advisor increased the Fund’s exposure to Mackenzie European Small-Mid Cap Fund and Mackenzie Asian Small-Mid Cap Fund. The sub-advisor decreased exposure to Mackenzie US Mid Cap Opportunities Fund.
Outlook
In the U.S., the Fund maintains overweight exposure to health care, non-cyclical industrials and information technology because these sectors offer more sustainable growth. The sub-advisor believes many of the Fund’s U.S. holdings offer high-value-added products and services with reasonable pricing power in inflationary periods. Also, in 2022 and 2023, spending in the drug life sciences and supply chain industry slowed from the pandemic-related surge of 2020 and 2021. This period of destocking may be close to an end in the sub-advisor’s view.
In Europe, geopolitical uncertainty remains a concern. The European Central Bank appears to be in a favourable position to continue to cut interest rates. In the U.K., the sub-advisor feels it’s unclear how much easing the Bank of England can undertake while inflation remains elevated.
The Fund remains overweight in Japan and South Korea, which are implementing programs to increase corporate profitability and shareholder returns. The Fund has underweight exposure to India because of weaker earnings growth and high valuations, despite an attractive long-term outlook.
The sub-advisor has a positive outlook on technology sectors in South Korea and Japan and expects capital expenditure related to artificial intelligence to continue. In the sub-advisor’s view, large U.S. technology companies can’t afford to lose any advantage in this transformational period. The Fund has underweight exposure to consumer discretionary and industrials given the pressure on consumers and high interest rates that could suppress industrial activity.