Canadian Value Equity Strategy

Investment Approach

The Canadian Value Strategy employs a contrarian investment approach designed to profit from investing in deeply undervalued Canadian and US equity securities. It focuses on fundamentally sound companies that are out-of-favor or are operating in sectors or industries that have been neglected by the broader market. The investment team evaluates business fundamentals and conducts interviews with management, suppliers and competitors to determine whether a business offers upside potential and to limit downside risk. A proprietary quantitative model is used to evaluate a business's earnings potential and resiliency.

Key Considerations

• The Strategy is actively managed and benchmark agnostic, which allows the investment team to pursue their most attractive ideas with limited capitalization, sector and industry constraints.
• Compared to US oriented value funds, this Strategy's regional focus provides attractive exposure to a large universe of investment opportunities across a broader range of economic sectors and industries.
• Canada and the United States are key trading partners and have a longstanding history of mutual economic benefit.

Important Information

This strategy invests in equity securities and is subject to the risk that equity security prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the strategy's equity securities may fluctuate drastically from day-to-day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in an equity-based strategy. You could lose all or some of your investment.

International securities involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs.

Value stocks tend to be inexpensive based on various measures of their intrinsic value. These stocks are inexpensive because they are out of investor favor for one or more reasons. The goal is to identify value stocks that will increase in price and ultimately reflect their intrinsic value over time. Risks that may prevent value stocks from appreciating include: the portfolio manager's inability to correctly estimate a stock's intrinsic value, the market's inability to realize the stock's intrinsic value over time, or a poorly performing business causes the intrinsic value of the stock to decline.