| Fund Company | CI Investments |
| Fund Type | Global Equity |
| Rating | $$$ |
| Style | Blend |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Good |
| TFSA Suitability | Good |
| Manager | Bill Kanko since June 2006 Richard Jenkins since June 2006 |
| MER | 2.62% |
| Code | CIG 11106 – Front End Units CIG 11206 – DSC Units |
| Minimum Investment | $500 |
Analysis: Managed by Bill Kanko and Richard Jenkins, this fund was known as the Castlerock Global Leaders Fund until July 2012. Both Mr. Kanko and Mr. Jenkins made their names at Trimark and that footprint is evident in the investment process they use.
The fund has a go anywhere mandate and can invest in companies of any size located anywhere in the world. The portfolio is very concentrated, typically holding between 20 and 25 names, with the top ten usually making up more than half of the fund.
They are looking for high quality and unique companies, and are often invested in companies that aren’t exactly household names. For example, some of the current holdings include former tech darling Oracle Corporation, Carnival Corp. the cruise ship company, and healthcare firm BioMerieux Inc.
The process is bottom up which means that sector weightings and country allocations are the result of security selection. The focus on companies that have the ability to grow by taking market share, introducing new products or expanding into new markets. They pay particular attention to valuation and look to not overpay for this growth
As of July 31 the fund was fully invested, holding 40% in U.S. equities with the balance invested abroad. It is heavily weighted towards industrials and consumer stocks.
Performance has been strong since they took over the fund in 2006, outperforming its peer group and the index. The exception to that was 2011, when it underperformed, posting a 15% loss while the MSCI World Index lost 2.9% in Canadian dollar terms.
For long term investors with medium to high risk tolerances, we believe that this is a good core holding. Both of the managers have their own money invested in the funds, which will help to align their interests with those of investors. We are also believers in the investment process that they use. The downside is that with the concentrated portfolio, it has the potential to be volatile, and only investors who can stomach the volatility should consider investing in it.