| Fund Company | CI Investments |
| Fund Type | Global Equity |
| Rating | D |
| Style | Blend |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Good |
| TFSA Suitability | Good |
| Manager | Alan Radlo since December 2007
Brandon Snow since June 2011 Bob Swanson since January 2012 |
| MER | 2.46% |
| Code | CIG 2323 – Front End Units
CIG 3323 – DSC Units |
| Minimum Investment | $500 |
Analysis: Managed by industry heavyweight Alan Radlo and the Cambridge team, this global equity offering serves as the flagship for Cambridge Advisors. CI describes Cambridge’s investment style as “core with a growth tilt.” They look for companies that have a demonstrated history of growing their earnings, sales and cash flows and that are trading at a discount to what Cambridge believes they are worth. They also look for strong management teams who have their interests firmly aligned with shareholders.
The fund is an all cap mandate that has no restrictions on geography or sector mix. Currently, the majority of the holdings are focused in large and mid-cap names. Geographically, about half the equity holdings are invested in the U.S. From a sector standpoint the portfolio is positioned for a growing economy with an overweight in healthcare, technology, and industrials. It is underweight in financials and has no exposure to real estate, communications or utilities.
It is well diversified, holding more than 100 names, with the top ten making up just under 20% of the fund. The management approach is very active, with portfolio turnover averaging more than 200% for the past five years.
The process appears to be working, having outperformed the benchmark and finishing in the top quartile in every year since its launch, except for 2011. Much of the underperformance in 2011 can be attributed to the fund’s currency position being hedged in the latter half of the year, when the Canadian dollar fell as investors fled to the safe haven U.S. greenback. This blip has negatively skewed the fund’s longer term performance slightly.
Volatility has been roughly in line with both the index and the category average. Costs are reasonable for a global equity fund, with an MER of 2.52%.
Looking ahead, I expect that performance will continue to be above average, while volatility will be in line with its peer group. All things considered, this is a very solid global equity offering and could be used as a core holding for most investors.