| Fund Company | CIBC Asset Management |
| Fund Type | Global Equity |
| Rating | D |
| Style | Blend |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Good |
| TFSA Suitability | Good |
| Manager | David Winters since October 2006 |
| MER | 2.62% |
| Code | ATL 1029 – Front End Units
ATL 1873 – DSC Units |
| Minimum Investment | $500 |
Analysis: Despite dramatically underperforming the MSCI World Index in 2012 and 2013, I still believe this go anywhere global equity fund can be a great core holding for most investors.
Manager David Winters uses a value tilted approach, looking for strong businesses which offer an identified competitive advantage and strong management teams that are trading at a discount to its intrinsic value. The process is very much bottom up and he generally takes a long term, patient view when evaluating a stock. This is reflected in the fund’s low level of portfolio turnover, which is approximately 30% per year.
The portfolio tends to be fairly concentrated, holding less than 40 names with the top ten making up more than 60% the fund. It is benchmark agnostic, allowing it the ability to take significant sector bets when the risk reward tradeoff warrants it. Cash, which stood at 8% at the end of April is a byproduct of the stock selection process.
So too are the fund’s sector weight and country allocation. About a third is invested in the U.S, and 50% is in non-North American equities. Nearly 60% is invested in consumer focused names.
It is the concentrated, non-benchmark like portfolio that is the main reason the fund has lagged of late. Over the long term however, the fund has shown that it can deliver above average returns with a level of risk that is well below the category average. It has also done a pretty decent job of protecting investors’ capital, participating in only half the drop of the broader market over the past five years.
The cost of the fund has been dropping, withthe most recent MER comingin at 2.62%. This is still above average, but is well below where it was a couple of years ago.
If you are an investor with an ethical bent, you may want to avoid this fund. It has a meaningful weight in both tobacco and gaming companies, because of their ability to generate cash flow.
Overall, this is one of the better global funds available, and one that remains on my recommended list.