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Analysis: Managed by the same firm as the CI American Value Fund, it’s not surprising the process is very similar. They are looking for well managed companies with a demonstrated history of increasing shareholder yield through dividends, share buybacks or debt repayments.
By focusing on the companies with the higher shareholder yield, the fund has been able to deliver above average returns with below average volatility. As of January 31, the five year return for the fund was a loss of 2.7%, just slightly underperforming the Dow Jones Global Small Cap Index, but finishing in the upper half of the category. The volatility of the fund is the second lowest of the category.
The portfolio is very well diversified holding close to 200 names. The top 10 holdings make up less than 20% of the fund. The manager has stated that they are fairly cautious about the current environment. The fund is overweight in industrials and healthcare, while underweight in financials and materials.
The cost for the fund is high in absolute terms with an MER of 2.44%. However, when compared to the category median of 2.65%, the price is actually cheap.
This fund is one of the better funds in the global small/mid cap category.