fact sheet - mackenzie global large cap quality growth (us$) · pleas e h mportan isclosure nde...
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SEPTEMBER 2016Investing involves risk. Please read the important disclosures under “Important Notes” which contain more information about the significance and the limitations of the information on this page.
PRODUCT PROFILEQ3 | 2016
Mackenzie Global Large Cap Quality Growth
INCEPTION:October 19921
BENCHMARK:MSCI World Total Return Index
STRATEGY ASSETS:US$ 6,287 million as of September 2016 PORTFOLIO MANAGEMENT TEAM: Paul Musson, CFA• Portfolio Manager• Industry Start: 1992• Firm Start: 2000Matt Moody, MBA, CFA• Portfolio Manager• Industry Start: 1999• Firm Start: 2005Robert McKee, MSc., MBA, CFA• Portfolio Manager • Industry Start: 2007• Firm Start: 2011Hussein Sunderji, MBA, CFA• Portfolio Manager • Industry Start: 2007• Firm Start: 2013Graham Meagher, CFA• Associate Portfolio Manager• Industry Start: 2001• Firm Start: 2014Adam Gofton, CFA• Associate Portfolio Manager • Industry Start: 2007• Firm Start: 2013James Morrison, MBA, CFA• Associate Portfolio Manager • Industry Start: 2005• Firm Start: 2014Zain Shafiq, MBA• Senior Investment Analyst • Industry Start: 2008• Firm Start: 2014Jason Miller, MBA, CFA• Senior Investment Analyst • Industry Start: 2008• Firm Start: 2016
INVESTMENT OBJECTIVE
We seek to provide long-term capital growth by investing in high quality, larger capitalization companies from anywhere in the world with a focus on maximizing risk-adjusted returns
APPROACH
• Labor intensive, bottom-up investment approach focused on identifying high quality businesses around the world
• Intensive fundamental analysis of the company’s competitive position, management strengths, expected profitability and financial position
• Once high quality companies are identified, proprietary valuation models determine appropriate entry prices for positions
• Portfolio will often not resemble the composition of its benchmark and due to its strict high quality criteria will have an emphasis on developed markets
• Target 25-45 securities from equity markets around the globe and typically with market capitalizations above US$3 billion
PORTFOLIO ADVANTAGE
We seek to create a portfolio with the following attributes:
• Low volatility relative to benchmark that seeks to achieve superior risk/return attributes
• Low correlation to benchmark providing improved diversification
• High conviction portfolio with higher concentration of holdings
INVESTMENT PROCESS
1 Mackenzie Investments (the “Firm”) has been managing Global Large Cap Quality Growth assets since October 1992. The Firm claims compliance with GIPS® starting January 1, 2008 and has been independently verified for the period of January 1, 2008 to December 31, 2015.
Initial Filters• Liquidity requirements: average daily
trading value of C$25 million
Screening• Free Cash Flow • Net Debt/EBITDA
> 50% of net earnings < 3
• ROC > 10% • ROE > 10%
Fundamental Analysis• Labour intensive
• Analysts must be able to “understand” the company and its financials
• Uncover the quality of the business
• Rank names from A- to A+
Fundamental Analysis II• Labour intensive
• Examine each name starting with A+
• Full models built for high quality names
• Target entry price determined
• Repeat for A and A-
Global Eq. Universe
3000Stocks
900Stocks
25-45 Stocks
200 Stocks
SECTOR ALLOCATION (%) COMPOSITE PERFORMANCE (US$)
COMPOUND ANNUAL RETURNS (%)
CALENDAR YEAR RETURNS (%)
Mackenzie Global Large Cap Quality GrowthALL DATA AS AT SEPTEMBER 30, 2016
cont’d…
Mackenzie Investments180 Queen Street West, Toronto, Ontario M5V 3K1T 416 967-2380 F 416 922-3435E [email protected]
WEIGHTINGS RELATIVE TO BENCHMARK (%) CHARACTERISTICS
TOP TEN HOLDINGS (%)
OVERWEIGHT PORTFOLIO RELATIVEOmnicom Group Inc. 3.93% +3.87%Brookfield Asset Management Inc. 3.42% +3.33%Amcor Ltd. 3.30% +3.26%United Parcel Service Inc. 3.27% +3.04%US Bancorp 2.78% +2.56%
UNDERWEIGHT PORTFOLIO RELATIVEApple Inc. 0.00% -1.86%Alphabet Inc. 0.00% -1.43%Microsoft Corp. 0.00% -1.30%Exxon Mobil Corp. 0.00% -1.09%Amazon.com Inc. 0.00% -1.01%
Omnicom Group Inc. 3.9%Brookfield Asset Management Inc. 3.4%Amcor Ltd. 3.3%United Parcel Service Inc. 3.3%Johnson & Johnson 3.0%Oracle Corp. 2.9%US Bancorp 2.8%Cie Financiere Richemont SA 2.6%Procter & Gamble Co 2.5%Publicis Groupe SA 2.5%
Total 30.2%Cash & Equivalents 32.4%
LEGEND: Mackenzie Global Large Cap Quality Growth (Gross) Mackenzie Global Large Cap Quality Growth (Net) MSCI World Total Return Index
PORTFOLIO BENCHMARKPrice/Earnings 19.1 18.7Net Debt/EBITDA 1.5 1.7ROC 13.6 11.5ROE 30.5 19.2Dividend Yield 2.4 2.5Turnover (1 year to September) 23.5 N/AMedian Market Cap (US$ millions) 34,861 8,999 Weighted Market Cap (US$ millions) 70,082 92,305
Standard Dev. (3-yr Trailing) 7.6 11.2Alpha (3-yr Trailing) 1.4 N/ABeta (3-yr Trailing) 0.6 N/ASharpe Ratio (3-yr Trailing) 0.6 0.5Tracking Error (3-yr Trailing) 5.5 N/AInformation Ratio (3-yr Trailing) -0.2 N/A
GEOGRAPHIC ALLOCATION (%)
IMPORTANT NOTES
The information expressed herein is as of September 30, 2016 and is subject to change without notice.
The contents of this document are provided for illustrative and marketing purposes and do not constitute specific advice regarding your personal investment situation or provide specific individual advice about investment, insurance, financial, legal, accounting, tax or similar matters. Certain information contained in this document is obtained from third parties. Mackenzie Investments believes such information to be accurate and reliable as at the date hereof, however, we cannot guarantee that it is accurate or complete or current
50 10 20 30 40
Cash & Equivalents
Utilities
Real Estate
Telecommunication Serv.
Energy
Materials
Information Technology
Financials
Industrials
Health Care
Consumer Staples
Consumer Discretionary
7-10
0
10
20
1.8 2.3
11.1
5.8 5.0
9.1
10.6
6.8
1.6 1.9
10.1
4.8 4.1
8.1
9.6
5.84.9 5.9
11.4
2.8
5.8
9.3
11.6
3.1
MSCI World TR Index
Global Large Cap Quality Growth Net
Global Large Cap Quality Growth Gross
Since Inception*5 Years4 Years3 Years2 Years1 Year6 Months3 Months
-40
-20
0
20
40
-0.3
1.7
25.5
13.4
3.4
12.0
25.6
-22.0
-1.2
0.7
24.4
12.3
2.5
10.9
24.4
-22.7
-0.9
4.9
26.7
15.8
-5.5
11.8
30.0
-40.7
MSCI World TR Index
Global Large Cap Quality Growth Net
Global Large Cap Quality Growth Gross
20082009201020112012201320142015
50 20 40 60 80
Cash & Equivalents
Other
Belgium
South Korea
Canada
Switzerland
Japan
United Kingdom
France
Australia
United States
Mackenzie Global Large Cap Quality GrowthALL DATA AS AT SEPTEMBER 30, 2016
IMPORTANT NOTES (cont’d)
© Mackenzie Financial Corporation 2016. All rights reserved.0249
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at all times. The information provided is subject to change without notice and Mackenzie Investments cannot be held liable for any loss arising from any use of or reliance on the information contained in this document. No portion of this communication may be reproduced or distributed to anyone without the express permission of Mackenzie Investments.
Investing involves risk. The sector and geographic allocations, top-ten portfolio holdings and other portfolio characteristics shown, except information under “Composite Performance (in U.S. dollars)”, reflect the portfolio characteristics of a representative account. Actual client portfolios, however, may differ as a result of account size, client-imposed investment restrictions, the timing of client investments and market, economic and individual company considerations.
The portfolio holdings shown do not represent all of the securities purchased, sold or recommended and in the aggregate may represent only a small percentage of portfolio holdings. You should not assume that an investment in any of the above securities was or will be profitable. The information expressed herein does not constitute a recommendation or solicitation to buy or sell any particular security.
Past performance does not guarantee or indicate future results. Information under “Composite Performance (in U.S. dollars)” reflects the performance of the Mackenzie Global Large Cap Quality Growth Composite, and does not necessarily reflect the performance that any particular account investing in the same or similar securities may have had during the period. The performance of other accounts is likely to differ from the performance shown for a variety of reasons, including, but not limited to: differences in market conditions, portfolio turnover and in the number, types, availability and diversity of securities that can be purchased; economies of scale, regulations and other factors applicable to the management of large separate accounts and mutual funds; client-imposed investment restrictions; the timing of client investments and withdrawals; the deduction of taxes; tax considerations; and other factors.
Gross performance results do not reflect the deduction of management fees and other custodial fees. Including these fees and expenses would reduce the returns shown. Net performance results reflect the deduction of the maximum standard fee of 0.95% charged to institutional clients without taking into account breakpoints, calculated daily and invoiced quarterly, as well as the transaction costs and certain other fees and expenses, including certain taxes, described in the Investment Management Agreement. Certain clients could pay different fees which would result in different net performance returns. Net performance results also do not include the deduction of custodial fees, which will reduce the returns shown.
Both gross and net performance returns assume the reinvestment of dividends, interest, and realized and unrealized capital gains and losses. Index returns do not reflect transaction costs or the deduction of other fees and expenses and it is not possible to invest directly in an index.
The Mackenzie Global Large Cap Quality Growth Composite contains fully discretionary, Global Large Cap Quality Growth accounts. New accounts are included in the Composite beginning with the first full month under management after they have been fully invested.
Although client accounts comprising the Mackenzie Global Large Cap Quality Growth Composite are managed in Canadian dollars, the performance information shown above was converted from Canadian dollars and is expressed in U.S. dollars. The performance of an account managed in U.S. dollars may differ. Returns were converted at the end of each month based on the 4:00 PM spot rate on the last business day of the month as reported by StatPro to our system vendor CGI StarSource.
COMPLIANCE STATEMENT
Mackenzie Investments claims compliance with the Global Investment Performance Standards (GIPS®). Mackenzie Investments has been independently verified for the periods January 1, 2008 through December 31, 2015. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Global Large Cap Quality Growth Composite has been examined for the periods January 1, 2008 through December 31, 2015. The verification and performance examination reports are available upon request.
FIRM OVERVIEW
Mackenzie Investments provides investment management and related services through multiple distribution channels. Assets under management as at September 30, 2016 were US$ 49.0 billion. We provide our investment management expertise through mutual funds, pooled funds, segregated accounts, and separate accounts for retail and institutional investors. Mackenzie Investments is dedicated to generating consistently superior long-term investment returns for its clients. The Firm is a member of the IGM Financial Inc. (TSX:IGM) group of companies.
COMPOSITE DESCRIPTION
The Global Large Cap Quality Growth Composite seeks to provide long-term capital growth by investing in high quality, larger capitalization companies from anywhere in the world with a focus on maximizing risk-adjusted returns. Portfolios within the composite may use derivatives for hedging and non-hedging purposes and engage in short selling in a manner considered appropriate to pursuing the investment objectives of the composite. As of September 30, 2016, short selling has not been utilized. The composite was created on December 31, 2012. The composite inception date is January 1, 2008.*
BENCHMARK DESCRIPTION
The benchmark is the MSCI World Total Return Index, net of withholding taxes. The MSCI World Total Return Index is a free float adjusted, market capitalization weighted index that is designed to measure the equity market performance of developed markets. It consists of 23 developed market country indices.
REPORTING CURRENCY
Valuations and composite performance are reported in U.S. dollars. The composite includes Canadian dollar portfolios that have been converted to U.S. dollars.
LIST OF COMPOSITES
A complete list of composite descriptions is available to prospective clients upon request. Please contact Aaron Pittman at [email protected].