Investment Overview

An emerging-market equity strategy that invests in the non-developed world (min. of 85% in EM countries)
A contrarian, and primarily top-down macrodriven investment approach
Fundamental research is based on three vectors: macroeconomic environment, valuation of financial markets and sentiment of investors
Focused on exploiting anomalies across regions, countries, currencies, sectors, industries and, to a lesser extent, excesses at the stock level
Rebalancing of the portfolio occurs when the team’s outlook on the three vectors changes

Portfolio Construction

Typically, 130-170 positions
Alpha target: ~2% over a full market cycle
Tracking error range typically 3%-5%
Maximum position size of approximately 3% over security’s weight in the benchmark
Sector weights can reach a maximum deviation of +/- 10% versus the benchmark
Country weights can reach a maximum deviation of +/- 15% versus the benchmark
Regional weights can reach a maximum deviation of +/- 15% of benchmark weight
Minimum emerging-market equity exposure of 85%
Currency exposure can reach a maximum deviation of +/- 15% of benchmark weight
Cash maximum position is 10% of the portfolio

Investment Team

Vital Proulx, CFA, Chairman & Co-Chief Investment Officer, Hexavest

29 years of industry experience

27 years with the team

B.B.A. Laval University

Vincent Delisle, CFA, Co-Chief Investment Officer

24 years of industry experience

1 year with the team

B.Comm. Université Laval

Jean-Pierre Couture, Chief Economist & Portfolio Manager, Hexavest

23 years of industry experience

8 years at Hexavest

B.Econ. Université du Québec à Montréal

M.Econ. Université du Québec à Montréal

Jean-Benoit Leblanc, CFA, Portfolio Manager, Hexavest

19 years of industry experience

9 years at Hexavest

B.B.A. Sherbrooke University

M.Fin. Sherbrooke University



MSCI Emerging Markets Index