Investment Overview

A global equity strategy that can invest anywhere in the developed world (max. of 10% 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, 275-350 positions
Alpha target: ~2% over a full market cycle
Tracking error range typically 3%-5%
Maximum position size of approximately 2% 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
Maximum emerging-market equity exposure of 10%
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, President & Chief Investment Officer, Hexavest
26 years of industry experience
25 years at Hexavest
B.B.A. Laval University
Jean-René Adam, CFA, Assistant Chief Investment Officer & Vice President, Hexavest
13 years of industry experience
10 years at Hexavest
B.Comm. Sherbrooke University
M.Fin. Sherbrooke University
Jean-Pierre Couture, Portfolio Manager, Hexavest
20 years of industry experience
6 years at Hexavest
B.Econ. Université du Québec à Montréal
M.Econ. Université du Québec à Montréal
Marc Christopher Lavoie, Vice President & Portfolio Manager, Hexavest
15 years of industry experience
13 years at Hexavest
B.B.A. Sherbrooke University
M.Acc. Sherbrooke University
Étienne Durocher-Dumais, CFA, Portfolio Manager, Hexavest
8 years of industry experience
4 years at Hexavest
B.B.A. Université de Montréal

Benchmark

MSCI World Index