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, Chairman & Co-Chief Investment Officer, Hexavest
28 years of industry experience
26 years with the team
B.B.A. Laval University
Jean-René Adam, CFA, Co-Chief Investment Officer & Portfolio Manager, Hexavest
15 years of industry experience
11 years at Hexavest
B.Comm. Sherbrooke University
M.Fin. Sherbrooke University
Jean-Pierre Couture, Chief Economist & Portfolio Manager, Hexavest
22 years of industry experience
7 years at Hexavest
B.Econ. Université du Québec à Montréal
M.Econ. Université du Québec à Montréal
Marc Christopher Lavoie, CFA, President & Portfolio Manager, Hexavest
17 years of industry experience
13 years at Hexavest
B.B.A. Sherbrooke University
M.Acc. Sherbrooke University
Étienne Durocher-Dumais, CFA, Portfolio Manager, Hexavest
9 years of industry experience
5 years at Hexavest
B.A.A. Université de Montréal, HEC Montreal
M.Sc. Université de Montréal, HEC Montreal
Christian Crête, CFA, Portfolio Manager, Hexavest
18 years of industry experience
5 years at Hexavest
B.Econ. & Fin Université du Québec à Montréal
M.Econ. Queen's University
Kevin LeBlanc, CFA, Portfolio Manager, Hexavest
9 years of industry experience
2 years at Hexavest
B.Comm. Concordia University

Benchmark

MSCI World Index