Inception: October 2002 (1)
Benchmark: MSCI EAFE Small Cap Total Return Index
Lead Portfolio Manager: Martin Fahey, MBS, CFA
Investment Adviser: Mackenzie Investments Europe Limited
- Lead portfolio manager has been investing in this asset class for 25+ years and has deep understanding of the companies in the investable universe.
- Combined in-depth fundamental research, thematic views, and industry expectations to identify investments that have a strong probability of outperforming over the next 3-5 years.
- A risk-controlled portfolio with the majority of relative returns driven through stock selection, resulting in high Active Share.
The Mackenzie European and International Equities team’s investment approach is based on the principles of value investing. The team believes success in fundamental investing is achieved by identifying undervalued, under-appreciated companies with high and/or improving returns on invested capital and a sustainable competitive advantage. Our skill is in identifying small cap companies that combine credible management, solid business strategy and strong governance.
- The investment universe is narrowed by market cap, followed by sector-specific proprietary screens focused primarily on factors such as earnings momentum, leverage and valuation.
- Fundamental analysis consists of identifying stock ideas through proprietary research consisting of financial statement analysis, valuation modeling and meetings with company management.Incorporates top-down thematic trends at macroeconomic, sector and sub sector levels.
- Compares internal projections with both positive and negative sell-side estimates to gauge potential upside and identify potential investment risks.
- Portfolio investments are typically made within a 3-5-year time horizon and are continuously monitored for changes in company fundamentals, valuations and thematic shifts.
1 Mackenzie Investments (the “Firm”) has been managing International Small Cap Equity assets since October 2002. 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, 2018.
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GIPS Compliance Statement
Mackenzie Investments claims compliance with the Global Investment Performance Standards (GIPS®).
The International Small Cap Composite seeks to provide significant long-term capital growth by investing in a diversified portfolio of smaller International companies with below average market capitalization. The investment approach of the strategy is based on the principles of value investing. The Composite will primarily invest in developed markets but may also invest in emerging markets and will generally be fully invested. The composite was created on January 1, 2006.
The benchmark is the MSCI EAFE (Europe Australasia, Far East) Small Cap Index. The MSCI EAFE (Europe Australasia, Far East) Small Cap Index is an equity index which captures small cap representation across Developed Markets countries around the world, excluding the US and Canada. With 2,218 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in each country.
List of Composites
A complete list of composite descriptions is available to prospective clients upon request