Canadian Fundamental Equity Strategy


Investment Objective

Investment Objective

The Strategy seeks to provide a total investment return in excess of the performance of its benchmark index (the "Index") over the long term.

BENCHMARK: S&P®/TSX® Capped Composite Index


Investment Strategy

Investment Strategy

Primarily equities of companies that are listed on Canadian exchanges and may occasionally include limited partnerships, warrants, special warrants, sub-receipts or installment receipts of such companies.

The Strategy’s investment decision-making process is a disciplined, research driven, bottom-up process. Our investment process begins by screening the universe of Canadian equities for companies with market capitalizations greater than C$700 million, and then conducting quantitative analysis focused on P/CE ratio, cash earnings growth, yield, and other key metrics. A detailed, fundamental company analysis, an industry competitive analysis, and a macro-environment review further narrow the list of buy candidates. We also may seek to identify a catalyst for change that could unlock the company’s future potential.  Final portfolio construction is guided by our level of conviction in each stock, yielding a list of approximately 55-85 companies. In general, SSGA Canada intends to manage the Portfolio in accordance with the following guidelines, although the Portfolio may exceed any of such guidelines at any point in time and for indeterminate periods of time should SSGA Canada believe such action to be in the best interest of the Portfolio:

Sector Limits based on GICS*

  • Economic sectors: +/-4%
  • Industry groups: +/-4%
  • Industries: +/-4%
  • Sub-industries: +/-4%

Stock Constraints:

  • Holdings: 55-85
  • Weightings: Minimum 0.25%
  • Maximum 15%, Relative +/-3%

Capitalization:

  • S&P/TSX 60 Index: +/-20%
  • S&P/TSX completion Index: +/-20%
  • Maximum of 10% not in the Index

Predicted Tracking Error:

  • Lower than 5%

Cash

  • Maximum of 5%

Note:

S&P® is a registered trademark of Standard & Poor's Financial Services LLC and has been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by SSGA. TSX® is a trademark of TSX Inc. ("TSX") and has been licensed for use by S&P Dow Jones Indices LLC and SSGA. The S&P®/TSX® Capped Composite Index is a product of S&P Dow Jones Indices LLC, and has been licensed for use by SSGA. SSGA's investment products are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC or its affiliates or TSX and none of S&P Dow Jones Indices LLC, its affiliates or TSX makes any representation regarding the advisability of investing in such investment products and none of such parties makes any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P®/TSX® Capped Composite Index.

*Sector reporting based on the Global Industry Classification Standard ("GICS") which was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P") and is licensed for use by State Street.

There are risks involved with investing, including possible loss of principal. You should refer to the Strategy's Disclosure Document (SDD) for a complete description of the risks of investing in the Strategy. Please contact SSGA's relationship management team for a copy of the SDD.