Small-Cap Equity Fund
To grow your capital at a pace that significantly exceeds inflation and provide you with exposure to a collection of smaller companies that think big.
Is This Fund For You?
You have a reasonable investment time horizon (over 5 years) and a moderate to high tolerance for risk. Consider this fund if you are seeking exposure to a portfolio of small companies with large potential. This fund will move in a cycle of its own and will often be out of synch with the overall market.
Canada-centric: the portfolio manager looks to the Canadian and U.S. equity markets for small and mid-sized companies. Athough the fund typically invests the majority of its assets in Canadian equities, the portfolio manager may invest a significant portion of the fund's assets in U.S. equities in pursuit of opportunities not available in the Canadian market. We do not expect, however, that the fund's U.S. holdings will exceed 40% of its net assets for any prolonged period of time.
Estimated long-term geographic mix:
The fund holds 15-30 small to mid-cap equities in which the portfolio manager has the greatest conviction. The manager invests the fund’s assets in businesses that have promising prospects and are expected to deliver high relative earnings growth, yet trade at reasonable valuations. An ideal holding will be a simple, repeatable business with products or services that are easy to understand. It will have a proven track record of growing revenues, cash flow or earnings per share, an experienced management team that has a significant ownership interest in the business, and a strong balance sheet.
- Ensure that this fund fits into your investment plan - i.e., understand the meaning of small-cap risk.
- Be prepared for potentially higher volatility due to the relatively illiquid nature of the small-cap market and the concentration of the fund's assets.
- Learn about Wil Wutherich and his investment philosophy.
- Assess the fund's performance over a market cycle (i.e., 4-5 years), not an NHL season, and keep in mind that it typically takes the market longer to recognize the hidden value in small-cap stocks.
- Support the little guy.
- Small and mid-cap North American equities specialists
- Portfolio manager has over 20 years of industry experience
- All-in at $10,000: 1.78%
- At $150,000: 1.66%
- At $250,000: 1.57%
- At >$250,000: Even less
Learn more about the manager's background, investing style, and the Small-Cap Fund.
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