Builders Fund

September 30, 2022

Fund Overview

  • The Builders Fund is a fund-of-funds that invests mainly in Steadyhand’s four stand-alone equity funds — Steadyhand Equity Fund, Steadyhand Global Equity Fund, Steadyhand Small-Cap Equity Fund, and Steadyhand Global Small-Cap Equity Fund. Its an all-stock portfolio designed for growth-oriented investors.
  • The underlying fund mix is managed by Chief Investment Officer Salman Ahmed, with Chair and co-founder Tom Bradley as co-manager.

Portfolio Specifics

  • Stock markets around the world have experienced significant declines in 2022. The fund has performed in line with global markets but has trailed Canada
  • Investments are allocated roughly 1/3 towards companies based in Canada and 2/3 towards foreign businesses. The bias to foreign companies reflects a broader opportunity set outside of Canada, particularly in important industries like healthcare, technology, and consumer products and services.
  • The largest sector weight, industrial goods & services (31% of the portfolio), includes a diverse mix of companies such as Regal Rexnord (manufacturer of motors, bearings, and gearing), Ritchie Bros. Auctioneers (heavy equipment auctioneer), Saab (aerospace, defence, and radar specialist) and Savaria (home elevators and mobility products). Many stocks in the sector declined in the quarter despite continuing to produce good operating results—a tireless theme this year.
  • Financial services companies make up 17% of the fund. Large holdings are TD Bank, Visa, and Brookfield Asset Management. We also own a group of leading insurance companies, including RenaissanceRe, Topdanmark, AIA Group, and Munich Re Group. As a group, our investments were largely flat in the quarter.
  • The technology sector is another important area of investment, comprising 11%. Microsoft is the largest holding and is owned in both the Equity and Global Equity Funds. Other investments include Samsung Electronics (diversified technology), Qualcomm (chips), Enghouse Systems (enterprise software solutions), and Totvs (management software). The industry had a better quarter but has been one of the worst performing sectors this year.
  • The portfolio has some exposure to commodity stocks, including Franco-Nevada (gold), Nutrien (fertilizers), Cameco (uranium), Hudbay Minerals (copper and zinc), and TotalEnergies (oil & gas), but resource companies are not a prominent feature of the fund due to their inherent cyclicality. This positioning helped the fund in Q3, as energy and mining stocks fared poorly, generally speaking.

Positioning

  • Refer to the underlying funds for details on their positioning.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Important information about the Steadyhand funds is contained in our Simplified Prospectus. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.