Global Small-Cap Equity Fund

September 30, 2021

Market Context

  • The global small-cap market (S&P Global SmallCap Index) rose 0.3% in the third quarter in Canadian dollar terms.
  • The technology, industrial, financial, and real estate sectors were among the top performing industries.

Portfolio Specifics

  • The portfolio is currently invested in 42 companies. Fifteen are based in the U.S., 13 in Europe, 6 in the U.K., 5 in Japan, 2 in Australia, and 1 in Brazil.
  • The fund had a good quarter (+3.8%) and is up 9.3% on the year. Companies producing strong profits regained favour with investors in the summer. Many holdings turned in solid earnings growth and were rewarded with rising share prices, notably Charles River Laboratories, Gartner, and Rexnord.
  • Two of the portfolio’s largest holdings were sold, Teleperformance and Gartner. Both were stellar performers over our holding period and had grown to over $20 billion in market capitalization. As they now fall firmly into the large cap realm, our manager (TimesSquare Capital Management) moved on to pursue other opportunities. Two smaller holdings were sold based on weakening outlooks: Rubis, which is involved in the distribution of oil & gas; and Huya, a live streaming game platform which fell victim to the Chinese government’s clampdown on gaming.
  • TimesSquare was active on the purchase front as well, buying several new stocks across a range of industries, including: Brunswick Corporation (builds boats and owns a popular boat-sharing program); Spirent Communications (world leader in testing equipment and software for telecom operators and manufacturers); Kadokawa (media firm involved in anime and manga, the popular Japanese comic books); TOTVS (Brazilian software company that specializes in business solutions); and ALK-Abello (develops and manufactures allergy medications).
  • Two stocks were also purchased with an eye towards sustainability, both based in Finland: Huhtamaki is a food packaging specialist that manufactures fiber-based, recyclable containers, cups, and plates; while Valmet develops systems and technologies for the pulp & paper industry that focus on a more efficient use of water and energy in the manufacturing process.
  • Shipping delays and supply chain issues have been well publicized, but the fund’s holdings have generally avoided any major operational disruptions. Some investments, such as CIE Automotive, have even benefited from the logistics problems in China.
  • The fund currently has a cash position of 3%.


  • The fund invests in businesses with a clear competitive edge, a record of consistent earnings growth, and management that has clear goals and a record of success.

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.