Nov. 9, 2023

The Investment Manager Research (IMR) team oversees the investment managers of Canada Life’s mutual and segregated funds. They monitor, evaluate and rate the funds and their investment managers. This helps to ensure the investment managers and funds on our platform are relevant and competitive, so you can feel confident you’re providing the right investment solutions to your clients.

Canada Life today announced that Connor Clark & Lunn Investment Management Ltd. (CC&L) will assume portfolio sub-advisory responsibilities for the Canada Life Canadian Concentrated Equity Fund (on both the Canada Life mutual fund and segregated funds), effective Nov. 27, 2023. The Canada Life Canadian Concentrated Equity Fund will also be renamed the Canada Life Canadian Fundamental Equity Fund (the “Fund”).

Canada Life is excited to partner with CC&L on the Canada Life Canadian Fundamental Equity Fund. The Fund will be managed by the CC&L Fundamental Equity team, co-led by Gary Baker and Andrew Zimcik, supported by a deep team of five portfolio managers, who each have dedicated sector responsibilities, and a broader team of nine other investment professionals. 

The CC&L Fundamental Equity team’s investment philosophy focuses on buying what the team believes to be great businesses that share common characteristics such as:

• Predictable and growing cash earnings
• Sustainable business practices and high barriers to competition
• Positive free cash flow and a strong balance sheet
• Quality management teams

The CC&L Fundamental Equity team has a demonstrated long track record of success on this mandate, providing strong and consistent risk-adjusted returns over the approximately 20 years the team has been managing this strategy.

CC&L replaces Galibier Capital Management (Galibier) as the sub-advisor on the Canada Life Canadian Concentrated Equity Fund.

CC&L’s investment strategy for the Canada Life Canadian Fundamental Equity Fund

The sub-advisor invests on the basis of a balance between growth and value characteristics. The investment approach is founded on a disciplined and consistent process, combining top-down macro-economic research with a strong emphasis on fundamental bottom-up security selection. The Fund can invest across the market capitalization spectrum to help maximize the breadth of investment opportunities.

The sub-advisor’s fundamental bottom-up security-selection process is centered on the principle of understanding a company’s long-term operating strategy and the key contributors to its business model within an industry context. Investment opportunities are assessed based on key factors including, but not limited to, financial and management strength, profitability, growth and price attractiveness.

While security selection is of primary importance, sector allocation is also considered to be part of the sub-advisor’s investment approach. The sub-advisor uses top-down macro-economic research combined with sector-specific analysis to help guide sector allocation decisions.

Generally, the Fund won’t invest its assets outside of Canada, but may allow up to 10% in foreign equity securities.

What investors can expect with CC&L, as sub-advisor on the Canada Life Canadian Fundamental Equity Fund, is a more diversified and less concentrated portfolio. 

The views expressed in this update are current as of Nov. 9, 2023, and are subject to change without notice. This update is presented only as a general source of information and isn’t intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice.

These funds are available through a segregated funds policy issued by The Canada Life Assurance Company or as a mutual fund managed by Canada Life Investment Management Ltd. offered exclusively through Quadrus Investment Services Ltd. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. A description of the key features of the segregated fund policy is contained in the information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.

Canada Life and design, and Canada Life Investment Management and design are trademarks of The Canada Life Assurance Company.