Emerging Markets Small Cap Equity

Inception: May 2018

Benchmark: MSCI Emerging Markets Small Cap Index

Lead Portfolio Manager: Arup Datta, MBA, CFA

Investment Adviser: Mackenzie Investments Corporation

• Core focus that aims to add value across a variety of market conditions
• Nimble process that incorporates daily changes in stock alpha rankings
• Daily rebalancing and trading using predictive transaction cost modelling with a focus on capacity management

The Mackenzie Global Quantitative Equity team believes a core style of investing that employs fundamental ideas in a systematically disciplined, risk-aware manner can generate alpha in most market environments. Our team’s priority in executing the investment process is to remain nimble in seeking to generate alpha for clients. To retain this advantage, we use a proprietary transaction cost model and focus on capacity.

• Bottom-up, quantitative stock selection process is applied to a broad investable universe of over 9,500 securities from 24 emerging markets countries and a select number of frontier countries.
• Stocks are analyzed through a region/sector relative model framework.
• Individual stock weights are assigned based upon sub-factors, which are grouped into the four aggregate factors, Value, Revisions, Quality and Informed Investor.
• Contextual modeling is utilized to further refine the weights of factors assigned to stocks.
• The priority in executing the investment process is to remain nimble in seeking to generate alpha for clients. 

• Profile - Emerging Markets Small Cap - CAD
• Profile - Emerging Markets Small Cap - EUR
• Profile - Emerging Markets Small Cap - GBP
• Profile - Emerging Markets Small Cap - USD

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The material presented on this website is for informational purposes only and is intended for institutions, investment professionals, consultants and clients, and does not constitute an offer or solicitation of any kind to buy or sell any investment fund or any other product, investment, security, trading strategy or other service to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot legally be made or to any person to whom it is unlawful to make such an offer.  Prospective clients are responsible for determining whether any product or service may lawfully be sold in their jurisdiction. 

Investing involves risk.

The contents of this document are provided for illustrative and marketing purposes and do not constitute specific advice regarding your personal investment situation or provide specific individual advice about investment, insurance, financial, legal, accounting, tax or similar matters. Certain information contained in this document is obtained from third parties. Mackenzie Investments believes such information to be accurate and reliable as at the date hereof, however, we cannot guarantee that it is accurate or complete or current at all times. The information provided is subject to change without notice and Mackenzie Investments cannot be held liable for any loss arising from any use of or reliance on the information contained in this document. No portion of this communication may be reproduced or distributed to anyone without the express permission of Mackenzie Investments.

The Mackenzie Emerging Markets Small Cap Composite contains fully discretionary Emerging Markets Small Cap accounts. New accounts are included in the Composite beginning with the first full month under management after they have been fully invested.

GIPS Compliance Statement

Mackenzie Investments claims compliance with the Global Investment Performance Standards (GIPS®).

Composite Description

The Emerging Markets Small Cap Composite seeks to provide long-term capital appreciation and outperform its benchmark (MSCI EM Small Cap Index). The strategy applies a quantitative, bottom-up stock selection investment process, based on fundamental insights, to emerging and selected frontier markets across small-cap stocks. The investment process focuses on a succinct, high conviction set of factors, which are applied within the context of a region/sector/industry relative model. The composite was created on May 1, 2018. 

Benchmark Description

The benchmark is the MSCI Emerging Markets Small Cap Index, net of withholding taxes. The MSCI Emerging Markets Small Cap Index includes small cap representation across 24 emerging markets countries. The index covers approximately 14% of the free float adjusted market capitalization in each country. 

List of Composites

A complete list of composite descriptions is available to prospective clients upon request. Please contact Dean Silver at dean.silver@mackenzieinvestments.com.