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Investment Objective The objective of this fund is to provide long-term capital appreciation through a portfolio of global stocks that is sufficiently diversified to minimize investment risk. This will include stocks in both large- and small-cap issuers, as well as opportunistic exposure to issuers in the emerging markets.
†Although the fund was established on December 1, 2007, pursuant to securities legislation the fund cannot disclose performance returns prior to the date it commenced offering its units to the public by way of a prospectus. The Fund commenced offering its units to the public by way of a prospectus on August 27, 2008. Newton Capital Management - Global Thematic Core Newton’s approach recognizes that no economy, industrial sector or company should be seen in isolation when there is a global market for goods and services. The third quarter has been a very challenging period for global equity markets, with the ramifications of Fannie Mae, Freddie Mac, Lehmans, AIG, Merrill Lynch and Wachovia being worked through and felt around the globe. Europe has also had its fair share of problems with the Benelux countries rescuing Fortis and Dexia, and the UK Government attempting to force HBOS into the arms of Lloyds TSB. In addition, the news has continued to deteriorate from an economic standpoint, and it is clear that the world economy is going through a very difficult period. The uncertainty created has lead to a sell-off across markets, and in particular an aggressive sell-off in perceived risk assets, namely commodities and developing economies. Stock selection has suffered across most sectors. In particular the broadly positive stance towards the commodity and developing economy areas has been a negative. We focused on those economies which we believe to be well placed, and is invested on a stock by stock basis. The same can be said for the resources sectors, where we retain an allocation to the energy, mining and agricultural sectors, where we continue to believe that the longer term fundamentals are strong. A further disappointment has come from holdings in the more defensive sectors of the market; stock selection has been negative in healthcare and consumer staples, two of the better performing sectors, where we are overweight. However, of particular disappointment has been the very poor returns from the telecom sector, which has thus far proved not to be resilient in the market sell off. We expect there to be a reversal in this sector performance, and the outperformance of consumer staples and healthcare to continue, and within that the returns from our stocks to improve. All performance is presented in Canadian dollar terms, gross of investment management fees. Past performance is not indicative of future results. |
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