PCJ Sustainable Canadian
Equity Strategy

Product highlights

  • Long only, all-cap Canadian Equity strategy
  • Bottom up fundamental security selection
  • Leverages PCJ’s fundamental research and ESG infrastructure
  • Experienced team focused on Canadian equities

Investment objective

The investment team is committed to engage companies to
drive positive change and allocate capital to companies
that align with the strategy’s core values

Core values

  • Revenue exposure alignment with the United Nation’s Sustainable Development Goals (SDG)
  • Transition toward a low carbon economy (Scope I & II emissions)
  • Best-in-class performance on Environmental, Social, and Governance (PCJ scoring)

Investment philosophy

  • Market inefficiencies provide opportunities to add value
  • Earnings growth ultimately drives stock prices
  • Concentrated portfolios maximize value from manager insights
  • Catalysts for organic growth are best identified through independent fundamental research
  • Risk management is integral to creating long-term value

Investment process

  • Identify high quality companies with opportunities for organic growth
  • Identify catalysts for future growth, e.g. earnings announcements, restructuring
  • Each stock is assigned a price target and downside risk, as well as an ESG score
  • Company meetings: Validate research, confirm confidence in management
  • Sector exclusions for Energy (oil, gas, coal), Mining & Resource, Extraction, Alcohol, Gambling, Adult entertainment, Tobacco and related products, Weapons
  • Revenue alignment with SDG for the majority of assets
  • Regular assessment of carbon exposures

Portfolio construction and
risk controls

  • Optimize rewards for risk taken
  • Portfolio concentrated on impact content (minimum of 50%)
  • Sector weights evaluated relative to macro market themes
  • Absolute and relative stock and sector limits
  • Continuous monitoring of security specific and total portfolio risk
  • Dynamic risk allocation is used to lock in profits and reduce risk

For more information on the PCJ Sustainable
Canadian Equity Strategy please contact:

Brent Wilkins

Senior Vice President,
Head of Institutional Sales, Canada

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PCJ Investment Counsel Ltd.
July 5th, 2022