Mackenzie. International All Cap Growth

Transcription

1 Mackenzie International All Cap Growth INCEPTION: MARCH BENCHMARK: MSCI EAFE TOTAL RETURN INDEX ASSETS: C$ 789 MILLION AS OF MARCH 2016 PERFORMANCE SUMMARY For Q1 2016, the Mackenzie International All Cap Growth Composite returned -9.7% (Gross, CAD), -9.9% (Net, CAD). This compares with the MSCI EAFE Total Return Index return of -8.9%. CONTRIBUTORS TO PERFORMANCE At the sector level, stock selection in Information Technology and Consumer Discretionary contributed to performance. Stock selection in the Netherlands contributed to performance. Among the leading contributors to performance was Tokyo Tatemono Co. Tokyo Tatemono is an integrated real estate company with condominium sales and office leasing as its core businesses. The stock has rallied on the new negative interest rate policy (NIRP) instituted by the Bank of Japan. Other leading contributors include Samsonite International and Reckitt Benckiser Group. Samsonite reported strong results and continues to expect 7% sales growth for Samsonite s most recent purchase of Tumi may position them well for their next leg of growth. Reckitt has been able to improve growth in developed markets along with the firm s margins and cash flow. They have also repositioned the business towards Health and Hygiene and away from Cleaning. DETRACTORS FROM PERFORMANCE From a geographical perspective, stock selection in the United Kingdom was the largest detractor. Stock selection in Financials and Industrials were also detractors. Among the largest underperformers at the stock level were Sumitomo Mitsui Trust and Ashtead Group. The environment for Japanese Banks got tougher during the quarter as the Bank of Japan applied negative interest rates. Ashtead has been weak on the concern of lower rental rates given the slowdown in emerging market construction spending. CONTRIBUTORS TOP 5 CONTRIBUTORS SECTOR AVG. ACTIVE CONTRIBUTION WEIGHT TO Q1 RETURNS Tokyo Tatemono Co., Ltd. Financials 2.6% 0.4% Samsonite International S.A. Consumer Discretionary 2.0% 0.3% Intertek Group plc Industrials 2.1% 0.3% ASML Holding NV Information Technology 1.8% 0.3% Reckitt Benckiser Group plc Consumer Staples 2.6% 0.3% DETRACTORS TOP 5 DETRACTORS SECTOR AVG. ACTIVE CONTRIBUTION WEIGHT TO Q1 RETURNS Sumitomo Mitsui Trust Holdings, Inc. Financials 3.3% -0.6% Ashtead Group plc Industrials 2.5% -0.6% UBS Group AG Financials 2.9% -0.4% Grupo Catalana Occidente S.A. Financials 1.9% -0.3% Roche Holding Ltd. Health Care 5.5% -0.3% COMMENTARY Q Investing involves risk. Please read the important disclosures under Important Notes which contain more information about the significance and the limitations of the information on this page.

2 PERFORMANCE ATTRIBUTION COUNTRY ATTRIBUTION 2016 Q1 Country 2016 Q1 Sector 1 Year Country as at Mar. 31, Year Sector as at Mar. 31, % 0% 3% Allocation Stock Selection Currency Cash Other SECTOR ATTRIBUTION Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecommunication Services Utilities Cash Other -2% -1% 0% 1% Allocation Stock Selection Currency Australia Austria Belgium Brazil China Denmark Finland France Germany Hong Kong Ireland Israel Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Portugal Singapore Spain Sweden Switzerland Thailand United Kingdom Cash -1% 0% 1% Attribution versus MSCI EAFE TR Index in CAD Allocation Stock Selection Currency PORTFOLIO ACTIVITY In Q1, three new positions were added and six positions were sold. The portfolio initiated a position in Industria de Diseno Textil (Inditex), a global retailer with brands such as Zara, Pull and Bear and Massimo Dutti. We believe Inditex is one of, if not the best managed global retailers. Inditex is beginning to generate high free cash flow as it moves to a lower capital intensity model. The portfolio also initiated a position in Intesa Sanpaolo S.p.A. Intesa Sanpaolo is the leading banking group in Italy, with over 4,100 branches and 11.1 million customers. They boast the #1 market share in retail banking, wealth management and corporate banking. Intesa is expected to continue to benefit at the expense of weaker smaller players in Italy and their capital position is well over regulatory requirements. The portfolio exited its position in HSBC Holdings plc. We were concerned over the recent income performance and the outlook for the commercial bank through We also feel that loan losses could come in higher than expected. NAMES ADDED Globant SA (United States Information Technology) Industria de Diseno Textil, S.A. (Spain Consumer Discretionary) Intesa Sanpaolo S.p.A. (Italy Financials) COMMENTARY Q NAMES REMOVED ASOS plc (United Kingdom Consumer Discretionary) China Huishan Dairy Holdings Co. Ltd. (Hong Kong Consumer Staples) HSBC Holdings plc (United Kingdom Financials) Laox CO.,LTD. (Japan Consumer Discretionary) Yoma Strategic Holdings Ltd. (Singapore Financials) Zodiac Aerospace SA (France Industrials) Investing involves risk. Please read the important disclosures under Important Notes which contain more information about the significance and the limitations of the information on this page.

3 OUTLOOK The European economy looks set to continue growing at a modest pace. The unemployment rate is at the lowest level it has been since the financial crisis. Automotive sales have been rising, particularly in France and Spain, which suggests a positive backdrop for consumer confidence. We believe the recent announcement from Dragi expanding quantitative easing by the ECB was designed to maintain loose monetary conditions but limit the negative effects it has on the bank s profitability. The Asian outlook is somewhat mixed. Japan s economy looks to have stalled. The negative interest rate policy (NIRP) has had the opposite effect that the Bank of Japan had expected. The Yen has risen almost 10 since NIRP was announced, threatening the prospects of exporters. The Tankan Survey (a quarterly survey of businesses) was weaker than expected. Wages have risen but not the degree that Prime Minister Abe had wanted. The bright spot in Japan is that unemployment is at a twenty year low. The job offers to applicant ratio stands at 1.3X so we remain hopeful that rising employment will increase income which should support consumption. China has had some encouraging data over the past few months and we expect that trend to continue into the summer. PORTFOLIO MANAGEMENT TEAM Mark Grammer, P.Eng, MBA, CFA Portfolio Manager; Industry Start: 1989; Firm Start: 2003 Ashley Misquitta, MBA, CFA Portfolio Manager; Industry Start: 2004; Firm Start: 2014 Phil Taller, MBA, CFA Portfolio Manager; Industry Start: 1991; Firm Start: 2011 Sonny Aggarwal, MBA, CFA Associate Portfolio Manager; Industry Start: 2000; Firm Start: 2014 Klara Gotz, CFA Associate Portfolio Manager; Industry Start: 2006; Firm Start: 2006 Chris Sit, MA, CFA Associate Portfolio Manager; Industry Start: 1997; Firm Start: 1997 John Lumbers, Investment Analyst; Industry Start: 2012; Firm Start: 2012 COMPOSITE AND BENCHMARK PERFORMANCE (CAD) As at March 31, Months 6 Months 1 Year 2 Years 3 Years 4 Years 5 Years Since Inception* Mackenzie International All Cap Growth (Gross) Mackenzie International All Cap Growth (Net) MSCI EAFE Total Return Index Mackenzie Investments (the Firm ) has been managing International All Cap Growth assets since March The Firm claims compliance with GIPS starting January 1, 2008 and has been independently verified for the period of January 1, 2008 to December 31, Returns for periods greater than 1 year have been annualized. DISCLAIMER Mackenzie Financial Corporation is regulated as a Portfolio Manager in all provinces and territories in Canada by the relevant securities commissions in each jurisdiction. Additional information about Mackenzie Investments Corporation and Mackenzie Financial Corporation is available on the various securities commissions websites in the provinces and territories of Canada. Mackenzie Investments 180 Queen Street West, Toronto, Ontario M5V 3K1 T F E apittman@mackenzieinvestments.com mackenzieinvestments.com

4 IMPORTANT NOTES /16 Investing involves risk. Any opinion expressed herein is as of March 31, 2016 and is subject to change without notice. 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 does not 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 redistributed without the express permission of Mackenzie Investments. Views expressed regarding a particular company, security, industry or market sector are the views of only that speaker/author as of the time expressed and do not necessarily represent the views of Mackenzie Investments or its affiliates. Any such views are subject to change at any time based upon markets and other conditions and Mackenzie Investments and its affiliates disclaim any responsibility to update such views. These views are not a recommendation to buy or sell and may not be relied on as investment advice and, because investment decisions are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any client. Speculation or stated beliefs about future events, such as market and economic conditions, company or security performance, upcoming product offerings or other projections are forward-looking statements. These forward-looking statements represent the beliefs of the speaker/author and do not necessarily represent the views of Mackenzie Investments or its affiliates. Forward-looking statements are inherently subject to, among other things, risks, uncertainties and assumptions which could cause actual events, results, performance or prospects to differ materially from those expressed in, or implied by, these forwardlooking statements. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, the volatility of global equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events and the ability of Mackenzie Investments and its affiliates to attract or retain key employees. The foregoing list of important risks, uncertainties and assumptions is not exhaustive. Please consider these and other factors carefully and not place undue reliance on forward-looking statements. In addition, Mackenzie Investments and its affiliates manage a number of separate strategies and portfolio managers for those strategies may have differing views or any analysis with respect to a particular company, security or the economy than the views expressed herein. Mackenzie s Portfolio Analytics Group is responsible for conducting performance attribution. The group uses Factset Research Systems for conducting performance attribution based on daily holdings. The model uses a multi-currency attribution based on Brinson-Fachler Model. The model decomposes portfolio returns into currency, allocation, selection and interaction effects. Past performance does not guarantee or indicate future results. Information under Composite and Benchmark Performance (CAD) reflects the performance of the Mackenzie International All Cap Growth Composite, and does not necessarily reflect the performance that any particular account investing in the same or similar securities may have had during the period. The performance of other accounts is likely to differ from the performance shown for a variety of reasons, including, but not limited to: differences in market conditions, portfolio turnover and in the number, types, availability and diversity of securities that can Mackenzie Financial Corporation All rights reserved. be purchased; economies of scale, regulations and other factors applicable to the management of large separate accounts and mutual funds; client-imposed investment restrictions; the timing of client investments and withdrawals; the deduction of taxes; tax considerations; and other factors. Information presented under the headings Contributors to Performance, Detractors from Performance, Contributors, Detractors, Performance Attribution, Sector Attribution, Portfolio Activity, Names Added and Names Removed are made with specific reference to a representative account within the Composite. Gross performance results do not reflect the deduction of management fees and other expenses except for brokerage commissions and other trading expenses. If those fees and costs were reflected, results would be reduced. Including these fees and expenses would reduce the returns shown. Net performance results reflect the deduction of the maximum standard fee of 0.80% charged to institutional clients without taking into account breakpoints, calculated daily and invoiced quarterly, as well as the transaction costs and certain other fees and expenses, including certain taxes, described in the Investment Management Agreement. Certain clients could pay different fees which would result in different net performance returns. Net performance results also do not include the deduction of custodial fees, which will reduce the returns shown. Taxes have not been deducted. Both gross and net performance returns assume the reinvestment of dividends, interest, and realized and unrealized capital gains and losses. Index returns do not reflect transaction costs or the deduction of other fees and expenses and it is not possible to invest directly in an index. The Mackenzie International All Cap Growth Composite contains fully discretionary, International All Cap Growth accounts. New accounts are included in the Composite beginning with the first full month under management after they have been fully invested. COMPLIANCE STATEMENT Mackenzie Investments claims compliance with the Global Investment Performance Standards (GIPS ). Mackenzie Investments has been independently verified for the periods January 1, 2008 through December 31, Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The International All Cap Growth Composite has been examined for the periods January 1, 2008 through December 31, The verification and performance examination reports are available upon request. FIRM OVERVIEW Mackenzie Investments provides investment management and related services through multiple distribution channels. Assets under management as at March 31, 2016 were C$ 60.7 billion. We provide our investment management expertise through mutual funds, pooled funds, segregated accounts, and separate accounts for retail and institutional investors. Mackenzie Investments is dedicated to generating consistently superior long-term investment returns for its clients. The Firm is a member of the IGM Financial Inc. (TSX:IGM) group of companies. COMPOSITE DESCRIPTION The International All Cap Growth Composite seeks to provide long-term capital growth by investing primarily in a select group of larger capitalization companies from anywhere in the world excluding the U.S. based on their underlying growth potential and relative valuation attractiveness. Portfolios within the composite may use derivatives for hedging and non-hedging purposes and engage in short selling in a manner considered appropriate to pursuing the investment objectives

5 IMPORTANT NOTES (cont d) of the composite. As of March 31, 2016, short selling has not been utilized. The composite was created on December 31, The composite inception date is January 1, 2008.* BENCHMARK DESCRIPTION The Benchmark for International All Cap Growth is the MSCI EAFE Total Return Index, net of withholding taxes. The MSCI EAFE (Europe, Australasia, Far East) Index is a free float adjusted, market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. It consists of 21 developed market country indices. REPORTING CURRENCY Valuations and composite performance are reported in Canadian dollars. The composite includes Canadian dollar portfolios. LIST OF COMPOSITES A complete list of composite descriptions is available to prospective clients upon request. Please contact Aaron Pittman at apittman@mackenzieinvestments.com /16 Mackenzie Financial Corporation All rights reserved.