The management team consists of
Tye Bousada, and
Frank Mullen. (And it’s worth clicking through just to read their very entertaining
bios!) The managers have a fair bit of flexibility around the asset mix for
the EdgePoint Global Growth & Income Portfolio, which is a balanced
The fixed-income portion can range between 25% and 60%, depending on where
they see the most attractive opportunities. At the end of June, they held
roughly 61% equity, 39% in corporate bonds, and the balance in cash.
On the fixed-income side, the fund can invest in both investment-grade and
high-yield issues, and as at the end of May, the average credit quality was
listed by Morningstar as BBB.
On the equity side, the managers use a fundamentally-driven, bottom-up
investment process that looks for high-quality, undervalued businesses.”
Not surprisingly, this bottom-up approach results in a portfolio that is
significantly different than its benchmark or peer group. From a sector
perspective, the fund is meaningfully overweight industrials, and
underweight the more defensive sectors such as telecommunications, banks,
and real estate.
As of the end of June, top holdings included
Wells Fargo & Co. (NYSE: WFC),
Shiseido Co., Ltd. (TYO: 4911),
Anthem Inc. (NYSE: ANTM),
WABCO Holdings Inc. (NYSE: WBC), and
Ubiquiti Networks Inc. (NASDAQ: UBNT).
Performance has been excellent, with a 5-year average annual compounded
rate of return of 14.9%, handily outpacing the benchmark and peer group. A
drawback to the fund’s investment approach is that it tends to be more
volatile. There is also a likelihood it will experience periods of
performance that are dramatically different from what others are doing,
both good and bad. But if this is something you can be comfortable with,
then the fund is worth considering. It checks all the boxes – a deep
management team using a disciplined, repeatable process, and carrying a
reasonable cost to investors.
EdgePoint Global Growth & Income Portfolio A
EdgePoint Wealth Management
Global Equity Balanced
FundGrade A+ Awards:
2012, 2013, 2014, 2015, 2016
Bottom Up/Mid-Cap Blend
Geoff MacDonald, Ted Chisholm, Andrew Pastor, Tye Bousada, and Frank Mullen
2.01% (Front End)
EDG180 (front-end load)
Dave Paterson, CFA, is the Director of Research, Investment Funds for
D.A. Paterson & Associates Inc., a consulting firm specializing in providing research and due
diligence on a variety of investment products. He is also the publisher
Dave Paterson’s Top Funds Report,
offering regular commentary and in-depth analysis of Canada’s top
investment funds. He uses a unique analytical approach to identify
funds with strong, risk-adjusted returns, and regularly publishes his
insights and analyses in Fund Library.
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amount of your investment in the fund will be returned to you. Fund values
change frequently and past performance may not be repeated. No guarantee of
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only and is not intended as personalized investment advice.