Guardian Canadian Targeted Exposure

Benchmark: S&P/TSX Capped Composite
Inception Date: 31-Jan-07

Investment Objective

The primary objective of the strategy is to achieve long-term growth of capital through a portfolio of high quality equity or equity-related securities issued by Canadian companies, with a lower risk profile than could be expected with the benchmark.

Investment Approach

The Guardian Canadian Targeted Exposure strategy is designed for clients that desire exposure to the Canadian equity markets but with a lower risk profile than could be expected with the S&P/TSX Composite Index. Recognizing that the Canadian equity market has a high exposure to the volatile resource market, this strategy re-allocates exposure from the Energy and Materials sectors to other areas of the Canadian market that are in-line with its quality-oriented approach. The result is an actively managed Canadian equity portfolio that systematically underweights Energy and Materials, reducing the overall volatility of the portfolio.

The strategy incorporates rigorous fundamental research and financial analysis within a culture of risk management, with qualitative judgment by an experienced team of investment professionals. Utilizing a bottom-up approach, the investment process is team-based and focuses on a company’s underlying growth characteristics while maintaining a strong discipline towards valuation.