Macro concerns have this fund going granular – and global

David Arpin’s stock-by-stock risk assessment sees 44% of Mackenzie Canadian Growth Fund assets outside of Canada

Michael Ryval 21 November, 2019 | 1:10AM
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Macro-economic tensions can have an influence on the stock-picking process, says David Arpin, co-manager of the 5-star rated $3.1 billion Mackenzie Canadian Growth Fund A, and senior vice-president at Toronto-based Mackenzie Investments. And more often than not the choices are businesses that are less impacted by global uncertainties.

When something happens on the macro front, you have to think through how it will affect individual companies and industries. For many, it won’t have much effect. But in other cases, they will have a very large effect,” says Arpin, a 25-year industry veteran who in 2012 joined Bluewater Investment Management Inc., which was absorbed by Mackenzie in 2016. “It’s more [to do with] the U.S.-China trade tensions. If you are a business that [is] reliant on importing goods made in China and [you’re] selling them to the U.S., it will have a big effect. If you [are] a U.S.-based service company, it [will] have almost no effect. It’s business by business, industry by industry when you look on the macro front. That’s how we approach this one.”

From a geographic standpoint, this approach has seen Mackenzie Canadian Growth allocate 44% of its assets outside of Canada. That’s what Arpin is mainly responsible for, along with Hui Wang, associate portfolio manager. The 50% balance is looked after by Dina DeGeer, senior vice-president, together with Shah Khan, vice-president. (The remaining 6% is in cash). “The issues around U.S.-China trade are not new. It goes back to 2016 when President Trump was running as a candidate. Whether he would act on it, there was no way to forecast it. But if you owned something where [the] impact could be potentially catastrophic you would have to think through how much of a risk was there, and whether it is a good decision [to stay invested in a particular company].”

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Security NamePriceChange (%)Morningstar Rating
Accenture PLC Class A353.79 USD1.92Rating
Aon PLC320.82 USD0.44Rating

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Michael Ryval  

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