Small Caps in a Balanced Fund

The five-star, gold-rated Pembroke Canadian mandate invests in small caps, which is its strong suit.

Diana Cawfield 5 August, 2021 | 3:02AM
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The five-star, gold-rated Pembroke Canadian Balanced mandate (previously named Pembroke Growth and Income) topped our recent list of gold-rated Canadian balanced funds. It clocked an impressive 12.51% return, thanks in part to its stock style that’s much more small-cap than its category or index, while picking companies that are only slightly more growth-oriented than the rest of the pack. That’s a conscious decision by the managers. Here’s why.   

“We didn’t want to go out and look into a new universe of names for this fund,” says Doug Pospisil, portfolio manager and director of research at Pembroke Management Ltd. in Montreal. “We stayed with the idea of predominantly investing in smaller cap companies, which is our forte. We screen the names to include growth characteristics, really the foundation of Pembroke, and for companies that have an associated dividend yield.” 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Savaria Corp18.56 CAD-1.49
Vecima Networks Inc14.85 CAD-0.74

About Author

Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.

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