Fund In Focus: CC&L Equity Income and Growth

This fund team leverages all the firm’s resources to create a disciplined portfolio.

Ruth Saldanha 11 October, 2023 | 4:58AM
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Toronto

This fund is a part of the latest Morningstar Prospects. Read more about Morningstar Prospects here.

CC&L Equity Income and Growth is an equity find that has a Canadian all-cap focus. According to CC&L, the fund has the Flexibility to pursue the best ideas for attractive and sustainable yield and is not benchmark-constrained. The managers have a concentrated, high-conviction portfolio, and try to identify overlooked opportunities. It has a distribution target of 4% annually and is aimed at investors seeking income.

The fund came to Morningstar analysts Michael Dobson and Danielle LeClair’s attention because it has achieved strong long-term risk-adjusted returns with a differentiated, institutional-style strategy. “The fund is a bottom-up, benchmark-agnostic strategy that aims for a higher portfolio yield than the S&P/TSX Composite Index, with a performance profile that delivers growth with lower volatility. The fundamental team at CC&L uses a team-based management approach to manage the fund, where all portfolio managers are sector specialists,” they say.

Growth of $10,000

Why is CC&L Equity Income and Growth Worth Considering? 

To Dobson and LeClair, the position sizing is intentional. “The team leverages all the firm’s resources to create a disciplined portfolio. Team-based portfolio management ensures sector specialists are actively involved in the decision-making process and that best ideas are represented in the fund,” they write.

Non-Canadian allocation (up to 20%) exclusively focuses on industries not prominent in Canada – consumer staples, technology, and healthcare – a differentiated approach relative to peers.

“Proprietary quantitative tools establish maximum position sizes based on the assessment of a company’s risk characteristics such as volatility; valuation; environmental, social, and governance factors; and market cap, adding consistency to their approach to risk management. Over the last 10 years, the fund has provided among the highest risk-adjusted returns and downside protection results among its peer group,” they say.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
CC&L Equity Income and Growth F18.24 CAD0.63Rating

About Author

Ruth Saldanha

Ruth Saldanha  is Editorial Manager at Morningstar.ca. Follow her on Twitter @KarishmaRuth.

 
 
 

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