Signature Global Science and Technology Corporate Class A
OVERVIEW
Signature Global Science & Technology Corporate Class A fund is designed to maximize long-term capital growth. While it invests primarily in equity and equity-related securities of companies around the world, most holdings are North American technology companies. Although it tends to be slightly riskier than the sector benchmark (MSCI ACWI Information Technology NR), its returns have been consistently higher than both the sector benchmark and key competitors.
FAST FACTS
- Strong risk-return profile against key competitors
- 2017 Thomson Reuters Lipper Funds Awards Canada Global Equity winner for 3 years, 5 years, 10 years
- With exception of 2008 (-26.0%) and 2011 (-0.6%), it has had positive returns every year in past 10 years with lowest positive calendar return being in 2016 (+6.6%) and highest being in 2009 (+52.4%)
- Fund has seen calendar returns of +20.0% or higher in 5 of the past 10 years
- If invested $10,000 in 2008, would have $54,799 today (in nominal terms)
- High exposure in mid to micro-cap names but still holds large-cap tech companies
- Top holdings include Apple, Microsoft, Alibaba, Alphabet, Facebook, Amazon, AMD, Cisco, and Samsung
MARKET OUTLOOK
While equity markets in 2017 were unusually stable, volatility returned in the first quarter of 2018. Some investors were surprised by this market decline, but it represented a return to normal. It should also be noted that although broad indexes of global markets indicated a downturn in the first quarter, the information technology sector outperformed. Overall, business prospects remain solid, with continued economic growth, strong confidence levels and favourable U.S. tax reforms expected.
MANAGEMENT TEAM PROFILE
Signature Global Asset Management, a division of Cl Investments Inc., is among the largest portfolio management teams in Canada, managing a full range of global and Canadian income, equity and balanced mandates. Chief Investment Officer Eric Bushell was named Morningstar Fund Manager of the Decade in 2010. Also important to note is that Signature’s global network of contacts provides strong information on global supply chains and allows them to access companies that are otherwise not easily accessible.
BOTTOM LINE
With favourable outlooks for global equity markets and digital disruption imminent (every business is going to become a digital business in the long-term), this fund is strong for investors:
- Looking for exposure to technology to diversify their portfolio; and/or
- Interested in future-proofing their portfolios against imminent digital disruption; and/or
- Wanting to invest in a fund that offers long-term growth with a relatively strong risk-return profile.
DISCLAIMER
The information in this blog post is derived from various sources, including CI Investments, Signature Global Asset Management, Cambridge Global Asset Management, Globe and Mail, National Post, Bloomberg, Yahoo Canada Finance, and Trading Economics. This material is provided for general information and is subject to change without notice. Although every effort has been made to compile this material from reliable sources; no warranty can be made as to its accuracy or completeness, and we assume no responsibility for any reliance upon it. Before acting on any of the above, please contact a financial planner/advisor for individual financial advice based on your personal circumstances and to discuss the risk of the fund.