The fund includes energy, base metals (such as copper and zinc), precious metals, forest products, industrial products and agriculture/water. It invests in companies in these sectors that own, explore or develop resources and other basic commodities, or supply goods and services to such companies.
A ONE-STOP SHOP NATURAL RESOURCE FUND
Diversified by sub-sector, market cap and geography, the fund is one of the most broadly diversified ways to access this sector for a UK investor.
ACTIVE AND FLEXIBLE INVESTMENT APPROACH
The investment team’s approach combines top-down and bottom-up analysis, reviewing both growth and value characteristics. The team identifies the long-term secular trends that will affect the demand for commodities and drive markets for at least one business cycle and positions the fund across multiple time horizons.
STRONG STOCK-PICKING SKILLS
The fund targets companies that create value either through creating efficiencies that boost profits or through ingenuity that addresses an unfulfilled need, offers a substitute product or creates new markets. A portion of the portfolio is also dedicated to smaller companies that offer growth independent of commodity prices.
DECADES OF SPECIALIST EXPERIENCE
The fund is managed by Mackenzie Investments’ Global Resource Team in Canada, which is responsible for managing the largest resource fund in Canada. Mackenzie is part of the Great-West Lifeco group, the parent company of Canada Life Investments.
Past performance is not a guide to future performance. The value of investments may fall as well as rise and investors may not get back the amount invested. Income from investments may fluctuate. Currency fluctuations can also affect performance. Performance figures are on a bid to bid with net income reinvested basis. Valuations are based on the previous day's prices.
Population growth, more new cities and infrastructure development should generate strong secular demand for basic and natural resources. The resources sector has the potential to see sustained growth as a result of demographic trends and high demand from emerging economies, and the LF Canlife Global Resource Funds seeks to benefit from this. Widely diversified by sub-sector, market cap and geography, the fund offers exposure to a promising asset class.
The team’s investment philosophy is rooted in the belief that a company’s ability to produce sustainable free cash flow, and management’s effectiveness in allocating capital, are the key determinants of value and investment opportunity within natural resource sectors.
The components of effectively identifying investment opportunity requires them to understand the current assets and incremental opportunities of the companies under coverage, know the supply and demand backdrop in each subsector, and have a view on commodity prices.
Understanding these components not only defines value and growth opportunities, but also identifies the risks inherent to a position, thereby aiding portfolio construction, and understanding catalysts including the potential for operational successes and failures.
The management approach combines top-down and bottom-up analysis, with an emphasis on investing in companies that provide growth at a reasonable price. The fund aims to provide capital growth primarily through investing in shares of companies around the globe exposed to the resources sectors, which may include energy.
Mackenzie Investments, Resource Team Lead Manager
Benoit is Senior Vice President at Mackenzie Financial Corporation where he joined in 2001 after completing a Masters in Mineral Economics at Colorado School of Mines.
Prior to joining Mackenzie, Benoit gained valuable experience in the resource industry working for organisations such as Inco Ltd., Fording Inc., ICI PLC and the International Institute for Environment and Development in London, England. He also holds a Bachelor of Engineering from École Polytechnique and McGill University and is a CFA charterholder.
Due to the underlying assets held, the price of the fund is classed as having above average to high volatility.
Interested in this fund and would like to find out more?
Contact our team who will be happy to answer any questions you may have about this fund.
+44 (0)20 7415 6546
INVESTOR SERVICES AND DEALING TEAM
T: 0345 606 6180 (Mon-Fri, 08:30 - 17:30)
Dealing: Select Option 1
Enquiries: Select Option 2
Fax: 0113 224 6001
Please note that calls may be recorded for training and monitoring purposes
CANADA LIFE INVESTMENTS HEAD OFFICE
T: +44 (0)20 7415 6546