IA Clarington Canadian Small Cap Fund Celebrates 20 Years of Strong Performance

  • The Fund has generated a 20-year annualized return of 10.3%, and has significantly outperformed the BMO Small Cap Index, the S&P/TSX Composite Index and the Morningstar Canadian Small/Mid Cap Equity category over that period.*
  • The Fund aims to provide consistent growth through disciplined, bottom-up investing in Canadian small- and mid-cap equities.
  • Risk-management process has helped the Fund achieve exceptional returns with lower volatility than key benchmarks over a 20-year period.


TORONTO, April 27, 2017 /CNW/ - IA Clarington Investments Inc. (iA Clarington) announced today that the IA Clarington Canadian Small Cap Fund ("the Fund") is celebrating its 20th anniversary. The Fund has delivered strong performance for investors since its inception on March 20, 1997.

The IA Clarington Canadian Small Cap Fund is managed by QV Investors (QV), an independent, employee-owned investment manager based in Calgary and iA Clarington's longest sub-advisory relationship. QV uses a disciplined, bottom-up approach to investing that seeks to identify high-quality businesses at attractive valuations. The Fund has delivered a 20-year annualized return of 10.3% and since its inception has outperformed the BMO Small Cap Index (7.1%), the S&P/TSX Composite Index (7.5%) and the Morningstar Canadian Small/Mid Cap Equity category (7.8%)*.

"We're extremely pleased with the way this Fund has performed over the past two decades and we think that's something to celebrate," says Eric Frape, Senior Vice President, Products & Investments, iA Clarington. "Ultimately, the Fund's goal is to provide our investors with long-term growth while reducing volatility, and the Canadian Small Cap fund has been achieving that. It's a testament to our long-standing relationship with QV and our belief that active management can deliver value to investors."

The table below shows that, with only one exception, the Fund has delivered lower volatility than the BMO Small Cap Index, the S&P/TSX Composite Index and the Morningstar Canadian Small/Mid Cap Equity category over 5-, 10-, 15- and 20-year periods.

Standard deviation 

IA Clarington
Canadian Small Cap
Fund, Series A

S&P/TSX Composite

Morningstar Canadian
Small/Mid Cap Equity

BMO Small Cap Index 






















Source: Zephyr StyleADVISOR as at March 31, 2017.

"We have quietly compounded the benefits of quality and value for more than 20 years," says Ian Cooke, Vice President and Portfolio Manager, QV Investors.  

A diversified portfolio of small- and mid-cap Canadian companies, the Fund is currently made up of 39 holdings, emphasizing companies with solid financial records over the long term.  "We apply a rigorous stock screening and risk-assessment process when evaluating and adjusting the Fund's holdings," says Cooke.  "One of our gauges of financial strength is how resilient a company is during difficult economic periods and over the long term."

Security selection is based on seven risk-management criteria: 1) Effective management and governance; 2) Strong financial track record; 3) Established competitive advantage and positive industry outlook; 4) Company does not hold excess debt; 5) Below-market valuation; 6) Free cash flows to support dividend increases; 7) Overall portfolio enhancement (e.g. increased diversification).

Cooke adds that an important feature of QV is that its employees invest their personal assets alongside investors in QV's funds. "This aligns QV's interests with those of our investors."

For more information on the Fund, please visit:  https://iaclarington.com/active-insights/qv-20th-anniversary

*All performance figures are for Series A as at March 31, 2017.

About IA Clarington Investments Inc.

As a subsidiary of Industrial Alliance Insurance and Financial Services Inc. – Canada's fourth-largest life and health insurance company – iA Clarington offers a wide range of investment products, including actively managed mutual funds, managed portfolio solutions, socially responsible investments and target date funds. As of March 31, 2017, iA Clarington has more than $14 billion in assets under management. For more information please visit www.iaclarington.com.

About QV Investors
QV Investors Inc. is an independent Canadian investment manager committed to providing excellence in security selection and portfolio management. Founded in 1996, QV stands for "Quality" and "Value". These characteristics resonate through the firm's culture and investment principles; from the analysis of investments to the competitive fees that it offers to clients. QV manages money on behalf of pension funds, insurance companies, mutual fund companies, foundations, endowments and high net worth private clients. www.qvinvestors.com.

The information provided herein does not constitute financial, tax or legal advice. Always consult with a qualified advisor prior to making any investment decision. Statements by the portfolio manager represent their professional opinion, do not necessarily reflect the views of iA Clarington, and should not be relied upon for any other purpose. Information presented should not be considered a recommendation to buy or sell a particular security. Specific securities discussed are for illustrative purposes only. Mutual funds may purchase and sell securities at any time and securities held by a fund may increase or decrease in value. Past investment performance of a security may not be repeated. Statements that pertain to the future represent the portfolio manager's current view regarding future events. Actual future events may differ. iA Clarington does not undertake any obligation to update the information provided herein.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The historical risk level of the stated fund, index or peer group category is based on the standard deviation of its investment returns. The use of standard deviation as a measurement tool allows for a reliable and consistent quantitative comparison of historical relative volatility and related risk. Standard deviation is widely used to measure volatility of return and represents the historical level of volatility in returns over set measurement periods. A lower standard deviation means the returns have historically been less volatile and vice-versa. Historical volatility may not be indicative of future volatility. There are other types of risks associated with the investments presented. Please read the prospectus for further information on the specific risks related to each Fund. The performance data comparison presented is intended to illustrate the Fund's historical performance as compared with historical performance of widely quoted market indices. Actual Fund performance: 1 yr. 15.7%; 3 yr. 4.1%; 5 yr. 12.2%; 10 yr. 7.3%. BMO Small Cap Index performance: 1 yr. 29.8%; 3 yr. 3.4%; 5 yr. 4.3%; 10 yr. 3.6%. S&P/TSX Composite Index performance: 1 yr. 18.6%; 3 yr. 5.8%; 5 yr. 7.8%; 10 yr. 4.7%. Canadian Small/Mid Cap Equity category performance: 1 yr. 17.1%; 3 yr. 3.1%; 5 yr. 6.5%; 10 yr. 4.0%. The Morningstar Canadian Small/Mid Cap Equity category was created by CIFSC. There are 110 funds in the category. To qualify funds must invest at least 90% of their equity holdings in securities domiciled in Canada, and their average market capitalization must be lower than the Canadian small/mid cap threshold. There are various important differences that may exist between the Fund and the stated indices that may affect the performance of each. The S&P/TSX Composite Index is the premier indicator of market activity for Canadian equity markets, with 95% coverage of Canadian-based, TSX-listed companies. The index includes common stock and income trust units and is designed to offer the representation of a broad benchmark index while maintaining the liquidity characteristics of narrower indices. The BMO Nesbitt Burns Small Cap Index includes common shares of all Canadian companies trading on the Toronto and Montreal Stock Exchanges with a total capitalization at the beginning of each month which does not exceed 0.1% of the total capitalization of the S&P/TSX Index. The Fund's market capitalization, geographic, and sector exposure may differ from that of the benchmark. The Fund's currency risk exposure may be different than that of the benchmark. The Fund may hold cash while the benchmark does not. It is not possible to invest directly in market indices. The performance comparison is for illustrative purposes only and does not imply future performance. Effective June 5, 2009, IA Clarington Canadian Opportunities Fund merged into this Fund. Trademarks displayed herein that are not owned by Industrial Alliance Insurance and Financial Services Inc. are the property of and trademarked by the corresponding company and are used for illustrative purposes only. The iA Clarington Funds are managed by IA Clarington Investments Inc. iA Clarington and the iA Clarington logo are trademarks of Industrial Alliance Insurance and Financial Services Inc. and are used under license.

SOURCE IA Clarington Investments Inc.

For further information: For media enquiries please contact: Laura Scutaru, NATIONAL Public Relations, Tel: 416-586-1964 or email: lscutaru@national.ca


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