Sionna Sub-Adviser Profile v2.indd
Transcription
Sionna Sub-Adviser Profile v2.indd
OceanRock Investments Inc. OceanRock Canadian Equity Fund Sub-Adviser Overview Sionna Investment Managers Inc. Sionna Investment Managers Inc. (Sionna) is the sub-adviser of the OceanRock Canadian Equity Fund. Sionna is an independent, employee-owned investment management firm investing on behalf of its institutional and private clients. The firm adheres to a disciplined, relative-value-driven, bottom-up approach to stock selection. Sionna’s relative-value style is a low-risk approach that is focused on capital preservation and generating value-added returns over the long-term. Office Total Assets Toronto C$3.4 Billion (12/31/2012) Portfolio Managers Kim Shannon, CFA, MBA Founder | President | Chief Investment Officer Founded ■■ More than 30 years of industry Current Clients 2002 experience The Calgary Foundation Sick Kids Foundation University of Guelph University of Waterloo ■■ BComm, BA Econ: University of Toronto; MBA: University of Toronto ■■ Morningstar Fund Manager of the Year, 2005; RBC Canadian Woman Entrepreneur Award, 2007 Portfolio Construction ■■ CIO & Senior VP for the Canadian affiliate of a large multinational firm prior to Sionna Management Style ■■ Served on the Boards of: Canadian large-cap relative value Canadian Coalition for Good Governance; CFA Institute Financial Analysts Seminar; Accounting Standards Oversight Committee; Past President of the Toronto CFA Society Average Number of Holdings 35 to 45 Portfolio Turnover Target 10 to 20% Risk Management ■■ Sector exposures are typically managed to +/- 5% of index sector weights ■■ Diversified across at least 7 of the 10 industry sectors Investment Universe Teresa Lee, CFA Portfolio Manager | Managing Director, Investments ■■ Joined Sionna in 2003 ■■ More than 18 years of industry experience Primarily invested in S&P/TSX Composite Index listed securities. Permitted to invest in securities traded on any recognized Canadian exchange and up to 10% foreign equities. ■■ Previously managed a small-cap Cash Position ■■ Serves on Investment Committee, value fund ■■ BComm (Honours): University of British Columbia Fully invested with 0 to 5% cash A wholly-owned subsidiary of Qtrade Financial Group Casey House Foundation; Toronto CFA Society Awards Committee; Gimme Shelter Committee www.oceanrock.ca Investment Philosophy, Approach and Process Sionna believes stock prices are influenced by human nature as much as a company’s intrinsic value. ■■ Management teams often over or under value their companies; ■■ Investors buy on good news, sell on bad news; and companies not making any news at all are overlooked. These factors can create a disconnect between price and value. Sionna takes advantage of this by picking stocks when they are trading significantly below their intrinsic value and earns returns as they revert to their intrinsic value. How Human Nature Drives Public Markets Emotion Drives Irrational Thinking: Changing investor sentiment can cause stocks to be mispriced. Groupthink Drives Herd Mentality: Researchers have demonstrated that people think in herds and will act much differently in the safety and comfort of a group than they would on their own. Investment Process Sionna uses a combination of quantitative and qualitative analysis. The firm’s proprietary Intrinsic Value Model is used to screen down the universe for companies that display attractive value and that are trading at a minimum 30% less than their intrinsic value. Those businesses are then rigorously reviewed using Sionna’s independent, fundamental analysis to determine whether they are buy candidates. Quantitative Analysis Sionna’s Intrinsic Value Model calculations are based on three key factors: 1 Book Value Sionna focuses on companies trading below the long-term average book value of the Toronto Stock Exchange (TSX). 2 Return on Equity (ROE) 3 Relative Price to Earnings (P/E) Sionna values companies that produce consistently strong profit and cash flow. Sionna also determines how a stock has tended to be priced relative to the market: has it tended to trade at a premium or a discount? Book Value 750 + Stock Universe Historical ROE Intrinsic Value Relative P/E Expected Return 70–140 Stock Research Universe Qualitative Assessment Companies that meet the quantitative standards are then carefully reviewed on a qualitative basis. This process includes an extensive review of a company’s public information, interviews with senior management and on-site visits to critically assess the quality of the business. Portfolio Construction Buy criteria are based on the assessment of the quality of the company and its management, and the associated price Sionna is willing to pay to own it. Some of the factors assessed to determine entry point include: Stocks with the following fundamentals discounted 10% to 15% relative to broad market multiples: ■■ Low price to earnings ■■ Low price to sales ■■ Low price to book value ■■ Low price to cash flow Above-average dividend yield: ■■ 10% higher than market The information contained herein is provided by OceanRock Investments Inc. (OceanRock) for general informational purposes only and is not intended to provide, and should not be relied upon as providing, legal, accounting, tax, financial, investment or other advice, or a solicitation to buy or sell any securities. The information was obtained from sources believed to be reliable, but cannot be guaranteed to be current, accurate or complete. OceanRock is not responsible for any errors or omissions contained 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. Publication date 04/2013 70 3004 E7