iQ Canada Large Cap Equity Model
INVESTMENT OBJECTIVE
The iQ Canada Large Cap Equity Model seeks to generate long-term returns in excess of the total return of the S&P / TSX Index with less down-market risk.
PROCESS
The iQ Canada Large Cap Equity Model represents an equal-weighted portfolio of ten large and blue-chip Canadian stocks. The stocks are selected by applying two proprietary investment strategies to a database of all Canadian-traded common stocks.
The Model takes the two lists selected by each strategy and assigns each security a score based on its position in the list. The Model then selects the top ten stocks based on their highest overall score, favoring those that were chosen by both of the following strategies:
First Strategy
We begin with all common stocks listed on a Canadian securities exchange as identified by Standard & Poors.
We rank these securities by market capitalization and keep the top fifty.
Of the fifty remaining securities, we rank by 5-year Beta and select the bottom 30.
Of the remaining thirty securities, we rank by earnings growth to price ratio and keep the top ten.
Second Strategy
We begin with all common stocks listed on a Canadian securities exchange as identified by Standard & Poors.
Of the fifty remaining securities, we rank by 5-year Beta and select the bottom 30.
Of the remaining thirty securities, we rank by 12-month regressive price momentum and keep the top ten.
This model reconstitutes every February, May, August and November