EdgePoint Global Growth & Income Portfolio

Investment approach

The Portfolio seeks to provide long-term capital appreciation and income generation by investing primarily in global equity and fixed-income securities. Our team of portfolio managers looks for companies with strong competitive positions, defendable barriers to entry, long-term growth prospects and competent management teams, and acquires ownership stakes in these companies at prices below its assessment of their true value.

On the fixed-income side, we seek securities that provide an attractive return through coupon payments and capital appreciation while focusing on the borrower’s (bond issuer’s) ability to meet its debt obligations, or the payment of periodic coupons and the return of the original principal at maturity.

Learn more about our investment approach

Top 10 holdings

Sector allocation

Portfolio information

EdgePoint of view

Sector breakdown: Provided only because the industry feels it helps explain portfolio diversification and risk. We believe risk is best managed by diversifying by business idea rather than using traditional sector allocations.

Risk profile: Risk is typically defined as standard deviation or volatility compared to an index. While we follow this methodology due to regulatory requirements and classify the Portfolio risk as moderate, we view real risk as the potential for a permanent loss of capital. By this measure, we believe portfolio risk is further reduced.

Taxes: Outside of the management fee, taxes are the biggest component of the Portfolio’s management expense ratio (MER).

Low-cost operation: With a focused product offering and no expensive marketing campaigns, we’re able to pass on savings to our investors through lower MERs, ultimately resulting in higher investment returns.

Portfolio: We use “portfolio” rather than “fund” because we believe this better represents the diversification our products offer.

Alignment: EdgePoint employees are among our largest investors.

Investment team

Your investment team brings diverse investment experience, perspectives and skills to the table. They work together, take ownership of their investment ideas and tap into their past experiences where they fulfilled a variety of diverse mandates. Their team-based mindset also allows them the time and freedom to conduct the kind of extensive legwork required to really get to know a business inside and out.

Click below to find out more about the team's members.

Andrew Pastor, Claire Thornhill, Derek Skomorowski, Frank Mullen, Geoff MacDonald, George Droulias, Jason Liu, Steven Lo, Sydney Van Vierzen, Ted Chisholm, Tracey Chen, Tye Bousada

Series	Sales charge option	Fund code	Management fee	MER	TER
XManagement fee: This component of the MER is what you pay us and your financial advisor for investment and financial services.
XMER: A management expense ratio (MER) is what you pay to own a mutual fund. This fee compensates EdgePoint and your financial advisor for a range of services including operational costs and taxes. It's not charged directly to you but deducted from your investment returns. Figures as at December 31, 2018.
XTER: The trading expense ratio (TER) represents the trading expenses incurred by the Portfolio. These expenses aren't included in the MER but they're still costs borne by the investor and reduce returns. The total cost of ownership is the sum of the MER plus the TER. Figures as at December 31, 2018.
XThis fee compensates EdgePoint for a range of services including operational costs and taxes.
A	FE	EDG180	1.70%	2.01%	0.05%
XFE = Front end: A negotiated sales charge between 0% and 5% paid to your financial advisor at the time of purchase and deducted from the amount you buy.
A(N), non HST	FE	EDG1801	1.70%	1.85%	0.05%
XFE = Front end: A negotiated sales charge between 0% and 5% paid to your financial advisor at the time of purchase and deducted from the amount you buy.
XNon-HST series are available only to investors in non-HST participating provinces. Learn why this matters.
B*	LL	EDG380	1.90%	2.25%	0.05%
XLL = Low load: When you buy Series B units, you don't pay a sales charge at the time of purchase but you have to pay a redemption fee if you redeem within three years of your purchase date. Redemption fee schedule: Within 1st year: 3% 2nd year: 2.5% 3rd year: 2.0% Thereafter: 0%
B(N), non HST*	LL	EDG3801	1.90%	2.08%	0.05%
XLL = Low load: When you buy Series B units, you don't pay a sales charge at the time of purchase but you have to pay a redemption fee if you redeem within three years of your purchase date. Redemption fee schedule: Within 1st year: 3% 2nd year: 2.5% 3rd year: 2.0% Thereafter: 0%
XNon-HST series are available only to investors in non-HST participating provinces. Learn why this matters.
F	FB/AF	EDG580/680	0.70%	0.87%	0.05%
XFB = Fee based: There are no sales charges for Series F units. This series is available only if you have a fee-based arrangement with your financial advisor. AF = Advisory fee: You negotiate and pay your representative’s firm an investment advisory fee for the ongoing advice you receive. The fee is paid by redeeming some of your Fund units quarterly. High-net worth pricing starting at $20,000. Learn about our commitment to low fees for all of our investors.
F(N), non HST	FB/AF	EDG5801/6801	0.70%	0.80%	0.05%
XFB = Fee based: There are no sales charges for Series F units. This series is available only if you have a fee-based arrangement with your financial advisor. AF = Advisory fee: You negotiate and pay your representative’s firm an investment advisory fee for the ongoing advice you receive. The fee is paid by redeeming some of your Fund units quarterly. High-net worth pricing starting at $20,000. Learn about our commitment to low fees for all of our investors.
XNon-HST series are available only to investors in non-HST participating provinces. Learn why this matters.

*Closed for new purchases

CLOSING PRICE AS AT

Series	Closing price	$ daily change	% daily change
A	--	--	--
A(N), non HST	--	--	--
B*	--	--	--
B(N), non HST*	--	--	--
F	--	--	--
F(N), non HST	--	--	--

Returns greater than one year are annualized.

*Closed for new purchases

We measure investment success over periods of ten years or more and believe it takes considerable skill to consistently add value over the long term. As such, we place little value in the short-term investment results shown.

RETURNS AS AT

Series	YTD	1-year	3-year	5-year	10-year	Since inception	Inception date
A	--	--	--	--	--	--	November 17, 2008
A(N), non HST	--	--	--	--	--	--	August 3, 2010
B*	--	--	--	--	--	--	November 17, 2008
B(N), non HST*	--	--	--	--	--	--	August 3, 2010
F	--	--	--	--	--	--	November 17, 2008
F(N), non HST	--	--	--	--	--	--	August 3, 2010

Returns greater than one year are annualized.

*Closed for new purchases

We measure investment success over periods of ten years or more and believe it takes considerable skill to consistently add value over the long term. As such, we place little value in the short-term investment results shown.

Series	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	Inception date
A	-1.18%	12.10%	11.54%	9.01%	13.91%	32.40%	9.01%	-0.46%	9.04%	29.12%	November 17, 2008
A(N), non HST	-1.02%	12.27%	11.71%	9.18%	14.08%	32.61%	9.19%	-0.30%	9.77%	--	August 3, 2010
B*	-1.43%	11.81%	11.24%	8.73%	13.61%	32.07%	8.74%	-0.72%	8.81%	28.84%	November 17, 2008
B(N), non HST*	-1.26%	12.00%	11.44%	8.90%	13.79%	32.27%	8.91%	-0.57%	9.66%	--	August 3, 2010
F	-0.04%	13.38%	12.82%	10.26%	15.20%	33.98%	10.29%	0.71%	10.29%	30.55%	November 17, 2008
F(N), non HST	0.03%	13.46%	12.89%	10.34%	15.27%	34.01%	10.32%	0.77%	10.25%	--	August 3, 2010

Calendar-year performance during the year of inception is calculated from the inception date to the end of the year.

*Closed for new purchases

Throughout the year, EdgePoint Global Growth & Income receives dividends from Canadian and foreign stocks, interest from fixed-income securities and capital gains when securities are sold at a profit. Income and capital gains are paid out to investors in cash or reinvested in additional units at their discretion.

Portfolio distributions are paid quarterly (income) and annually in December (capital gains).

For more information on distributions, see our articles:

• Decoding your investment returns (video)

• Understanding distributions

• Clarifying book value

DATE

Series	Income	Capital gains	Total

*Closed for new purchases

EdgePoint SWPs – Money Now, Money Later

As much as investing is about delaying immediate gratification for future gain, a systematic withdrawal plan (SWP) done right can offer investors both. Very simply, a SWP lets you automatically take money out of your investment on a regular basis. If that investment is growing, a SWP provides a disciplined way to meet your income needs while you continue to build wealth. Example: You invested $100,000 on EdgePoint Global Growth & Income Portfolio’s start date and immediately began redeeming $500 per month. Annually, this represented 6% of your original $100,000 investment. Distributions were reinvested. Ten years later, on December 31, 2018, your investment was worth $219,746. Your pre-tax withdrawals over that timeframe amounted to $60,500.

Date	Total annual redemption	Cumulative return of capital¹	Cumulative capital gain/loss²	Cumulative total redemptions	Reinvested distributions	Cumulative tax liability	Portfolio value
17-Nov-08	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$100,000.00
31-Dec-08	$500.00	$480.49	$19.51	$500.00	$0.00	$5.22	$103,560.00
31-Dec-09	$6,000.00	$5,541.62	$958.38	$6,500.00	$3,070.57	$1,078.55	$126,928.83
31-Dec-10	$6,000.00	$10,084.99	$2,415.01	$12,500.00	$3,959.42	$2,636.42	$131,985.48
31-Dec-11	$6,000.00	$14,443.35	$4,056.65	$18,500.00	$4,265.73	$4,288.41	$125,507.96
31-Dec-12	$6,000.00	$18,820.47	$5,679.53	$24,500.00	$709.61	$5,102.71	$130,642.20
31-Dec-13	$6,000.00	$22,464.20	$8,035.80	$30,500.00	$5,396.31	$7,271.78	$166,257.27
31-Dec-14	$6,000.00	$25,693.70	$10,806.30	$36,500.00	$7,246.23	$9,994.40	$182,896.10
31-Dec-15	$6,000.00	$28,704.30	$13,795.70	$42,500.00	$12,175.36	$14,065.12	$193,366.98
31-Dec-16	$6,000.00	$31,988.70	$16,511.30	$48,500.00	$7,570.56	$16,870.04	$209,160.43
31-Dec-17	$6,000.00	$35,046.44	$19,453.56	$54,500.00	$14,268.12	$21,543.54	$228,158.71
31-Dec-18	$6,000.00	$38,206.62	$22,293.38	$60,500.00	$8,966.61	$24,846.79	$219,746.08

¹ Cumulative return of capital is the difference between the amount withdrawn minus any capital gain/loss from the initial investment to the listed date.
² Cumulative capital gain/loss is the amount withdrawn attributable to the portfolio’s growth from the initial investment to the listed date, gross of taxes.

Whether a SWP make sense for you depends on your personal financial circumstances, your age and risk tolerance. Your financial advisor can help you sort through your options and find the approach that works best for you.

Performance as at Dec. 31, 2018 Annualized, total returns, net of fees, in C$.	YTD	1-year	3-year	5-year	10-year	Since inception*
EdgePoint Global Portfolio, Series A	-3.42%	-3.42%	8.51%	11.32%	13.98%	14.92%
EdgePoint Global Growth & Income Portfolio, Series A	-1.18%	-1.18%	7.30%	8.94%	11.99%	12.28%
EdgePoint Canadian Portfolio, Series A	-16.34%	-16.34%	4.21%	3.45%	10.15%	10.54%
EdgePoint Canadian Growth & Income Portfolio, Series A	-10.36%	-10.36%	4.74%	3.92%	9.26%	9.30%

* November 17, 2008.

As at December 31, 2018. For illustrative purposes only. Uses Series A Portfolio returns and assumes monthly withdrawals. Assumed tax on income: 53.53%; Canadian dividends: 39.34%; capital gains: 26.77%. Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Please read the prospectus and Fund Facts before investing. Copies are available from your financial advisor or at www.edgepointwealth.com. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This is not an offer to purchase. Mutual funds can only be purchased through a registered dealer and are available only in those jurisdictions where they may be lawfully offered for sale. This document is not intended to provide legal, accounting, tax or specific investment advice. Information contained in this document was obtained from sources believed to be reliable; however, EdgePoint does not assume any responsibility for losses, whether direct, special or consequential, that arise out of the use of this information. Portfolio holdings are subject to change. EdgePoint mutual funds are managed by EdgePoint Investment Group Inc., a related party of EdgePoint Wealth Management Inc. EdgePoint® and Owned and Operated by InvestorsTM are registered trademarks of EdgePoint Investment Group Inc.

EdgePoint commentary

Updates from our Investment team.

My investing journey (and what I learned to forget along the way)

EDGE Facts

Quarterly snapshot of the Portfolio’s holdings and performance.

View PDF

Fixed-income commentary

Our latest take on fixed income from portfolio manager Frank Mullen and analyst Derek Skomorowski.

Finding positives in a negative-yield environment

Quarterly portfolio disclosure

The Portfolio’s top 25 holdings.

September 30, 2019

Fund Facts

Required disclosure mandated by regulators. Updated annually, Fund Facts highlights key information about the Portfolio, including fees and risks, so that you and your advisor can select the investments that are right for you.

View PDF

Financial statements

Summary of the Portfolio’s financial activities published twice annually.

Semi-annual report: June 30, 2019

MRFP

Management Report of Fund Performance published twice annually.

Semi-annual report: June 30, 2019

Proxy voting record

How we exercised our vote on corporate matters related to the Portfolio’s holdings.

July 1, 2018 to June 30, 2019