Canada - FR
U.S. - ENCanada is rich with opportunity
The country is known for its favourable demographics, a tolerant, well-educated, and diverse population, an expanding economy with moderate debt levels, abundant natural resources, modern infrastructure, and a democratic political system. It is also recognized for its strong legal system, as well as its world-renowned educational institutions. We are optimistic about Canada’s prospects.
Canadian equities have generated strong long term returns
Since the firm’s inception in 1988, Canadian equities across all portfolios have generated $19 billion in net gains [1] by investing in Canadian equities, equivalent to a 14.4 per cent compounded annualized return. This is almost double the 8.3 per cent annualized return delivered by international markets[2] over the same period.
Canadian Equity Carve-out[4][5]
Compounded Annualized Returns as at December 31, 2023
| 1 yr | 3 yrs | 5 yrs | 10 yrs | Since Inception | |
| Gross Return | 7.89% | 14.42% | 10.70% | 8.34% | 14.21% |
| Benchmark return | 11.63% | 9.53% | 11.29% | 7.58% | 8.39% |
Value of $1 million invested in the Canadian Equity Composite since 1995 [3][5]
![Value of $1 million invested in the Canadian Equity Composite since 1995 <sup>[3][5]</sup>](https://www.lba.ca/wp-content/uploads/2024/04/chart-en-2023-12-Inv-In-Canada.png)
* Pension Investment Association of Canada. (s.d.) Pension investment association of Canada. PIAC 2022. https://piacweb.org/.
[1] Represents the net gains on Canadian equities for all mandates under management from January 1, 1988 to December 31, 2023.
[2] MSCI World Total Return Net Index
[3] The value graph represents the excess return of the Letko Brosseau Canadian Equity Composite over the benchmark gross of fees from October 1, 1995 to December 31, 2023.
The benchmark since inception is 2% FTSE Canada 91 Day T-Bill Total Return Index and 98% S&P/TSX Composite Total Return Capped Index.
[4] The returns are gross of fees and are derived from a carve-out of total firm assets made up of Canadian Equities for the period from January 1, 1988 to December 31, 2023. The benchmark is the S&P/TSX Composite Total Return Capped Index.
[5] Returns reflect the reinvestment of dividends, income and other earnings. Reclaimable withholding tax refunds are recognized when received. The benchmark is fully invested, and its returns include the reinvestment of dividends, income and other earnings.
Gross-of-fees returns are presented before management fees and custodial fees but after trading expenses.
This information is for informational purposes only and is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. It should not be considered a solicitation to buy or an offer to sell a security. It does not consider any investor’s particular investment objectives, strategies, tax status or investment horizon. There is no representation or warranty as to the current accuracy of, nor liability for, decisions based on such information.
Past performance is not a guarantee of future returns. All investments pose the risk of loss and there is no guarantee that any of the benefits expressed herein will be achieved or realized.
The returns do not represent those of a Canadian Equity mandate but do provide an indication of our ability to select and manage securities in this segment. The choice of securities and their returns could have been different when managing a Canadian Equity mandate.
[1] Represents the net gains on Canadian equities for all mandates under management from January 1, 1988 to December 31, 2023.
[2] MSCI World Total Return Net Index
[3] The value graph represents the excess return of the Letko Brosseau Canadian Equity Composite over the benchmark gross of fees from October 1, 1995 to December 31, 2023.
The benchmark since inception is 2% FTSE Canada 91 Day T-Bill Total Return Index and 98% S&P/TSX Composite Total Return Capped Index.
[4] The returns are gross of fees and are derived from a carve-out of total firm assets made up of Canadian Equities for the period from January 1, 1988 to December 31, 2023. The benchmark is the S&P/TSX Composite Total Return Capped Index.
[5] Returns reflect the reinvestment of dividends, income and other earnings. Reclaimable withholding tax refunds are recognized when received. The benchmark is fully invested, and its returns include the reinvestment of dividends, income and other earnings.
Gross-of-fees returns are presented before management fees and custodial fees but after trading expenses.
This information is for informational purposes only and is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. It should not be considered a solicitation to buy or an offer to sell a security. It does not consider any investor’s particular investment objectives, strategies, tax status or investment horizon. There is no representation or warranty as to the current accuracy of, nor liability for, decisions based on such information.
Past performance is not a guarantee of future returns. All investments pose the risk of loss and there is no guarantee that any of the benefits expressed herein will be achieved or realized.
The returns do not represent those of a Canadian Equity mandate but do provide an indication of our ability to select and manage securities in this segment. The choice of securities and their returns could have been different when managing a Canadian Equity mandate.
Le Devoir : À l’attention du ministre des Finances du Canada et des ministres provinciaux des Finances (French only)
"Nous sommes préoccupés par la baisse des investissements faits au Canada par les fonds de pension et par l’impact que cela entraine sur l’économie canadienne. Rappelons que les fonds de pension se financent à même les salaires gagnés par des millions de Canadiens."
LaPresse: "L’inquiétante érosion du marché des actions canadiennes"
“La Caisse de dépôt est la caisse de retraite canadienne qui maintient un pourcentage d’actions canadiennes parmi les plus élevés au Canada, avec près de 20 % d’actions canadiennes dans son vaste portefeuille de 191 milliards. Chez LetkoBrosseau, le pourcentage d’actions canadiennes atteint 40 %.”
BNN:
“While we understand the need for international diversification, a principle we have followed for many years, balance is required. That said, the strength of the Canadian economy and self-sustaining benefits of investing in our own industries should be an equally important priority.” – Peter Letko, Senior Vice President at LetkoBrosseau, comments on the firm’s recent press release in this BNN interview.
The Suburban:
Private pension funds should invest more in Canadian businesses
“Research conducted by the Montreal-based global investment management firm Letko-Brosseau recently revealed that Canadian-listed equities accounted for nearly 80% of Canadian pension fund equity investments in 1990. By 2020, this proportion had fallen to only 10%.”
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