NCM Global Income Growth Class overview

TRANSCRIPT

Introduction

The best compliment that I ever got, which I took as an insult at the time, was from my mom. It was about 15 years ago. I was explaining some stuff to her, and she put her hand on my arm and said, Jason, you live in a white collar world, but you're really a blue collar guy. And I took that as an insult. But the older I get, the more I realize, yeah, that's actually a compliment, because you can relate to people better.

How is NCM Global Income Growth Class managed?

It's a global equity balanced fund. It has a go-anywhere global mandate. The names are typically mega-cap and the risk rating in the fund is low to medium risk.

What you want to do is determine where you want to be with equities. So that that is the that the biggest driver of your returns. So what I do is I look at my investment strategy in three different levels: strategic, operational and tactical.

If you want beta or ETF exposure, go buy that. You can do that. But if you want active management, every single one of our funds at NCM, and specifically, the Global Income Growth, specializes in being different than its benchmark.

Just because a stock is really good and everybody else loves it, doesn't mean it goes in the portfolio. It has to have a place. I'm happy to ignore an individual stock, ready to punt anything that doesn't work.

And there's no “story stocks” here. We've got free cash flow generating stocks that go into the portfolio kicking out a strong dividend growth profile. And that's a repeatable process over and over and over again. And the success has been demonstrated by how the fund's done.

Where does NCM Global Income Growth Class fit?

A lot of the feedback I get is the Global Income Growth, while it lives in the global equity balanced world, is completely different than most of the massive, big ones out there. It is smaller. It is more nimble, and there's very, very little overlap.

We are being paid to make decisions. We are being paid to be active for the client. So there are names I have in the portfolio that nobody else has in the global equity. My top 10 is significantly different than what you'd find in a large, typical global equity portfolio.

I just watched a really great movie, probably for the 17th time. It's called Moneyball, and it made me go, ah ha! Basically, the whole thing is designed around statistics, and they found that most successful baseball teams out there is not the guys that have a bunch of bases stolen and hit home runs, or the team with the best pitcher and strikeouts. It's the team that has the highest on base percentage.

The analogy I would use to what I'm doing is free cash flow and dividend growth. They tend to be the stocks that get on base and you're going to do better. The one thing about baseball is you've got to win anywhere between 95 and 110 games to win the pennant.

You don't have to even win that many in investing. If you're successful 70% of the time, you are going to be very successful in your investment strategy. And that's all we're trying to do in the NCM Global Income Growth Class: Stack the probabilities in your favour, get on base, and get out of there with the W.

Disclaimer: Jason Isaac is a Portfolio Manager, with Cumberland Investment Counsel Inc. (CIC). CIC is the sub-advisor to its affiliate, NCM Asset Management Ltd. The information in this video is current as of September 25, 2024 but is subject to change. The contents of this video (including facts, opinions, descriptions of or references to, products or securities) are for informational purposes only and are not intended to provide financial, legal, accounting or tax advice and should not be relied upon in that regard. This presentation may include information obtained from third party sources, including charts and data ("Third Party Content"). Third Party Content is for general informational purposes only. Third Party Content has been obtained from sources believed to be reliable, however, no guarantees are made by NCM or by the source of such Third Party Content as to its accuracy, completeness or timeliness, and no liability is accepted for any reliance thereon. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. The viewpoints expressed by the Portfolio Manager represents their assessment of the markets at the time of publication. Those views are subject to change without notice at any time without any kind of notice. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment advice. The communication may contain forward-looking statements which are not guarantees of future performance. Forward-looking statements involve inherent risk and uncertainties, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. 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.