Small cap. Global. Alpha. - cclgroup.com · • Business ethics: countering corruption and fraud, anticompetitive practices ... • Workforce supports: health benefits, training,

June 2018 | Stephen Reynolds & Qing Ji

ESG – A fundamental approach

Small cap.Global. Alpha.

GLOBAL ALPHA CAPITAL MANAGEMENT | Small cap. Global. Alpha.1

PRESENTERS

QING JIPortfolio Manager

STEPHEN REYNOLDSVice President, Institutional


• Introduction

• ESG defined

• ESG progress

• Why is ESG important for investments

• ESG integration in practice

• Outcome and results

• Questions and answers

OUTLINE


*Progress Manager of Managers Program: California State Teachers’ Retirement System.

FIRM• Montreal-based Small Cap specialist with assets under management of over US$ 1.3B

» International Small Cap

» Global Small Cap

• Founded in 2008, in partnership with the Connor, Clark & Lunn Financial Group (over US$ 59B AUM)

• Investment team of 5 portfolio managers and 2 analysts

STRATEGY• Quality Growth – True Small Cap – High Conviction – Long Term • Environmental, Social & Governance (ESG) integrated into investment process• Carbon footprint significantly below the index: 65% less emissions intense• Value add through security selection - mitigating style, currency & industry risk• Rigorous portfolio construction and risk management

INTRODUCTION

1.3BAUMUS$

2008Founded in


ENVIRONMENTAL• Climate change: CO2 emissions disclosure• Natural resources use disclosure: energy, water, land, raw material• Waste management: toxic emissions, waste, packaging material, electronic waste• Environmental-friendly product• Environmental-friendly practice: green building, activities

SOCIAL• Human capital: human rights, health and safety, work-life balance, HR development,

supply chain labor standards• Product safety• Return to society

GOVERNANCE• Corporate governance: board structure, transparency, independence, executive pay• Business ethics: countering corruption and fraud, anticompetitive practices• Shareholder rights and stakeholder interaction

ESG DEFINED



ESG PROGRESS

A signatory to the United Nations – Principles for Responsible Investment (PRI)

ESG Policy

A member of the Responsible Investment Association (Canada)

CEO Remuneration Guidelines

ESG Questionnaire to companies

2012 2013 2014 2015 2016 2017 2018


GLOBAL ALPHA CAPITAL MANAGEMENT | Small cap. Global. Alpha. 6

• Good ESG practices reduce risk and enhance return

CHALLENGES FOR SMALL CAP INVESTING• Lack of ESG data from companies• Lack of ESG coverage by service providers

OUR ESG APPROACH• Raw data: company website, annual reports, meetings with management• Combination of quality screen, investment themes & fundamental analysis • Internal template to calculate an ESG score for any individual company • Integration of ESG score into our valuation tools through adjustments to discount rates• Actively incorporate ESG issues into proxy voting• Engage with companies in which we invest

WHY IS ESG IMPORTANT FOR INVESTMENTS?


HOW ESG FITS INTO INVESTMENT PROCESS

• Revenue growth, profitability and balance sheet

QUALITY SCREEN

• Innovation, consumer,

environment, demographics,

outsourcing

INVESTMENT THEMES

• ESG criteria Scores

• Target market, competitive advantages,

growth strategy

FUNDAMENTAL ANALYSIS

• Discounted Cash Flow method

• High ESG score = low ESG risk

• Discount rate adjustment

VALUATION


MAXIMUM SCORE: 5• ESG Report• Environmental• Social• Corporate Governance• Recognition

Company ESG Report E S G Recognition Total

ESG ScoreIndependent

Directors ESG Excellence

Savills Plc 1 1 1 1 1 5.0 80% A member of FTSE4Good Sustainability index

Vitasoy Intl Holdings Ltd. 1 0.8 1 1 0.5 4.3 50% Numerous awards of Outstanding Corporate Social Responsibility

Horiba 1 0.8 0.8 1 0.5 4.1 38% A member of JPX-Nikkei Index 400

SCORING TEMPLATE


• Scoring is relative and each company is compared to its industry and regional peers.

• Eligible holding should have a minimum score of 0.5 for E, S, and G each.» Max score per category: 1» No action but required 0» No action due to little risk 0.5» Average practice 0.5» Excellent practice 1» Formal ESG reporting 1» Formal reporting on G only 0.3» Recognition: ESG index member 1

or ESG award winner 0.5

SCORING GUIDELINES

>=444%

[3.5,4)20%

[3,3.5)20%

[1.5,3)16%

GLOBAL ALPHA INTERNATIONAL SMALL CAP PORTFOLIO ESG SCORE DISTRIBUTION

All data as of March 30, 2018.

ESG Score WACC Adjustment

1.5 (inclusive) – 2.5 10% premium

2.5 (inclusive) - 3 5% - 10% premium

3 (inclusive) – 3.5 No change

3.5 (inclusive) - 4 5% - 10% discount

4 (inclusive) – 5 10% discount


VITASOY INTERNATIONAL HOLDINGS LTD.STOCK EXAMPLE


STOCK EXAMPLEVitasoy International (345 HK) – Score 4.3

ESG REPORT (1)• Comprehensive

ENVIRONMENTAL (0.8)• Reduce energy & fresh water use • Reduce discharge of solid waste, hazardous waste, and wastewater

SOCIAL (1)• Workforce supports: health benefits, training, workplace safety programs and recreational programs• Community: promote public health, local volunteer work, and donations

GOVERNANCE (1)• Board: 5/11 independent directors. 2 women.• Shareholder friendly: Yes. Effective communication.• Transparency: various board committees (Audit, Corporate Governance, Nomination, Remuneration),

Compliance Manual, Connected Transaction Manual, Corporate Disclosure Policy

RECOGNITION (0.5)• “Hong Kong Green Organization (2015-2017)” from Environmental Campaign Committee and Environmental

Protection Department• “Manpower Developer” awarded by the Employees Retraining Board• The “10 Years Plus Caring Company” Logo from Hong Kong Council of Social Services


STOCK EXAMPLE

QUALITY METRICS

THEME

MANAGEMENTTEAM ASSESSMENT

FUNDAMENTALANALYSIS

INTRINSIC VALUE

Consumer

Target market: $50B per year, growing at 5%Competitive advantage: Household brand, Leading market share in AsiaGrowth strategy: Distribution

Intrinsic value: HK$32.80Currently trading: HK$24.85

• Stable management team• Founding family owns 63%• Excellent ESG practice

Market Cap: HK$26.3BSales: HK$6.5B3 yr sales growth: 9.0%

P/E (2019): 32.6xDividend yield: 1.4%Net Debt/EBITDA: - 0.9x


• ESG Questionnaire and CEO Remuneration Guidelines to Companies• Meeting / Call with Management• Proxy Voting

ENGAGEMENT WITH COMPANIES

2017 Totals

Against Management 102 7.76%With Management 1212 92.24%Against ISS 7 0.53%With ISS 1307 99.47%Withhold 10 0.76%Total Ballots 1314 100%

SUMMARY OF PROXY VOTING


• By investing in companies, Global Alpha is conscious that it finances the emission of greenhouse gases.• The Global Alpha International Small Cap Portfolio is 65% less emissions intense than its benchmark, the MSCI

EAFE Small Cap Index.

CARBON FOOTPRINT ANALYSIS

*On an investment of USD 100 million. ¹Scope 1 is defined as ‘emissions from sources that are owned or controlled by the organization’, Scope 2 is defined as ‘emissions from the consumption of purchased electricity, steam, or other sources of energy (e.g. chilled water) generated upstream from the organization’, Scope 3 is defined as ‘emissions that are a consequence of the operations of an organization, but are not directly owned or controlled by the organization’. ²The carbon footprint of non-reporting companies is estimated.³Emissions based on Scope 1&2 onlyAs of June 30th, 2017

Source: ISS-Ethix Climate Solutions 2017, Climate Impact Assessment for Global Alpha International Small Cap Portfolio

Total Emissions (tCO2e, Scope 1,2 & 3¹)*

Percentage of Disclosing Holdings*²

Emissions (tCO2e) per USD Million Invested*³

Weighted Emissions (tCO2e/Weighted Revenue

USD Million*³

International Small Cap Portfolio 23,517 44% 75.6 192.04

MSCI EAFE Small Cap Index 78,869 34% 218.23 281.67

Difference

55,352 10% 65% 32%


CARBON FOOTPRINT ANALYSISInternational Small Cap Portfolio

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Global Alpha International Small Cap MSCI EAFE Small Cap

Vertical axis represents Absolute Scope 1 & 2 emissions (tCO2e) as of June 30, 2017, on an investment of USD 100 million


• The Global Alpha International Small Cap Portfolio is associated with emissions (tCO2e) much lower than its benchmark the MSCI EAFE Small Cap Index.

COMPARISON OF TOTAL EMISSIONS

TOTAL EMISSIONS FROM INTERNATIONAL SMALL CAP PORTFOLIO

Portfolio BenchmarkScope 3 15,956 57,046Scope 1 & 2 7,561 21,823

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

As of June 30, 2017.


QUESTIONS AND ANSWERS

• Quality Growth – True Small Cap – High Conviction – Long Term

• Environmental, Social & Governance (ESG) integrated into investment process

• Carbon footprint significantly below the index: 65% less emissions intense

• Value add through security selection - mitigating style, currency & industry risk

• Rigorous portfolio construction and risk management

GLOBAL ALPHA CAPITAL MANAGEMENT | Small cap. Global. Alpha.

APPENDIX


March 30, 2018 Portfolio Benchmark* Over/Under

North America 0.0 0.0 0.0

Europe & Middle East 57.8 57.5 0.3

Japan 29.2 31.3 -2.2

Asia (ex-Japan) 13.0 11.2 1.9

Other 0.0 0.0 0.0

Portfolio Benchmark

Less than $1 Billion 9.5% 15.2%

$1 - $3 Billion 50.6% 45.0%

$3 - $5 Billion 24.5% 24.9%

Over $5 Billion 9.0% 14.9%

PORTFOLIO COMPOSITION: INTERNATIONAL SMALL CAP PORTFOLIO

SECTOR BREAKDOWN (%)

MARKET CAP ALLOCATION (%)1 REGION WEIGHTS (%)

*Benchmark: MSCI EAFE Small Cap (Net)(USD). ** Value may differ due to rounding.1 All data in US Dollars as of March 30, 2018.

Portfolio at March 2018 Benchmark* Under/Over

Portfolio at December 2017

Change in Period**

Energy 1.8 2.4 2.1 -0.3

Materials 7.8 9.4 8.4 -0.5

Industrials 24.0 21.4 25.8 -1.8

Consumer Discretionary 19.0 15.8 20.8 -1.8

Consumer Staples 7.2 6.8 5.8 1.4

Health Care 6.2 7.3 5.8 0.4

Financials 7.2 11.6 7.3 -0.1

Information Technology 10.2 11.5 9.2 0.9

Telecommunication Services 0.6 1.3 0.8 -0.2

Utilities 1.4 2.1 2.0 -0.6

Real Estate 8.3 10.5 8.8 -0.5

Cash 6.4 0.0 3.2 3.2

-0.6%

-1.6%

2.6%

3.2%

0.4%

-1.1%

-4.4%

-1.4%

-0.7%

-0.6%

-2.2%


*Inception Date: December 31, 2009.All returns are gross of fees except where noted. Gross performance figures are stated after trading fees and before management fees, performance fees and operating expenses. Operating expenses include items such ascustodial fees for segregated accounts and for pooled vehicles would also include charges for valuation, audit, tax and legal expenses. Such additional operating expenses would reduce the actual returns experienced by investorsin segregated accounts and pooled vehicles. Added value may differ due to rounding to 1 decimal place. Benchmark’s performance is net of foreign dividend withholding taxes.Sources: Connor, Clark & Lunn Financial Group, Thomson Datastream.

ANNUALIZED RETURNS (USD)

ANNUAL RETURNS (USD)

PERFORMANCE INTERNATIONAL SMALL CAP PORTFOLIO

Ending March 30, 2018 MTD QTD YTD 1 Year 2 Year 3 Year 4 Year 5 Year SI*

International Small Cap Composite 0.7% 2.4% 2.4% 26.3% 21.3% 16.7% 13.1% 16.3% 14.4%

MSCI EAFE Small Cap (Net) -1.1% 0.2% 0.2% 23.5% 17.1% 12.3% 8.2% 11.1% 10.4%

Added Value 1.8% 2.2% 2.2% 2.8% 4.2% 4.5% 4.9% 5.2% 4.0%

Composite Net Returns 0.6% 2.2% 2.2% 25.3% 20.3% 15.7% 12.2% 15.3% 13.5%

Ending December 31 2017 2016 2015 2014 2013 2012 2011 2010

International Small Cap Composite 36.9% 5.0% 19.0% -1.0% 29.6% 23.0% -15.3% 29.6%

MSCI EAFE Small Cap (Net) 33.0% 2.2% 9.6% -4.9% 29.3% 20.0% -15.9% 22.0%

Added Value 3.8% 2.8% 9.5% 4.0% 0.3% 3.0% 0.6% 7.6%

Composite Net Returns 35.7% 4.1% 18.0% -1.8% 28.6% 22.0% -16.1% 28.6%


ROBERT BEAUREGARDCIO & PORTFOLIO MANAGER

INDUSTRY EXPERIENCE

Global Alpha Capital Management Ltd.2008-Present: Chief Investment Officer and

Portfolio Manager

Natcan Investment Management1999-2008: Senior Vice President,

Small Cap Equities

Caisse de dépôt et placement du Québec1997-1999: Portfolio Manager

Alcan Aluminium1991-1997: Various management roles

Grant Thornton1989-1991: Management Consultant

IBM Canada1988-1989: Financial Analyst

Department of National Defense1981-1988

EDUCATION

1986: BSc, Royal Military College1988: MBA, McGill University1990: CMA1991: CMC1996: CFA2014: CPA

DAVID SAVIGNACPORTFOLIO MANAGER, EUROPE

INDUSTRY EXPERIENCE

Global Alpha Capital Management Ltd.2009-Present: Portfolio Manager2008-2009: Analyst

Natcan Investment Management2004-2008: Global Small Cap Co-Manager, Small

Cap Analyst, Risk & Performance, Senior Analyst

TAL Global Asset Management2003: Pooled Fund Analyst

Desjardins Securities2000-2001: Assistant Broker

EDUCATION

2001: BSc, HEC Montreal2002: Spanish Studies, Universidad

Regiomontana (Mexico)2016: CFA

BIOGRAPHIES

QING JIPORTFOLIO MANAGER, ASIA-PACIFIC

INDUSTRY EXPERIENCE

Global Alpha Capital Management Ltd.2011-Present: Portfolio Manager2008-2011: Analyst

Bank of Canada2008: Senior Analyst, Financial Markets

Laurentian Bank Securities2006-2007: Equity Research Analyst,

Financials Sector

ING Private Bank Asia Ltd (Singapore)2004: Portfolio Management Associate,

European Desk

Credit Lyonnais Singapore1999-2004: Assistant Credit Manager,

Project Analyst

Temenos Systems SA (Switzerland)1997-1999: Banking Consultant

EDUCATION

1993: BA, Xiamen University (China)1996: MA, Shanghai University of

Finance and Economics2007: MBA, McGill University2011: CFA


SERGE DEPATIEPORTFOLIO MANAGER, NORTH AMERICA

INDUSTRY EXPERIENCE

Global Alpha Capital Management Ltd. 2016-Present: Portfolio Manger 2015-2016: Analyst

NCP Investment Management2011-2015: Managing Partner,

Equities and Investments

Natcan Investment Management2006-2011: Global Equities, Portfolio Manager2003-2006: Small Cap Analyst

The Jitney Group / Hampton Securities2000-2003: Equity Research Analyst

Sannica Biotech1999-2000: Vice President

Biosyntech1997-1999: Vice President Sales

CQI-Biomed1995-1997: Project Manager

EDUCATION

1991: BEng, McGill University1994: MBA, Concordia University1999: CSC

Passed Level I of the CFA exam

SAIN GODILASSOCIATE PORTFOLIO MANAGER, NORTH AMERICA

INDUSTRY EXPERIENCE

Global Alpha Capital Management Ltd.2017-Present: Associate Portfolio Manager2011-2017: Analyst2010-2011: Junior Analyst

Industrial AllianceSummer 2010: Equity Research Analyst

John Molson School of Business2008-2010: Investment Lab Monitor

ICICI Bank, Goa, India2004-2005: Asset Manager

Vinray Education Consultancy, Goa, India2002-2003: Office Manager

Cool Comfort – start up clothing company, Goa, India1999-2002: Entrepreneur

EDUCATION

1999: BComm, Goa University (India)2011: BComm, Concordia University2013: MSc, Concordia University

2018 Level III in the CFA program

BIOGRAPHIES

JANINE TRAN LAMMANAGER, CLIENT RELATIONSHIPS, RISK, COMPLIANCE AND OPERATIONS

INDUSTRY EXPERIENCE

Global Alpha Capital Management Ltd.2017-Present: Manager, Client Relationships, Risk,

Compliance and Operations

HSBC Private Wealth Services (Canada) Inc.2015-2017: Investment Counsellor

National Bank of Canada2014-2015: Manager, Portfolio Manager, Analysis and

Monitoring2009-2014: Senior Analyst

RBC Dominion Securities2005-2009: Associate Advisor

TAL Global Assets Management Inc.2004-2005: Coordinator, Information Management

RBC Dominion Securities1999-2004: Advisor Assistant

Elise Pépin et Associé1998-1999: Mutual Funds Junior Analyst

London Life1997-1998: Insurance Representative

EDUCATION

1997: BA, Political Science, University of Montreal2009: CFA


ANTHONY SUTTONANALYST, TRADER, EUROPE

INDUSTRY EXPERIENCE

Global Alpha Capital Management Ltd.2018-Present: Analyst, Trader

Eight Capital (formerly Dundee Capital Markets)2014-2017: Research Associate

Jarislowsky Fraser2013-2014: Junior Analyst

Dundee Capital MarketsSummer 2012: Research Associate Intern

Goodman & Company Investment CounselSummer 2011: Portfolio Analyst Intern

NCJ, United Kingdom1995-2005: Welder, Team Leader

EDUCATION

2012: BComm, Finance, Concordia UniversityPassed Level I of the CFA exam

TRACY LIANALYST, ASIA-PACIFIC

INDUSTRY EXPERIENCE

Global Alpha Capital Management Ltd.2018-Present: Analyst2017: Co-op, Investment Analyst

SIAS Fund, Simon Fraser University2016-2017: Equity Analyst

Beedie School of Business, Simon Fraser University2017: Research Assistant

Harbin Bank, Harbin, China2013-2014: Management Trainee

National Development and Reform Commission, Beijing, China2011-2012: Administrative Intern

EDUCATION

2011: BA, China Foreign Affairs University, China

2013: MA, Japanese Literature, China Foreign Affairs University, China

2017: MSc, Finance, Beedie School of Business, Simon Fraser University2018 Level III in the CFA program

BIOGRAPHIES

COMPLIANCE STATEMENTGlobal Alpha Capital Management Ltd. (Global Alpha) claims compliance with theGlobal Investment Performance Standards (GIPS ®) and has prepared and presentedthis report in compliance with the GIPS standards. Global Alpha has beenindependently verified for the periods from June 30, 2011 to June 30, 2017. The Verification assesses whether (1) the firm has complied with all the compositeconstruction requirements of the GIPS standards on a firm-wide basis and (2) the firm’spolicies and procedures are designed to calculate and present performance in DEFINITION OF FIRMGlobal Alpha is an independent and privately owned Canadian investmentmanagement firm focused exclusively on managing global and EAFE small capstrategies. Their 'core' style combines growth and value characteristics, while their approachfocuses on bottom-up security selection through fundamental research.

DEFINITION OF DISCRETIONDiscretion is the ability of Global Alpha to implement its intended strategy. This alsoincludes any sub advised accounts in which Global Alpha has discretionary authority.A portfolio would be defined as non-discretionary if an account contains investmentguidelines significantly restricting the ability to manage the assets according to theinvestment firm’s strategy (i.e., liquidity requirements that limit the manager’sdiscretion, significant client holding restrictions). Accounts would also be defined asnon-discretionary if Global Alpha only provides “Model Portfolio” services to thoseportfolios and does not directly execute trades.

GLOBAL ALPHA INTERNATIONAL SMALL CAP COMPOSITEThis composite consists of portfolios invested in international small cap equities inboth developed and emerging markets. The benchmark is the MSCI EAFE Small CapNet Index. The investment objective is to maximize long-term total return throughprudent investment in international small capitalization stocks and generate returnsequal to the return of the MSCI EAFE Small Cap Net Index (CDN$) plus 3.0% over a fullmarket cycle. The Global Alpha International Small Cap Composite typically invests in50 - 70 international small capitalization stocks. Tracking error is targeted at between3% and 6% relative to the benchmark.

BENCHMARKThe composite benchmark is calculated monthly based on the market-value-weightedaverage return of the benchmarks associated with the composite's member portfolios.Current benchmark is 85.3% MSCI EAFE Small Cap Net & 12.4% MSCI EAFE Small Cap+ Canada Net & 2.2% MSCI ACWI ex USA Small Cap Net Index.Prior to the addition of a new composite member portfolio in November 2016, thebenchmark was 100% MSCI EAFE Small Cap Net.

CALCULATION OF PERFORMANCE RETURNS Client securities and pooled fund net assets are valued on a daily basis using marketprices and foreign exchange rates obtained from independent sources. Performance returns are presented gross of management fees and net of trading costs.Foreign income is accrued net of withholding taxes. Reclaimable withholding taxes arerecognized if and when received by the custodian. Benchmark returns are net ofwithholding tax.Performance returns are calculated daily.

CURRENCYPerformance is reported in U.S. Dollar($).

MEASURE OF RISKInternal dispersion is calculated using the asset-weighted standard deviation of annualgross returns of those portfolios that were included in the composite for entire year. For those years when less than six portfolios were included in the composite for the fullyear, no dispersion measure is presented. Three-year volatility measures are notcalculated where the composite has under 3 years of performance.

STANDARD FEE SCHEDULE85 bps of ending net assets annually

COMPOSITE CREATION DATEComposite creation date: December 2009

LIST AND DESCRIPTION OF THE FIRM'S COMPOSITES A complete list of composites and their descriptions (including composites that havebeen terminated within the last five years) is available on request.

ADDITIONAL INFORMATIONA copy of Global Alpha's GIPS Policies & Procedures for valuing portfolios, calculatingperformance and preparing compliant presentations is available on request.

PRESENCE, USE AND EXTENT OF LEVERAGE OR DERIVATIVES The composite may invest in derivatives for hedging purposes or other non-speculativepurposes. No leveraged investments are permitted. The composite may partly hedge itscurrency exposure from time to time. Hedging transactions will not perfectly offset thecomposite's currency exposure, such that the composite will be subject to activecurrency exposure which will vary depending on the securities held at any time and thecurrency in which those securities are denominated.

COMPOSITE NAME CHANGEOn May 1 2015, the composite name changed from Global Alpha EAFE Small CapComposite to Global Alpha International Small Cap Composite.

MINIMUM ACCOUNT SIZEMinimum portfolio size for the composite is $1,000,000.

OTHER DISCLOSURESPrices and exchange rates for valuation purposes are consistent across all portfoliosutilising WM/Reuters 4:00 p.m. London exchange rates and Thompson Reuters valuationsources. Global Alpha Capital Management Ltd. is a Canadian corporation registered with thesecurities regulators in Ontario, Quebec and British Columbia as Portfolio Manager, asInvestment Fund Manager in Ontario and Quebec and registered as an InvestmentAdviser with the US Securities & Exchange Commission. We are not aware of any conflictbetween the laws and/or regulations of these jurisdictions and the GIPS standards.The firm has not used subjective unobservable inputs for valuing portfolio investments.Prior to 2017, Tracking error target was 4% - 6.5% relative to the benchmark.

OWNERSHIPGlobal Alpha Capital Management Ltd. is 49% owned by the Connor, Clark & LunnFinancial Group Ltd. Other affiliated companies are:

• Baker Gilmore & Associates Inc.• Banyan Capital Partners• Connor, Clark & Lunn Infrastructure Ltd.• Crestpoint Real Estate Investments Ltd.• Connor, Clark & Lunn Investment Management Ltd.• MidStar Capital Corp.• NS Partners Ltd• PCJ Investment Counsel Ltd.• Scheer Rowlett & Associates Investment Management Ltd.

To update Intranet file save as a WMF to \\v-file-01\Data$\Shared\Shared\IRG\Composites -Formatted\GA\LinksM\Links GLOBAL ALPHA INTERNATIONAL SMALL CAP COMPOSITE

YearTotal Return

(Gross of Fees)Total Return (Net of Fees) Benchmark*

# ofPortfolios Market Value

% of FirmAssets

Internal Dispersion

Composite 3-YearVolatility

Benchmark 3-YearVolatility

2017 36.86% 35.73% 32.62% 9 $504,495,362 48.50% N/A 10.93% 11.72%

2016 5.02% 4.14% 2.29% 5 $170,616,926 33.82% N/A 11.35% 12.27%

2015 19.04% 18.05% 9.59% 3 $77,153,110 22.20% N/A 9.71% 11.42%

2014 -0.98% -1.82% -4.95% 3 $30,570,246 16.79% N/A 11.83% 13.51%

2013 29.64% 28.57% 29.30% 3 $24,984,496 15.55% N/A 16.71% 16.37%

2012 23.02% 21.99% 20.00% 1 $2,549,511 1.72% N/A 20.17% 20.12%

2011 -15.34% -16.07% -15.94% 1 $2,074,434 2.57% N/A N/A N/A

2010 29.63% 28.56% 22.04% 1 $2,453,598 4.15% N/A N/A N/A

#N/A N/A N/A N/A N/A N/A N/A N/A N/A

#N/A N/A N/A N/A N/A N/A N/A N/A N/A

CompositeComposite

*The benchmark is a combination of the MSCI EAFE Small Cap Net and MSCI EAFE Small Cap + Canada Net Index. Current benchmark is 85.3% MSCI EAFE Small Cap Net & 12.4% MSCI EAFE Small Cap + Canada Net & 2.2% MSCI ACWI ex USA Small Cap

Net Index.

24

Warren Stoddart (Co-CEO)

Mike Freund (Co-CEO)

Michael Walsh (Managing Director)

Lindsay Holtz (Managing Director)

Lee Damji (Managing Director)

INSTITUTIONAL SALESBrent Wilkins (CAN)Eric Hasenauer (US)

Institutional Sales

INSTITUTIONAL STRATEGY

Peter Muldowney

Strategic Exchange

Investment Solutions

INVESTMENT RESOURCES

Andrew Lefevre (CAO)

Portfolio Administration

Trade Administration

Transition Management

Client Reporting

ACCOUNTING & HR Steve Affleck (CFO)

Corporate Accounting

Human Resources

Tax

LEGAL & COMPLIANCEPatrick Robitaille

(General Counsel)

Legal

Compliance

Company Secretarial

Office Services

BUSINESS ANALYTICSSuzanne James (CBA)

Investment Data & Analytics

Portfolio Compliance

Operational Risk

INFORMATION SYSTEMS

Lee Damji (CIO)

Network Systems

CRM & Corporate Systems

Trading &Compliance Systems

Portfolio Management Systems

Portfolio Administration Systems

Security, Proj Mgmt &Enterprise Architecture

MARKETING SERVICES & PRODUCT

Greig McKenzie (CMO)

Product Management & Development

CRM Database Management

Web/Intranet

Communications

RFP & Consultant Databases

Collateral Management

Private Markets Accounting & Admin


BUSINESS AND OPERATIONAL MANAGEMENT

1800 McGill College, Suite 2310 Montreal, Quebec H3A 3J6 Canadawww.globalalphacapital.com

Documents

Small cap. Global. Alpha. - cclgroup.com · • Business ethics: countering corruption and fraud, anticompetitive practices ... • Workforce supports: health benefits, training,