US Focus

Growth

Verus U.S. Focus Growth

Purpose

The Verus U.S. Focus Growth strategy seeks to achieve long-term growth by building a concentrated portfolio of outstanding businesses with competitive advantages and the potential for sustained superior growth.

Investment Objectives

1. Concentrated Portfolio – “High Active Share”

  • Portfolios are constructed with a select group of high-quality companies characterized by strong balance sheets; abundant free cash flow; strong ROW (>20%); stable to improving margins; and real, organic revenue growth.

  • Best Ideas Portfolio – impartial to index sector weightings and index position weightings.

  • The Focus Growth strategy invests in ~ 20 companies

  • Long Holding / Compounding Period – “Time Arbitrage”

2. Long-term focus on company fundamentals and competitive advantages.

  • Portfolio returns are generated through the compound earnings growth of competitive advantaged companies owned for many years – Share prices follow earnings growth.

  • Conviction: the flagship Focus Growth portfolio has invested in a total of ~ 100 companies since inception.

  • Average holding period is approximately five years.

3. Risk Management – “Don’t lose mentality”

  • Only invest in financially superior/competitively advantaged businesses – margin of Safety.

  • Strict and disciplined focus on long-term preservation of capital.

  • Portfolio construction parameters include position size limits and sector weight limits.

  • Currency, policy, and political risks are considered in general and specifically with regard to investing outside of the United States.

4. Weighing Machine vs. Voting Machine

  • No market predictions – fully invested at all times.

  • Unemotional selling – an absolute return mentality.

5. Outcome Orientation

  • Absolute return mentality seeking double-digit returns with lower levels of risk.

  • More than 28 years of evidenced success through consistent application of the Polen Capital investment process.

Performance as of December 31st, 2020

Portfolio Growth of $100,000 Investment

Annualized Performance (%)

Trailing-Period Performance (%)

For more information contact us at verusfinanical@nbc.ca

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​National Bank Financial – Wealth Management (NBFWM) is a division of National Bank Financial Inc. (NBF), as well as a trademark owned by National Bank of Canada (NBC) that is used under license by NBF. NBF is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF), and is a wholly-owned subsidiary of NBC, a public company listed on the Toronto Stock Exchange (TSX: NA).