Utilizing our FosterIQ Quantitative Equity Selection model (FIQ QES), we start with the 2,846 Common Stocks listed in Canada and put them through our basic screening criteria leaving us with 261 companies (as of today). Those companies are then quantitatively scored by the FIQ QES.
The FIQ QES uses more than 15 factors to compare the Canadian companies against each other. The factors tend to be 'value' or 'momentum' based, but the common theme is they have all been specifically selected due to their high correlation to superior returns. Some factors are proven and well known, such as the Price to Earnings multiple (P/E) or a company's Return on Equity (ROE), while others involve some more extensive math.
The reader should note that this list is generated using only quantitative means, or, put another way, it is only looking at the numbers. When building portfolios the Foster Portfolio Managers will examine many things that cannot be quantified- such as management history, balance sheet fraud allegations, analyst sentiment or overall economic conditions.