If you want to find some of the world’s most global operators, look no further than your own back yard.
Companies such as the Bank of Montreal, Saputo and Manulife Financial are well-established beyond Canadian borders and are continuing to build their businesses in U.S., Europe and beyond.
In fact, while the 21 companies in Cardinal’s Canadian equity portfolio receive an average of 59 per cent of their revenue in loonies, more than one-quarter (27.5 per cent) comes in greenbacks and more than 13 per cent arrives in other international currencies.
Our most international holding on a percentage basis is Gildan Activewear. The Montreal-based clothing manufacturer earns nearly 88 per cent of its top line from the U.S., Canada’s biggest trading partner. Other companies with a sizeable footprint south of the 49th parallel include Fortis, the Newfoundland & Labrador-based utility holding company, and a trio of banks, RBC, Scotiabank and CIBC.
Portfolio manager Sheila Wilson-Kowal says the more diversified a company’s revenue base, the more protected it is from downturns in other parts of the world. Any company looking for above-average growth needs to make inroads internationally, particularly into the U.S., she says.
