Transcript 2 - Dynamic Funds

Finding Opportunity South of the Border
Name
Title
Date
AGENDA
2
1
STRENGTHS
2
RECOVERY
3
CONTINUED OPPORTUNITY
4
POTENTIAL CHALLENGES
5
DYNAMIC’S U.S. FUND LINEUP
STRENGTHS
3
1
Sector Diversification
2
Global Reach
3
Market Capitalization
SECTOR DIVERSIFICATION
U.S. OFFERS BROADER DIVERSIFICATION OF SECTORS
12-month return1: -8.32%
Energy
Materials
Financials
Industrials
Consumer Discretionary
Consumer Staples
Health Care
Information Technology
Telecomm. Services
Utilities
1
2
S&P/TSX Composite Index
S&P 500 Index
Source: Bloomberg Finance L.P., Morningstar Direct, December 2015
4
12-month return2: 20.96%
STRENGTHS
5
1
Sector Diversification
2
Global Reach
3
Market Capitalization
GLOBAL REACH
U.S. COMPANIES EARN A SIGNIFICANT AMOUNT OF REVENUE OUTSIDE THE U.S.
47%
53%
Foreign Sales
Domestic Sales
Source: S&P Dow Jones Indices, 2012 Global Sales.
6
STRENGTHS
7
1
Sector Diversification
2
Global Reach
3
Market Capitalization
MARKET CAPITALIZATION
WORLD’S LARGEST EQUITY MARKET
35% of world’s market cap on stock exchange
Source: Standard & Poor's, Global Stock Markets Factbook and supplemental S&P data.
8
MARKET CAPITALIZATION
THE LARGEST ECONOMY IN THE WORLD
With $15.6 trillion of GDP, the U.S. is responsible
for almost 22% of global GDP
Source: International Monetary Fund, 2012
9
MARKET CAPITALIZATION
LARGEST 500 GLOBAL COMPANIES
Rank
Country
1
United States
127
2
China
98
3
Japan
54
4
France
31
5
United Kingdom
29
6
Germany
28
7
South Korea
17
8
Netherlands
13
9
Switzerland
12
10
Canada
11
Source: Fortune 2015, Global 500
10
# Companies
RECOVERY
1
2
11
Positive Economic Indicators

GDP

Employment

Consumer Confidence

Retail Sales
Solid Company Fundamentals

Innovation

Corporate Profits

Dividends
POSITIVE ECONOMIC INDICATORS
12
RECOVERY
1
2
13
Positive Economic Indicators

GDP

Employment

Consumer Confidence

Retail Sales
Solid Company Fundamentals

Innovation

Corporate Profits

Dividends
INNOVATION
Source: Forbes 2015, World’s most innovative companies.
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VALUABLE BRANDS
BRANDZTM TOP 100 MOST VALUABLE GLOBAL BRANDS 2015
15
Source: WPP.com, BrandZ Top 100 most valuable global brands 2015.
VALUABLE BRANDS
BRANDZTM TOP 100 MOST VALUABLE GLOBAL BRANDS 2015
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
Source: WPP.com, BrandZ Top 100 most valuable global brands 2015.
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CORPORATE PROFITS
INCREASING U.S. CORPORATE PROFITS
2,300
$2,072 Billion
2,100
1,900
Billions $
1,700
1,500
1,300
1,100
900
700
$804 Billion
500
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Bureau of Economic Analysis.
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DIVIDENDS
DIVIDEND DISTRIBUTION HAS BEEN ON THE RISE
1000
$887
900
800
Dividends $
700
600
500
400
300
200
$169
100
1990
1992
1994
1996
1998
2000
Source: US Department of Commerce – Bureau of Economic Analysis.
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2002
2004
2006
2008
2010
2012
2014
CONTINUED OPPORTUNITY
19
1
Housing Market Recovery
2
Energy Independence
3
Insourcing Boom
U.S. HOUSING RECOVERY
NEW HOMES SOLD & UNDER CONSTRUCTION
Units (in thousands)
120
110
New Home Construction
100
New Homes Sold
90
80
70
60
50
40
30
20
Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15
Source: United States Census Bureau.
20
U.S. HOUSING RECOVERY
HOME PRICE INDEX LEVELS MOVING BACK UP
CASE-SHILLER HOME PRICE INDEX
230
20
% Change year-over-year
210
Case-Shiller Index, s.a.
15
190
10
170
5
150
0
130
-5
Last month: Nov 2015
110
-10
Jan 2000 = 100
90
-15
70
-20
50
-25
01
02
03
04
Source: S&P Dow Jones Indices
21
05
06
07
08
09
10
11
12
13
14
15
CONTINUED OPPORTUNITY
22
1
Housing Market Recovery
2
Energy Independence
3
Insourcing Boom
ENERGY INDEPENDENCE
TOTAL ENERGY PRODUCTION ANTICIPATED TO CONTINUE RISING
105
2005-2012
100
2013-2040 Forecast
Production (quadrillion Btu)
95
90
85
80
75
70
65
60
2005
2010
2015
Source: U.S Energy Information Administration.
23
2020
2025
2030
2035
2040
ENERGY INDEPENDENCE
NATURAL GAS IMPORTS AND EXPORTS FORECASTS
NET EXPORTER IN 2020 AND ON
NET IMPORTER
Source: U.S Energy Information Administration.
24
CONTINUED OPPORTUNITY
25
1
Housing Market Recovery
2
Energy Independence
3
Insourcing Boom
INSOURCING BOOM
AMERICAN MANUFACTURING IS MAKING A HUGE COMEBACK
GENERAL ELECTRIC – APPLIANCE PARK
Louisville, Kentucky
26
INSOURCING BOOM
U.S. MANUFACTURING INDEX
Purchasing Managers Index (PMI)
60
55
53.5%
50
45
40
35
33.1%
30
Dec-08
Jun-09
Dec-09
Jun-10
Source:
Institute
for Supply
Management.
27
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
INSOURCING BOOM
MANUFACTURING SALES ARE ON THE RISE
1,400
Manufacturing Sales ($ Billions)
$1,313 Billion
1,300
1,200
1,100
1,000
900 $995 Billion
800
Dec-08 Jun-09 Dec-09 June-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15
Source: United States Census Bureau
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POTENTIAL CHALLENGES
29
1
Debt Ceiling
2
Fed Policy Uncertainty
DEBT CEILING
MOUNTING U.S. FEDERAL DEBT
20,000
18,000
16,000
14,000
Billions $
12,000
10,000
8,000
6,000
4,000
2,000
0
Source:
WhiteHouse.gov.1950
1940
30
1960
1970
1980
1990
2000
2010
FED POLICY UNCERTAINTY
Chair Yellen
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DYNAMIC’S U.S. STRATEGIES
DYNAMIC’S U.S. FUND LINEUP
Dynamic
Blue Chip U.S.
Balanced
Class
Dynamic
U.S. Monthly
Income Fund
Dana Love,
Domenic
Bellissimo
Cecilia Mo, MarcAndre Gaudreau
CAPITAL PRESERVATION
33
Dynamic
U.S. Sector
Focused
Class
Dynamic
U.S. Dividend
Advantage
Fund
Dynamic
American
Value Fund /
Class
Dynamic
Power
American
Growth Fund /
Class
Dynamic
Power
American
Currency
Neutral Fund
Myles Zyblock
Cecilia Mo
David Fingold
Noah Blackstein
Noah Blackstein
CAPITAL APPRECIATION
THANK YOU!
DISCLAIMER
This presentation has been prepared by 1832 Asset Management L.P and is provided for information
purposes only.
Views expressed regarding a particular investment, economy, industry or market sector should not be
considered an indication of trading intent of any of the mutual funds managed by 1832 Asset
Management LP. These views are not to be relied upon as investment advice nor should they be
considered a recommendation to buy or sell. These views are subject to change at any time based
upon markets and other conditions, and we disclaim any responsibility to update such views.
To the extent this document contains information or data obtained from third party sources, it is
believed to be accurate and reliable as of the date of publication, but 1832 Asset Management L.P.
does not guarantee its accuracy or reliability. Nothing in this document is or should be relied upon as a
promise or representation as to the future.
© Copyright 2015 1832 Asset Management L.P. All rights reserved. Dynamic Funds® is a registered
trademarks of its owner used under license.
Commissions, trailing commissions, management fees and expenses may be associated with mutual
fund investments. Please read the prospectus before investing. The indicated rates of return are the
historical annual compounded total returns including changes in units value and reinvestment of all
distributions and do not take into account sales, redemption, distribution or optional charges or income
taxes payable by any securityholder that would have reduced returns. Mutual funds are not
guaranteed, their values change frequently and past performance may not be repeated.
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