Transcript Template based on NEW palette of Dynamic Funds colours

GLOBAL
INVESTING
IS IT TIME TO RELOCATE
SOME OF YOUR PORTFOLIO?
Name
Title
Company
DATE
AGENDA
1
THE BACKYARD BIAS
2
HAVING A GLOBAL PERSPECTIVE
3
GLOBAL GROWTH OPPORTUNITIES
THE
BACKYARD
BIAS
Canadians have a backyard bias
CANADIANS HAVE THE MAJORITY OF THEIR ASSETS INVEST IN CANADA
Outside
Canada
49%
Canada
51%
Source: IFIC mutual fund assets, as of April 30th, 2015
Includes Equity, Balanced and Fixed Income Mutual Fund Assets.
…And we can’t blame them.
CANADA HAS OUTPERFORMED THE WORLD MARKET OVER THE PAST 10 YEARS
CANADA HAS OUTPERFORMED THE WORLD MARKET OVER THE
PAST 15 YEARS
Canada
World
Source: Bloomberg, Canada as represented by the S&P/TSX Composite TR, World as represented by MSCI World Index in Canadian Dollars. Jan 31, 2001 to December
31, 2015. The chart above is for illustrative purposes only.
Canada has shown strong performance
CONCENTRATION IN 3 SECTORS HAS HELPED PERFORMANCE OVER THE PAST 15 YEARS
Utilities
Telecom. Services
Information Technology
Health Care
Consumer Staples
Consumer Discretionary
Industrials
Financials
3 sectors make up
Materials
66% of our market
Energy
-20% -10% 0%
st
Source: Morningstar, as of December 31 , 2015.
10% 20% 30% 40% 50%
Long-term trend
Canada outperforms
The world outperforms
Difference between S&P/TSX Total Return Index and MSCI World Index ($CAD) as of December 31, 2015.
Source: Morningstar, S&P/TSX Total Return Index and MSCI World Index ($CAD).
The S&P / TSX Total Return Index and MSCI World Index is unmanaged and unavailable for direct investment.
Assumes reinvestment of capital gains and dividends and no taxes. Index past performance is not indicative of future results.
For illustrative purposes only.
HAVING A
GLOBAL
PERSPECTIVE
A tale of two worlds…
WORLD BASED ON GEOGRAPHIC SIZE
THE WORLD BASED ON GEOGRAPHIC SIZE
WORLD BASED ON ECONOMIC SIZE
THE WORLD BASED ON ECONOMIC SIZE
Source: As of 2008, CIA Factbook for GDP data.
Economic size based on GDP Growth Rate. Natural Earth website for shapefiles of the world.
Canada’s small global footprint
SMALL PERCENTAGE OF THE WORLDS LARGEST AND MOST RECOGNIZABLE COMPANIES BASED ON THE FORTUNE GLOBAL 500 LIST ARE IN CANADA
ONLY A SMALL PERCENTAGE OF THE WORLDS LARGEST & MOST
RECOGNIZABLE COMPANIES ARE IN CANADA
CANADA
13%
REST OF
THE WORLD
Source: Fortune Global 500, 2015.
A snapshot of the top 10
Canada’s entrance
212
287
298
299
305
GLOBAL
GROWTH
OPPORTUNITIES
Diversify by geography
THE BEST PERFORMING COUNTRIES CHANGE FROM YEAR TO YEAR
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
c
c
Source: Moringstar. All Indices are represented in Canadian dollars
Mexico – BMV IPC. U.S. – S&P 500 Total Return. England – FTSE 100 Total Return. Canada – S&P/TSX Total Return. Germany – FSE DAX Total Return. Brazil – BOVESPA.
France - Euronext Paris CAC 40 PR. Japan – Nikkei 225 Average PR. Hong Kong – Hang Seng Hong Kong Composite.
2015
CPP has gone global
CANADIAN PENSION PLAN INVESTS THE MAJORITY OF THEIR EQUITY PORTFOLIO OUTSIDE OF CANADA
CANADIAN PENSION PLAN INVESTS THE MAJORITY OF THEIR EQUITY
PORTFOLIO OUTSIDE OF CANADA
Canadian Equities:
19.7%
Emerging Markets:
Foreign developed
Markets:
67.2%
13.1%
Source: Canadian Pension Plan Annual Report, as of March 31, 2015.
US stocks remain cheap
Source: Morningstar, November 30th 1999 to December 31st, 2015.
Emerging economies now account for
40% of global revenue
Source: McKinsley Global Institute: Playing to Win, The New Global Competition for
Corporate Profits, September 2015
Emerging markets set to drive economic
growth
FORECASTED GDP GROWTH
FORECASTED GDP GROWTH
Source: The Conference Board Global Economic Outlook 2015, January 2015 Update
You’re already a Global investor!
Kitchen
Computers
Electrolux
Lenovo
Frigidaire
Entertainment
Automobile
Iphone
Samsung
GM
HP
Blackberry
Panasonic
Chrysler
Whirlpool
Apple
Samsung
LG
Ford
Maytag
Dell
Nokia
Sony
BMW
Kitchenaid
Acer
HTC
Sharp
Mercedes
Jenn-Air
Gateway
Motorola
Bose
Nissan
Bosch
eMachines
Yamaha
Toyota
Toshiba
Honda
Siemens
Miele
Wireless Phone
Mazda
Hyundai/Kia
Volkswagen
Mitsubishi
Fiat
Volvo
GOING GLOBAL
WITH DYNAMIC
1
Diversify and balance
your portfolio.
2
Implement a coresatellite strategy.
3
Replace an indexreplicating fund with true
active management.
Questions?
IMPORTANT INFORMATION
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 2016 1832 Asset Management L.P. All rights reserved.
Dynamic Funds® is a registered trademarks of its owner used under license, and a division of 1832 Asset Management L.P.
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.