Joseph Fabiilli - Role of Equity market in investment

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Role of Equity market in investment
Joseph Fabiilli
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Agenda

• Team, philosophy and process
• Performance drivers
• Investment outlook
• Q A

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Investment Consulting team

Alfred Lam, CFA VP Portfolio
Manager Investment strategy / Asset
allocations Fund selection/ Currency
strategy Communications
Yoonjai Shin, CFA Director Fund/manager
analysis Asset allocations Currency strategy Fund
selection Project management
Andrew Ashworth Analyst Fund/manager
analysis Cash flow management Performance
reporting
Lewis Harkes, CFA Senior Analyst Fund/manager
analysis Performance reporting
Marchello Holditch, CFA Senior Analyst Fund/manag
er analysis
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Total return equation
Manage/ reduce
Optimize
Minimize
Total return Asset mix Alpha Market
beta Currency Tax Fees
Maximize
Manage
Reduce
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Depth and quality of portfolio management teams
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Multiple sources of added value
Attribution analysis of Evolution models
Please refer to the next page for full
performance history
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Multiple sources of added value
Performance of Evolution models
Standard models represent mix of pools and mutual
funds recommended by CI Investment
Consulting. Returns are net of fees.
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14 out of 18 pools outperformed their benchmarks
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Alpha funds have added alpha
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Currency management also sets us apart
12 cumulative return 120 million added value
10 hedged
30 hedged
30 hedged
50 hedged
70 hedged
Dynamic hedging introduced
Dynamic hedging introduced
Source Bloomberg, CI Investments
Source Bloomberg, CI Investments
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Industry recognition

Portfolio Series - Best Fund of Funds Award - 2011
Portfolio Series - Best Fund of Funds Award - 2012
Portfolio Select Series - Best Fund of Funds
Award - 2013
Portfolio Series Income Fund - Best Global Fixed
Income Balanced Award - 2012
Portfolio Series Income Fund - Best Global Fixed
Income Balanced Award - 2013
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To sum it up

• Sound and proven philosophy
• Solid track record
• Industry recognition
• Strong net flows

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Outlook Return expectations
2013
expected range of returns
actual returns in 2013
For illustration purposes only there is no
guarantee on results
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Outlook Equity market
Broad markets are reasonably priced stock
selection to matter more
Forward Price to Earnings Multiples
Source TD Securities, CPMS, I/B/E/S
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Outlook Bond market
Bonds remain challenged but volatility offers
opportunities
5-Year Government of Canada bond yields
Source Bank of Canada
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Dynamic income asset mix to achieve superior
risk-adjusted returns
Weighting () 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013Q2 2013Q3 2013Q4 Target
Cash 12 15 21 21 27 34 24 21 22 0
Government IG corporate 49 44 41 41 36 31 44 48 44 60
High yield bonds 21 22 19 18 15 13 12 11 14 20
High-dividend Stocks 18 19 19 20 22 22 20 20 20 20
Duration (yrs) 5.1 4.5 4.2 4.1 4.1 3.3 3.7 4.0 3.7
Represented by Select Income Managed Corporate
Class
Source CI Investments
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Performance has met expectations
Select Income Managed Corporate Class Performance
as of December 31, 2013
3Mth 6Mth YTD 1Yr 3Yr 5Yr Since Inception Risk
Select Income Managed Corporate Class (Class A) 1.7 2.6 4.0 4.0 4.4 6.1 3.9 2.3
DEX Universe Bond Index 0.4 0.5 -1.2 -1.2 3.9 4.8 n/a 3.1
November 2005
FOR INTERNAL USE ONLY
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Controlled volatility
Total 97 observations (months)
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Thank you.