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Key Features
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Tactical Asset Allocation
Benefits of Indexing, Convenience of ETFs
Experienced Portfolio Management
Low Cost, Managed Solution
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Tactical Asset Allocation
• Asset allocation accounts for more than 90% of the variability of a
portfolio's return
Source: Brinson, Hood, Beebower, 1986, “Determinants of Portfolio Preference”, Financial
Analysts Journal, 42(4), 39-44
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Active vs. Passive Management
• Funds that consistently beat the index are rare and difficult to select
○ Less than 11% of actively managed Canadian equity funds have
outperformed the index since 2001*
○ Only 1 of the largest 20 Canadian equity funds outperformed the TSX over a
5 year period (2001-2006)*
• Exchange Traded Funds (ETFs) are designed to track the performance
of well established indices
• ETFs are ideal investment tools to implement asset allocation
*Source: Standard & Poor’s
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Convenience of ETFs
• What are ETFs?
○ Similar to traditional open ended Mutual Funds but are listed on an
exchange
○ Typically track well known liquid indices or benchmarks around the world
○ Cover a range of asset classes: equity, fixed income, currency and
commodities
• Benefits of ETFs
○ Low Cost maintain a fully allocated portfolio at a cost typically required for a
single asset class fund
○ Diversification offers instant exposure to a variety of asset classes
○ Transparency provides clear understanding of underlying securities
○ Flexibility enables high liquidity for fast, easy transfers among asset
classes
○ Performance matches their benchmarks
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Fiera Capital Inc. Overview
• Approximately $20B in Assets under Management (AUM)
○ Over $7B in Retail assets under management
• Controlled and owned by its senior employees (77%)
• More than 100 employees
• Depth and expertise in:
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Fixed income
Canadian and US equities
Asset allocation
Alternative and quantitative strategies
• Offices in Toronto and Montreal
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Fiera’s Portfolio Construction
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Jov Fiera Conservative Tactical Portfolio
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Exposure to fixed income & equity asset classes
Defensive asset allocation mix
Preservation of capital, with low risk tolerance
Seeks consistent long-term income & growth
Portfolio Ranges
Fixed Income: 40-80%
Canadian: 20-80%
US: 0-40%
International: 0-40%
Emerging Markets: 0-10%
Equities: 0-50%
Canadian: 0-40%
US: 0-20%
International: 0-20%
Emerging Markets: 0-5%
Initial Target Allocations
Commodities: 0%
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Jov Fiera Balanced Tactical Portfolio
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Exposure to equity, fixed income & commodity asset classes
Balanced asset allocation mix
Moderate risk tolerance
Seeks long-term growth & income
Portfolio Ranges
Fixed Income: 20-65%
Canadian: 10-65%
US: 0-40%
International: 0-40%
Emerging Markets: 0-10%
Equities: 20-80%
Canadian: 0-80%
US: 0-40%
International: 0-40%
Emerging Markets: 0-10%
Initial Target Allocations
Commodities: 0-15%
Metals: 0-15%
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Jov Fiera Growth Tactical Portfolio
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Exposure to equity & commodity asset classes
Growth asset allocation mix
High tolerance for risk and volatility
Seeks long-term growth
Initial Target Allocations
Portfolio Ranges
Fixed Income: 0-40%
Canadian 0-40%
US 0-20%
International 0-20%
Emerging Markets: 0-10%
Equities: 20-80%
Canadian 0-80%
US 0-40%
International 0-40%
Emerging Markets: 0-20%
Commodities: 0-20%
Metals 0-20%
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Low Cost, Managed Solution
• Tactical Asset Allocation
○ Fiera Capital Inc.’s systematic division and risk management of
investment dollars among various asset classes helps reduce
portfolio risk and volatility
• Low Management Fees
○ Lower management fees than the average actively managed mutual
fund
• Performance
○ Potentially higher risk-adjusted returns and performance
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Low Cost, Managed Solution (con’t)
• Transparency
○ Clearly defined baskets of securities that track their benchmarks and
change only when the underlying index changes
• Monthly Distributions
○ T Series units provide monthly tax-efficient distributions, ranging from
4% to 6% annualized
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Monthly Distributions
• T Series Portfolios
○ Based on an initial net asset value of $10/unit, T Series units have a
targeted monthly distribution of:
Jov Fiera Conservative Tactical Portfolio: 4% per annum
Jov Fiera Balanced Tactical Portfolio: 5% per annum
Jov Fiera Growth Tactical Portfolio: 6% per annum
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Ideal for Investors Who:
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Are seeking a low-cost managed solution
Want broad diversification through a single portfolio
Want a consistent monthly income stream**
Have a long-term investment horizon
**T Series Version Only
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Summary
• Tactical asset allocation combined with index investing
outperforms traditional active management
• Direct access to asset classes via ETFs
• Low-cost solution (management fee of 1.95%)
• T Class portfolios available
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Advisor Tools
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Product Brochure
PowerPoint Presentation
Supplemental ETF and Asset Allocation Fact Sheet
National Conference Call
Web Presentation from Manager
Ad Materials
Prospecting Letter
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Fund Details
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus
before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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Appendix
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Competitive Product Breakdown
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Jovian Capital Corporation
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Jovian Capital Corporation
• Jovian Capital Corporation is a publicly traded financial services holding
and management company that manufactures and distributes investment
solutions through a family of well known Canadian wealth and asset
management companies.
• Jovian currently manages over $14.6BN in client assets ($5.4 BN in
Assets Under Management, $9.2BN in Assets Under Administration).
• Murray Edwards (Chairman of Canadian Natural Resources as well as
other companies) holds a 31.5% interest
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