Best practices for multi-asset
class investing
Agenda
• CI’s total return equation
• Multi-manager, multi-asset class – the choice is yours
• Matching clients needs with CI solutions
CI Investment Consulting
What do we manage ?
$15 billion AUM
CASTLEROCK
PORTFOLIOS
What led to the famous
“lost decade” ?
From 1991 to 2000:
DEX Universe Bond Index return
S&P/TSX Composite Index return
S&P 500 Index C$ return
10.4%
13.1%
20.5%
(10.8% yield to 5.8%)
(12.5X P/E to 17.8X)
(15.3X P/E to 24.3X)
From 2001 to 2010:
DEX Universe Bond Index return
S&P/TSX Composite Index return
S&P 500 Index C$ return
6.3%
6.6%
-2.6%
(5.8% yield to 3.1%)
(17.8X P/E to 14.9X)
(24.3X P/E to 14.9X)
What was the client experience ?
P/E expansion
FX appreciation
P/E compression
FX depreciation
*60% MSCI World Index C$ and 40% DEX Universe Bond Index
CI’s total return equation
Optimize
Manage/reduce
Minimize
Total return = Asset mix + Alpha + Market beta + Currency - Tax
Maximize
Manage
CI’s solutions – multi-level expertise
1. Asset mix
2. Alpha generation (stock and sector selection)
CI’s solutions – multi-level expertise
3. Risk management
Beta management, sector
monitoring and rebalancing
On-going monitoring
and due diligence
4. Tax management
Currency management
CI’s solutions –
our value proposition
Your own
fund-of-funds
Our target
(in basis points)
Asset mix
+/- ?
+50
Alpha
+60
+150
Beta management, sector
monitoring & rebalancing
+0
+50
Currency management
+0
+50
Corporate class / T-class
+0
+100
Overall
+60
+400
Use multi-manager, multi-asset class
for maximum risk-adjusted returns
Managed solutions:
Guided portfolios:
Individual strategies from:
Managed solutions –
our best kept secret
CI Portfolio Series
CI Portfolio Select Series
• Award-winning fund of funds
• 7 portfolios, 7 managers, 9-20
underlying funds
• Indirect currency hedging via
underlying managers
• Indirect tax advantages via
underlying corporate class
• Enhanced reporting
• Fully managed portfolios; or
customized allocations
• 9 portfolios, 8 managers,
4 funds
• Pure geographic allocations
• Direct currency overlay
program
• Direct tax advantages via
CI Corporate Class
• T-Class options
• Enhanced reporting
CI Private Investment Management (PIM)
Guided portfolios – more support for the D-I-Y advisor
• Nine professionally constructed risk-optimized
portfolios.
• Questionnaire designed to establish objectives
and constraints.
• Recommended fund allocations,
or
• Fully customizable.
– List of recommended substitutes
– Choose from any available fund within asset class.
• Personalized Investment Policy Statement
Signature Global Advisors
Multi-asset class
Signature High Income
Signature Diversified Yield
Signature Income & Growth
Signature Global Income &
Growth
Cambridge Advisors
Robert Swanson
Alan Radlo
Brandon Snow
Principal
Portfolio Manager
Chief Investment Officer
Portfolio Manager
Principal
Portfolio Manager
Greg Dean
Stephen Groff
Emi Winterer
Analyst
Analyst
Analyst
Multi-asset class: Cambridge Income, Cambridge Canadian Asset Allocation
Matching client needs
with leading CI solutions
Multi-team,
multi-manager
Single team,
multi-manager
Accumulator
Income Seeker
Portfolio Series
Portfolio Select Series
Select Income
Advantage Managed
(“SIA”)
PIM Guided Portfolios
PS Income
Signature Income &
Growth Fund
Signature Diversified
Yield Fund (“SDY”)
Cambridge Canadian
Asset Allocation Fund
Cambridge Income Fund
Moving out the curve*
Expected volatility
TSX
Signature Income & Growth
Cambridge Cdn Asset Allocation
Signature Diversified Yield
Cambridge Income
Select Income Advantage
Expected return
* Based on March 31/12 asset allocations – see following slides for more details
Income seeker allocations
Select Income Advantage
Source: CI Investments, March 31 2012
Income seeker allocations
Cambridge Income
Source: CI Investments, March 31 2012
Signature Diversified Yield
Accumulator allocations
Cambridge Canadian Asset Allocation
Source: CI Investments, March 31 2012
Signature Income & Growth
Thank you
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund
investments. Please read the prospectus before investing. Unless otherwise indicated and except for returns for periods
less than one year, the indicated rates of return are the historical annual compounded total returns including changes in
security value. All performance data assume reinvestment of all distributions or dividends 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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Investments and the CI Investments design are registered trademarks of CI Investments Inc.