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Best practices for multi-asset class investing

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Presentation on theme: "Best practices for multi-asset class investing"— Presentation transcript:

1 Best practices for multi-asset class investing
Alfred Lam, MBA, CFA, Portfolio Manager, CI Investment Consulting Neal Kerr, Senior Vice-President, CI Product Development

2 Agenda CI’s total return equation
Multi-manager, multi-asset class – the choice is yours Matching clients needs with CI solutions

3 CI Investment Consulting What do we manage ?

4 What led to the famous “lost decade” ?
From 1991 to 2000: DEX Universe Bond Index return 10.4% (10.8% yield to 5.8%) S&P/TSX Composite Index return 13.1% (12.5X P/E to 17.8X) S&P 500 Index C$ return 20.5% (15.3X P/E to 24.3X) From 2001 to 2010: DEX Universe Bond Index return 6.3% (5.8% yield to 3.1%) S&P/TSX Composite Index return 6.6% (17.8X P/E to 14.9X) S&P 500 Index C$ return -2.6% (24.3X P/E to 14.9X)

5 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

6 CI’s total return equation
Optimize Manage/reduce Minimize Total return = Asset mix + Alpha + Market beta + Currency - Tax Maximize Manage

7 CI’s solutions – multi-level expertise
1. Asset mix 2. Alpha generation (stock and sector selection)

8 CI’s solutions – multi-level expertise
3. Risk management 4. Tax management Beta management, sector monitoring and rebalancing On-going monitoring and due diligence Currency management

9 CI’s solutions – our value proposition
Your own Our target fund-of-funds (in basis points) Asset mix /- ? Alpha Beta management, sector monitoring & rebalancing Currency management Corporate class / T-class Overall

10 Use multi-manager, multi-asset class for maximum risk-adjusted returns
Managed solutions: Guided portfolios: Individual strategies from: New

11 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

12 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

13 Signature Global Advisors
Multi-asset class Signature High Income Signature Diversified Yield Signature Income & Growth Signature Global Income & Growth

14 Chief Investment Officer
Cambridge Advisors Robert Swanson Principal Portfolio Manager Alan Radlo Chief Investment Officer Portfolio Manager Brandon Snow Principal Portfolio Manager Greg Dean Analyst Stephen Groff Analyst Emi Winterer Analyst Multi-asset class: Cambridge Income, Cambridge Canadian Asset Allocation

15 Matching client needs with leading CI solutions
Accumulator Income Seeker Multi-team, multi-manager Portfolio Series Portfolio Select Series PIM Guided Portfolios Select Income Advantage Managed (“SIA”) PS Income Single team, Signature Income & Growth Fund Cambridge Canadian Asset Allocation Fund Signature Diversified Yield Fund (“SDY”) Cambridge Income Fund

16 Moving out the curve* TSX Expected volatility
Signature Income & Growth Cambridge Cdn Asset Allocation Expected volatility Signature Diversified Yield Cambridge Income Select Income Advantage Expected return * Based on March 31/12 asset allocations – see following slides for more details

17 Income seeker allocations
Select Income Advantage Source: CI Investments, March

18 Income seeker allocations
Cambridge Income Signature Diversified Yield Source: CI Investments, March

19 Accumulator allocations
Cambridge Canadian Asset Allocation Signature Income & Growth Source: CI Investments, March

20 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. ®CI Investments and the CI Investments design are registered trademarks of CI Investments Inc.

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