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Alexander Lane, B.Comm. (Hons), CFA Vice President and Portfolio Manager Dynamic Power Global Navigator We Grow Anywhere.

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Presentation on theme: "Alexander Lane, B.Comm. (Hons), CFA Vice President and Portfolio Manager Dynamic Power Global Navigator We Grow Anywhere."— Presentation transcript:

1 Alexander Lane, B.Comm. (Hons), CFA Vice President and Portfolio Manager Dynamic Power Global Navigator We Grow Anywhere

2 Dynamic Funds Invest with Advice 2  Dynamic Power Global Navigator Class  A Balanced Approach to Growth  A Day in the Life Agenda

3 Dynamic Funds Invest with Advice 3 “Safety profile of larger companies and higher return profile of smaller companies” The Sweet Spot

4 Dynamic Funds Invest with Advice 4  Higher but safer returns  Fertile ground for M&A  Focused businesses or ‘pure plays’  A global portfolio clients cannot replicate  Exploit inefficiency and mispricing What is the Opportunity?

5 Dynamic Funds Invest with Advice 5 Sweet Spot Investment Universe Almost three quarters of global companies have market caps of US$15B and below Source: MSCI

6 Dynamic Funds Invest with Advice 6  A go anywhere, do anything global growth fund  Focused on the sweet spot  Long-term capital appreciation focus  Uses the proven Power Process  Balancing between core and cyclical growth leaders  Emphasis on volatility management What is Dynamic Power Global Navigator Class?

7 Dynamic Funds Invest with Advice 7  Market correction has created the opportunity  Scarcity of earnings growth  Capture the ongoing transition from value to growth  Fundamentals strong, Fed easing stimulative  Great secular growth at a discount  Cyclical growth stocks cheap vs. underlying drivers Why now, why growth?

8 Dynamic Funds Invest with Advice 8  Global Macroeconomic analysis key to the Power Process  Actively manage geographies, sector allocation and stock selection  Access to ideas from other global managers  Clients get a unique global portfolio they cannot replicate  Small size means capacity and liquidity are not an issue  In the sweet spot The Power Global Navigator Advantage

9 Dynamic Funds Invest with Advice 9  Diversify by geography, sector and business model  Own a stable of businesses that can generate 12-15% total return  Be less economically sensitive than the market  Achieve a favourable risk profile relative to return  Capitalize on our best macroeconomic themes  Find the best emerging growth names before peers  Protect capital in weaker markets What are our goals for the Fund?

10 Dynamic Funds Invest with Advice 10  The Fund is appropriate for most clients  Can complement existing global exposures  Potential standalone core global equity position  Less suitable for income-oriented clients Who is it appropriate for?

11 Dynamic Funds Invest with Advice 11 Versus Dynamic Power Global  Incorporates global macroeconomic analysis  Returns primarily from stable secular growth names  Focused on the sweet spot  Emphasis on different quantitative factors Versus Dynamic Global Discovery/Global Value  Growth orientation  Power Process  Less focus on absolute dividend level  Little emphasis on mega cap stocks How does it compare to other funds?

12 Dynamic Funds Invest with Advice 12 Balanced Approach to Growth

13 Dynamic Funds Invest with Advice 13  Fundamental Growth Investor  Conservative Person  Large unitholder aligned with your clients  Over a decade of investment management experience  Strong track record of performance Personal Background

14 Dynamic Funds Invest with Advice 14 Performance Track Record As at April 30, 2008 1 Year3 Year5 YearSince Inception Dynamic Power Small Cap Fund* -5.4%16.9%26.2%15.4% BMO Small Cap Index (BW) -14.1%9.1%16.1% Value Added Over Index 8.7%7.8%10.1% Quartile 211 *Series F Units, inception date March 2002, five-star rated by Morningstar

15 Dynamic Funds Invest with Advice 15 Portfolio Construction Process Sector Allocation and Stock Selection The Power Process Top Down Bottom Up Qualitative Judgment Macro Quantitative Screening

16 Dynamic Funds Invest with Advice 16 Portfolio Construction Process Managing the balance Core/Cyclical Balance Geographic Balance

17 Dynamic Funds Invest with Advice 17 Highly economically sensitiveLess economically sensitive High potential returnsAbove-average returns Great business nowGreat fundamental businesses Above-market volatilityBelow-market volatility Cyclical Growth StocksCore Secular Growth Stocks Portfolio Construction Process The Two Investment Types Value Time

18 Dynamic Funds Invest with Advice 18 A Day in the Life

19 Dynamic Funds Invest with Advice 19  Macroeconomic Analysis  Sectors/Themes  Geographic Allocation  Secular/Cyclical Mix  Screening/Analysis  Volatility Management How the Process Works

20 Dynamic Funds Invest with Advice 20 CH Robinson Worldwide (CHRW:NASDAQ) US--CORE--TRANSPORTATION  Large US 3PL supplier offering multimodal transportation services  Helps customers reduce freight costs and fleet owners increase utilization  Incredibly high return on capital and return on equity  Natural operating leverage and network effects  Low economic sensitivity due to underlying secular trend

21 Dynamic Funds Invest with Advice 21 Vedanta Resources (VED:LSE) INDIA--CORE--MATERIALS  India’s largest producer and refiner of base metals (copper, zinc, aluminum)  Great portfolio of business that play on our themes and top quality management  Focus on being the low- cost producer in each area  Major expansion program  New business focused on Indian merchant power adds growth potential

22 Dynamic Funds Invest with Advice 22 Case New Holland (CNH:NYSE) NETHERLANDS--CYCLICAL--INDUSTRIAL Inflection Point  World’s second-largest agricultural equipment supplier  Globally diversified business  Agricultural boom leading to inflection point on orders  Margins low relative to historical  Market opportunity significantly larger and of longer duration than the past

23 Dynamic Funds Invest with Advice 23 Conclusions Dynamic Power Global Navigator is in the Sweet Spot Unique balanced approach to growth We Grow Anywhere

24 Dynamic Funds Invest with Advice 24 Materials Manager Q&AAdvisor brochureInvestor brochure

25 Dynamic Funds Invest with Advice 25 Fund Codes

26 Dynamic Funds Invest with Advice 26  Commissions, trailing commissions, management fees and expenses all 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 [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.  Views expressed regarding a particular company, security, industry or market sector are the views of that individual only, and do not necessarily represent the views of Goodman & Company, Investment Counsel Ltd. These views should not be considered as an indication of trading intent of the mutual fund, nor are they a recommendation to buy or sell, nor should they be relied upon as investment advice.  This document is not to be distributed or reproduced without the consent of Goodman & Company, Investment Counsel. Dynamic Funds is a division of Goodman & Company, Investment Counsel Ltd. Important Information


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