Scotia Wealth Management's Recommended Mutual Funds and ETFs
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Scotia Wealth
Management’s
Recommended
Mutual Funds
and ETFs
Enriched Thinking®
Global Portfolio Advisory Group
James Gauthier, CFA
Scotia Capital Inc.
416.350.3369
j.gauthier@scotiabank.com
JamesDavids,
Denise Gauthier, CFA
MBA
416.350.3369 | j.gauthier@scotiabank.com
647.428.8220
denise.davids@scotiawealth.com
Denise Davids, MBA
647.428.8220
Joel Beriault | denise.davids@scotiawealth.com
416.863.5912
Joel Beriault
joel.beriault@scotiawealth.com
416.863.5912 | joel.beriault@scotiawealth.com? ©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license. 2
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©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
3? ©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license. 4
Contents
Words from James Gauthier ....................................................................................................................................................................
4
Scotia Wealth Management’s Recommended Mutual Funds and ETFs 2017 ............................................................................
5
Changes to the 2017 Recommended List ............................................................................................................................................
6
The Mutual Fund Numbers Game .........................................................................................................................................................
9
Reference table 1 — The Funds by Category ......................................................................................................................................
11
Reference table 2 — Recommended Funds by Company ...............................................................................................................
12
The Recommended Funds
Canadian Balanced ............................................................................................................................................................................
13
Canadian Equity ..................................................................................................................................................................................
21
Canadian Equity Income / Dividend ..............................................................................................................................................
32
Canadian Small-Cap ..........................................................................................................................................................................
41
Canadian Fixed Income .....................................................................................................................................................................
46
High Yield Bond .................................................................................................................................................................................
54
U.S. Equity .............................................................................................................................................................................................
59
International Equity............................................................................................................................................................................
69
76
Global Balanced ..................................................................................................................................................................................
80
Global Equity .......................................................................................................................................................................................
90
Appendix I – Performance Summary.....................................................................................................................................................
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©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
5Words from James Gauthier
Dear Advisor,
2017’s Recommended List is the 15th edition of this annual publication and we are delighted to be bringing it to
the Scotia Wealth Management channel for the first time. This piece represents the cornerstone of the efforts of the
GPAG fund research team. Producing it is a long and tedious process, but we truly love putting in the effort and take
a lot of pride in the results.
Thanks again to all of the advisors who have helped give our work traction. We really hope this report becomes an
important part of your practice too. If you are only going to read one publication the GPAG research team puts out,
this should be that piece.
The magnitude of the mutual fund and ETF asset bases under the Scotia umbrella, along with the strength of the
relationships we’ve cultivated with manufacturers and money managers over the years mean we have peerless
access to PMs, fund company executives and other key players in the investment industry. This matters because
when the quality and the quantity of the information we have access to increases, the quality of the research we
provide is also enhanced.
Sincerely,
James Gauthier
Director, Investment Fund Research
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©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
4Scotia Wealth Management’s
Recommended Mutual Funds and ETFs 2017
We are pleased to present the 2017 edition of Scotia Wealth’s Recommended Fund List. While this list is being
launched for the first time into the Scotia Wealth channel, it has been a regular publication for HollisWealth and its
predecessor company since 2003. The list is the cornerstone of the GPAG fund research team’s efforts and its purpose is
to help you cut through the ever-present clutter that can blur the vision of even the most astute market follower.
For the first time, all of the performance reporting for the mutual funds listed in the pages that follow refers to the
F-class version of each product.
Selection
When it comes to selecting the list’s mutual fund constituents, quantitative and qualitative factors are both critical
considerations. On the qualitative side of the equation, our preference is for funds that are overseen by managers
with a well thought out investment philosophy and a clearly defined process. In addition, the quality of the
professionals actually making the investment decisions is a crucial consideration. There must be enough analytical
horsepower working on the fund to ensure that management can effectively stick with and execute its stated
philosophy and process. We conduct rigorous and ongoing due diligence to ensure all funds that are represented on
this List are performing on the highest level on all of these fronts
From a quantitative perspective, we favour funds that have displayed attractive return and risk characteristics
throughout their histories relative to their direct competition.
Key factors considered for the ETFs that are on the list include cost, bid/ask spread and liquidity.
The list represents what we believe are some of the best mutual funds and ETFs in Canada, but it is not intended
as the be-all and end-all of fund selection, nor is it intended to be a prediction of what we expect will be the best
performing products in the short-term. Rather, we see the list as being a tool and we believe that diversified portfolio
built using the funds found in these pages will be solid portfolios indeed.
The list only includes categories that we have deemed to be core, and the classifications we consider are similar to
those that the CIFSC has established. We have always and will continue to cover some of the more obscure regional
or sector-specific categories in our regular research publications.
The list is a very important part of our mandate, and although it is an annual publication, its constituents are
monitored constantly. If there is something you need to know about any of the products on the list throughout the
year, our job is to ensure you know it.
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
5Changes to the 2017 Recommended List
Mutual Fund Removals
Global Small/Mid Cap Equity Category
We have elected to discontinue formal coverage of this category. This means that Mackenzie Cundill Recovery,
Templeton Global Smaller Companies and Trimark Global Smaller Companies are being removed from the
Recommended List. This is a category that represents just 1% of mutual fund industry assets, and we believe our
resources would be more productively deployed elsewhere.
Funds with Hard Caps
To make room for the ETFs which are now a part of this list, we are removing BMO Enterprise and Manulife Monthly
High Income, both of which are hard capped. We continue to love both funds and investors in either should consider
themselves lucky. There is no need to do anything if you have allocated capital to these funds; however, we wish this
list to be a showcase for funds that new investors are able to purchase.
CI American Value
We have replaced CI American Value with the Epoch U.S. Large Cap Value fund available from TD. The portfolios are
virtually identical, but the F-class version of the TD fund has an MER that comes in 20 basis points lower than the CI
product. Note that Epoch is wholly owned by TD. There’s nothing wrong with continuing to hold the CI version; just
note that a cheaper alternative exists.
NEI Special Equity
Here we have a fund that is identical to the IA Clarington Canadian Small Cap, with the minor exception that the
Ethical fund may, from time to time, leave out a company or two when the ethical screen is not passed. Additionally,
the F-class version of the IA fund most recently came in with an MER that was 23 basis points cheaper. Similar situation
to the CI fund above – no need to make a change, but it makes sense to allocate new capital to the cheaper option
Mutual Funds Placed Under Review
Dynamic Power Canadian Growth
This is an issue of product dynamics. When Alex Lane took over this fund in 2013, his aim was to better diversify the
portfolio plus smooth returns and dampen volatility. At the same time, Dynamic elected to shift 20% of the portfolio
into Power American Growth. We are big fans of Power American Growth, but it can be extremely volatile and its
inclusion has not assisted in Lane’s goal to dampen volatility.
We are not totally clear as to why Dynamic insists on the 20% allocation to Power American Growth, but if the firm is
not comfortable giving Lane complete oversight of this portfolio, we are not comfortable recommending it. We are
waiting to see whether Dynamic addresses this issue.
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
6Changes to the 2017 Recommended List
Mutual Fund Additions
Epoch U.S. Large Cap Value
As noted in the Removals section, we have replaced CI American Value with the Epoch U.S. Large Cap Value fund
available from TD. The portfolios are virtually identical, but the F-class version of the TD fund has an MER that comes
in 20 basis points lower than the CI product.
Fidelity Small Cap America
This fund has done what few others have managed - it has been returned to the Recommended List. We removed
it a number of years ago after numerous manager changes and problematic performance. Duties on the fund were
then shifted to Toronto-based manager Steve MacMillan in 2011 and he immediately began to apply his portfolio
management skills. This fund focuses on smaller U.S. domiciled names. 70% of the portfolio has to be smaller
than the largest company in the Russell 2000. MacMillan made dramatic changes to the portfolio at the outset by
focusing on quality companies with good valuations and growth potential. We will stress quality again, as the focus
here is helpful in avoiding big losers. Things seem to be working, as the fund’s historical volatility has been far less
than that of its benchmark. MacMillan also brought down the number of names in the portfolio (there will be about
40 stocks in the fund, on average) and annual portfolio turnover has been reduced to 20-25%. Both of these factors
indicate that MacMillan has strong conviction in the names he owns. We’ve been keeping track of MacMillan’s
efforts here for some time and we believe this fund is Worthy of being returned to the Recommended List fold.
Manulife Dividend Income
This offering is overseen by Toronto-based Alan Wicks and his 10-person investment team. The group has a track
record of success on multiple Manulife funds, including the firm’s flagship Monthly High Income offering. Stocks are
evaluated using a discounted cash flow approach, but the key to the process is determining the appropriate discount
rate. This figure will be a function of risks related to the company, its industry, etc. That said, if they identify any
uncertainty with respect to a company, they simply don’t invest in it. Cash can be high at times and management
is not shy about investing in the U.S. While this fund does have an enviable track record, we believe it is the team
backing it that makes it worthy of our Recommended List.
PIMCO Monthly Income
PIMCO, the US$1.6 trillion Newport Beach, California-based money management firm has just about all of its assets
in bonds or similar vehicles, and virtually all of company’s 700 investment professionals spend most of their time
focused on the space. To suggest the firm is perhaps the global subject matter expert is reasonable. The fund strives to
generate a monthly income equal to about 4-4.5% annually. Half of the exposure is to higher yielding assets and the
other half is in higher quality assets that are a bit more defensive. Derivatives are used liberally to provide the exposure
the PMs are looking for. Duration can range from zero to eight years and it can have up to 50% in HY bonds and up to
20% in EM bonds. Additionally, at least 90% of its currency exposure must be hedged back to CAD. The fund is more
conservative than a typical HY bond fund and it is not subject to big currency swings, like many global bond funds
are. At this time, duration is under three years and the bulk of the exposure is to mortgage bonds and sovereign debt
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©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
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proprietary information is not warranted to be accurate, complete or timely. Trademark of The Bank of Nova Scotia, used under license.
TM
bond funds on the Recommended List. Frankly speaking, this fund is quite unique and defies classification.
7Changes to the 2017 Recommended List
ETF Additions
For the first time, ETFs are a part of this list. 13 offerings have been added.
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©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
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Best/Worst Performing Funds in Canada for the Three Years Ended 11/30/16 (Annualized)
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9
?Share of Global Fund Industry By Region ($USD Trillion) To June 30, 2016
By Region Assets to 6/30/16 Share
Americas $20 52.0% Globally
Europe $14 36.0% $39.3 Trillion
Asia and Pacific $5 12.0%
$39.3 100%
Given the dominance of the U.S. market, the North American region has the biggest share of the global fund business.
Source: ICI
Selected Market Metrics
Oct. 31, 2006
Oct. 31, 2016
$58.73
$46.67
12,274
14,787
$1,277
$49.30
$72.09
4.03%
1.19%
1,378
2,126
1,958
1,666
$607
0.89
0.75
S&P 500 S&P/TSX MSCI EAFE Gold (USD) WTI Crude CAD/USD Canada Shares
Composite 10 Year of BNS
Bond Yield
It hasn’t been a straight line, but someone who socked money away in stocks (especially U.S. stocks), bonds, oil or gold ten
years ago and held all the way through would be better off today.
Source: Bloomberg
Market Share by Fund Category
October 2006 October 2016
7.2% Equity Funds 1.7%
14.3% Balanced funds have built
12.1% Balanced Funds 30.2%
54.1% a dominant position in the
26.5% Bond Funds
53.8% Canadian mutual fund business.
Money Market Funds
Source: IFIC
Did You Know?
$1.32 33% 31% $17 billion $7 billion 192,600
trillion (4.9 million)
Mutual Funds as % of Total Economic Total Provincial Fund Industry-Related
Percentage of Canadians’ Financial Footprint of Canadian and Federal Taxes Jobs in Canada
Canadian Fund
Canadian Households Wealth Fund Industry in 2012 Generated by
Industry Assets
Holding Mutual Funds Canadian Mutual
(10/31/16)
Funds
Source: IFIC
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©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
10Reference Table 1:
Recommended Funds by Category
Canadian Balanced High-Yield Bond
CI Cambridge Asset Allocation Fidelity American High Yield (Curr Neutral)
Dynamic Dividend Income Horizons Active High Yield Bond ETF NEW
Fidelity Canadian Balanced Mackenzie Corporate Bond
Mackenzie Income PIMCO Monthly Income NEW
Mackenzie Ivy Canadian Balanced
TD Dividend Income U.S. Equity
Trimark Income Growth
AGF American Growth
BMO US Dividend ETF NEW
Canadian Equity Dynamic Power American Growth
BMO S&P/TSX Capped Composite ETF NEW Epoch U.S. Large Cap Value NEW
CI Canadian Investment Fidelity Small Cap America NEW
CI Signature Select Canadian Franklin Mutual U.S. Shares
CI Synergy Canadian Corporate Class Horizons S&P 500 ETF NEW
Dynamic Power Canadian Growth UNDER REVIEW Mackenzie U.S. Mid Cap Growth (Unhedged)
EdgePoint Canadian Portfolio RBC O’Shaughnessy US Value
Fidelity Canadian Disciplined Eq
Fidelity Canadian Large Cap International Equity
Franklin Bissett Canadian Equity
BMO International Dividend ETF NEW
Horizons S&P/TSX 60 ETF NEW
BMO MSCI EAFE ETF NEW
CI Black Creek International Equity
Canadian Equity Income / Dividend CI International Value
BMO Canadian Dividend ETF NEW Invesco International Growth
BMO Monthly High Income II Manulife World Investment Class
CI Signature Dividend
Dynamic Equity Income Global Balanced / Asset Allocation
Franklin Bissett Canadian Dividend
EdgePoint Global Growth & Income Portfolio
Horizons Active Preferred Share ETF NEW
Mackenzie Ivy Global Balanced
IA Clarington Strat Equity Income
Trimark Global Balanced
Manulife Dividend Income NEW
Global Equity
Canadian Small-Cap
Capital Group Global Equity
Dynamic Small Business
CI Black Creek Global Leaders
Fidelity Canadian Opportunities
CI Synergy Global Corporate Class
IA Clarington Canadian Small Cap
Dynamic Global Discovery
Manulife Growth Opportunities
Franklin Mutual Global Discovery
Horizons Active Global Dividend ETF NEW
Canadian Bond Mackenzie Ivy Foreign Equity
BMO Aggregate Bond ETF NEW Templeton Growth
Dynamic Canadian Bond Trimark Global Endeavour
Fidelity Canadian Bond
Horizons Active Corporate Bond ETF NEW
PH&N Total Return Bond
TD Canadian Bond
Vanguard Canadian Short-Term Bond ETF NEW
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
11Reference Table 2:
Recommended Funds by Company
AGF Franklin Templeton
AGF American Growth Franklin Bissett Canadian Dividend
Franklin Bissett Canadian Equity
BMO Franklin Mutual Global Discovery
Franklin Mutual U.S. Shares
BMO Aggregate Bond ETF NEW
Templeton Growth
BMO Canadian Dividend ETF NEW
BMO International Dividend ETF NEW
BMO Monthly High Income II Horizons ETFs
BMO MSCI EAFE ETF NEW Horizons Active Corporate Bond ETF NEW
BMO S&P/TSX Capped Composite ETF NEW Horizons Active Global Dividend ETF NEW
BMO US Dividend ETF NEW Horizons Active High Yield Bond ETF NEW
Horizons Active Preferred Share ETF NEW
Capital Group Horizons S&P 500 ETF NEW
Horizons S&P/TSX 60 ETF NEW
Capital Group Global Equity
IA Clarington
IA Clar. Strat Equity Inc.
CI IA Clarington Canadian Small Cap
CI Black Creek Global Leaders
CI Black Creek International Equity Invesco
CI Cambridge Asset Allocation
Invesco International Growth
CI Canadian Investment
Trimark Global Balanced
CI International Value
Trimark Global Endeavour
CI Signature Dividend
Trimark Income Growth
CI Signature Select Canadian
CI Synergy Canadian Corporate Class
CI Synergy Global Corporate Class Manulife
Manulife Dividend Income NEW
Dynamic Manulife Growth Opportunities
Manulife World Investment Class
Dynamic Canadian Bond
Dynamic Dividend Income
Dynamic Equity Income Mackenzie
Dynamic Global Discovery Mackenzie Corporate Bond
Dynamic Power American Growth Mackenzie Income
Dynamic Power Canadian Growth UNDER REVIEW Mackenzie Ivy Canadian Balanced
Dynamic Small Business Mackenzie Ivy Foreign Equity
Mackenzie Ivy Global Balanced
Edgepoint Mackenzie U.S. Mid Cap Growth (Unhedged)
EdgePoint Canadian Portfolio
EdgePoint Global Growth & Income Portfolio PIMCO
PIMCO Monthly Income NEW
Fidelity
Fidelity American High Yield (Curr Neutral) RBC Asset Management
Fidelity Canadian Balanced PH&N Total Return Bond
Fidelity Canadian Bond RBC O’Shaughnessy US Value
Fidelity Canadian Disciplined Eq
Fidelity Canadian Large Cap TD Mutual Funds
Fidelity Canadian Opportunities
Epoch U.S. Large Cap Value NEW
Fidelity Small Cap America NEW
TD Canadian Bond
TD Dividend Income
Vanguard
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
Vanguard
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized Canadian
to view it on-line), Short-Term
adapted or distributed; Bond ETF NEW
and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
12Canadian Balanced
Benchmark
Morningstar CAN Bal 50/50 CAD
Performance as of 11-30-2016
Funds Trailing Returns Standard Deviation Statistics
1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER
1 CI Cambridge Asset Alloc Corp Cl F 0.9 1.5 5.3 7.1 5.7 8.1 9.6 — 4.7 5.1 7 — 1.34
2 Dynamic Dividend Income Series F -0.1 -0.5 2.5 2.5 3.2 5.6 6.9 5.3 4.5 4.4 4 2 1.10
3 Fidelity Canadian Balanced Class F -0.5 0.0 4.2 6.4 6.7 8.1 8.9 7.0 6.2 5.4 7 8 0.91
4 Mackenzie Income F -0.3 -0.2 3.2 6.6 6.6 6.2 6.3 4.8 4.1 3.8 4 8 1.01
5 Mackenzie Ivy Canadian Balanced F 2.7 3.3 5.9 14.6 12.6 9.3 10.1 5.2 6.1 5.6 4 8 1.12
6 TD Dividend Income - F 1.9 4.1 8.3 16.1 13.0 7.9 9.9 5.8 6.9 6.3 1 8 0.94
7 Trimark Income Growth F 3.2 3.5 5.8 11.0 9.1 7.9 10.7 5.0 6.3 6.1 4 2 1.29
Morningstar CAN Bal 50/50 CAD 0.1 0.4 3.8 9.5 8.5 5.5 5.1 4.7 4.4 4.3 — — —
5 Year Risk/Returns as of 11-30-2016
Fund Category 5 Yr Return
12.0
11.0
7
5 10.0
6
1
3 9.0
8.0
2 7.0
4
6.0
5.0
4.0
3.0
-2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
5 Yr Standard Deviation
Category Description
Canadian balanced funds are generally amongst the income allocations should be taken into account when designed to be standalone portfolio solutions. Multiple
most diversi ed in that they have broad exposure to making head-to-head comparisons between balanced portfolio managers also generally contribute to the
Canadian equity and xed income securities and many offerings. The Canadian balanced fund category also cause. Fund-of-funds are intentionally excluded from the
have a foreign equity component as well. These products includes a wide array of fund-of-funds. Such products, Recommended List.
often pay regular distributions, or are available in which typically target a speci c asset mix and usually
versions that pay regular distributions. Equity and xed come with an automatic rebalancing feature, are
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in the course of viewing it on-line,
the course
and of course
(ii) in the viewingofitprinting
on-line, off
andsingle
(ii) in copies
the course of printing
of web pages onoffwhich
singleitcopies of for
appears webthepages onthose
use of whichauthorized
it appearstoforview
the ituse of those
on-line), authorized
adapted to view it and
or distributed; on-line), adapted or distributed;
(3) Morningstar and (3) Morningstar
proprietary information is not warranted to be accurate, complete
proprietary
or timely. TMinformation
Trademark isof not
Thewarranted
Bank of Novato beScotia,
accurate,
usedcomplete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
under license.
13CI Cambridge Asset Allocation Corporate Class F
Fund Stats
Fund Manager Robert Swanson, B.S. Total Assets as of 09-30-2016 $3,870 Mil Fund Code Benchmark
Brandon Snow, B.A. CIG4322 Morningstar CAN Bal Glbl 60/40 CAD
MER % 1.34
Category
Manager Start Date Jun 2011 Trailing Yield % 0.4 Canadian Balanced
Jun 2011
Fund Inception December 31, 2007
Portfolio As of 03-31-2016
Asset Allocation % Port Morningstar Style BoxTM Top 5 Holdings % Assets
Cash 19.0 Equity Style Fixed Income Style Cambridge Bond Fund 23.7
Fixed Income 8.5 Walgreens Boots Alliance Inc 3.0
Large Mid
High
Canadian Equity 21.3 Tourmaline Oil Corp 2.5
US Equity 18.5 PrairieSky Royalty Ltd 2.2
Medium Low
International Equity 7.4 Brookfield Infrastructure Partners LP 1.8
Small
Other 25.2 % Portfolio in Top 5 holdings 33.3
Total Number of Portfolio Holdings 152
Value Blend Growth Ltd Mod Ext
Performance As of 11-30-2016
25 Compound Returns % Fund Bmark Quart
Growth of $10,000
22 1 Mth 0.9 -0.6 1
Fund
19 3 Mth 1.5 -0.5 1
Benchmark
16 6 Mth 5.3 3.2 1
13
1 Yr 5.7 4.8 1
10
2 Yr 6.6 9.5 1
7
3 Yr 8.1 10.8 1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Calendar Year 5 Yr 9.6 12.2 1
— — -17.3 25.1 14.3 0.4 4.7 19.9 11.5 5.2 — Total Return % 10 Yr — — —
-14.0 23.9 10.2 -1.8 -3.4 -1.7 -0.9 -13.1 +/- Benchmark %
* & * * ( & & & & Quartile
Statistics 3 Year 5 Year 3 Year 5 Year Crisis Test 08-31-2008 to 02-26-2009 % Rtrn
Alpha 3.92 3.97 Standard Deviation 4.68 5.12 Fund -26.6
Beta 0.33 0.42 Bmrk Standard Deviation 7.89 6.63 Benchmark -12.8
R-Squared 0.31 0.29 Upside Capture 0.57 0.69
Information Ratio -0.43 -0.44 Downside Capture 0.20 0.36
GPAG's Take
This offering is classified as a "Tactical Balanced" fund, amounts of cash. We've seen the weighting there get as decision. A total of 11 PMs and analysts contribute to
meaning management has a good deal of flexibility in high as 45%. Industry veteran Bob Swanson heads up the security selection effort, and Swanson's input also
determining the portfolio's asset mix. Indeed, that has the effort and his models, along with discussions with drives the composition of the portfolio's equity and fixed
been the case here. During its existence, the fund's the other investment professionals at Cambridge, help income sleeves.
equity exposure has been as low as about 45% and as determine the asset mix. Where we are in the business/
high as 93%. There's also no fear in holding huge economic cycle is a big driver behind the asset mix
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
14Dynamic Dividend Income Series F
Fund Stats
Fund Manager Michael McHugh, M.A. Total Assets as of 12-12-2016 $673 Mil Fund Code Benchmark
Oscar Belaiche, B.A. DYN254 Morningstar CAN Bal 50/50 CAD
MER % 1.10
Category
Manager Start Date Jan 2003 Trailing Yield % 4.3 Canadian Balanced
Jan 2003
Fund Inception January 2, 2003
Portfolio As of 08-31-2016
Asset Allocation % Port Morningstar Style BoxTM Top 5 Holdings % Assets
Cash 14.8 Equity Style Fixed Income Style Dynamic Aurion Total Return Bond 5.0
Fixed Income 29.1 US Treasury Bond 3% 15-11-2045 3.2
Large Mid
High
Canadian Equity 23.4 Visa Inc Class A 2.1
US Equity 29.4 Royal Bank of Canada 2.1
Medium Low
International Equity 3.3 Small Canadian Imperial Bank of Commerce 2.0
Other 0.0 % Portfolio in Top 5 holdings 14.4
Total Number of Portfolio Holdings 604
Value Blend Growth Ltd Mod Ext
Performance As of 11-30-2016
20 Compound Returns % Fund Bmark Quart
Growth of $10,000
18 1 Mth -0.1 0.1 3
Fund
16 3 Mth -0.5 0.4 4
Benchmark
14 6 Mth 2.5 3.8 3
12
1 Yr 3.2 8.5 4
10
2 Yr 3.7 3.4 2
8
3 Yr 5.6 5.5 2
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Calendar Year 5 Yr 6.9 5.1 2
9.5 4.3 -20.0 20.6 11.5 8.0 5.7 12.0 7.5 4.6 — Total Return % 10 Yr 5.3 4.7 1
-0.8 -3.3 -7.5 4.8 -0.6 7.7 0.9 6.8 -1.6 7.0 +/- Benchmark %
( & ) * & & ( * ( & ) Quartile
Statistics 3 Year 5 Year 3 Year 5 Year Crisis Test 08-31-2008 to 02-26-2009 % Rtrn
Alpha 1.54 2.97 Standard Deviation 4.45 4.44 Fund -20.5
Beta 0.69 0.71 Bmrk Standard Deviation 4.39 4.28 Benchmark -18.6
R-Squared 0.47 0.46 Upside Capture 0.79 0.87
Information Ratio 0.02 0.52 Downside Capture 0.48 0.24
HollisWealth's
GPAG's Take Take
This income-oriented fund provides investors with preferred shares, but management doesn't see much 30% to 40% of the fund most of the time, so despite its
exposure to a basket of higher yielding equities and fixed value there at this point and is keeping exposure at next name, this offering really is a balanced fund. This
income securities. The common equity component to nothing. Oscar Belaiche and his team run the equity product spits out a monthly distribution that equates to a
consists of high yielding securities from a host of portion of the fund while Michael McHugh oversees the yield of roughly 4%, and note that a good chunk of that
sectors, and U.S. names now make up a fairly large fixed income component. The two managers work closely payout comes in the form of return of capital.
portion of this part of the fund. The portfolio was also together to ensure the portfolio is firing on all cylinders.
originally designed to provide some exposure to The fixed income/cash portion of the fund will represent
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
15Fidelity Canadian Balanced Class F
Fund Stats
Fund Manager Geoffrey Stein Total Assets as of 11-30-2016 $1,117 Mil Fund Code Benchmark
Darren Lekkerkerker FID626 Morningstar CAN Bal 50/50 CAD
MER % 0.91
Category
Manager Start Date May 2012 Trailing Yield % 0.8 Canadian Balanced
Nov 2009
Fund Inception September 26, 2001
Portfolio As of 09-30-2016
Asset Allocation % Port Morningstar Style BoxTM Top 5 Holdings % Assets
Cash 1.9 Equity Style Fixed Income Style Royal Bank of Canada 4.1
Fixed Income 45.4 Bank of Nova Scotia 3.7
Large Mid
High
Canadian Equity 44.9 Canadian Pacific Railway Ltd 2.7
US Equity 7.1 Restaurant Brands International Inc 2.7
Medium Low
International Equity 0.5 Small
Brookfield Asset Management Inc Class A 2.6
Other 0.1 % Portfolio in Top 5 holdings 15.8
Total Number of Portfolio Holdings 661
Value Blend Growth Ltd Mod Ext
Performance As of 11-30-2016
25 Compound Returns % Fund Bmark Quart
Growth of $10,000
22 1 Mth -0.5 0.1 4
Fund
19 3 Mth 0.0 0.4 3
Benchmark
16 6 Mth 4.2 3.8 1
13
1 Yr 6.7 8.5 2
10
2 Yr 5.7 3.4 1
7
3 Yr 8.1 5.5 1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Calendar Year 5 Yr 8.9 5.1 1
11.7 9.6 -17.8 23.6 14.6 0.0 7.2 14.0 12.4 4.8 — Total Return % 10 Yr 7.0 4.7 1
1.3 2.0 -5.3 7.8 2.5 -0.3 2.3 8.8 3.3 7.1 +/- Benchmark %
& & ( & & * * & & & * Quartile
Statistics 3 Year 5 Year 3 Year 5 Year Crisis Test 08-31-2008 to 02-26-2009 % Rtrn
Alpha 2.47 3.81 Standard Deviation 6.22 5.44 Fund -20.8
Beta 1.02 0.97 Bmrk Standard Deviation 4.39 4.28 Benchmark -18.6
R-Squared 0.52 0.58 Upside Capture 1.10 1.18
Information Ratio 0.60 1.10 Downside Capture 0.60 0.46
GPAG's Take
The asset allocation here will tend to be more stable into CAD). The asset mix of the fund is overseen by a pair investment grade fixed income component while Harley
than that of Fidelity's Canadian Asset Allocation offering, of asset allocation pros at the shop (but again, asset Lank, lead manager of Fidelity American High Yield runs
and here investors get exposure to Canadian equities, class shifts will be limited). Darren Lekkerkerker runs the the high yield bond allocation.
Canadian investment grade bonds and high yield bonds equity component of the portfolio (a third of which is
(limited to 10% with all currency exposure hedged back foreign); Catriona Martin oversee the Canadian
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
16Mackenzie Income Fund - F
Fund Stats
Fund Manager Steve Locke, M.B.A. Total Assets as of 11-30-2016 $1,156 Mil Fund Code Benchmark
Darren McKiernan, B.S. MFC057 Morningstar CAN Bal Cdn Con CAD
MER % 1.01
Category
Manager Start Date Jun 2010 Trailing Yield % 3.2 Canadian Balanced
Dec 2013
Fund Inception October 22, 2001
Portfolio As of 09-30-2016
Asset Allocation % Port Morningstar Style BoxTM Top 5 Holdings % Assets
Cash 3.2 Equity Style Fixed Income Style Canada Govt 3.5% 01-12-2045 4.3
Fixed Income 66.9 Prov Of Quebec 3.5% 01-12-2045 3.2
Large Mid
High
Canadian Equity 14.7 Canada Govt 1.25% 01-12-2047 1.6
US Equity 8.2 Ontario Prov Cda 2.8% 02-06-2048 1.5
Medium Low
International Equity 6.7 Small British Columbia Prv Cda 2.8% 18-06-2048 1.5
Other 0.3 % Portfolio in Top 5 holdings 12.0
Total Number of Portfolio Holdings 623
Value Blend Growth Ltd Mod Ext
Performance As of 11-30-2016
20 Compound Returns % Fund Bmark Quart
Growth of $10,000
18 1 Mth -0.3 -0.2 2
Fund
16 3 Mth -0.2 -0.3 1
Benchmark
14 6 Mth 3.2 2.1 1
12
1 Yr 6.6 4.9 1
10
2 Yr 4.6 3.6 1
8
3 Yr 6.2 5.2 1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Calendar Year 5 Yr 6.3 5.0 1
8.5 1.1 -8.8 13.9 8.3 4.0 5.0 7.1 8.8 2.7 — Total Return % 10 Yr 4.8 4.3 1
0.9 -3.2 -5.4 7.2 0.6 0.3 0.9 1.9 0.4 0.4 +/- Benchmark %
& * ( * & * ( * & * & Quartile
Statistics 3 Year 5 Year 3 Year 5 Year Crisis Test 08-31-2008 to 02-26-2009 % Rtrn
Alpha -0.38 -0.06 Standard Deviation 4.11 3.75 Fund -13.2
Beta 1.31 1.32 Bmrk Standard Deviation 3.01 2.71 Benchmark -8.5
R-Squared 0.91 0.90 Upside Capture 1.24 1.30
Information Ratio 0.66 0.90 Downside Capture 1.37 1.44
GPAG's Take
This conservative balanced fund is a long-standing management change late in 2013, as Hovig Moushian, were announced, and we believe the managers running
member of our Recommended List. The bond portion of who oversees a number of dividend-oriented strategies the show today will continue to deliver decent levels of
the fund will always be at least 60% of the portfolio, and at Mackenzie, was put in charge of the Canadian equity income and limited amounts of volatility to investors.
that component is overseen by Steve Locke and exposure. Darren McKiernan, the firm's global dividend
Mackenzie’s fixed income team, a group we are big fans guru, now runs the fund's foreign equity exposure. We
of. The equity portion of the fund underwent a were supportive of the management changes when they
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
17Mackenzie Ivy Canadian Balanced Fund - F
Fund Stats
Fund Manager Paul Musson, B.C. Total Assets as of 11-30-2016 $1,000 Mil Fund Code Benchmark
Steve Locke, M.B.A. MFC078 Morningstar CAN Bal Cdn Agg CAD
MER % 1.12
Category
Manager Start Date Jan 2009 Trailing Yield % 0.5 Canadian Balanced
May 2013
Fund Inception December 6, 1999
Portfolio As of 09-30-2016
Asset Allocation % Port Morningstar Style BoxTM Top 5 Holdings % Assets
Cash 0.0 Equity Style Fixed Income Style Brookfield Asset Management Inc Class A 3.8
Fixed Income 22.7 Manulife Financial Corp 3.6
Large Mid
High
Canadian Equity 50.1 Pembina Pipeline Corp 3.2
US Equity 17.0 Onex Corp 3.0
Medium Low
International Equity 6.2 Small
Shaw Communications Inc Class B 3.0
Other 3.9 % Portfolio in Top 5 holdings 16.6
Total Number of Portfolio Holdings 454
Value Blend Growth Ltd Mod Ext
Performance As of 11-30-2016
20 Compound Returns % Fund Bmark Quart
Growth of $10,000
18 1 Mth 2.7 0.7 1
Fund
16 3 Mth 3.3 1.4 1
Benchmark
14 6 Mth 5.9 4.9 2
12
1 Yr 12.6 8.2 1
10
2 Yr 7.1 5.4 1
8
3 Yr 9.3 7.6 1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Calendar Year 5 Yr 10.1 8.3 1
8.2 -2.0 -10.4 5.8 8.1 1.4 6.9 16.4 12.1 1.0 — Total Return % 10 Yr 5.2 5.2 1
-5.2 -5.6 7.5 -10.5 -3.1 2.6 -0.5 2.9 1.4 -1.4 +/- Benchmark %
) ) & ) ) & ( & & * & Quartile
Statistics 3 Year 5 Year 3 Year 5 Year Crisis Test 08-31-2008 to 02-26-2009 % Rtrn
Alpha 1.78 2.31 Standard Deviation 6.10 5.64 Fund -14.5
Beta 0.97 0.91 Bmrk Standard Deviation 5.31 5.14 Benchmark -23.7
R-Squared 0.71 0.69 Upside Capture 1.10 1.04
Information Ratio 0.50 0.56 Downside Capture 0.91 0.70
GPAG's Take
Paul Musson has headed up this fund and the Ivy team for – patience. Management is willing to devote attractive, but the team will not buy a stock simply
since early 2009. Upon taking over, big focus of his was tremendous amounts of time to understanding a because it is cheap – the business itself must be strong.
to improve the quality of the investment team, expand company and the team is willing to wait for a company's Steve Lock and Mackenzie's fixed income team oversee
the team's breadth of coverage and improve returns, story to unfold. The first key to the approach involves the bond part of the portfolio. A "core-plus" approach is
particularly for the team's Canadian funds. So far, things truly looking at the business. Meeting management is a employed there; meaning up to a quarter of the fixed
have worked out well. Stocks are chosen using a must and growth in both top and bottom line numbers is income exposure may be to high yield issues. A portion
collaborative research effort, although all team members desired. Musson likes to see a return on capital figure of the fund's foreign currency exposure is hedged back
have specific sector and/or geographical responsibilities. that is expanding, or at least being maintained. into Canadian dollars.
The Ivy philosophy is very simple but it stresses Additionally, it is important for companies to have at
something that many investors do not have the discipline least 10 years of financial history. Valuations must be
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
18TD Dividend Income - F
Fund Stats
Fund Manager Geoff Wilson Total Assets as of 11-30-2016 $4,304 Mil Fund Code Benchmark
Michael Lough, M.B.A. TDB455 Morningstar CAN Bal Cdn Agg CAD
MER % 0.94
Category
Manager Start Date Jan 2010 Trailing Yield % 2.5 Canadian Balanced
Feb 2000
Fund Inception November 1, 2005
Portfolio As of 08-31-2016
Asset Allocation % Port Morningstar Style BoxTM Top 5 Holdings % Assets
Cash 0.8 Equity Style Fixed Income Style The Toronto-Dominion Bank 7.4
Fixed Income 18.2 Royal Bank of Canada 7.1
Large Mid
High
Canadian Equity 73.5 Bank of Montreal 6.4
US Equity 2.4 Bank of Nova Scotia 6.2
Medium Low
International Equity 1.3 Small Canadian Imperial Bank of Commerce 6.1
Other 3.8 % Portfolio in Top 5 holdings 33.3
Total Number of Portfolio Holdings 370
Value Blend Growth Ltd Mod Ext
Performance As of 11-30-2016
25 Compound Returns % Fund Bmark Quart
Growth of $10,000
22 1 Mth 1.9 0.7 2
Fund
19 3 Mth 4.1 1.4 1
Benchmark
16 6 Mth 8.3 4.9 1
13
1 Yr 13.0 8.2 1
10
2 Yr 4.8 5.4 1
7
3 Yr 7.9 7.6 1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Calendar Year 5 Yr 9.9 8.3 1
14.5 1.2 -28.0 32.1 10.2 2.7 10.7 13.9 12.3 -4.5 — Total Return % 10 Yr 5.8 5.2 1
1.0 -2.5 -10.1 15.7 -1.0 3.9 3.3 0.4 1.6 -6.8 +/- Benchmark %
& ( ) & ( & & * & ( & Quartile
Statistics 3 Year 5 Year 3 Year 5 Year Crisis Test 08-31-2008 to 02-26-2009 % Rtrn
Alpha 0.98 2.10 Standard Deviation 6.92 6.32 Fund -32.3
Beta 0.91 0.92 Bmrk Standard Deviation 5.31 5.14 Benchmark -23.7
R-Squared 0.48 0.55 Upside Capture 1.04 1.04
Information Ratio 0.06 0.36 Downside Capture 1.03 0.74
GPAG's Take
Managers Doug Warwick and Mike Lough handle the preferreds. For the common equity portion of the fund, primarily of corporate debt, including some high yield.
equity component of this well-diversified fund while management prefers non-cyclical names with below The fund has virtually no foreign exposure because
Geoff Wilson and Elaine Lindhorst take care of the bond average risk profiles. And of course, these names have to management is more comfortable staying in Canada,
exposure. The names in this fund are very similar to what pay a dividend and the preference is for companies that
plus dividends from Canadian companies are more tax
you'd find in TD's very popular Monthly Income fund, but are growing their payout. Management wants companies
this offering has a smaller allocation to fixed income. with modest growth potential, low levels of industry efficient. The fund is pretty plain-vanilla in nature and
Look for a quarter of this mandate to be in bonds and change, sustainable cash flow, and low capital there's not all that much activity in the portfolio, but it
cash. The portfolio will also have a sliver of its assets in investment requirements. The bond component consists has delivered over time.
?
©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in
the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar
proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
19Trimark Income Growth F
Fund Stats
Fund Manager Jennifer Hartviksen, B.A. Total Assets as of 11-30-2016 $2,904 Mil Fund Code Benchmark
Clayton Zacharias, B.B.A. AIM1547 Morningstar CAN Bal Cdn Agg CAD
MER % 1.29
Category
Manager Start Date Sep 2013 Trailing Yield % 0.9 Canadian Balanced
Jun 2012
Fund Inception February 11, 2000
Portfolio As of 11-30-2016
Asset Allocation % Port Morningstar Style BoxTM Top 5 Holdings % Assets
Cash 8.7 Equity Style Fixed Income Style Brookfield Asset Management Inc Class A 5.1
Fixed Income 23.2 Onex Corp 3.5
Large Mid
High
Canadian Equity 37.6 Bank of Nova Scotia 3.4
US Equity 29.6 The Toronto-Dominion Bank 3.1
Medium Low
International Equity 0.9 Small CarMax Inc 3.1
Other 0.0 % Portfolio in Top 5 holdings 18.2
Total Number of Portfolio Holdings 129
Value Blend Growth Ltd Mod Ext
Performance As of 11-30-2016
20 Compound Returns % Fund Bmark Quart
Growth of $10,000
18 1 Mth 3.2 0.7 1
Fund
16 3 Mth 3.5 1.4 1
Benchmark
14 6 Mth 5.8 4.9 2
12
1 Yr 9.1 8.2 2
10
2 Yr 6.3 5.4 1
8
3 Yr 7.9 7.6 1
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Calendar Year 5 Yr 10.7 8.3 1
13.4 -7.6 -15.8 18.4 7.3 -2.3 10.0 21.4 8.9 2.3 — Total Return % 10 Yr 5.0 5.2 1
0.0 -11.3 2.0 2.0 -3.9 -1.2 2.6 8.0 -1.9 0.0 +/- Benchmark %
& ) & ( ) * & & * & * Quartile
Statistics 3 Year 5 Year 3 Year 5 Year Crisis Test 08-31-2008 to 02-26-2009 % Rtrn
Alpha 0.47 2.48 Standard Deviation 6.26 6.08 Fund -20.0
Beta 0.98 0.96 Bmrk Standard Deviation 5.31 5.14 Benchmark -23.7
R-Squared 0.68 0.66 Upside Capture 1.02 1.12
Information Ratio 0.08 0.66 Downside Capture 1.00 0.80
GPAG's Take
Lead manager Clayton Zacharias picked up responsibility equity side of the fund, and he has allocated a quarter of determinant of intrinsic value. To supplement that and to
on this fund in spring 2012. Zacharias, who also oversees the portfolio to Invesco's Toronto-based fixed income provide other data points, Zacharias considers at P/E and
Trimark Canadian Endeavour, quickly moved to better team. If he feels the need to position the fund more EV/EBITDA multiples as secondary metrics. He is
align the equity component of Income Growth with conservatively, he will simply increase the cash assisted by Mark Uptigrove and Alan Mannick on the
Canadian Endeavour. There is not complete overlap, allocation in his 75% sleeve. Neither P/E nor EV/EBITDA mandate and a junior equity analyst also contributes to
however, as Endeavour is a much smaller portfolio than has ever been a primary valuation metric. He places the the cause.
this one and has a bit more flexibility as a result. greatest emphasis on discounted free cash flow when
Zacharias generally sticks with 25 to 35 names on the determining buy/sell prices. He thinks this is a great
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20Canadian Equity
Benchmark
S&P/TSX Composite TR
Performance as of 11-30-2016
Funds Trailing Returns Standard Deviation Statistics
1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER
1 BMO S&P/TSX Capped Composite ETF 2.2 4.1 8.8 19.0 15.4 7.1 7.4 — 8.3 8.4 4 — 0.06
2 CI Canadian Investment Class F 2.7 3.7 7.8 11.6 8.6 6.0 9.5 4.7 8.7 9.0 4 — 1.32
3 CI Signature Select Canadian Class F 4.6 6.1 10.7 12.6 9.9 8.4 10.4 5.8 8.4 8.2 4 — 1.32
4 CI Synergy Canadian Corporate Class F 2.0 3.0 5.7 4.4 3.3 6.1 9.2 4.4 8.2 8.1 4 — 1.32
5 Dynamic Power Canadian Growth Class Sr F 2.7 2.1 4.6 0.8 0.6 7.4 7.9 3.8 10.5 10.5 7 — 1.35
6 EdgePoint Canadian Portfolio Series F 4.3 6.7 11.4 20.9 15.7 10.0 12.7 — 8.9 8.8 5 — 1.00
7 Fidelity Canadian Disciplined Eq Cl F 0.9 2.7 6.8 12.6 10.8 9.0 9.6 6.1 7.2 7.5 4 — 1.15
8 Fidelity Canadian Large Cap Class F 1.9 2.3 4.4 10.9 10.1 9.5 14.2 — 5.8 6.7 4 — 1.14
9 Franklin Bissett Cdn Equity Corp Cl F 2.9 3.6 8.9 20.5 16.6 7.5 11.5 6.4 8.4 7.9 7 — 1.18
10 Horizons S&P/TSX 60 ETF 2.5 5.1 9.8 19.4 15.7 7.9 8.2 — 8.1 8.4 4 — 0.03
S&P/TSX Composite TR 2.2 4.1 8.8 19.1 15.5 7.2 7.5 4.7 8.3 8.4 — — —
5 Year Risk/Returns as of 11-30-2016
Fund Category 5 Yr Return
16.0
15.0
8 14.0
13.0
6
12.0
9
11.0
3
10.0
7 2
4
9.0
10
5 8.0
1
7.0
3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0
5 Yr Standard Deviation
Category Description
Canadian equity funds provide investors with the services sectors, and many of the players in those such products.
opportunity to participate in the nancial success of sectors are world-class companies. Many Canadian
Canadian businesses. The Canadian equity market has equity funds also provide material exposure to foreign
signi cant weightings in the resource and nancial securities, which enhance the diversi cation bene ts of
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©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in the course of viewing it on-line,
the course
and of course
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on-line, off
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(3) Morningstar and (3) Morningstar
proprietary information is not warranted to be accurate, complete
proprietary
or timely. TMinformation
Trademark isof not
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Bank of Novato beScotia,
accurate,
usedcomplete or timely. TM Trademark of The Bank of Nova Scotia, used under license.
under license.
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