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 ConsultingWhat do we manage ?

CASTLEROCKPORTFOLIOS

$15 billion AUM

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)

What was the client experience ?

*60% MSCI World Index C$ and 40% DEX Universe Bond Index

P/E expansion FX appreciation

P/E compressionFX depreciation

CI’s total return equation

Total return = Asset mix + Alpha + Market beta + Currency - Tax

Optimize

Maximize Manage

Manage/reduce Minimize

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

4. Tax management

Beta management, sector monitoring and rebalancing

Currency managementOn-going monitoring and due diligence

CI’s solutions – our value proposition

Your own Our target fund-of-funds (in basis points)

Asset mix +/- ? +50

Alpha +60 +150

Beta management, sector +0 +50 monitoring & rebalancing

Currency management +0 +50

Corporate class / T-class +0 +100

Overall +60 +400

Managed solutions:

Guided portfolios:

Individual strategies from:

Use multi-manager, multi-asset class for maximum risk-adjusted returns

Managed solutions – our best kept secret

• 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 Portfolio Series CI Portfolio Select Series

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

Multi-asset classSignature High Income

Signature Diversified Yield

Signature Income & Growth

Signature Global Income & Growth

Signature Global Advisors

Cambridge Advisors

Multi-asset class: Cambridge Income, Cambridge Canadian Asset Allocation

Brandon SnowPrincipal

Portfolio Manager

Alan RadloChief Investment Officer

Portfolio Manager

Robert SwansonPrincipal

Portfolio Manager

Emi WintererAnalyst

Stephen GroffAnalyst

Greg DeanAnalyst

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,multi-manager

Signature Income & Growth Fund

Cambridge Canadian Asset Allocation Fund

Signature Diversified Yield Fund (“SDY”)

Cambridge Income Fund

Expected return

Exp

ecte

d vo

latil

ity

Select Income Advantage

Cambridge Income

Cambridge Cdn Asset Allocation

Signature Diversified Yield

TSX

Signature Income & Growth

* Based on March 31/12 asset allocations – see following slides for more details

Moving out the curve*

Income seeker allocations

Source: CI Investments, March 31 2012

Select Income Advantage

Income seeker allocations

Source: CI Investments, March 31 2012

Cambridge Income Signature Diversified Yield

Accumulator allocations

Source: CI Investments, March 31 2012

Cambridge Canadian Asset Allocation 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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