the renaissance advisor

LIVE BETTER

Suit Yourself – Dress for Success

BACK OF THE NAPKIN

Mastering HNW Seminars – attract, captivate and motivate a wealthy audience

Before they hit the roadshow circuit, a few of our experts open up on some tough topics

TheRoadshowRoundtable INTO PERSPECTIVE

WE’RE BRINGING

THE FUTUREOF INVESTING

AdvisorThe Renaissance

QUARTERLY FUND PROFILES / PRACTICE MANAGEMENT / OUTLOOK / OPINION Q2 – JUNE 30, 2012

Uncertainty is the new certainty.TM

Go to www.renaissanceinvestments.ca/oip

Know the score. Gain the advantage.Take advantage of the new certainty with the Renaissance Optimal Income Portfolio –

an all-in-one income generation solution with proven 1st quartile performance in volatile markets.

www.renaissanceinvestments.ca

1 yr. 2 yrs. 3 yrs. Since Inception3

3.3% 7.6% 7.6% 3.3% 2nd 1st 1st n/a

1st Quartile Performance

Renaissance Optimal Income Portfolio1

Quartile Ranking2

1Performance as at June 30, 2012.2Source: Morningstar, for the periods specified ending June 30, 2012 for Class A units of the Renaissance Optimal Income Portfolio. ©2011 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Quartile rankings are determined by Morningstar Research Inc., an independent research firm. Quartile rankings are comparisons of the performance of a fund to other funds in a particular category and are subject to change monthly. The quartile ranking reflects performance of Class A. The quartiles divide the data into four equal segments expressed in terms of rank (1, 2, 3 or 4). The top 25% of the funds in a category are in the first quartile and the next 25% are in the second quartile. This Fund is categorized as a Canadian Fixed Income Balanced fund. For each period, the quartile performance and the number of funds in this category are as follows: 1 year, 2nd quartile, 200 funds; 2 years, 1st quartile, 183 funds; and 3 years, 1st quartile, 151 funds. For more details, see www.morningstar.ca. 3Inception date: November 13, 2007. Please read the Renaissance Investments family of funds Simplified Prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Renaissance Investments is offered by CIBC Asset Management Inc. ™Renaissance Investments and “invest well. live better.” are registered trademarks of CIBC Asset Management Inc.

Tax and Estate 3Willpower

Economic Outlook 4Not There Yet

Back of the Napkin 6Mastering HNW Seminars

Invest Well 8The Roadshow Roundtable

Solution Highlight 12High Income + High Historical Outperformance

Thanks to Our Supporters 13Flying with Integrity

Axiom Portfolios Profiles 14Portfolio Essentials 32Performance Summary 34

Renaissance Investments Fund Profiles 36New Funds 38Money Market Funds 46Fixed Income Funds 54Balanced Funds 68Equity Income Funds 72Canadian Equity Funds 80U.S. Equity Funds 86Global Equity Funds 94Specialty Funds 126Fund Essentials 140Performance Summary 146

Live Better 148Suit Yourself –Dress For Success

Brain Calisthenics 151

In this issue

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148

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RENAISSANCE INVESTMENTS

As summer draws to a close, it is my hope that you have spent plenty of time with family and friends and have enjoyed all that the warm holidayseason has to offer.

Now back to our clients and what we need to be concerned with going forward. I speak many times about relationships and how to build betterrapport with your clientele and gain new prospects. We have very rarely spoken of product and investment ideas in this space. This time, I will venture into new territory as I believe we have an important message for you that you can share with your clients.

One of the central themes you will hear at the Live & Interactive events this fall is inflation. That may surprise you. Many of you will debatewhether inflation is imminent, not coming for the foreseeable future or maybe even argue deflation is more of an issue. Regardless of your perceptions, your clients are reading about it in the media almost on a daily basis and are looking for some reassurance around this topic. I would argue that preparing for inflation and protecting purchasing power is a little like having house insurance in case of fire. You hope you never have to use it, but you feel much better having coverage and wouldn’t think of being without some form of protection “just in case” a fire occurs. I believe that the same holds true for inflation.

Whether it is upon us now or will be in the future, a discussion with your clients should be part of any meeting. It can be educational, as is BenTal’s Inflation 101 video on our website, and should make a recommendation as to how to be protected should inflation begin to grip our economy.There has been a tremendous amount of stimulus injected into economies globally and the fear of inflation is in the back of everyone’s mind. Whynot be proactive and discuss this concept with your clients. They will understand the issue and be appreciative of the proactive nature of your advice.(As an aside, the Renaissance Optimal Inflation Opportunities Portfolio is an excellent investment tool for assisting with the inflation issue.)

I would encourage you to think of inflation with your clients and the impact that it may have on their investment portfolios. Consider that a low inflation rate at this time in history, with very low 10-year yields, has a more detrimental effect on purchasing power than a much higher inflationrate with higher yields and a positive real return that has occurred historically. As an advisor, you do not want to be wrong with recommendationsto clients and I believe that this is a good opportunity to make a “right” pick for them.

Please join us for our Live & Interactive events across the country that will pick up on the inflation theme and talk much more about investment opportunities with this economic backdrop.

Please contact me with any ideas or comments. As always, we will strive to earn your business and become your trusted business advisor. Enjoy the rest of the summer.

Sincerely,

Dave WahlNational Sales ManagerRenaissance Investments416-943-6959

Letter from the National Sales Manager

Inflation protection just like house insurance

RENAISSANCE INVESTMENTS 3

WillpowerCommon will planning mistakes and how to avoid them

TAX AND ESTATE

Jamie Golombek is Managing Director, Tax and Estate Planning with CIBC Private Wealth Management. He works closely with advisors to help them provide integrated financial planning solutions for their high-net-worth clients. Jamie is frequently quoted in the media as an expert on taxation.

Follow @JamieGolombek

www.advisor.ca/togoPodcast > Americans in Canada Get Tax Reprieve

www.renaissanceinvestments.ca/en/jamie_golombek/

A will is at the heart of every good estate plan. This key document records an individual’s intentions for the management and transfer of estate assetsand names an executor (sometimes called an estate trustee; in Quebec, called a liquidator) to administer the estate. Although a 2012 CIBC poll revealed that the majority (55%) of respondents had created a will, here are some preventable mistakes that occurred even among those with a will.

Underestimating what is involved with administering an estate

Executor duties include making funeral arrangements, determining the value of estate assets, filing tax returns, collecting insurance proceeds, and accounting for financial activities (to name only a few). In the CIBC poll, two-thirds of respondents thought it would take one year or less to wrap up the estate. Not surprisingly, 78% of poll respondents had never administered an estate themselves.

Estate administration typically takes 12 to 18 months; however, complicationssuch as dying without a will, tax errors and estate litigation can delay theprocess by months or even years. When choosing an executor, considerwhether the individual has the time and ability to dedicate to the task for a period of up to two years, or possibly longer.

Choosing the wrong executor

Almost 85% of Canadians have chosen a friend or family member and 55%have chosen someone who has never acted as an executor, according to theCIBC poll. An executor should have the time, skill and knowledge to under-take the numerous duties and deal with lawyers, accountants, financial institutions, insurance companies, government agencies and beneficiaries,some of whom may be in other cities, provinces, or countries.

For many estates, choosing a corporate executor (either as the sole executoror a co-executor) can be an excellent option, since this can relieve family andfriends of a difficult and time-consuming burden. If estate administration isalready underway, an “agent for executor” can be still hired to perform financial administration duties on behalf the executor. A corporate executor

or agent for executor may even save money for the estate, since a knowledgeable professional can implement post-mortem tax strategies that could save thousands of dollars of tax.

Preparing a will…and then forgetting about it

It is recommended that wills be reviewed regularly but almost 40% of theCIBC poll respondents who had wills hadn’t updated these documents in the last five years.

Changes that should trigger a review of a will include such things as marriage, divorce, the birth of a child, or relocating to another province orcountry. When reviewing a will, it is also a good time to consider whether the best choice has been made in naming the executor(s).

Almost 40% of the CIBC poll respondentswho had wills hadn’t updated these documents in the last five years.

Video > Your Estate Matters!

4 RENAISSANCE INVESTMENTS

Not There Yet But when it’s time to be brave, there is cash in abundance

ECONOMIC OUTLOOK

In retrospect, it’s fair to say that the performance of the Canadian domestic economy as it rebounded from the Great Recession was nothing short of remarkable. A generous government and resilient consumers softened the blow of a U.S. and global downturn and provided a healthy lift during theearly stages of the recovery. Strong export growth and a surge in capitalspending followed, further spurring activity during the second leg of the economic revival. But does the economy have any more tricks up its sleeve to outperform yet again? We doubt it. While growth should do well enough to avoid a new round of monetary policy easing, tapped out consumers andcost-cutting governments could see the Bank of Canada wait for a U.S.growth-induced pick-up in 2014 before raising rates.

In the U.S., just a short while ago many observers thought 2012 might finallybring the real recovery needed to cut joblessness further from the recession’s27-year high of 10 percent. That’s looking less and less probable as earlierweather-related strength unwinds and eurozone and policy-related uncertain-ties hamper the recovery’s earlier drivers such as corporate outlays and exports. Nor is 2013 likely to bring improvement. Even in the likely event thatCongress tones down the economic-crippling level of budget-tightening builtinto the current fiscal plan, heightened restraint and an easing of earliergrowth drivers should hold gross domestic product (GDP) to a 1.9 percentpace next year, on the heels of a lukewarm 2.1 percent increase in 2012.

The blueprint for a rebuild of Europe’s economic motors isn’t hard to outline: a kinder, gentler path of fiscal restraint in the periphery, with much more support for those countries’ refinancing needs from stability funds and central

bank purchases. At this point, the politics of France, Greece, and the Netherlands show a move away from extreme austerity, but there’s a Berlinwall of resistance to less austerity for those under bailout plans, or more aggressive monetary policy. Inaction could prolong the recession into 2013, or worse, spell a chaotic breakup of the eurozone. Still, each time we approached a crisis point, Europe has come up with an 11th hour deal. Thus, best bets are that they will continue to be dragged into concessions.

As for the emerging markets, while a sub-consensus 7.8 percent GDP print islikely in China this year, the policy response is well underway, one that shouldaccelerate growth to 8.5 percent in 2013. Having excessively tightened toprick a housing bubble and contain inflation, Beijing is reversing course, withbelow-target inflation giving policy makers a green light. In contrast, India’sstubborn inflation is restraining its central bank, and we’ve slashed ourgrowth forecast for that formerly shining economy.

The bottom line is that while the bond market may have already priced in theworst (with the Canadian curve unreasonably factoring in a Bank of Canadaease), we could still see some pressure on cyclical assets and the Canadian dollar in the near-term. In equities, we continue with our lean towards those focused on dividend income, domestic growth, and less cyclical commodities(potash, uranium). But if, as we expect, enough policy measures are taken tomake 2013 a slightly better year for global growth, we could begin a gradualshift away from the safest of safe haven assets before year-end.

“The bottom line is that while the bond market may have already priced in the worst…we could still see

some pressure on cyclical assets and the Canadian dollar in the near-term.”

“...many observers thought 2012 might finally bring the real recovery needed to cut joblessness further from the

recession’s 27-year high of 10 percent.”


At this point, equities and resource prices look cheap relative to our projectionfor 2013 economic conditions. Forward price-to-earnings multiples are low,the forward curve for some commodities has flattened out, counting on alasting global slowdown, and resource equities have underperformed theassociated commodity prices. Nimble investors will at some point have to make a brave move back towards these “risk on” assets, including theCanadian dollar and cyclical stocks, and ditch longer government bondsthat now offer very negative real yields.

One thing is certain, when investors decide to test the waters, there will be plenty of cash to do so. The amount of cash in chequing and saving accounts, brokerage accounts, money market mutual funds and GIC balancesmaturing in less than a year, is currently at record-high of $615 billion, andit is still rising by 7.5 percent on an annual basis – hovering around thefastest pace since 2009 (see chart “Sitting on Cash”).

What’s interesting here is that this new cash is being accumulated on top of an already elevated cash position. Immediately following the crash,investors dramatically raised their cash holdings from roughly 20 percent ofthe value of their financial assets to 25 percent. And despite the 40 percentadvance in stock prices since then, this relative cash position remains unchanged. So now, any extra dollar that goes into cash is adding to an already anxious risk aversion position. As a result, investors are currentlysitting on record-high excess cash.

www.renaissanceinvestments.ca/en/economy/

Benjamin Tal is Deputy Chief Economist for CIBC. Described as one of Canada’s leading experts on the real estate market by the International Monetary Fund, he is responsible for analyzing economic developments and their implications for North American fixed income, equity, foreign exchange and commodities markets.

www.advisor.ca/togoPodcast > Choose China Over India

Sitting on Cash

Share of Cash in Total Financial Assets

ExcessCash*

* Cash position relative to long-term trend. Source: Bank of Canada, Statistics Canada, CIBC

30 60

40

20

0

-20

-40

-6097 99 01 03 05 07 09 1100 03 06 09 12

% $ bn

25

20

15

10

5

“One thing is certain, when investors decide to test the waters, there will be plenty

of cash to do so.”

You’ve spent the last few weeks planning your first prospecting HNW seminar.You’ve sent out hundreds of invitations to the most affluent of neighbourhoods andhave already received a surprising number of RSVPs back in the mail. With yourevent just a week away, it would appear that everything’s moving along nicely!

But have you considered everything? And are you truly prepared to capitalize onthis tremendous opportunity to grow your business?

The success of your seminar will depend on the execution of several importantmoving parts. The reality is, a well-attended seminar may provide a momentaryillusion of success, yet generate very little (if any) in the way of financial reward.In fact, this scenario probably unfolds more often than most advisors would like to admit.

So, let’s step back and get clear on the ultimate goal of your seminar.

Remember, it’s NOT the goal of your seminar to:

X Fill a room with people XMake new friends

X Feed the hungry X Educate an audience

X Entertain a group of diners X Practice your event-planning skills

The ultimate goal of your seminar is to accomplish just one thing...gather new assets!

Based on my experience with hundreds of HNW seminars over the last decade, I want to share with you what I believe to be the three critical phases of the“Seminar Continuum”. To maximize the potential for success, each of the phasesmust be executed with precision.

Phase 1: Attract

You can’t run a successful seminar without an audience! The Attraction phase is concerned with getting the right people to your event, and involves all of the elements that will collectively serve as your seminar “magnet”. Things like:

1. Your Seminar Invitation 2. Your Seminar Topic 3. Your Seminar Venue

Whether you’ve purchased or compiled a list of wealthy prospects, or have simply identified an affluent neighbourhood to target, it’s now time to advertiseyour upcoming seminar.

The research shows that high-quality, wedding-style invitations are opened by the majority of recipients. Invest your marketing dollars here to greatly increasethe odds that your message will reach the eyes of your intended audience.

Once your invitation has been opened, you will need to grab the reader’s attention with a headline topic that surprises them, intrigues them, or blatantlyappeals to their self-interest. Avoid using worn-out industry terminology and lifeless financial jargon when you’re developing your topic headline.

For Example:

Instead of: “Prudent Asset Allocation Principles” | boring, flat, jargonConsider: “Take the Fear out of Investing!” | emotional, hopeful, interesting

Instead of: “Effective Financial Planning” | boring, flat, jargonConsider: “The Secrets of Wealth Creation” | provocative, instructive, interesting

Follow your headline with 3-5 bullet points to expand upon the main topic andlayer in additional elements of interest. Your objective here is to appeal to yourreader’s curiosity and leave them wanting more.


Mastering HNW SeminarsAttract, captivate, and motivate a wealthy audience

BACK OF THE NAPKIN

MOTIVATEGet them to the seminar

Get themto change what they’ve been doing

Grab andhold their undividedattention

THEMESSAGE

THECALL-TO-ACTION

MOTIVATECAPTIVATEATTRACT

THEMAGNET

PHASE 1 PHASE 2 PHASE 3The Seminar Continuum


In addition to your seminar “topic”, some of yourprospects will place a lot of importance on your chosen venue as a reason to attend. For a dinnerseminar, your venue should be recognizable, have a reputation for quality food, and should carry somedegree of “cachet” in order to appeal to the affluent.

Keep the ultimate goal of your seminar top-of-mind during the Attraction Phase.Avoid the temptation to blindly accept all interested parties just so you can fillthe seats. Instead, be sure to qualify all invitees by clearly stating the followingon your invitation: “Please note: this event is ideally suited for investors with aminimum of $(insert amount) of investable assets.”

Phase 2: Captivate

Now that you’ve attracted a room full of qualified guests, your next objective isto grab and hold their attention for the duration of your seminar!

To accomplish this, your spoken message will need to beinteresting, relevant, thought-provoking and direct. Build rapidrapport with your audience by focusing on their emotionalneeds. Avoid the temptation to “sell” the services that youoffer, but rather address what your audience needs to hearwith respect to preserving and growing their wealth. Captivate them by displaying a deep understanding of their internal challenges during volatile times, and introduce themto how you consistently resolve these issues for your clients.

Inject emotional semantics into each aspect of your discussion – using termslike “safety, protection, comfort, peace of mind, growth, and preservation”.Once you’ve made the emotional connection, the technical elements will simplyprovide logical support for the listener’s growing interest in you and your offering.

Be cautious when inviting a guest speaker to attend your seminar. It’s absolutelyessential that the focus of your audience remains on you as the expert and thego-to professional. All too often, a talented guest speaker will make a strong connection with an audience, while the advisor goes home largely forgotten.

Phase 3: Motivate

Once you’ve captured the attention of your audience,and have made a genuine emotional connection, it’stime to motivate them to change what they’ve beendoing with their wealth. Remember, up until now,their financial strategy has not involved you!

Take the time to summarize the key points from your main discussion. And, inthe process, ask the audience some carefully worded questions to force them toformulate internal responses and to create doubt around their current approach.

Position your team’s wealth management process as the missing piece in theirfinancial picture. Install a sense of urgency, by highlighting the “pain” they mayexperience by not taking action…and the degree of “pleasure” (or payoff) theywill enjoy by making a change.

Close off the session by clearly articulating what they can expect from you afterthe seminar. Manage their expectations by explaining that you will be contactingeach of your guests in the next 24-48 hours to answer any questions, or discussthe unique challenges they may be facing.

Putting It All Together…

There are many other “operational” considerations around the planning and execution of a successful seminar, but a clear understanding of the threephases of the Seminar Continuum will keep you focused on the core fundamentals necessary for success.

www.renaissanceinvestments.ca/en/practicemanagement/

www.advisor.ca/togoPodcast > Three steps to the perfect seminar

Video > Mastering HNWSeminars

Grant Shorten is Director of Strategic Insights at Renaissance Investments. He offers insights and approaches that will work with your clients and have an immediate impact on your practice.

Sample Agenda

• Greet guests as they arrive

• Show them to the private room

•Welcome your guests

• Outline housekeeping items (washrooms, etc)

• Explain agenda for the evening

•Wait staff takes orders and serves appetizers

• Introductory comments

• Initial presentation by host advisor

• Introduction of guest speaker

• Q&A session

• Closing comments

• Distribute evaluation cards

• Provide a take-home package

Seminar Materials

• Projection screen

• Laptop computer

• Projector

• Back-up copy of slideshow on USB key

• Remote slide advancer

• Power bar with long cord

• Rectangular table for laptop, projector, materials

• Flipchart, easel, markers

• Handouts and/or take-home packages

• Evaluation cards and pens

• Guest sign-in sheet

8 RENAISSANCE INVESTMENTS 8 RENAISSANCE INVESTMENTS

1. Suzann PenningtonManaging Director and Head of Canadian EquitiesCIBC Global Asset Management

2. David J. WintersChief Executive OfficerWintergreen Advisers, LLC

3. Patrick O’TooleVice-President, Global Fixed IncomeCIBC Global Asset Management

4. Richard ElmslieDirector and Senior Portfolio ManagerRARE Infrastructure

5. Luc de la DurantayeFirst Vice-President, Asset Allocation and Currency ManagementCIBC Global Asset Management

INTO PERSPECTIVE

WE’RE BRINGING

THE FUTUREOF INVESTING


“Long-Term Investing is Dead.” That was a headline in a Canadianinvestment publication recently. What’s your reaction?

Suzann Pennington – This type of sensationalistic headline is an easy sell in tough times – I’ve seen it anumber of times in my career.

Richard Elmslie – Long-term investing is by no means dead. The long term is relatively simple to predict, it's the path to get there that is very uncertain.

David J. Winters – I completely disagree with the headline. When we look at the firms and people whohave really prospered, they were owners or part-owners of businesses for long periods of time. For example,in Canada the Thomson family started with a single newspaper and over the past 50 years has grown into aglobal media giant. They didn’t achieve this by rapidly trading securities or other forms of short-term marketspeculation, but taking a thoughtful, long-term approach to growing the business.

Luc de la Durantaye – The world economy has always experienced a changing environment whether wethink of the depression of the 1930s, the war periods or more recently the 1990s economic boom followed bythe technology bubble, the commodity boom in early 2000s and the real estate bust of 2008. In other words,the investment environment has never been a long-term stable investing continuum.

Suzann Pennington – I believe it is true that many people have, unfortunately, become very short term in theirviews and research. But I’ve met a lot of great advisors over the years who have diligently supported clientsthrough the tough times. It is much easier to get the long-term plan right than it is to market time.

Patrick O’Toole – I can understand the writer’s frustration in dealing with a prolonged deleveraging cycle.Given the volatility of the past years and the political actions that have altered how financial markets work,it’s tempting to agree. However, I still believe that the old axiom of maintaining a well-diversified portfolioholds true. Those who remained disciplined and who held a reasonable amount of fixed income securitieshave likely experienced much less volatility in recent years, and have grown their portfolios.

Suzann Pennington – The consequence of those who are insisting on shortening time horizons is that weare finding more market inefficiencies – more mispriced stocks. Our long-term life cycle models allow us tomanage through the daily/quarterly noise that is so prevalent in market headlines. Often short-term investorsfail to have the context to properly evaluate the importance of a piece of information to the true value of theunderlying company. I believe that the combination of short-term traders and the proliferation of index-basedETFs has actually increased the opportunities for long-term fundamental investors like us to outperform.

invest well

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The Renaissance Advisor Live & Interactive Roadshow is coming to acity near you this fall. Before they board the plane for their cross-Canadaadventure, we sat down with a few of the speakers to get their thoughtson some timely topics – from long-term investing to must-have gadgets.


Markets have relentlessly rotated from risk-on to risk-off. How should those with alonger-time horizon (Gen X, Gen Y) approachwealth generation in these conditions?

Patrick O’Toole – I don’t think investors, be they Gen X, Y or whatever,should alter their strategies if they are investing with a longer-term horizon.Stick to a discipline that looks through short-term volatility, maintain proper diversification across sectors and countries, and avoid trying to time markets.

Richard Elmslie – Yes, focus on the long term and forget about the short-termnoise. The long term should be about big picture themes and these should, bytheir nature, hold true through the short-term volatility. The volatility shouldbe used opportunistically to top up or trim to rebalance investments.

Suzann Pennington – I don’t think that you can outsmart the market withbig home runs – just keep it simple and swing for singles. I’m not a big believer in market timing and I saw a lot of people get whipsawed in 2008-2009. Keep it simple: dollar-cost averaging is a great way to buy more unitswhen security prices are low and less units when security prices are high.

David J. Winters –We like Ben Graham’s famous quote “Be greedy whenothers are fearful and fearful when others are greedy”. It takes a great deal ofdiscipline to execute this approach in the real world, but it can be very rewarding.

Luc de la Durantaye – One of our main long-term investment anchors hasalways been relative valuation – emphasizing equity, fixed income or currenciesthat are undervalued, and avoiding expensive asset classes. This valuationapproach has provided empirical evidence of successful investment signalsfor investors. When financial markets experience short-term turbulence, wefound that focusing on the value factor provides an important guidepost.

Suzann Pennington –My apologies for continuing with the motherhoodstatements but the truth is, they work: One – If you don’t have a long timehorizon you shouldn’t be investing in equities – there always has been, and always will be, volatility. Two – Work with your advisor to set an appropriatelong-term diversified portfolio to meet your objectives and your risk parameters.THEN STICK TO IT. And three – Understand what role the investments in yourportfolio are supposed to play in your diversified strategy. Not all holdingsshould be performing the same way at the same time. Proper diversificationresults in better risk-adjusted returns and ultimately more restful sleep.

If you had to name a key theme for advisors and their clients in 2013, what would it be and why?

Suzann Pennington – I don’t know when it will happen but we have to beready for the inevitable end to the great bull market in bonds and the implica-tions that has for long-term portfolio positioning and sources of sustainableincome. We spend a lot of time stress testing company balance sheets, cashflows and dividends and are very optimistic about the ability of many companiesin our universe to sustain and grow their dividends, even in a challengingmacro environment of weak growth and ongoing credit shocks.

Luc de la Durantaye – Fiscal retrenchment will likely be with us in 2013 as the U.S. will be forced to tackle its large fiscal deficit at the same time as Europe and Japan will continue their efforts to control their respectivebudget deficits. A focus on income during this period of expected sluggishgrowth should help portfolio performance.

Richard Elmslie – Four years into the crisis there is still no clear view regarding the resumption of economic growth. In this unpredictable environment, we believe that advisors and clients should be focused on capital preservation and investing in companies with secure, predictablecash-flows and growing dividends.

David J. Winters – Look to the world outside of North America. There are many portions of the world that are growing and even thriving, and by expanding your investing horizons, you have a great opportunity to prosperover the long-term as the middle classes around the world continue to develop. Selectively finding quality companies that have multi-currencystreams of earnings is a key part of our process.

Patrick O’Toole – The most likely theme for 2013 is that we’ll have more disruptions from the credit crisis fallout. Debt levels continue to remain toohigh in most of the developed world, and Europe has much work to do if it’sgoing to better align fiscal policies, labour cost structures, and productivity.Locally, we will likely see Canada begin to lose some of its lustre relative toother countries. We’ll still look good, but excessive household debt levels will limit consumers’ ability to bolster overall growth.

“When financial markets experienceshort-term turbulence, we found that focusing on the value factor provides

an important guidepost.” Luc de la Durantaye

“...we have to be ready for the inevitable end to the great bull market in bonds and the implications that has for long-term portfolio positioning andsources of sustainable income.”

Suzann Pennington


Outside of your regular quantitative/qualitative analysis, where do you get your investment ideas from?

Richard Elmslie – By talking to industry experts, including management of companies in our universe about issues (both positive and negative) affecting their companies, helps me to identify the longer-term trends and to find ways to invest in them.

David J. Winters – It’s reading and analyzing the public corporate filingsand combining that with a lot of hard work and shoe leather. Travel has been an invaluable resource for us. I recently spent four weeks in Asia, and being able to witness the rise of the middle class is extremely helpfulwhile we analyze investment ideas.

Suzann Pennington –We have had great results from our analysts andportfolio managers picking up a nugget of information and pursuing its implications to develop a view that may be quite different from the street.Our analysts are “career analysts” – they are typically industry specialistswith very deep knowledge combined with curiosity. This desire to always explore a little deeper, think outside the box, and then share that knowledgeto stimulate discussion and deeper understanding with the entire team hasbeen a terrific source of ideas.

Patrick O’Toole – I think we’ve been successful in the fallout from the credit crisis because we believed we were in a different environment thanseen in past recessions. The old relationships of the economy’s response to central bank actions in the post-war recession/recovery cycles had to be ignored. We sought different indicators from the banking and housing sectors, and studied history for other periods where deleveraging had dominated the economic backdrop for a prolonged period of time.

Finally, when you are on the road presenting, what’s the one item you can’t be without?

Patrick O’Toole – I must have my iPad. It’s easy to get through security atthe airport, and allows me to maintain contact with colleagues and the market, surf the web, read my newspapers and check email.

Richard Elmslie – Agreed. iPad. Through sheer weight of numbers sold, the key software providers are prioritizing iOS apps ahead of everything else.

Suzann Pennington –My BlackBerry. I still find it to be the quickest, simplest, most reliable way to stay in touch with the market, new information,companies and the office. I am disappointed at RIM’s failure to deliver on acompetitive PlayBook though so am still lugging around my computer.

David J. Winters – I keep my BlackBerry and Bloomberg close at hand at all times to keep in touch with my office and to stay informed about the latest news.

Luc de la Durantaye – A good piece of research! We have a lot of readinggiven the various sources of research we have access to. I always bring apiece of research that I can catch-up on in the plane or taxi. Of course I alsoneed to stay connected to the office via the BlackBerry!

“I must have my iPad. It’s easy to getthrough security at the airport, and allowsme to maintain contact with colleaguesand the market, surf the web, read my

newspapers and check email.” Patrick O’Toole

Hear directly from these portfolio managers, and more experts, at The Renaissance Advisor Live & Interactive Roadshow this fall.

www.renaissanceroadshow.ca

ADVISOR ToGoA

Access to the experts when you need them

David J. Winters – Podcast > Boring Companies Wintergreen Advisers Make Good Investments

Patrick O’Toole – Podcast > Long-Term Interest CIBC Global Asset Management Rates Will Remain Stable

Nick Langley – Podcast > Know Your RARE Infrastructure Infrastructure

Suzann Pennington –CIBC Global Asset Management Video > Understanding Downside RiskWill Continue to Pay Off

David J. Winters –Wintergreen AdvisersVideo > Buy and Hold Investing is Alive and Well

Powered by Renaissance Investments.

Listen to short podcasts from these experts and others. www.advisor.ca/togo

View short videos from the experts at:www.renaissanceinvestments.ca/en/manager-videos


High Income + High Historical Outperformance Renaissance Millennium High Income Fund

SOLUTION HIGHLIGHT

In today’s low rate environment, income doesn’t have to come at the expense of capital gains. Use a multi-asset class income strategy with the flexibility to search for sustainable yield and total returns:

High Current Income:

• High 6.50% distribution yield with a minimum of 4.86% sincethe fund’s inception in 1997

• Predictable $0.06 monthly distribution

Key Features:

• Taps into multiple sources of yield, including investmentgrade bonds, high yield bonds, REITs and global dividend-paying equities

• Lower volatility and higher risk-adjusted returns vs. peer group

• Pays fixed $0.06/mth

• Managed by Barry Morrison since fund’s inception in 1997

Z For more information on how to put this solutionto work for your clients, please speak to yourRenaissance Investments representative.

6 mth YTD 1 yr 3 yr 5 yr 10 yrQuartile Ranking 1 1 1 1 2 2Fund (%) 4.20 4.20 6.32 14.95 2.00 7.48S&P/TSX Composite Index (%) (1.53) (1.53) (10.25) 6.69 (0.74) 7.56Category Average (Canadian Dividend and Income Equity) (%) 1.11 1.11 (3.11) 8.86 1.16 7.42

Value Added vs. S&P/TSX Composite Index (%) +5.73 +5.73 +16.57 +8.26 +2.74 -0.08

$9,000

$11,000

$13,000

$15,000

$17,000

2009 2010 2011 2012

25%MORE

High Historical Outperformance:

• One and two year returns in top 5% of all funds in category (Source: PALTrak)• First and second quartile rankings across all time periods

Growth of $10,000

First & Second Quartile Rankings Across All Time PeriodsFund Performance vs. Category and S&P/TSX Composite Index (As at June 30, 2012)

(Current yield is annualized historical yield based on the 7-day period ending June 30, 2012 and does not represent an actual one-year return)Source: Morningstar Direct

Source: Morningstar Direct

1 S&P/TSX Composite Index. 2 Renaissance Millennium High Income Fund;distribution yield may include a combination of capital gains, interest, dividend, and return of capital. 3 DEX Universe Bond Index.

Renaissance Millennium High Income FundS&P/TSX Composite TRCanadian Dividend & Income Equity Category

7 Yield (%)

4.2%greater thangovernment

bonds

FixedIncome3

Equities1 RenaissanceMHI2

6

5

4

3

2

1

0

3.5%greater

thanequities


FlyingWith Integrity

THANKS TO OUR SUPPORTERS

Without the support of advisors like you, Renaissance Investments would not enjoy the privilege of helping so many Canadians invest well and live better. Here is one of the outstanding professionals we are so very proud to work with.

What I love about the business:

Being able to provide top-quality professional advice with a very personal focus.Being able to do the right thing and always follow through with promises.

Geographically my location is in the perfect spot, just 1 hour north of Edmonton on the road to Fort McMurray. Our clients are mostly blue collar business owners with a strong focus on agriculture and oilfield service. Lastly, I thank my lucky stars that I started this business at age 24, becausenow 28 years latter, I can not imagine a more rewarding life...giving to family,community church and people.

How I prepare and lead client meetings to ensure they are productive:

The very first thing I do before we get started is to ask the clients ‘Is there anything specific you want to discuss?’. I have a meeting agenda, but theirquestions and discussion areas always supersede my agenda.

What I do to leave a good first impression with prospective clients:

Listen. Listen. Listen. To get to know someone and really understand their situation and goals I ask lots of questions so I can truly understand their world.

Best tip for gaining new clients:

I ask people about their cash flow management strategies: I soft sell themsome quality ideas that work. We start slowly to build a relationship. I never ever sell anything on the first meeting.

What I offer to the local marketplace and to our clients:

Integrity. It’s a tight-knit community and I provide assistance to those who need it.

Favourite hobbies:

Heli-skiing – but I am not an adrenalin junky! I also enjoy flying my bush planeand I help out seasonally on the family farm.

One item I can’t be in a client meeting without:

My two-screen computer and a pad of paper. I take plenty of notes in my meetings.

Firm: Siegle Financial Group Ltd, Manulife Securities Investment Services Inc.

Years in Business: 28

Team Members: 1,plus 2 full-time assistants

EarlSiegle

SUIT YOURSELF

live better


This fall, timeless trumps trendy in the game of Dress for Success


Build a fall work wardrobe with style and staying power. Round out your basic buildingblocks – the perfect suit, the essential shoe, the classic coat – with accents in the season’stop colours (tangerine, anyone?) and autumnal fabrics like cashmere and jersey.

If your clothes could talk, what would they say about you?

These are interesting times for business professionals, sartorially speaking.Billionaire nerds wear hoodies to meet with their lawyers, skirt lengths riseand fall like the TSX, and nobody really knows what casual Friday even means anymore.

But serious professionals – especially those in client-facing positions – know that clothes still matter. Hitting the right note with your appearanceshould be an important component of every meeting plan. The correct clothescan instill trust, show respect, and foster the impression that you are an attentive, detail-oriented professional. The wrong clothes will draw attention away from you and detract from your message. Visual impressionsare quickly formed and difficult to dispel: clients will remember your scuffedshoes long after they have forgotten your excellent investment advice.

You really can dress for success

In a recent survey of employers, 41 percent of those polled asserted that employees who dress professionally are more likely to be promoted. The number was even higher in the financial services industry at 55 percent .1

We’re hard-wired to notice clothes: the results of a study published in Journal of Experimental Social Psychology introduced the term “enclothedcognition” to describe the surprising influence clothes have on the psychologyof both the wearer and the people they meet. The physical experience of wearing the right clothes and the symbolic meaning of clothes – white coatequals doctor, suit equals professional – had equal weight. Wearing clothesassociated with “attentiveness and carefulness” actually makes workers more attentive and careful .2

There’s a reason superheroes change outfits before they take on the world.Your clothes send a powerful message to the people you work with, and toyourself. What will your message be?

His

Natural shoulders,notched lapel, trousers:flat-front if you’re skinny,pleats if you’re not

White, one button barrel or French cuffs,straight point or medium spread collar

Dark topcoat in cashmere or light wool, black or navy

Leather oxford

Hers

Fitted jacket that hits at the hips, straight skirt just above the knee

Women have endless options, as long as it has a back and the necklinedoesn’t plunge

Topcoat in cashmere or lightwool. Dark is conservative,but you can opt for tweed or a sophisticated pattern

Leather or patent pump,maximum three-inch heel

Theirs

Dark navy, lightweight wool

Proper fit

Knee length, in a trim silhouette

Black

Do

Invest in alterations

Splurge on quality fabrics and thick buttons

Take care of regular cleaning and proper storage

Store shoes on cedar shoe trees

Don’t

Wear a shirt in a darker colour than your suit

Strain buttons

Wear a big fur collar unless you are Cruella de Vil or Daddy Warbucks

Never show your toes at work

The basic building blocks

Dressing strictly according to trend is akin to a steady diet of junk food: both expensive and unsustainable. The well-balanced wardrobe requires investment in wholesome basics that will last through many seasons without leaving you hungry for replacements. Here’s a cheat-sheet of wardrobe basics.

The Perfect Suit

The Shirt

The Classic Fall Coat

The Essential Shoe

trendsVital signs of life in the arid professional wardrobe


Fall colours

Maple trees aren’t the only ones turning orange this fall – colour trend-setterPantone has declared “Tangerine Tango” to be the hue of 2012. The PantoneFashion Colour Report for Fall 2012 for women includes French Roast, BrightChartreuse, and Olympian Blue. Pantone says men should add a hint of Rhubarb and Sea Fog to their fall wardrobe.5

Skirt length

The Skirt Length Theory is the quaint notion that women’s hemlines predictstock prices. Short skirts reflect consumer confidence and bullish markets.Bear markets bring gloom … and longer skirts. Not to be taken seriously, except as an indicator of fashion and stock market unpredictability. Searching for the perfect skirt length? Two centimetres above the knee is the optimal length for comfort and class.4

Pantone®

Tangerine Tango

FrenchRoast

Pantone19-1012

HoneyGold

Pantone15-1142

PinkFlambéPantone18-2133

TangerineTango

Pantone17-1463

UltramarineGreen

Pantone18-5338

BrightChartreuse

Pantone14-0445

OlympianBlue

Pantone19-4056

TitaniumPantone17-4014

RhapsodyPantone16-3817

RoseSmoke

Pantone14-1506

1 www.ehow.com/info_8136169_importance-professional-dress-workplace.html#ixzz1z21Dl8Du 2 www.sciencedirect.com/science/article/pii/S0022103112000200 3 http://nymag.com/daily/fashion/2012/03/14-biggest-fall-2012-trends.html#photo=68x00069 4 www.investopedia.com 5 www.pantone.com/pages/fcr.aspx?pg=20949&ca=4 Other: The Esquire magazine handbook of style: www.esquire.com/the-side/style-guides/mens-fashion-week/new-trends-fall-winter-2012

Showing up at work every day in a navy suit and white shirt is perfectly acceptable, completely professional, and totally, utterly boring. Far from frivolous, subtle nods to trends are signs of personality, approachability and up-to-date awareness of the world around you – all valuable traits in a professional advisor.

This fall, professional women can be economically trend-savvy with a new print, a little patent leatherand one new dress or jacket. Try a paisley-print blouse, a patent leather belt in oxblood red, a jacket with embroidered embellishments or military accents (olive greens, gold buttons, structured silhouettes),a tidy sheath dress (think Kate Middleton), or a colour-block or mixed pattern scarf.3

Men can experiment by coordinating a paisley-patterned tie with a check or striped shirt, trying a suit in the new dark (an inky shade darker than navy but not quite black), or adding professorial accents like a tweed jacket or simply a scarf in the new preppy neutrals (brick, rust, red). Round out your tie andpocket square collection with a new addition that draws on one of the hot colours for fall.

So, with just a little effort, you can be both professional and stylish without breaking the bank. Invest in the right basics, spend a little money on professional maintenance, and add small (but crucial) hits of style with one or two on-trend items and accessories.

Source: www.pantone.com


brain calisthenics

Check your answers at www.renaissanceinvestments.ca/magazine/answers/

Spot the difference – Can you spot the five differences between the pictures below?

Sudoku – Complete the Sudoku puzzle so that each and every row, column and 3x3 box contains the numbers one through nine only once.

8 9 4 5 6

3 9

6 2

4 7

6 9 3 1

6 5

5 8

3 9

2 1 4 8 5

Word scramble – Unscramble the following letters to spell words from the Invest Well article on pages 8-11:

1. izonroh

2. pedlscinii

3. utialvnao

4. rspaaeetmr

5. eiddsidnv

6. cfilas

7. suocerre

8. ysatlans

9. bgkainn

10. erlbarbkyc

Source: 4puz.com

FOR DEALER USE ONLYRenaissance Investments and the Axiom Portfolios are offered by CIBC Asset Management Inc.This material was prepared for investment professionals only and is not for public distribution. It is for informational purposes only and is not intended to convey investment,legal or tax advice. The material and/or its contents may not be reproduced or distributed without the express written consent of CIBC Asset Management Inc.™ Axiom, Axiom Portfolios, Renaissance Investments and “invest well. live better.” are registered trademarks of CIBC Asset Management Inc.

To learn more about how Renaissance Investments can help you and your clients invest well and live better, visitwww.renaissanceinvestments.caor call 1-888-888-FUND (3863).

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Renaissance Investments is offered by CIBC Asset Management Inc. and “invest well. live better

Renaissance Investments is offered by CIBC Asset Management Inc. .” are registered trademarks of CIBC Asset Manageand “invest well. live better

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