EVESTMENT BREAKFAST SEMINAR

Transcription

1 EVESTMENT BREAKFAST SEMINAR Toronto March 21, 2017 Ryan Anderson, Pavilion John Molesphini, evestment Jerrod Stoller, evestment

2 Gaining an Understanding of Your Competitive Landscape Case Study Effective Sales Process Viewing Yourself Through the Lens of an Investor Plan Perception Identifying Relevant Opportunities Prospect Preparing for Success Position Taking Action on Your Opportunities Pursue

3 PLAN Gaining an Understanding of Your Competitive Landscape

4 Challenging Environment for Investment Managers 100% 80% 60% 55% 56% 56% 56% 57% 56% 58% 59% 57% 60% 59% 61% 40% 20% 45% 44% 44% 44% 43% 44% 42% 41% 43% 40% 41% 39% 0% Q Q Q Q Q Q Strategies with Net Inflows Strategies with Net Outflows

5 Opportunities for Offense and Defense - Equity Universe Q Inst. AUM (USD BN) 4Q'16 Net Inst. Flows (USD BN) 4Q'16 Gross Inflows 4Q'16 Gross Outflows FY 2016 Change FY 2015 Change FY 2014 Change All Japan Equity $ $0.10 $4.33 ($4.23) -4.09% -2.78% 0.88% All Australian Equity $ ($0.57) $3.59 ($4.16) -4.25% -2.02% -7.98% All UK Equity $99.76 ($1.16) $0.46 ($1.62) -7.63% -3.30% -1.49% All Emerging Mkts Equity $ ($1.67) $13.27 ($14.94) 0.24% -2.22% 2.32% All ACWI ex-us Equity $ ($2.81) $9.91 ($12.72) 1.01% 4.08% 2.82% All Canadian Equity $ ($3.80) $2.31 ($6.11) -0.33% -1.83% -4.75% All Asia Pacific Equity $ ($4.11) $4.03 ($8.14) -8.01% -9.97% -6.47% All EAFE Equity $1, ($5.02) $22.94 ($27.96) -0.58% 1.23% 0.89% All Europe Equity $ ($7.77) $5.30 ($13.03) % 2.32% 2.90% All Global Equity $1, ($24.33) $37.55 ($61.89) -2.78% -1.60% 0.97% All US Equity $6, ($87.09) $ ($201.53) -5.30% -4.79% -3.95%

6 Opportunities for Offense and Defense Fixed Income Universe Q Inst. AUM (USD BN) 4Q'16 Inst. Flows (USD BN) 4Q'16 Gross Inflows 4Q'16 Gross Outflows FY 2016 Change FY 2015 Change FY 2014 Change All US Fixed Income $6, $32.61 $ ($131.71) 1.79% -1.09% -1.38% All UK Fixed Income $ $6.86 $12.81 ($5.95) 4.10% -9.07% 3.84% All Asia Pacific Fixed Income $80.68 $0.37 $1.83 ($1.46) 10.08% 9.56% -6.59% All Japan Fixed Income $56.27 ($0.09) $0.87 ($0.96) 5.49% % % All EAFE Fixed Income $24.97 ($1.20) $0.09 ($1.29) % % -6.93% All Australian Fixed Interest $67.27 ($2.13) $1.45 ($3.58) -7.02% -3.10% -1.12% All Global Fixed Income $1, ($3.85) $33.93 ($37.78) -2.72% 1.02% 5.77% All Canadian Fixed Income $ ($4.45) $4.13 ($8.58) -2.24% 0.75% 3.46% All Europe Fixed Income $ ($5.60) $13.36 ($18.96) 5.32% 8.76% 4.64% All Emerg Mkts Fixed Income $ ($13.71) $12.31 ($26.01) -3.28% -7.12% -1.40%

7 Product Views by Asset Class All Investors vs. Canadian Investors 80% 70% 69.5% 69.3% 67.7% 60% 50% 40% 30% 20% 21.8% 20.1% 19.9% 10% 0% 3.7% 4.0% 5.0% 6.5% 8.5% 4.0% Equity Fixed Income Multi-Asset Alternatives 2014 Total Views 2015 Total Views 2016 Total Views

8 Product Views by Asset Class All Investors vs. Canadian Investors 80% 77.3% 76.7% 73.3% 70% 60% 50% 40% 30% 20% 16.7% 17.0% 17.6% 10% 0% 4.2% 4.1% 4.9% 1.7% 2.3% 4.2% Equity Fixed Income Multi-Asset Alternatives 2014 Total Views 2015 Total Views 2016 Total Views

9 Canadian Investor Asset Allocation 100% Multi-Asset 80% 60% Equity 40% 20% Fixed Income 0% Q Q Q Q Q Q Q Q Q Q3 2016

10 Change in Asset Allocations: Canadian Investors 25% +7.4% 20% -4.1% +0.6% 15% 10% +0.1% 5% -1.6% +1.7% -2.2% +0.9% 0% Canadian Fixed Income Canadian Equity Global Equity US Equity EAFE Equity Global Fixed Income Global Multi- Asset US Fixed Income YE 2013 YE 2016

11 Canadian Investor Focus Outside of Domestic Market 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 15.3% 16.1% 17.9% 3.8% 3.7% 3.9% 10.0% 10.4% 10.8% 9.2% 7.2% All Global Equity All US Equity All EAFE Equity All Emerging Mkts FY 2014 FY 2015 FY 2016 Equity 7.9%

12 70% Equity Exposure: Canadian investors far above others 65% 60% 55% 50% 45% UK Europe Japan US Canada 40% 35% Q Q Q Q Q Q3 2016

13 50% % of Equity Portfolios in Global Equity: Canadian investors lag significantly 40% 30% 20% UK Europe Japan US Canada 10% 0% Q Q Q Q Q Q3 2016

14 40% 35% 30% 25% 20% -4.3% Change in Equity Allocations: Canadian Investors +3.0% +1.5% 15% 10% 5% -1.9% +0.7% 0% Canadian Equity Global Equity US Equity EAFE Equity Emerging Mkts Equity YE 2013 YE 2014 YE 2015 YE 2016

15 RYAN ANDERSON

16 Gaining an Understanding of Your Competitive Landscape Case Study Effective Sales Process Viewing Yourself Through the Lens of an Investor Plan Perception Identifying Relevant Opportunities Prospect Preparing for Success Position Taking Action on Your Opportunities Pursue

17 PERCEPTION Viewing Yourself Through the Lens of an Investor

18 Product Name Global Equity Universe in Canada Total Product AUM ($B) Product AUM Canada ($B) Total product views 2016 Total Change in Views YoY Canadian Product Views Canada Change in Views YoY Mackenzie Global Large Cap Quality Growth $5, $5, % 63-15% Walter Scott Global Strategy $31, $4, ,777-9% % Baillie Gifford Global Alpha $35, $4, ,040-24% % Burgundy Global Equity Fund $5, $4, ,181 1% 619 3% Letko, Brosseau Global Equity (Canadian Bias) $4, $4, % 96-25% Fiera Capital Global Equity $6, $4, ,332 9% % Hexavest Global Equity $8, $3, ,345 40% % AGF Global Core Equity $3, $3, % % Epoch Global Equity Shareholder Yield $18, $3, ,281-3% % Templeton Institutional Global Equity $46, $3, % % Invesco Trimark Fund $2, $2, % % Wellington Global Research Equity $12, $2, % 17-6% MFS Global Equity $51, $2, ,374 8% 224 5% Black Creek Global Equity $3, $2, % % Sprucegrove Global Equities $2, $2, % %

19 CAN P:48.3% U:22.3% Where to Invest Time and Effort Europe P:0.9% U:3.6% US P:40.0% U:41.5% LAT AM P:0.0% U:0.0% UK P:5.1% U:15.9% Africa P:0.0% U:2.1% Asia P:3.9% U:5.6% Australia P:1.7% U:5.7% Japan P:0.0% U:3.2%

20 35% of the Interest in this Universe is Outside of North America

21 Understanding Perception From the Canadian Manager View Consultant/Investor Views 3-year Quartile Top Perceived Peer Passed/Failed Screens Adds to Universes 76 1 Epoch Investment Partners Inc. 77/ Product Total Views Epoch Investment Partners Global Equity Shareholder Yield 1,209 Longview Partners Equity Total Return (Unhedged) 854 Mawer Investment Management Global Equity 627 Carnegie World Wide Global Equities 428 Pyford Global Core Equity 402 Ardevora Global Long Only Equity 256 Alliance Bernstein Global Core Equity 248

22 Understanding what Investors Wants to See From the Canadian Manager view 29.0% 15.9% 71.0% 84.1% Pass Fail Missing Data Criteria Not Met

23 Understanding what Investors Want to See 15.9% Current # of Holdings Screen Term Actual Value Active Share Screen Term Actual value % Missing Data Criteria Not Met ESG Screens Screen Term Actual value Yes N/A

24 Characteristics of a Winner From the Canadian Manager view Product Performance Asset Flows Marketability Universe Health Distr. Impact Global Equity Metric Score Value Investor Sentiment Fee Level ($50 Mil) 3 64 BPS Portfolio Management Team Size 5 9

25 Characteristics of a Winner- Fees From the Canadian Manager view Metric Score Value Investor Sentiment Fee Level ($50 Mil) 3 64 BPS Portfolio Management Team Size 5 9 Peers Value Global Equity Strategy 1 75 BPS Global Equity Strategy 2 60 BPS Global Equity Strategy 3 55 BPS Global Equity Strategy 4 75 BPS Global Equity Strategy 5 65 BPS 17.5 BPS 51.0 BPS 60.5 BPS 68.0 BPS 76.5 BPS 100 BPS Quintile Ranking

26 Characteristics of a Winner Portfolio Team Size From the Canadian Manager view Metric Score Value Investor Sentiment Fee Level ($50 Mil) 3 64 BPS Portfolio Management Team Size 5 9 Peers Managers Global Equity Strategy 1 4 Global Equity Strategy 2 3 Global Equity Strategy 3 1 Global Equity Strategy 4 1 Global Equity Strategy Quintile Ranking

27 PROSPECT Identifying Relevant Opportunities 27

28 Staying Current From the Canadian Manager View People Changes Large AUM Changes Consultant Views Constituent Changes Products in Bottom Quartile Product Consultant Views Change GMO Quality Strategy Investec Global Franchise Trinity Global Equity Unhedged AGF Global Core Equity Standard Life Global Equity Unconstrained Blackrock Global Alpha Tilts 16 16

29 Prospecting Opportunities Global Equity Top Product Outflows in Canada From the Canadian Manager view Product Flows By Inst. AUM Rank Inst. AUM Views MSCI World Index -$12, $82, Global Equity -$10, $12, Institutional Global Equity -$6, $46, Growth and Income Fund -$5, $81, Global Equity -$5, $51, Mutual Global -$4, $25, Global Thematic Equity -$3, $4, World Index -$3, $19, Global -$3, $6, Global Select -$3, $

30 Prospecting Opportunities- Bottom Performers From the Canadian Manager view Product Returns (Trailing 3 Year) Rank Total AUM Views International Growth & Value $1,700 8 Global Equity Strategy $ Global Income Fund $ Global Equity 60:40 Fund $1, Global Equity Income Fund $1,

31 Prospecting Opportunities Risk Based Opportunities From the Canadian Manager view Product Tracking Error (Trailing 3 Year) Rank Total AUM Views Global All Country $2, Global Alpha Fund $ Global Equity Fund $ Global Equity $ Global Opp. Fund $

32 Prospecting Opportunities Least Correlated From the Canadian Manager view Product Correlation: Excess Return (Trailing 3 Year) Rank Total AUM Views Global Equity $ Global Alpha Fund $ Global Equity $1, Global Equity Fund $ Global Strategy $3,

33 Position Position for success 33

34 34

35 35

36 Key Differentiators for Global/International Equity based on Public Plan IQ From the Canadian Manager view High Conviction Differentiated investment philosophy Complement to other global mandates Organization structure and staff backgrounds 36

37 3m Company Building the Story around Differentiated Holdings From the Canadian Manager view Accenture PLC Honeywell Int. Siemens AG United Tech Corp Keyence Corp UPS Inc. Safran General Electric Co Union Pacific Corp 0%.10%.20%.30%.40%.50% Peer Group Canadian Manager: Global Equity

38 Understanding Conviction From the Canadian Manager view

39 Largest Contributors to Active Share Be Prepared for Questions From the Canadian Manager view

40 Missed Opportunities Be Prepared for Questions From the Canadian Manager view

41 Dodged Bullets Be Prepared for Questions From the Canadian Manager view

42 PURSUE Ta k i n g A c t i o n o n Y o u r O p p o r t u n i t i e s 42

43 Always Be Prepared From the Canadian Manager view Global Equity Fund 1 Global strategy 2 Global Equity 3 Performance FIRST THIRD SECOND Risk FIRST THIRD FIRST People FIRST THIRD SECOND Separate Account Fees SECOND THIRD FIRST Asset Flows FIRST THIRD SECOND Perception THIRD FIRST SECOND Manager Skill THIRD FIRST SECOND

44 Always Be Prepared From the Canadian Manager view Asset Mgmt 1 Global Strategy 2 Global Equity Manager Skill THIRD FIRST SECOND Total Value Added MRP Total Value Added 1 Year Style Selection Effect-MRQ Style Selection Effect 1YR Sector Selection Effect - MRQ Sector Selection Effect 1 YR Region Selection Effect MRQ Region Selection Effect 1 YR

45 Always Be Prepared From the Canadian Manager view Asset Mgmt 1 Global Strategy 2 Global Equity Risk FIRST THIRD FIRST Standard Deviation 3 YRS Beta 3 YRS Annualized Alpha 3 YRS Information Ration 3 YRS Sharpe Ration 3 YRS Upside Market Capture 3 YRS Downside Market Capture 3 YRS

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