Canaccord Genuity Select Canadian Model Portfolios

Transcription

1 Canaccord Genuity Select Canadian Model Portfolios September 11, 2018 Select Canadian Model Portfolios September 2018 Page 1

2 Table of Contents Select Canadian Focused Equity Portfolio (35 holdings).. 3 Select Canadian Dividend Portfolio (33 holdings).. 7 Select Canadian Focused Dividend Portfolio (22 holdings).. 11 Select Canadian Small Cap Portfolio (31 holdings).. 15 Investment Process Multi-Disciplinary Approach.. 20 Investment Process Fundamental Analysis.. 21 Investment Process Quantitative Analysis.. 22 Investment Process Technical Analysis.. 23 Portfolio Construction & Risk Management.. 24 Investment Management Team.. 25 Select Canadian Model Portfolios September 2018 Page 2

3 Select Canadian Focused Equity Portfolio Objectives Strong absolute returns (targeting above benchmark) Strong risk adjusted returns (targeting Sharpe > 1.0) Below market risk by focusing on value, quality and momentum Features Concentrated Portfolio holdings Portfolio Weightings weights range from 1%-8% Low Volatility targeting 90% of benchmark Kevin J. Vandermeer CFA, FCSI Lead Portfolio Manager T: E: Tim Evans MBA, CFA Managing Director T: E: Meng Gao B.Math Research Analyst T: E: Upside Capture targeting 90% of up market moves Downside Capture targeting 70% of downside market moves Tax Efficient target holding period 2-3 years (turnover ~30%) Select Canadian Model Portfolios September 2018 Page 3 To us there are no foreign markets.

4 Select Canadian Focused Equity Portfolio September 2018 Portfolio Mkt. Cap Portfolio Mkt. Cap Ticker Name Weights CAD Bn Ticker Name Weights CAD Bn Energy Financials 1 HSE-CA Husky Energy Inc. 3.0% $ FFH-CA Fairfax Financial Holdings Limited 2.0% $ PXT-CA Parex Resources Inc. 3.0% $ POW-CA Power Corporation of Canada 2.0% $ GTE-CA Gran Tierra Energy Inc. 3.0% $ SLF-CA Sun Life Financial Inc. 3.0% $ SU-CA Suncor Energy Inc. 6.0% $ BAM.A-CA Brookfield Asset Management Inc. Class A 2.0% $ ERF-CA Enerplus Corporation 3.0% $ TD-CA Toronto-Dominion Bank 7.0% $ CM-CA Canadian Imperial Bank of Commerce 4.0% $54.61 Materials 25 RY-CA Royal Bank of Canada 8.0% $ WFT-CA West Fraser Timber Co. Ltd. 3.0% $ MIC-CA Genworth MI Canada Inc. 2.0% $ MX-CA Methanex Corporation 3.0% $ NA-CA National Bank of Canada 3.0% $ KL-CA Kirkland Lake Gold Ltd. 2.0% $ TECK.B-CA Teck Resources Limited Class B 3.0% $16.50 Technology 10 LIF-CA Labrador Iron Ore Royalty Corporation 2.0% $ CSU-CA Constellation Software Inc. 2.0% $ GIB.A-CA CGI Group Inc. Class A 2.0% $21.82 Industrials 11 WCN-CA Waste Connections, Inc. 3.0% $28.01 Telecom 12 BYD.UT-CA Boyd Group Income Fund 3.0% $ RCI.B-CA Rogers Communications Inc. Class B 2.0% $ TFII-CA TFI International Inc. 3.0% $ T-CA TELUS Corporation 2.0% $28.80 Consumer Discretionary Utilities 14 CTC.A-CA Canadian Tire Corporation, Limited Class A 2.0% $ AQN-CA Algonquin Power & Utilities Corp. 2.0% $ QBR.B-CA Quebecor Inc. Class B 2.0% $ FTS-CA Fortis Inc. 2.0% $ MG-CA Magna International Inc. 3.0% $23.77 REITs Consumer Staples 34 CIGI-CA Colliers International Group Inc. 2.0% $ EMP.A-CA Empire Co. Ltd. Class A 2.0% $ GRT.UT-CA Granite Real Estate Investment Trust 2.0% $2.65 Healthcare Cash 18 BHC-CA Bausch Health Companies Inc. 1.0% $ Cash 1.0% Source: FactSet Select Canadian Model Portfolios September 2018 Page 4

5 Select Canadian Focused Equity Portfolio Sector Weights September 2018 September 2018 Sector Strategy S&P/TSX Under/Over Energy 18% 18.8% -0.8% Material 13% 10.0% +3.0% Industrials 9% 10.6% -1.6% Consumer Discretionary 7% 5.5% +1.5% Consumer Staples 2% 3.5% -1.5% Healthcare 1% 1.7% -0.7% Financials 33% 34.5% -1.5% Technology 4% 4.0% 0.0% Telecom 4% 4.5% -0.5% Utilities 4% 3.8% +0.2% Real Estate 4% 3.1% +0.9% Cash 1% Total 100% 100% Source: Bloomberg Select Canadian Model Portfolios September 2018 Page 5

6 Select Canadian Focused Equity Portfolio Attribution September 2018 September 2018 Factor Comment Strategy S&P/TSX Price/Earnings Better Value 13.6x 17.7x Earnings Growth Higher Growth 24.2% 13.9% (P/E)/Earnings Growth (PEG) Better Value 0.6x 1.3x Beta Similar Volatility Return on Equity (ROE) Higher Quality 16.4% 14.5% Return on Assets (ROA) Higher Quality 1.8% 1.3% Source: Bloomberg Select Canadian Model Portfolios September 2018 Page 6

7 Select Canadian Dividend Portfolio Objectives Above market portfolio yield 3.2% (vs. TSX 2.9%) Above market dividend growth 22.8% (vs. TSX 18.4%) Below market risk by focusing on dividend yield, value, quality & momentum Features Concentrated Portfolio 33 holdings Portfolio Weightings weights range from 2%-8% Low Volatility targeting 90% of benchmark Kevin J. Vandermeer CFA, FCSI Lead Portfolio Manager T: E: Tim Evans MBA, CFA Managing Director T: E: Meng Gao B.Math Research Analyst T: E: Upside Capture targeting 70% of up market moves Downside Capture targeting 70% of downside market moves Tax Efficient target holding period 2-3 years (turnover ~30%) Select Canadian Model Portfolios September 2018 Page 7 To us there are no foreign markets.

8 Select Canadian Dividend Portfolio September 2018 Portfolio Dividend Portfolio Dividend Ticker Name Weights Yield Ticker Name Weights Yield Energy Financials 1 TRP-CA TransCanada Corporation 3.0% 5.00% 17 MIC-CA Genworth MI Canada Inc. 2.0% 4.29% 2 SU-CA Suncor Energy Inc. 5.0% 2.84% 18 TD-CA Toronto-Dominion Bank 7.0% 3.37% 3 CNQ-CA Canadian Natural Resources Limited 2.0% 3.14% 19 BAM.A-CA Brookfield Asset Management Inc. Class A 3.0% 1.38% 4 HSE-CA Husky Energy Inc. 2.0% 2.33% 20 CM-CA Canadian Imperial Bank of Commerce 4.0% 4.42% 5 ENB-CA Enbridge Inc. 5.0% 6.04% 21 SLF-CA Sun Life Financial Inc. 3.0% 3.74% 6 PKI-CA Parkland Fuel Corporation 2.0% 2.81% 22 BMO-CA Bank of Montreal 4.0% 3.58% 23 RY-CA Royal Bank of Canada 8.0% 3.78% Materials 24 NA-CA National Bank of Canada 2.0% 3.82% 7 OSB-CA Norbord Inc. 2.0% 12.23% 8 MX-CA Methanex Corporation 2.0% 1.81% Technology 9 WFT-CA West Fraser Timber Co. Ltd. 2.0% 0.92% 25 CSU-CA Constellation Software Inc. 4.0% 0.54% 10 NTR-CA Nutrien Ltd. 4.0% 2.97% Telecom Industrials 26 RCI.B-CA Rogers Communications Inc. Class B 2.0% 2.81% 11 WCN-CA Waste Connections, Inc. 2.0% 0.69% 27 T-CA TELUS Corporation 2.0% 4.35% 12 TFII-CA TFI International Inc. 2.0% 1.76% 13 CAE-CA CAE Inc. 2.0% 1.51% Utilities 14 CNR-CA Canadian National Railway Company 5.0% 1.60% 28 AQN-CA Algonquin Power & Utilities Corp. 2.0% 4.88% 29 FTS-CA Fortis Inc. 2.0% 3.95% Consumer Discretionary 15 MG-CA Magna International Inc. 3.0% 2.46% REITs 30 GRT.UT-CA Granite Real Estate Investment Trust Stapled Units 2.0% 4.83% Consumer Staples 31 DRG.UT-CA Dream Global Real Estate Investment Trust 2.0% 5.48% 16 EMP.A-CA Empire Co. Ltd. Class A 3.0% 1.76% 32 AP.UT-CA Allied Properties Real Estate Investment Trust 2.0% 3.51% 33 KMP.UT-CA Killam Apartment Real Estate Investment Trust 2.0% 3.99% Source: FactSet Cash 34 Cash 1.0% Select Canadian Model Portfolios September 2018 Page 8

9 Select Canadian Dividend Portfolio Sector Weights September 2018 September 2018 Sector Strategy S&P/TSX Under/Over Energy 19% 18.8% +0.2% Material 10% 10.0% 0.0% Industrials 11% 10.6% +0.4% Consumer Discretionary 3% 5.5% -2.5% Consumer Staples 3% 3.5% -0.5% Healthcare 0% 1.7% -1.7% Financials 33% 34.5% -1.5% Technology 4% 4.0% +0.0% Telecom 4% 4.5% -0.5% Utilities 4% 3.8% +0.2% Real Estate 8% 3.1% +4.9% Cash 1% Total 100% 100% Source: Bloomberg Select Canadian Model Portfolios September 2018 Page 9

10 Select Canadian Dividend Portfolio Attribution September 2018 September 2018 Factor Comment Strategy S&P/TSX Price/Earnings Better Value 14.6x 17.7x Dividend Yield Higher Yield 3.2% 2.9% Dividend Growth Better Growth 22.8% 18.4% Beta Lower Volatility Return on Equity (ROE) Higher Quality 16.5% 14.5% Return on Assets (ROA) Higher Quality 2.0% 1.3% Source: Bloomberg Select Canadian Model Portfolios September 2018 Page 10

11 Select Canadian Focused Dividend Portfolio Objectives Above market portfolio yield 3.0% (vs. TSX 2.9%) Similar market dividend growth 17.2% (vs. TSX 18.4%) Below market risk by focusing on dividend yield, value, quality & momentum Features Concentrated Portfolio holdings Portfolio Weightings weights range from 2%-9% Low Volatility targeting 90% of benchmark Kevin J. Vandermeer CFA, FCSI Lead Portfolio Manager T: E: Tim Evans MBA, CFA Managing Director T: E: Meng Gao B.Math Research Analyst T: E: Upside Capture targeting 80% of up market moves Downside Capture targeting 60% of downside market moves Tax Efficient target holding period 2-3 years (turnover ~30%) Select Canadian Model Portfolios September 2018 Page 11 To us there are no foreign markets.

12 Select Canadian Focused Dividend Portfolio Sep Portfolio Dividend Portfolio Dividend Ticker Name Weights Yield Ticker Name Weights Yield Energy Financials 1 TRP-CA TransCanada Corporation 5.0% 5.00% 12 SLF-CA Sun Life Financial Inc. 4.0% 3.74% 2 ENB-CA Enbridge Inc. 6.0% 6.04% 13 RY-CA Royal Bank of Canada 9.0% 3.78% 3 SU-CA Suncor Energy Inc. 6.0% 2.84% 14 BAM.A-CA Brookfield Asset Management Inc. Class A 5.0% 1.38% 4 HSE-CA Husky Energy Inc. 3.0% 2.33% 15 TD-CA Toronto-Dominion Bank 9.0% 3.37% 16 CM-CA Canadian Imperial Bank of Commerce 5.0% 4.42% Materials 17 BMO-CA Bank of Montreal 5.0% 3.58% 5 WFT-CA West Fraser Timber Co. Ltd. 3.0% 0.92% 6 MX-CA Methanex Corporation 3.0% 1.81% Information Technology 7 NTR-CA Nutrien Ltd. 4.0% 2.87% 18 CSU-CA Constellation Software Inc. 3.0% 0.54% Industrials Telecommunications 8 WCN-CA Waste Connections, Inc. 4.0% 0.69% 19 T-CA TELUS Corporation 4.0% 6.04% 9 CNR-CA Canadian National Railway Company 6.0% 1.60% Utilities Consumer Discretionary 20 FTS-CA Fortis Inc. 3.0% 3.95% 10 MG-CA Magna International Inc. 4.0% 2.46% Real Estate Consumer Staples 21 GRT.UT-CA Granite Real Estate Investment Trust 3.0% 4.83% 11 EMP.A-CA Empire Co. Ltd. Class A 3.0% 1.76% 22 DRG.UT-CA Dream Global Real Estate Investment Trust 2.0% 5.48% Cash 23 Cash 1.0% Source: FactSet Select Canadian Model Portfolios September 2018 Page 12

13 Select Canadian Focused Dividend Portfolio Sector Weights September 2018 September 2018 Sector Strategy S&P/TSX Under/Over Energy 20% 18.8% +1.2% Material 10% 10.0% 0.0% Industrials 10% 10.6% -0.6% Consumer Discretionary 4% 5.5% -1.5% Consumer Staples 3% 3.5% -0.5% Healthcare 0% 1.7% -1.7% Financials 37% 34.5% +2.5% Technology 3% 4.0% -1.0% Telecom 4% 4.5% -0.5% Utilities 3% 3.8% -0.8% Real Estate 5% 3.1% +1.9% Cash 1% Total 100% 100% Source: Bloomberg Select Canadian Model Portfolios September 2018 Page 13

14 Select Canadian Focused Dividend Portfolio Attribution September 2018 September 2018 Factor Comment Strategy S&P/TSX Dividend Yield Higher Yield 3.0% 2.9% Dividend Growth Similar Growth 17.2% 18.4% Price/Earnings Better Value 14.7x 17.7x Beta Similar Volatility Return on Equity (ROE) Similar Quality 15.7% 14.5% Return on Assets (ROA) Higher Quality 1.8% 1.3% Source: Bloomberg Select Canadian Model Portfolios September 2018 Page 14

15 Select Canadian Small Cap Portfolio Objectives Strong absolute returns (targeting above benchmark) Strong risk adjusted returns (targeting Sharpe > 1.0) Below market risk by focusing on value, quality and momentum Features Concentrated Portfolio holdings Portfolio Weightings weights range from 2%-4% Low Volatility targeting 90% of benchmark Kevin J. Vandermeer CFA, FCSI Lead Portfolio Manager T: E: Tim Evans MBA, CFA Managing Director T: E: Meng Gao B.Math Research Analyst T: E: Upside Capture targeting 90% of up market moves Downside Capture targeting 70% of downside market moves Turnover target holding period 1-2 years (turnover ~50%) Select Canadian Model Portfolios September 2018 Page 15 To us there are no foreign markets.

16 Select Canadian Small Cap Portfolio September 2018 Portfolio Mkt. Cap Portfolio Mkt. Cap Ticker Name Weights CAD Bn Ticker Name Weights CAD Bn Energy Consumer Staples 1 EFR-CA Energy Fuels Inc. 4.0% $ NEPT-CA Neptune Technologies & Bioressources Inc. 2.0% $ GTE-CA Gran Tierra Energy Inc. 4.0% $ NOA-CA North American Construction Group Ltd. 4.0% $0.28 Healthcare 4 PSI-CA Pason Systems Inc. 4.0% $ DR-CA Medical Facilities Corporation 2.0% $ BNE-CA Bonterra Energy Corp. 4.0% $ CRH-CA CRH Medical Corporation 2.0% $ TVE-CA Tamarack Valley Energy Ltd. 4.0% $1.06 Financials Materials 22 SII-CA Sprott Inc. 3.0% $ CFX-CA Canfor Pulp Products Inc. 4.0% $ EQB-CA Equitable Group Inc. 3.0% $ ADN-CA Acadian Timber Corp. 3.0% $ GSY-CA goeasy Ltd. 3.0% $ ITP-CA Intertape Polymer Group Inc. 4.0% $ WDO-CA Wesdome Gold Mines Ltd. 4.0% $0.46 Technology 11 IFP-CA Interfor Corporation 4.0% $ SUM-CA Solium Capital Inc. 3.0% $ LIF-CA Labrador Iron Ore Royalty Corporation 4.0% $1.62 REITs Industrials 26 ACR.UT-CA Agellan Commercial Real Estate Investment Trust 3.0% $ CJT-CA Cargojet Inc. 4.0% $ IIP.UT-CA InterRent Real Estate Investment Trust 2.0% $ ATA-CA ATS Automation Tooling Systems Inc. 4.0% $ DIR.UT-CA Dream Industrial Real Estate Investment Trust 2.0% $ BAD-CA Badger Daylighting Ltd. 4.0% $ SMU.UT-CA Summit Industrial Income REIT 2.0% $ KMP.UT-CA Killam Apartment Real Estate Investment Trust 2.0% $1.36 Consumer Discretionary 31 NWH.UT-CA NorthWest Healthcare Properties REIT 3.0% $ PBL-CA Pollard Banknote Limited 3.0% $ ATZ-CA Aritzia, Inc. 3.0% $0.97 Cash 18 MTY-CA MTY Food Group Inc. 2.0% $ Cash 1.0% Source: FactSet Select Canadian Model Portfolios September 2018 Page 16

17 Select Canadian Small Cap Portfolio Sector Weights September 2018 September 2018 Sector Strategy S&P/TSX Small Cap Under/Over Energy 24% 24.5% -0.5% Material 23% 24.0% -1.0% Industrials 12% 12.8% -0.8% Consumer Discretionary 8% 8.4% -0.4% Consumer Staples 2% 2.7% -0.7% Healthcare 4% 4.6% -0.6% Financials 9% 6.8% +2.2% Technology 3% 3.4% -0.4% Telecom 0% 0.1% -0.1% Utilities 0% 1.7% -1.7% Real Estate 14% 11.0% +3.0% Cash 1% Total 100% 100% Source: Bloomberg Select Canadian Model Portfolios September 2018 Page 17

18 Select Canadian Small Cap Portfolio Attribution September 2018 September 2018 Factor Comment Strategy S&P/TSX Small Cap Price/Earnings Better Value 19.7x 34.0x Earnings Growth Higher Growth 37.8% 32.6% (P/E)/Earnings Growth (PEG) Better Value 0.5x 1.0x Beta Similar Volatility Return on Equity (ROE) Higher Quality 11.3% 5.8% Return on Assets (ROA) Higher Quality 3.5% 1.0% Source: Bloomberg Select Canadian Model Portfolios September 2018 Page 18

19 Investment Process Investment Process Multi-Disciplinary Approach Fundamental Analysis Quantitative Analysis Technical Analysis Kevin J. Vandermeer CFA, FCSI Lead Portfolio Manager T: E: Tim Evans MBA, CFA Managing Director T: E: Portfolio Construction & Risk Management Meng Gao B.Math Research Analyst T: E: Select Canadian Model Portfolios September 2018 Page 19 To us there are no foreign markets.

20 Investment Process Multi-Disciplinary Approach Fundamental Analysis Understand the industry, competitors, company & strategy Meet management, conference calls, models, understand market expectations Fully leverage all internal expertise and knowledge Fundamentals Quantitative Analysis Screening for Value, Quality & Momentum using 15+ factors Utilizes 3 different Quant platforms to ensure robustness Quantitative Focus is on a balanced approach to investing Technical Analysis Identify stocks that are clearly working Avoid weak or underperforming sectors and investments Technical Avoid stocks that are broken or dead money Select Canadian Model Portfolios September 2018 Page 20

21 Investment Process Fundamental Analysis Industry & Competitors Industry What are its future growth prospects? New technology? Competitors Are they acting rationally? New entrants? Threats? Barriers to Entry Are they high? Are they coming down? Strategy & Competitive Advantages Strategy Is mgmt executing and leveraging its unique position? Competitive Advantage(s) Real, sustainable and improving? Capital Allocation Prudent investing in high return opportunities? Valuation & Market Expectations Build simple models to better understand key business drivers Understand mgmt assumptions around growth, margins & returns Better understand market expectations of the underlying business Select Canadian Model Portfolios September 2018 Page 21

22 Investment Process Quantitative Analysis Value Factors P/Sales, P/Earnings, P/Book, P/Cash Flow & (P/E)/Earnings Growth Identifies relative value across the investment universe Ensures we avoid expensive or overvalued investments Quality Factors ROE, ROA, Reinvestment Rate, Earnings Surprise & Earnings Momentum Identifies companies with strong returns on capital & growing earnings Ensures we avoid companies with weak returns & declining earnings Momentum Factors Price Change: 30 days, 3 mths, 6 mths, 9 mths & 12 mths Identifies companies that are outperforming peers & index Ensures we avoid value traps and underperforming stocks 1. Price/Sales 2. Price/Earnings 3. Price/Book 4. Price/Cash Flow 5. (Price/Earnings)/Earnings Growth 6. Return on Equity (ROE) 7. Return on Assets (ROA) 8. Reinvestment Rate 9. Earnings Surprise 10. Earnings Momentum 11. Price Return last 30 days 12. Price Return last 3 months 13. Price Return last 6 months 14. Price Return last 9 months 15. Price Return last 12 months Select Canadian Model Portfolios September 2018 Page 22

23 Investment Process Technical Analysis Relative Strength Index (RSI) Used to measure speed and change of price momentum in stocks Focus on stocks with consistent RSI readings above +50 Stocks are considered : Overbought > 70 and Oversold < 30 1 Year Price Chart - Moving Averages Use simple moving averages to identify predominant trend Current Price > 200 day (slow) moving average 50 day (fast) moving average > 200 day (slow) moving average Moving Average Convergence/Divergence (MACD) Combines trend-following and moving averages into one signal Focus on stocks which are mechanical buys Mechanicals Buys = fast signal line > slow signal line Select Canadian Model Portfolios September 2018 Page 23

24 Portfolio Construction & Risk Management Investment Process Disciplined & Iterative Investment Universe S&P/TSX Index ~250 Companies Screen using Quantitative Factors All stocks are systematically ranked by 15+ factors using 3 Quant platforms Investment team performs fundamental due diligence on top-ranked stocks Technical analysis is then applied to screened and diligenced stocks Portfolio Construction Total portfolio holdings: 35 (weightings range from 2%-9%) Sector limits utilized to ensure no large sector bets Quant Screen ~75 Companies Apply Fundamental & Technical Analysis Rebalancing only done when weights exceed ~30-40% initial weight Risk Management Quantitative investment universe screened regularly for new/better ideas Fundamental - daily monitoring of fundamental news on all holdings Technicals - holdings reviewed regularly for weaknesses/underperformance Portfolio ~35 Holdings ~2-8% in Each Stock Daily Monitoring & Regularly Rebalanced Select Canadian Model Portfolios September 2018 Page 24

25 Investment Management Team Kevin J. Vandermeer, CFA, FCSI Managing Director Kevin is Lead Portfolio Manager of the investment team. Prior to joining Canaccord Genuity in the fall of 2017, Kevin launched his own hedge fund and worked for one of Canada s largest banks where he co-managed C$3.7 billion. Kevin has been recognized as one of Canada s TopGun Investment Minds as well as a previous recipient of a Lipper Award for outstanding fund performance. Kevin graduated from the University of Toronto with a Bachelor of Commerce With Distinction, is a CFA Charterholder and a Fellow of Canadian Securities Institute (FCSI). Tim Evans, MBA, CFA Managing Director Tim is a Managing Director focused on creating value-added investment products and solutions for Investment Advisors and their clients. Tim has worked on both the buy-side and the sell-side in progressively senior roles over his 17+ year career. Prior to joining Canaccord Genuity in December 2017, he worked for one of Canada s largest banks where he ran the firm s Managed Retail Product business group. Tim graduated from the Schulich School of Business with a Masters of Business Administration and is a CFA Charterholder. Meng Gao, B.Math Research Analyst Meng is a Research Analyst and a member of the investment team. Prior to joining Canaccord Genuity in June 2018, Meng worked as a Management Consultant focused on engagements in the Financial Services industry. Meng has executed on live-deals during his time in San Francisco working at a ~USD$40 billion Sovereign Fund providing private growth equity to mature Technology companies. Meng s sell-side experience includes working for one of Canada s largest banks in the Institutional Equities, Sales & Trading group. Meng graduated from the University of Waterloo with a Bachelor of Mathematics and is pursuing his CFA designation. Select Canadian Model Portfolios September 2018 Page 25

26 All information is given as of the date appearing in this document and Canaccord Genuity Wealth Management (CGWM) does not assume any obligation to update it or to advise on further developments related. All this information has been compiled from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it do CGWM assume any liability. All views expressed in this document are provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. The statements expressed herein are not intended to provide tax, legal or financial advice, and under no circumstances should be construed as a solicitation to act as a securities broker or dealer in any jurisdiction. All views are intended for general circulation to clients and do not have any regard to the specific investment objectives, financial situation or general needs of any particular person. Forward-looking statements and past performance are not guarantees of future results. To the fullest extent permitted by law, neither CGWM nor its affiliates or any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of the information contained in this document. Canaccord Genuity Wealth Management in Canada is a division of Canaccord Genuity Corp. Member Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Select Canadian Model Portfolios September 2018 Page 26