Natcan Investment Management Inc.

Transcription

1 The Natcan QSSP II Investment Fund Inc. March 2012 Natcan Investment Management Inc. Christian Cyr, CFA Senior Vice Ppresident, Small-Cap Equities Marc Lecavalier, CFA, M.Sc. Vice President, Small-Cap Equities On February 27, 2012, Natcan announced that, on or about April 30, 2012, the roles of manager and portfolio manager of the Fund, currently performed by Natcan, will be assumed by Fiera Sceptre Inc. ( Fiera ), subject to various conditions including shareholder and regulatory authority approvals. This follows the signing of an asset purchase agreement between Natcan, Fiera and the National Bank of Canada whereby substantially all the assets of Natcan are to be sold to Fiera, subject to various conditions. The change of manager and portfolio manager is subject to the closing of the transaction. Upon closing,the Bank will hold a minority interest in Fiera through Natcan.

2 PRESENTATION OVERVIEW QSSP II Characteristics Taxation Performance History Portfolio Description Fee Structure Expertise This publication is intended for your private information. The information and opinions herein are provided for informational purposes only, and are subject to change based on market and other conditions. The views expressed should not be relied upon as the basis for your investment decisions. The Natcan QSSP II Investment Fund Inc. is offered by Natcan Investment Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the Fund before investing. The fund is not guaranteed, its value changes frequently and past performance may not be repeated. The Fund securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The performance returns are calculated net of management fees, net of transaction fees and net of administrative fees. Past performance is not necessarily indicative of the future performance. This document is not and should not be construed as a solicitation or offering of units of any fund or other security in any jurisdiction. No part of this publication may be reproduced in any manner without the prior written permission of Natcan Investment Management Inc. 2

3 QSSP II CHARACTERISTICS This plan offers a provincial deduction of up to 100% of the adjusted cost of eligible shares until December 31 st, 2012, or up to 10% of the total income for the year. The investment must be preserved for three (3) consecutive December 31, or the previously used deduction will be added to the holder s taxable income for the withdrawal year. Once the holding term is complete, a client may roll the investment so as to benefit from another tax deduction. The investment must then be held for another three (3) consecutive December 31. Sums withdrawn from the plan are tax free. Dividends and capital gains are taxable. Only Quebec companies holding less than $200M in assets are eligible to participate in the program. 3

4 TAXATION Maximum deduction allowed: 10% of the individual s total income for the year Total income used to calculate the QSSP II deduction is based on section of the Taxation Act: Total income eligible for the QSSP II = Net income (Deductions for capital gains + income replacement indemnities + net federal supplements) Deduction rate: 100% until December 31, 2012 Sample tax deduction calculation: Total annual income: $100,000 - RRSP contribution: $10,000 Total annual income for QSSP II $90,000 Maximum QSSP II deduction (10%) $9,000 Optimum QSSP II investment * $9,000 Tax savings ** $2,160 * Optimum QSSP II investment = maximum deduction / deduction rate of 100% ** Marginal tax rate of 24%. Tax savings are linked to a tax credit of 100%. 4

5 PERFORMANCE HISTORY: ONLY FOUR YEARS OF NEGATIVE RETURNS 1-year returns as at December 31 of each year (excluding the tax effect and net of management fees) 50.0% 40.0% 30.0% 43.7% Annualized returns as at December 31, year -1.37% 3 years 14.33% 5 years -2.89% 10 years -0.29% 33.1% 31.7% 20.0% 10.0% 0.0% -10.0% 17.5% 14.4% 16.3% 15.0% 9.9% 10.6% 3.4% 6.0% 5.8% 1.9% 1.6% 3.5% 4.0% 3.2% % -1.4% -12.8% -20.0% -22.3% -30.0% -31.7%* -40.0% -50.0% -44.0% Advisor/Investor Classes F Class * F Class - YTD from July 31 to December 31, 2008 Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the funds before investing. The funds securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The funds are not guaranteed, their values change frequently and past performance may not be repeated. 5

6 PERFORMANCE HISTORY (CONT D) 3-year and 5-year returns as at December 31 of each year (net of management fees) 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% yr returns 5-yr returns 6

7 PERFORMANCE HISTORY (CONT D) $40,000 Cumulative return January 1993 to December 2011 $35,000 Rendement Return before incluant tax benefit l'avantage fiscal Rendement Return including avant taxl'avantage benefit fiscal $ $30,000 $25,000 $20, $ $15,000 $10,000 $5,000 $ The performance numbers used in the above chart are based on the following assumptions: An investor with a net annual income of $100,000 invests $10,000 in the Fund and receives a deduction rate of 100% and a tax credit of 24% (Quebec only). He then sells his shares and invests once again $10,000 every three years. His realized gains and his tax credits are invested in 30-day Canadian Treasury Bills; the income and capital gains (inclusion rate of 50%) are taxable at a rate of 24% (Quebec only). 7

8 PORTFOLIO DESCRIPTION Sector allocation as at December 31, 2011 Natcan QSSP II Investment Fund Inc. S&P/TSX Small-Cap Index Deviation Industrials 28.5% 12.1% % Health Care 15.9% 2.3% % Information Technology 10.9% 2.4% + 8.5% Consumer Discretionary 13.0% 5.9% + 7.1% Cash 7.0% 0.0% + 7.0% Consumer Staples 5.6% 3.8% + 1.8% Telecommunication Services 0.2% 0.0% 0.0% Financials 10.0% 12.2% -2.2% Utilities 0.0% 5.6% -5.6% Energy 2.0% 21.5% -19.5% Materials 7.0% 34.3% -27.3% This data is based on the portfolio asset value before management fees. 8

9 PORTFOLIO DESCRIPTION (CONT D) Fund s top 10 stock holdings as at December 31, 2011 Holding Sector Weighting (%) Capitalization ($M) Sales ($M) Price/Sales Ratio Price/Anticipated Returns Ratio Medicago Health Care 5.1% 138 n/a n/a n/a Amaya Gaming Group Information Technology 5.1% MTY Food Group Cons. Discretionary 4.7% Paladin Labs Health Care 4.6% Richmont Mines Materials 4.3% Intact Financial Corporation Financials 3.0% Mediagrif Interactive Tech. Information Technology 3.0% D-BOX Technologies Cons. Discretionary 2.9% n/a Canadian Helicopters Group Industrials 2.6% CVTech Group Industrials 2.5% Source: Bloomberg, CPMS, Datastream, Natcan, Thomson One This data is based on the portfolio asset value before management fees. The The total total market market price price of of the the portfolio portfolio is is approximately $66.7M. $66.7M. 48% 48% of of the the Fund Fund is is invested invested in in QSSP QSSP II II eligible eligible securities. securities. 9

10 FEE STRUCTURE New issuances are offered in 3 classes: Advisor class An initial 2.5% sales commission, but no trailer commission, redemption fees for the first 3 years. Investor class No initial sales commission or redemption fee, but a 1% trailer fee. F class No initial or trailer commission, and no redemption fee, but a management fee of 1% per year. The Fund targets a management expense ratio of 2.5%. 10

11 EXPERTISE Christian Cyr, CFA Senior Vice President, Small-Cap Equities Christian Cyr joined Natcan Investment Management in 2000, first as Analyst, then as Vice President for Small-Cap Equities. In January 2008, he was promoted to Senior Vice President and team leader. Christian cumulates 14 years of experience in the investment industry. Prior to joining Natcan, he was covering the different sectors of the Canadian market as a sell-side analyst at Desjardins Securities and Tassé & Associates. Christian graduated from Université Laval with a Bachelor s degree in Finance, and is a CFA charterholder. Marc Lecavalier, CFA, M.Sc. Vice President, Small-Cap Equities Vice President, Small-Cap Equities, Marc Lecavalier joined Natcan Investment Management in 2001 as Analyst for Corporate and High-Yield Bonds. From 2004 to 2008, he acted as Investment Analyst for Small-Cap Equities, before being promoted to his current position. Marc has a Bachelor s degree and a Master s degree in Finance from Université de Sherbrooke, and is a CFA charterholder. 11

12 EXPERTISE (CONT D) Assets under management 1 as at December 31, 2011 Natcan QSSP II Investment Fund: $67M Altamira Québec Growth Fund 2 : $19M National Bank Small Capitalization Fund: $495M Altamira Global Small Company Fund: $40M Total: $621M 1 Assets under management of mutual funds 2 The Altamira Québec Growth Fund was the recipient of a 2008 Canadian Lipper Fund Award in the small- and mid-cap equity funds 1 year capitalization category. 12

13 FUNDSERV CODES Advisor Class FIA 511 Investor Class FIA 811 F Class FIA 711 Sales period: From March 19 until March 23, 2012 CONTACT US Telephone: National Bank Advisor Distribution 13