Transcript Signature Barrie Show

Signature Global Road Map
Joe D’Angelo
Vice President, Portfolio Management
Industrials & Transportation Sector
March 2014
Signature’s integrated market concept
“Markets are interconnected. A successful investment approach
should be equally integrated and connected – encompassing
rates, credit, equity, commodities, property and foreign exchange
within a coordinated global view.”
Eric Bushell
Chief Investment Officer
Signature Global Advisors
Signature Overview
Facts
•
Founded in 1990 and located in Toronto
•
Investment team of 35 members – one of the largest in Canada
•
Growth at a reasonable price investment style (GARP), manage diversified portfolios made up of large
cap securities
•
$44 billion assets under management1 – a sufficient amount to compete in terms of talent, research
and trading
1 As
of June 30th 2013
* Cash and cash equivalents: commercial paper, floating rate securities, bonds (money market) and government securities (money market)
Deep, specialized investment team
CHIEF INVESTMENT OFFICER
ERIC BUSHELL, CFA (18)
GLOBAL INVESTMENT STRATEGISTS
Drummond Brodeur, CFA (22)
Eric Bushell, CFA (18)
Matthew Strauss, CFA (17)
GLOBAL SECTOR/ ASSET CLASS SPECIALISTS
Tech, Media, Telecom
Malcolm White, CFA (16)
Jeremy Yeung, CFA (10)
Industrials, Transport
Joe D'Angelo, CFA (14)
Janice Wong, CFA, CPA (11)
Financials
John Hadwen, CFA (18)
Goshen Benzaquen (10)
Aero, Auto, Defence, Utilities
Massimo Bonansinga, M.B.A. (21)
Gorlen Zhou (2)
Energy & Materials
Scott Vali, CFA (15)
Sara Shahram, CFA (9)
Income Trusts/REITS
Ryan Fitzgerald, CFA (7)
Joshua Varghese (1)
High Yield
Geof Marshall, CFA (15)
Kevin McSweeney, CFA (11)
Brad Benson, M.A. (13)
Carlton Ling, CFA (8)
Darren Arrowsmith, CFA (12)
Hoa Hong, CFA (10)
Investment Grade
John Shaw, CFA (21)
Leanne Ongaro, CFA (4)
Jonathan Chew (1)
Derek Tucker, CFA (11)
Shelly Ghai, M.B.A. (7)
Consumer
Stephane Champagne (16)
Henry Kwok (11)
Rates and Foreign Exchange
Eric Bushell, CFA (18)
Matthew Strauss, CFA (17)
Preferreds
John Shaw, CFA (21)
Healthcare
Jeff Elliott, PhD (10)
TRADING PROFESSIONALS
Shawna McIntee (7)
Aldo Sunseri (26)
Connie Lee (10)
Signature’s Global Road Map: Peering into 2014
Economy
Synchronized global recovery taking shape, but
growth will remain below historical averages.
Rates
With inflation relatively contained, low rate
environment should persist. Rates expected to
modestly drift higher this year.
Currency
US $ strength to persist
Risks
Currencies, Liquidity, Inflation? - Deflation?…
Economic Outlook - Expecting Better Growth
Globally
 US – Strong 2014 expected.
• Weather impacted first quarter growth, but 2Q expected to show
strong rebound.
 Europe – last year was difficult, particularly in first half.
• However, growth prospects have improved for this year.
 Emerging Markets – have suffered the most when the
US rate environment changed last year.
• Expect government policy to become more pro-growth this year.
 Although debt problems at governments around the
world persist, banking systems have improved which
helps to reduce volatility.
Signature’s Global Road Map
Investment Conclusions
Major Investment Implications:
Less
Bonds
Less
Canada
Signature Can Help
More
Equity
More
Global
Interest Rates and Stock Market Valuations
4.0
17.0
16.0
3.5
15.0
14.0
2.5
13.0
2.0
12.0
1.5
11.0
1.0
10.0
US 10 Year Yield
S&P500 P/E Ratio
Source: Bloomberg
P/E Ratio
Interest Rates %
3.0
Themes Within Industrials
 Construction markets in US and Europe expected to show strong
growth this year.
•
Note weather hurt growth last year.
 Companies feel better about economic outlook
•
Will drive increase in capital expenditures, launch new products etc.
•
Looking to make more acquisitions
•
Productivity improvements ongoing
•
Share buybacks and dividends used more to deploy free cash.
 Automation, energy efficiency, & productivity related products
continue to be in strong demand
 Recurring revenue model increasing desired since it helps limit
earnings volatility during economic downturns.
Signature positioning
Cash & gold
High-yield bonds
• Cautionary holdings; overweight
• Still finding value; overweight
Government bonds
Equities
• Negative real returns; underweight
•Strong, less economically
sensitive, quality; mild
underweight
Investment-grade bonds
• Specific opportunities; about even
Signature global fund codes
Class A
Mutual Fund
Class A
Corporate Class
Class F
Private
Investment
Management
FEL
DSC
LL
FEL
DSC
LL
MF
Trust
578
878
1778
2578
3578
1578
4778
Signature Diversified Yield II
11111
11611
11461
Signature Global Income &
Growth
2111
3111
1111
2312
3312
1312
4111
4312
16144
18144
Signature Select Global
588
888
1688
2388
3388
1388
4688
4388
16146
18146
Signature International
864
874
1874
144
145
1145
121
148
16129
18129
Signature Emerging Markets
662
646
1646
277
276
1276
126
257
16123
18123
Signature Global Dividend
Corp
Class
Class
E
Class
O
4578
16149
18149
16152
18152
11011
Signature Global Dividend Fund
Geographic Allocation
Sector Allocation
Portfolio allocations, as at January 31, 2014
Signature Diversified Yield II Fund
Geographic Allocation
Sector Allocation
Portfolio allocations, as at January 31, 2014
Signature Global Income & Growth Fund
Geographic Allocation
Sector Allocation
Portfolio allocations, as at January 31, 2014
CI Global Fund
Geographic Allocation
Sector Allocation
Source: Globefund
Portfolio allocations, as at January 31, 2014
Signature International Fund
Geographic Allocation
Sector Allocation
Portfolio allocations, as at January 31, 2014
Signature Emerging Markets Fund
Geographic Allocation
Sector Allocation
Source: Globefund
Portfolio allocations, as at January 31, 2014
Thank you
All charts and illustrations in this guide are for illustrative purposes only. They are not intended to predict or project investment results.
Investments and the CI Investments design are registered trademarks of CI Investments Inc. Signature Global Asset Management and the Signature Global
Asset Management design are trademarks of CI Investments Inc.Commissions, trailing commissions, management fees and expenses all may be associated with
mutual fund investments. Please read the prospectus before investing. Unless otherwise indicated and except for returns for periods less than one year, the indicated
rates of return are the historical annual compounded total returns including changes in security value. All performance data assume reinvestment of all distributions or
dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced
returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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