Invest Well Resource rich Capitalizing on the global resource supply chain from the ground up Back of the Napkin The secret fears of the wealthy How to uncover and address what troubles the affluent Live Better Asian vacation confidential Off the beaten trail, 21 st century style Advisor Q2 JUNE 30, 2011 QUARTERLY FUND PROFILES / PRACTICE MANAGEMENT / OUTLOOK / OPINION The Renaissance Volume V Issue II
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Invest Well
Resource richCapitalizing on the global
resource supply chain from the ground upBack of the Napkin
The secret fears of the wealthy How to uncover and address what troubles the affl uent
Live Better
Asian vacation confi dentialOff the beaten trail, 21st century style
AdvisorQ2 JUNE 30, 2011 QUARTERLY FUND PROFILES / PRACTICE MANAGEMENT / OUTLOOK / OPINION
The RenaissanceVolume V Issue II
Letter from the National Sales Director
A partnership built for your clients
Sometimes part of our success belongs to someone else. Think of the person who gave you a referral …
or the staffer in the office who returned a phone call on the weekend … or the colleague who provided you
with invaluable advice when you were just starting out in business.
Three people we’ve got in place to help you become more successful are tax and estate expert Jamie Golombek,
CIBC deputy chief economist Benjamin Tal and practice management authority Grant Shorten. In my mind,
these guys are the best in the business. And I invite you to take advantage of their expertise. They’re here to
support you and your relationships with clients. And there’s no better way to make use of their expertise than
by attending our annual cross-Canada road show this fall.
> Jamie Golombek will provide you with the most pertinent info on tax and estate planning and offer
actionable strategies to help your clients
> Ben Tal can offer you his outlook for the Canadian and world economies, allowing you to pull back
and see the “big picture”
> Grant Shorten comes with an armload of insights and approaches that will have an immediate impact
on your business
In addition to tax and estate, economic and practice management presentations, we have also put together
a strong line-up of portfolio managers who will share their view of the world. Colum McKinley of CIBC
Global Asset Management will discuss Canadian equities, Nick Langley of RARE is coming from Australia
to talk infrastructure investing, and David Winters, whose guru status has made him a fixture on U.S.
business TV, will give insights into global investing.
Contact your local wholesaler or go online to find out more and reserve a spot today. If you’re unable
to attend, I encourage you to visit the Renaissance Investments website where you can take advantage
of a wealth of materials available from all three of our in-house experts.
In the meantime, have a great summer and be sure to say hello if you’re in attendance at our road shows.
Dave WahlNational Sales Director
Renaissance Investments
416 943 6959
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Table of ContentsTax and Estate p 2
5 specialized tax reports
Economic Outlook p 3
Commodities forecast
Back of the Napkin p 5
The secret fears of the wealthy
Thanks to Our Supporters p 7
Work’s a beach
Invest Well p 8
Resource rich
Solution Highlight p 13
Portfolio staples
Axiom Portfolios Profiles p 14
Portfolio Essentials p 32 Performance Essentials p 33
Renaissance Investments Fund Profiles p 34
Money Market Funds p 36 Fixed Income Funds p 44 Balanced Funds p 58 Equity Income Funds p 62 Canadian Equity Funds p 70 U.S. Equity Funds p 76 Global Equity Funds p 84 Specialty Funds p 116 Fund Essentials p 130 Performance Essentials p 132
This information is provided for informational purposes only and is not intended to provide specific financial, investment, tax, legal or accounting advice for you, and should not be relied upon in that regard. The views expressed in the article are the personal views of Jamie Golombek and should not be taken as the views of CIBC Asset Management Inc.
Jamie Golombek is Managing Director, Tax & 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.
www.renaissanceinvestments.ca/en/jamie_golombek/Follow Jamie on Twitter @JamieGolombek.
Tax and Estate
5 specialized tax reports
1. Homeowners
Whether your clients are looking to buy a first home, are already homeowners or will be selling a home this year, here are some tax tips for you to keep in mind. Also covered is the so-called Singleton Shuffle, a method of making mortgage interest tax deductible.
2. Parents
While parents often bemoan the cost of raising kids, they shouldn’t forget that there are various child-related tax benefits, credits or deductions that can be used to reduce personal income tax. In addition,
filing tax returns for minors, as well as income splitting with kids, can go a long way to reducing the overall tax burden of the family.
3. Students
With the escalating costs of post-secondary education, it’s important for students to ensure they are well-educated as to the various tax benefits, deductions and credits available to them, along with the benefits of filing a tax return – even if they don’t owe any tax.
4. Mutual fund owners
While many investors are familiar with the taxation of mutual funds, there are two fundamental issues that seem to come up regularly and that warrant special attention. The first is the requirement to report not just amounts that show up on your T3 tax slip, but also to report any capital gains associated with any redemption of mutual funds during the year. The second is how to deal with Box 42, “Amount resulting in cost base adjustment” that sometimes
appears on your mutual fund’s T3 slip. This report provides a brief overview of how mutual fund trusts are taxed and then delves deeper into each specific issue: reporting redemptions of mutual fund units and handling a return of capital.
5. Employees
IN-TAX-I-CA-TION is the short-term euphoria associated with a tax refund that fades when you realize you are getting your own money back, interest-free, over a year later. A CIBC Harris/Decima poll conducted earlier this year found that over half of Canadians expected to receive a tax refund and nearly three-quarters (72%) of those receiving a refund planned to use it to pay down debts or build up their savings. While it’s clear that Canadians are indeed focused on getting their financial house in order, getting a tax refund each year is actually a sign of poor tax and financial planning, as Canadians would be better off either paying down debt and/or investing their tax “refund” with every pay cheque.
Jamie Golombek’s reports are available to help you and your clients save money. For copies, contact your Renaissance Investments representative or visit Jamie’s website at the address below.
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Economic Outlook
Deputy Chief Economist, CIBC Benjamin Tal
Commodities forecast
Some of the factors restraining growth in the industrially-sensitive commodities market, including supply-chain effects from Japan’s natural disaster, are clearly transitory. Others, like the drag from fiscal and monetary tightening in key emerging markets, are likely to keep growth, which hit a 32-month peak in April, from validating investors’ earlier high expectations in coming quarters. All this means that despite the still-favourable longer-term prospects for demand growth in key emerging markets, there could be further consolidation in resource markets in the near term.
Another trend to note is that the correlation of prices across sectors appears to have declined recently. Copper and gold have fallen by much less than oil lately. That suggests that after some years of increasingly viewing commodities as a homogenous asset class, investors may once again be paying greater attention to sector-specific fundamentals. Here is a look at some key commodities:
Oil
While the turmoil in Libya continues to keep that country’s high-quality capacity off global markets, Americans, who remain the world’s top oil users, are driving less, causing renewed fears about “demand destruction.” Softer weekly implied demand figures have contributed to a 12% pullback since West Texas Crude prices reached two-and-a-half year highs this spring. April’s 8.3% rise from a year earlier suggests that China’s implied demand is holding up well, despite the fact that both industrial sector and motor vehicle demand are slowing. While uncertainty over middle eastern supplies and assorted other factors will contribute to volatility, we are maintaining our earlier forecast for an average trading level of $97 per barrel for West Texas crude this year, and raising next year’s target by $5 to $95 per barrel.
Natural gas
U.S. benchmark natural gas hub prices have risen by as much as 20% from their late-spring lows. Inventory levels have tightened and are now actually slightly below the half-decade average due to February’s production freeze-off, the effect
of severe winter weather on consumption, and rising generation demand. Notwith- standing that fact, prices may have trouble moving significantly higher in the absence of major hurricane season disruptions, given ample current supply. We expect Henry Hub prices to average $4.50/MMBtu this year and $5.00 in 2012.
Gold
Gold has made further progress toward our forecast cyclical peak of $1,600 an ounce in recent weeks. Eurozone debt woes, economic uncertainties and equity market volatility have helped cushion the metal from the selling pressures afflicting other commodities. Although interest rate hikes by the U.S. Federal Reserve will ultimately derail the rally, such action still appears to be many quarters away and we believe that the effects of the end of QE2 are already
factored into prices. A modest U.S. dollar relief rally could contribute to short-run selling pressure, but offsetting that are elevated event risk, demand for inflation hedges from emerging markets, and the search by central banks for U.S. dollar alternatives. All in all, we see a modest upside for prices over a 12 - to -18-month horizon.
Heightened risk aversion and fears about economic recovery have pushed industrially-sensitive commodity prices off their April highs. Benjamin Tal discusses what to expect from key commodities in the near future.
“Copper and gold have fallen by much less than oil lately. That suggests that after some years of increasingly viewing commodities as a homogenous asset class, investors may once again be paying greater attention to sector-specific fundamentals.”
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This article is provided for informational purposes only and is not intended to provide specific financial, investment, tax, legal or accounting advice for you, and should not be relied upon in that regard. The views expressed in the article are the views of Benjamin Tal and should not be taken as the views of CIBC Asset Management Inc.
Copper
Although copper is among the most cyclically levered of the industrial metals, prices should nonetheless draw some support from a supply deficit this year, as demand
continues to run ahead of constrained supply growth. Given that Japan is the world’s fourth-largest user of the metal – behind China, the U.S. and Germany – demand there should get a two-pronged lift from the restart of idled auto produc-tion in coming months and post-quake reconstruction, moving into the second half of the year. China’s current power supply gap and efforts to develop an electric car
industry point to strong growth there in future years. Other metals have had more of a mixed performance recently, with falling stainless steel prices hurting nickel.
Lumber
The comatose U.S. new home construction sector, and the wettest spring in decades throughout much of North America, squelched out an earlier rally in lumber futures. However, post-quake reconstruc- tion in Japan in the second half should help the sector. Canada is Japan’s largest
timber supplier with almost 40% market share. What’s more, demand from another regional giant, China, is growing rapidly. At this point, even slightly less awful numbers could support lumber prices.
Potash
Rising meat production in the emerging markets should continue to support the outlook for fertilizer-intensive crops. Potash production rebounded last year and remains above levels seen in the middle of the last decade. North American inventory levels are down by about a third from their recent highs. Affordability for farm producers has also improved, as prices have trailed those for many agricultural commodities. These developments should encourage producers to seek further modest increases in contract prices in coming months.
“Post-quake reconstruction in Japan in the second half should help the lumber sector. Canada is Japan’s largest timber supplier with almost 40% market share.”
Look for prices for both lumber (left) and potash (right) to move modestly upwards in coming months
You’re either reading this article because you have a genuine interest in the mind of the affl uent investor, or the title grabbed your attention because, like many people, you’re not really convinced that the wealthy have anything to be afraid of.
Let’s assume I walk out of my offi ce right now, randomly stop a cross-section of pedestrians on the street, and ask them the following simple question: “In your experience, what are the greatest fears of the wealthy?”
Now, I have no doubt that some would ponder the question for a moment and quickly come up with a few ideas on what the wealthy may possibly fear. Perhaps we would hear things like “being robbed of their stuff” or “being taken advantage of by others.” But the majority of those questioned, would most likely respond
with a cynical chuckle as they confi dently express the belief that “rich people don’t have real fears.” While the “fearless affl uent” hypothesis is a widespread fundamental belief, it is one that is held almost exclusively by those who have not yet achieved affl uence.
In reality, nothing could be further from the truth. The wealthy do, in fact, bring a surprising set of fears to the table, fearsthat are both substantial and, often, completely justifi ed.
Having addressed thousands of high-net-worth investors over the last decade, and through my on going research on the affl uent marketplace, I have isolated and identifi ed what I believe to be the three primary fears of the affl uent. Let’s chat about them for a moment.
1. Fear of losing their wealth
In my experience, the number one fear of the high net worth (those with over $1 million of investable assets) is the pervasive fear of losing their wealth. And although the fear of lost wealth may seem rather mundane on the surface, stay with me for a moment because there’s an interesting twist to the story. As it turns out, when we dig a little deeper, the affl uent don’t just fear losing some (or a little bit) of their wealth…they fear losing most or ALL of their wealth!
Despite this sobering reality, I regularly speak to groups of experienced investment professionals who are still largely unaware that this fear so deeply permeates the affl uent community.
Back of the Napkin
Director, Strategic InsightsGrant Shorten
renaissance investments 5
The secret fears of the wealthy How to uncover and address what troubles the affl uent
In a few short years, most of the fi nancial wealth in Canada will be controlled by millionaire households. The wealthy are coming and they’re bringing with them tremendous opportunities for those engaged in the business of delivering sound advice. But the wealthy also carry with them hidden fears and those need to be understood…
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2. Fear of losing their current income
As human beings, we are all confronted daily with the powerful temptation to live up to (and slightly beyond) our financial means – and most of us do just that. Interestingly enough, we see this pattern of behaviour unfold with remarkable consistency regardless of education, social status or the degree of affluence attained. As our life-style evolves and matures around our changing financial means, our income becomes the life-blood that feeds our life-style, and for those without emergency savings, or other liquid assets, the unbroken continuance of this income stream is nothing short of critical.
The affluent household essentially lives under that very same dynamic. On the road to affluence, the wealthy family systematically develops a lifestyle that typically consists of multiple layers of complexity. And, in many cases, this enhanced standard of living, fed by a substantial stream of income, often flows from more than just one source of revenue. Needless to say, any meaningful interruption or reduction in that flow, carries with it significant consequences. Perhaps even more important than the obvious financial ramifications, are the cascading effects in the areas of: family expectations, social status, self-esteem, and a multitude of psycho- emotional dynamics that come into play.
3. Fear of the single devastating event
The often debated claim that “money doesn’t buy happiness” appears to be more accurate than we would ever imagine, according to countless high-net-worth studies including a recent Boston College survey of the super-rich that made headlines earlier this year.
The affluent often toss and turn at night due to a nagging underlying feeling that they are just one or two events away from a significant financial reversal. And in most cases, they are right. This single devastating event could be any one of a long list of possibilities. The following are just a few examples of events that, in most cases, would absolutely result in a significant financial reversal or complete financial ruin.
> Marital breakup> Bankruptcy of a core business line> Business failure of a strategic partner> Lawsuit> Capital market meltdown> Personal health crisis
The common thread that runs throughout is the complete and utter lack of predictability and/or controllability. It’s the not knowing when or how that drives the underlying anxiety of the wealthy.
The Strategic Fear Discussion
I entitled this article The secret fears of the wealthy for a reason. The high-net-worth investor will virtually never approach you, as a financial advisor, and proceed to openly share their innermost fears. The affluent are often too embarrassed to admit that they fear losing their wealth, their current income, or that they may be just one or two events away from a significant financial reversal. They have a tendency to feel very much alone in their fears, and typically have no clue that other affluent families feel exactly the same way.
One of the greatest services we can provide to our high-net-worth clients is to empathetically uncover their secret fears, openly legitimize them, and then address them directly!
An effective way to begin this process is to proactively initiate a strategic conversation, as early in the relationship as possible, using the following semantic format:
“…In my experience in working with affluent investors, just like you, I have discovered that the wealthy often share a few secret fears. Most people think that the wealthy have nothing to fear because they have money in the bank and some nice material possessions. But, I know that nothing could be further from the truth. As a matter of fact, I’ve found that the number one fear of the affluent is losing their wealth, but not just some or a little bit of it. No, the wealthy fear losing most or ALL of their wealth. We’ve also found that another very common fear of the wealthy is the fear of losing their current income stream, etc…”
Once you’ve talked through all three primary fears, clearly explain to your client how your wealth management process is designed specifically to address these concerns, directly.
As you effortlessly uncover the secret fears of your affluent clients and deliver practical solutions to manage them, your ability to captivate the high-net-worth mind will take a quantum leap forward.
To learn more about the concepts in this article and for more client-communication ideas, contact your Renaissance Investments representative.
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.
Name: Eyal Amon Firm: Manulife Securities Years in business: 19 Team members: 11
Work’s a beach
renaissance investments 7
What I love about the business I get great satisfaction from helping my clients in any way that I can. I really enjoy working collaboratively with my team at the branch, but also like the flexibility that my career provides as I can work from anywhere, anytime. I have a deal with my wife that I get to work one hour a day when on vacation. This allows me to spend the rest of day fully focused on my family, knowing that my clients are well taken care of.
Best tip for gaining new clients In the beginning of my career, I did everything from cold calling to events. Now that my practice is well established, I work by the philosophy that if you are exceptional to your existing clients, your business will grow organically. Existing clients will give you more of their assets, and they will provide quality referrals.
The book I’m currently reading I have just finished The Big Short by Michael Lewis and highly recommend it. It tells the story of those individuals who anticipated the financial crash of 2008 and were well positioned to not only weather it well, but also profit from it.
Favourite vacation spot I really enjoy Jamaica, its people and culture are quite extraordinary. Although, I am looking forward to a trip to Hawaii with my family later this year and suspect it may become a favourite.
Favourite hobby when I’m not at work It is spending time with my family and kids as often as possible. We travel a lot together and enjoy this time immensely.
What I offer to the local marketplace and to my clients Renaissance Investments has helped me continue to build my business by providing truly innovative products. Taxation and capital preservation are the biggest concerns for my clients and the Renaissance Corporate Bond Capital Yield Fund has proven to be a superior solution. The MER is low, and it’s tax-efficient, professionally managed and gives me access to bonds not normally available to an individual investor. The Renaissance Optimal Income Portfolio has also proven to be an excellent solution.
On another note, one of my clients (wanted to assist a) local soup kitchen. With the help of many others, including my wholesaler at Renaissance Investments, we were able to raise the funds. It is very satisfying to see tangible results of community giving and the smiles it brings to the faces of those in need. I am truly grateful to get to do this.
Thanks to Our Supporters
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Invest Well
Until this spring, the resource sector looked almost unstoppable.
The economic engines of the emerging markets – namely China and India – were running full-out, U.S. economic growth was fi rming and Greece’s debt woes were thought to be contained. The resource sector and the commodities that underpin it were on a tear. Oil, gold, copper, nickel, lead, zinc, coal and silver prices were all marching higher as they struggled to meet demand.
“Everything was going along quite well,” says Craig Porter, portfolio manager for the Renaissance Global Resource Fund and a 20-year-plus resources investor at respected Toronto-based money manager Front Street Investment Management Inc.
How quickly things changed.
By the second quarter, China was making headlines for all the wrong reasons. Infl ation was heating up, bank reserve requirement ratios were being increased and Chinese central bankers had hit the
brakes hard with a series of interest rate hikes. In India, Brazil, Indonesia and a number of other emerging countries the story was much the same: overheating economies, rising infl ation and interest rates heading higher.
“Over 15 emerging markets have hiked interest rates in the past 12 months,” says Stephen Burrows, senior investment manager at Pictet Asset Management Ltd., which oversees the Renaissance Emerging Markets Fund from London, England.
Resource rich
The booming resource sector faltered this spring as demand tapered off, but three Renaissance Investments portfolio managers believe this is just a temporary setback. China could be in the midst of a commodities super-cycle as its manufacturing sector draws downs the world’s resources to stoke its growth. And as millions of people in China and other emerging markets enjoy higher standards of living, they’re consuming goods and services once out of reach, further fuelling growth. Offering their insights are the portfolio managers of the Renaissance Global Resource, Renaissance Emerging Markets and Renaissance China Plus Funds.
Capitalizing on the global resource supply chain from the ground up
Booming Hong Kong reaps the rewards of China’s rise
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As the prospect of slowing emerging markets growth started to sink in among investors, a stream of U.S. economic data suggested a similar fate for the world’s largest economy. Falling gross domestic product numbers confirmed it. As did unemployment and hiring numbers. QE2 – the massive Treasury buying program designed to prop up the U.S. economy – was also coming to an end June 30, adding to the unease. In Europe, the Greek debt situation was back on the front burner and the likelihood of default growing.
The year which had started with so much promise was losing its shine. Resources were faltering. Market watchers started to ask if this was the end of the resources story, the collapse of the Chinese “miracle” and the fall of the emerging markets.
Quickly, the answers are no, no and no.
Resources catch their breath
“This is nothing more than mid-cycle weakness,” says Front Street’s Porter who oversees more than $1 billion in resource-related investments for retail and institutional investors. He says the resources story is still unfolding and has many years to play out, which bodes well for resource-rich countries such as Canada, Australia and Brazil.
William Lui, portfolio manager of the Renaissance China Plus Fund at Hamon Investment Management Ltd. in Hong Kong, believes the long-term resources demand story in China and emerging economies remains intact and he views the current slowdown positively. “China wants to see less volatile, higher quality growth and the actions they’re taking today should translate into longer-term, less risky growth in the future,” he says.
Lui says the government is targeting GDP growth of 7% for the next five years. Lower than the heady 9% and 10% we’ve seen, but still far above the average 2% in developed countries. Short term, Lui says there could be more bumps in the road, but he expects food and price inflation to peak this summer after which the government will refocus on growth.
Pictet’s Burrows takes Lui’s assessment a step further. “Whether it’s China, India, Brazil or Indonesia, the wave of industrialization and urbanization is upon us and nothing will change that.” Burrows, who works with 18 emerging markets investment professionals covering over 6,000 companies in 49 countries, pegs emerging market growth at 6.5% this year.
Given all this, it’s hard to imagine a scenario, beyond the short term, in which there won’t be upward pressure on commodity prices and the resource sector.
Slowing growth, falling prices
As the calendar flipped from 2010 to 2011, commodity prices reached highs not seen since the 2008 peak, but the prospect of slower global growth has led to a downturn.
Source: World Bank, Global Economic Prospects June 2011
It was 1978 when the People’s Republic of China officially moved away from a closed, centrally planned system to a more market-oriented one. Thirty years later, China has become the world’s second-largest economy, the world’s largest exporter and the world’s biggest car maker.
For now, however, Burrows maintains that emerging market valuations, which had been at a slight premium to developed markets, are at a discount. “We’re seeing a lot of value in a lot of places right now,” he says. A value investor, Burrows looks for best-in-class global companies that are trading at a discount to intrinsic value. One challenge for the Pictet team is making apples-to-apples comparisons with companies around the world when accounting, legal and disclosure requirements lack uniformity. To compensate, he measures corporate tangible assets to ascertain value. If, for instance, the company is a manufacturer, Burrows’ team puts a price tag on factories, equipment and other assets. Comparisons are made with other manufacturers in the same industry making the same product. The approach is similar to the due diligence performed by a private equity investor interested in purchasing a company. “We put ourselves in the shoes of an industrialist and ask whether it is cheaper to buy a company or build its capacity,” he says.
Two countries he’s currently overweight are Indonesia and Russia. Indonesia, says Burrows, exemplifies the potential of emerging markets investing. It is the fourth
most populous country in the world with about 240 million people. Half are under 30 and millions are joining the ranks of the middle class. This wave of new consumers is transforming the business landscape providing fertile growth for a large number of companies in a variety of industries. (See Burrows’ picks in the sidebar)
With its consumer theme, the Renaissance Emerging Markets Fund makes a good foil for the Renaissance China Plus Fund, the majority of whose holdings consist of companies tied to China’s manufacturing and export-led economy and closely connected to the resource sector in the global supply chain.
A diverse Team China
Unlike Burrows, Lui is more of a growth investor. He says valuation is important but in the go-go Chinese market it’s difficult to
be anything but a growth investor. Lui’s China investment team consists of five investment professionals. Two fundamental analysts provide sector coverage while Hamon’s chief investment officer provides the top-down macro view as well as input into China and Hong Kong research. The final member of the team is a Taiwan-based manager, as the fund has the ability to invest in the island nation – a point of differen- tiation among some China-country funds. Another difference lies in its ability to invest in companies outside China as long as these companies derive all of their revenue or have facilities in China.
Each team member comes from a different part of China (Shanghai, Beijing, Hong Kong and Jiangsu) with diverse cultural and professional backgrounds. Due to the many dialects, lack of transparency and government involvement in many industries, Lui says it’s important to have well- connected local investment professionals who can cross-check facts and data through a variety of sources, including government officials. Lui, who just returned from a trip to the farthest reaches of North West China to tour oil and natural gas companies near the Mongolian and Afghanistan borders, believes active, research-driven management is the best way to invest in China.
“At the end of the day, any resource company is only worth what it has in the ground and how cheaply it extracts it.”
The Shanghai skyline has become a powerful symbol of China’s new economic clout while a mall (right) in Jakarta attracts Indonesia’s growing middle class
renaissance investments 11
Chinese commodities super-cycle?
Industry watchers looking at China’s strong demand for commodities over the past decade suggest demand will continue to outstrip supply resulting in a super-cycle where prices stay high for an extended period of time, maybe as long as a couple of decades. There have been two previous super-cycles: one in the U.K. during the industrial revolution and the other in 1900s U.S.
World metal consumption
Source: World Bank, Metal Statistics
China crude oil consumption by the year
Source: International Energy Agency
0
10,000
20,000
30,000
40,000
2000 2002 2004 2006 2008 2010
OECD
CHINA
REST OF WORLD
'000 tons
0
1800
3600
5400
7200
9000
1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Full resource-chain circle
Closer to home, Toronto-based Porter uses many of the same top-down and bottom-up strategies to build his portfolios. Top down, he takes into account macroeconomic factors, industry dynamics and the influence, among others, of emerging economic power-houses on supply and demand. Bottom up, research is focused on asset valuation, the calibre of company management and business strategy execution. “At the end of the day, any resource company is only worth what it has in the ground and how cheaply it extracts it,” says Porter, adding that independent geologists assist him with asset valuation.
While Porter enjoys a global mandate, he has an affinity for Canadian-led resource companies wherever they are headquartered or listed. Canadians have a level of expertise and experience exploring, producing or servicing the energy and materials sectors that’s world class, he says. He likes small-cap resource companies for their capital appreciation and merger and acquisition potential. In contrast, large- cap names offer an important element of liquidity and steady dividends.
Porter sums up the resource supply chain in human terms. “There’s 1.3 billion people in China and 300 million of them are the haves and the other billion the have-nots. The Chinese are working hard to make sure the other billion have a light at the end of the tunnel and that means growth and long-term resource demand.”
For more information about the Renaissance Global Resource Fund, Renaissance Emerging Markets Fund and Renaissance China Plus Fund and how to effectively position them in your clients’ portfolios, please speak to your Renaissance Investments representative.
See fund profiles:
Renaissance Global Resource Fund p126Renaissance Emerging Markets Fund p114Renaissance China Plus Fund p112
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From resources to richesThe many links in the long global resource supply chain represent distinct and varied capital appreciation opportunities. Whether it’s picks-and-shovels resource companies, Chinese manufacturers in the world’s largest workshop or firms catering to a new generation of consumers in emerging markets, here are our managers’ picks.
Producing resourcesCraig Porter, Renaissance Global Resource Fund
Athabasca Oil Sands Corp.With its future oil production pegged between 500,000 and 800,000 barrels per day, this Calgary-based company is one of the world’s up-and-coming producers. PetroChina acquired a 60% stake in two AOSC projects in 2009 for $1.7 billion and may eventually want more. Whether Athabaska sells out to the Chinese or the partnership continues, Porter sees upside in both outcomes in an increasingly energy-hungry world.
Talison Lithium Ltd.This TSX-listed company mines and processes lithium bearing minerals at its Australian mine and is poised to match 2010 world output by 2012. Demand for lithium – particularly in China’s manufacturing hubs – is expected to grow in coming years. Lithium-ion batteries are used in mobile telephones, energy grid storage and electric cars. Talison is positioning itself to be the world’s number one supplier, says Porter.
Using resourcesWilliam Lui, Renaissance China Plus Fund
China National Materials Co. Ltd.For a direct play on the Chinese manufacturing story and the massive infrastructure require-ments needed for new cities, highways, housing and manufacturing facilities, Lui recommends China National Materials. It is the world’s largest cement equipment and engineering service provider and China’s non-metals manufacturing leader.
AviChina Industry and Technology Co. LtdAviChina manufactures avionics, or electrical systems and components, for commercial aircraft and helicopters. AviChina makes avionics for the Chinese C919 aircraft which is set to fly in 2014 with 100 orders from domestic carriers and is positioning itself as a key supplier to the world’s airline industry.
Beyond resourcesStephen Burrows, Renaissance Emerging Markets Fund
Bank MandiriBurrows is bullish on the financial services sector in key emerging markets. Indonesia is one of the countries where he believes the growing middle class and rising standards of living will create demand for financial services. Right now, only one in five Indonesians have a bank account and one in 100 a mortgage, hence Burrows investment in Bank Mandiri, a leading Indonesian retail, commercial and corporate bank.
SberbankFor similar reasons, Burrows likes Russia’s Sberbank, the country’s largest bank with market shares of 62% in deposits, 50% in retail lending, 32% in commercial lending and 29% in aggregate assets.
With eight portfolios to choose from, investing in Axiom Portfolios provides:
Access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world
Risk management, through rigorous due diligence and built-in rebalancing
Multiple levels of diversification
T-Class options available on all Axiom Portfolios, offering tax-efficient cash flow
Axiom Portfolios offer even more value at higher balances through the following three classes:Class A - $25,000 minimum investment ($5,000 minimum investment for TFSA only)
Select Class - $250,000 minimum investment
Elite Class - $500,000 minimum investment
Axiom Portfolio ManagersAxiom Portfolios have access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world.
Investment Counsel Ltd.anso
14 renaissance investments
Axiom PortfoliosAxiom Portfolios provide the benefits and peace-of-mind of sophisticated portfolio management, while simplifying the administration, management and reporting of a portfolio.
Axiom Portfolios
renaissance investments 15
Multiple Levels of DiversificationAxiom Portfolios have been designed to manage risk and solidify the potential for returns by ensuring portfolios are broadly diversified across multiple levels. Each portfolio is diversified across asset classes, investment styles, geographic regions and market capitalizations.
There are eight portfolios available designed to meet the needs of various types of investors.
Axiom Balanced Income Portfolio*Equities
10.0% U.S. Equity8.8% Canadian Equity6.0% International Equity3.0% Emerging Markets Equity
Income Generation12.2% Canadian Monthly Income
Fixed Income60.0% Canadian Fixed Income
Axiom Canadian Growth Portfolio*Equities
56.0% Canadian EquityIncome Generation
24.0% Canadian Monthly IncomeFixed Income
20.0% Canadian Fixed Income
Axiom Global Growth Portfolio*Equities
29.0% U.S. Equity21.0% International Equity16.0% Canadian Equity10.0% Emerging Markets Equity
Income Generation4.0% Canadian Monthly Income
Fixed Income10.0% Canadian Fixed Income10.0% Global Bond
Axiom Foreign Growth Portfolio*Equities
43.0% U.S. Equity33.0% International Equity10.0% Emerging Markets Equity
Fixed Income14.0% Global Bond
Axiom All Equity Portfolio*Equities
38.0% U.S. Equity24.0% International Equity18.0% Emerging Markets Equity16.0% Canadian Equity
Income Generation4.0% Canadian Monthly Income
Equities18.4% Canadian Equity5.0% U.S. Equity
Income Generation36.6% Canadian Monthly Income
Fixed Income40.0% Canadian Fixed Income
Axiom Balanced Growth Portfolio*Equities
32.0% Canadian Equity12.0% U.S. Equity8.0% International Equity5.0% Emerging Markets Equity
Income Generation8.0% Canadian Monthly Income
Fixed Income30.0% Canadian Fixed Income5.0% Global Bond
Axiom Long-Term Growth Portfolio*Equities
40.0% Canadian Equity10.0% U.S. Equity8.0% International Equity7.0% Emerging Markets Equity
Income Generation15.0% Canadian Monthly Income
Fixed Income15.0% Canadian Fixed Income5.0% Global Bond
Renaissance Investments family of fundsRenaissance Investments’ comprehensive line-up of mutual funds can provide your clients with exposure to equity and fixed-income securities from markets around the world.
These funds are ideal to build a portfolio or to add greater diversification and performance potential to your clients’ existing portfolios.
Fund Profiles Table of ContentsM O N E Y M A R K E T F U N D S p 36
Renaissance Money Market Fund p 36Renaissance Money Market Fund – Premium Class p 38Renaissance Canadian T-Bill Fund p 40Renaissance U.S. Money Market Fund p 42
F I X E D I N C O M E F U N D S p 44
Renaissance Short-Term Income Fund p 44Renaissance Canadian Bond Fund p 46Renaissance Real Return Bond Fund p 48Renaissance Corporate Bond Capital Yield Fund p 50Renaissance Corporate Bond Capital Yield Fund – Premium Class p 52Renaissance High-Yield Bond Fund p 54Renaissance Global Bond Fund p 56
B A L A N C E D F U N D S p 58
Renaissance Canadian Balanced Fund p 58Renaissance Optimal Income Portfolio p 60
E Q U I T Y I N C O M E F U N D S p 62
Renaissance Canadian Dividend Fund p 62Renaissance Canadian Monthly Income Fund p 64
Renaissance Diversified Income Fund p 66Renaissance Millennium High Income Fund p 68
C A N A D I A N E Q U I T Y F U N D S p 70
Renaissance Canadian Core Value Fund p 70Renaissance Canadian Growth Fund p 72Renaissance Canadian Small-Cap Fund p 74
U . S . E Q U I T Y F U N D S p 76
Renaissance U.S. Equity Value Fund p 76Renaissance U.S. Equity Growth Fund p 78Renaissance U.S. Equity Growth Currency Neutral Fund p 80Renaissance U.S. Equity Fund p 82
G L O B A L E Q U I T Y F U N D S p 84
Renaissance International Dividend Fund p 84Renaissance International Equity Fund p 86Renaissance International Equity Currency Neutral Fund p 88Renaissance Global Markets Fund p 90 Renaissance Optimal Global Equity Portfolio p 92Renaissance Optimal Global Equity Currency Neutral Portfolio p 94
Renaissance Global Value Fund p 96Renaissance Global Growth Fund p 98Renaissance Global Growth Currency Neutral Fund p 100Renaissance Global Focus Fund p 102Renaissance Global Focus Currency Neutral Fund p 104Renaissance Global Small-Cap Fund p 106 Renaissance European Fund p 108Renaissance Asian Fund p 110Renaissance China Plus Fund p 112Renaissance Emerging Markets Fund p 114
S P E C I A LT Y F U N D S p 116
Renaissance Global Infrastructure Fund p 116Renaissance Global Infrastructure Currency Neutral Fund p 118Renaissance Global Real Estate Fund p 120Renaissance Global Real Estate Currency Neutral Fund p 122Renaissance Global Health Care Fund p 124Renaissance Global Resource Fund p 126Renaissance Global Science & Technology Fund p 128
renaissance investments 35
When your clients invest with Renaissance Investments, they’re in good hands. We search the world for independent investment man-agers and put them to work on their behalf.
We begin with a universe of thousands of potential investment managers, and then
apply in-depth quantitative and qualitative filters to identify those with a proven abil-ity to successfully manage the mandates within our investment solutions. Our exacting approach to due diligence helps us optimize performance and manage risk for our clients.
Once selected for Renaissance Investments, managers undergo continuous monitoring and assessment. In order to remain part of our clients’ portfolios, they must demon-strate consistency with their investment disciplines and the rigorous standards of our products.
Strength Behind Your Clients Renaissance Investments’ family of funds has access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world.
Universe of Investment
Managers
Manager Candidates
Managers Selected for Renaissance
Investments
Quantitative Filters
Qualitative Six Step Process
Invest with Confidence
130 renaissance investments
Renaissance Investments
Fund Essentials
ATL FUND CODES MERs COMMISSIONS TRAILERS4 (%)
INVESTMENT MANAGERS
Front-End Load
Back-End Load
Low Load
ClassF
Class A (%)
Front-End Load
Back-End Load
Low Load
Front-End Load
Back-EndLoad1–6 years2
Back-EndLoad7+ years2
Low Load 1–3 years3
Low Load 4+ years3
MONEY MARKET FUNDS
Renaissance Money Market Fund CIBC Global Asset Management Inc. ATL1025 ATL1125 ATL2125 n/a 0.46% 0-5% 5.00% 3.00% 0.10 0.10 0.10 0.10 0.10Renaissance Money Market Fund – Premium Class CIBC Global Asset Management Inc. ATL1200 n/a n/a n/a 0.36% 0-5% n/a n/a 0.15 n/a n/a n/a n/aRenaissance Canadian T-Bill Fund CIBC Global Asset Management Inc. ATL922 ATL643 ATL681 n/a 0.41% 0-5% 5.00% 3.00% 0.10 0.10 0.10 0.10 0.10Renaissance U.S. Money Market Fund (US$) CIBC Global Asset Management Inc. ATL974 ATL363 ATL762 n/a 0.17% 0-5% 5.00% 3.00% 0.05 0.05 0.05 0.05 0.05FIXED INCOME FUNDS
Renaissance Short-Term Income Fund CIBC Global Asset Management Inc. ATL1021 ATL1121 ATL2121 ATL1630 1.43% 0-5% 5.00% 3.00% 0.50 0.25 0.50 0.25 0.50Renaissance Canadian Bond Fund CIBC Global Asset Management Inc. ATL1022 ATL1122 ATL2122 ATL1631 1.55% 0-5% 5.00% 3.00% 0.50 0.25 0.50 0.25 0.50Renaissance Real Return Bond Fund CIBC Global Asset Management Inc. ATL251 ATL291 ATL267 ATL010 1.66% 0-5% 5.00% 3.00% 0.75 0.25 0.75 0.25 0.75Renaissance Corporate Bond Capital Yield Fund CIBC Global Asset Management Inc. ATL1002 ATL1102 ATL2102 ATL016 1.63%1 0-5% 5.00% 3.00% 0.75 0.25 0.75 0.25 0.75Renaissance Corporate Bond Capital Yield Fund – Premium Class CIBC Global Asset Management Inc. ATL1202 n/a n/a n/a 0.93%1 0-5% n/a n/a 0.50 n/a n/a n/a n/aRenaissance High-Yield Bond Fund CIBC Global Asset Management Inc. ATL908 ATL823 ATL667 ATL015 2.01% 0-5% 5.00% 3.00% 0.75 0.25 0.75 0.25 0.75Renaissance Global Bond Fund Brandywine Global Investment Management, LLC ATL1028 ATL1872 ATL2872 ATL1646 2.02% 0-5% 5.00% 3.00% 0.75 0.25 0.75 0.25 0.75BALANCED FUNDS
Renaissance Canadian Balanced Fund (formerly Renaissance Canadian Balanced Value Fund) CIBC Global Asset Management Inc. ATL508 ATL507 ATL517 ATL019 2.30% 0-5% 5.00% 3.00% 1.10 0.50 1.10 0.50 1.10
Renaissance Optimal Income Portfolio
Brandywine Global Investment Management, LLC, CIBC Global Asset Management Inc., RARE Infrastructure Limited
ATL048 ATL050 ATL049 ATL051 1.90% 0-5% 5.00% 3.00% 1.00 0.50 1.00 0.35 1.00Renaissance Optimal Income Portfolio – Select Class ATL2401 ATL2403 ATL2402 n/a 1.66%1 0-5% 4.00% 2.00% 1.00 0.50 1.00 0.35 1.00Renaissance Optimal Income Portfolio – Elite Class ATL2404 ATL2406 ATL2405 n/a 1.31%1 0-5% 3.00% 1.00% 0.75 0.25 0.75 0.25 0.75Renaissance Optimal Income Portfolio – Class T6 ATL053 ATL055 ATL054 n/a 1.90% 0-5% 5.00% 3.00% 1.00 0.50 1.00 0.35 1.00Renaissance Optimal Income Portfolio – Select-T6 Class ATL2407 ATL2409 ATL2408 n/a 1.63%1 0-5% 4.00% 2.00% 1.00 0.50 1.00 0.35 1.00Renaissance Optimal Income Portfolio – Elite-T6 Class ATL2410 ATL2412 ATL2411 n/a 1.23%1 0-5% 3.00% 1.00% 0.75 0.25 0.75 0.25 0.75Renaissance Optimal Income Portfolio – Class T8 ATL056 ATL058 ATL057 n/a 1.91% 0-5% 5.00% 3.00% 1.00 0.50 1.00 0.35 1.00Renaissance Optimal Income Portfolio – Select-T8 Class ATL2413 ATL2415 ATL2414 n/a 1.63%1 0-5% 4.00% 2.00% 1.00 0.50 1.00 0.35 1.00Renaissance Optimal Income Portfolio – Elite-T8 Class ATL2416 ATL2418 ATL2417 n/a n/a 0-5% 3.00% 1.00% 0.75 0.25 0.75 0.25 0.75EQUITY INCOME FUNDS
Renaissance Canadian Dividend Fund (formerly Renaissance Canadian Dividend Income Fund) CIBC Global Asset Management Inc. ATL294 ATL211 ATL266 ATL014 1.91% 0-5% 5.00% 3.00% 1.25 0.25 0.75 0.50 1.25
Renaissance Canadian Monthly Income Fund CIBC Global Asset Management Inc. ATL910 ATL859 ATL668 ATL155 2.50% 0-5% 5.00% 3.00% 0.75 0.35 1.10 0.25 0.75Renaissance Diversified Income Fund CIBC Global Asset Management Inc. ATL247 ATL271 ATL204 ATL017 2.52% 0-5% 5.00% 3.00% 1.10 0.25 0.75 0.35 1.10Renaissance Millennium High Income Fund Morrison Williams Investment Management Ltd. ATL1879 ATL1880 ATL2880 ATL1650 2.58% 0-5% 5.00% 3.00% 0.75 0.50 1.25 0.25 0.75CANADIAN EQUITY FUNDS
Renaissance Canadian Core Value Fund CIBC Global Asset Management Inc., NWQ Investment Management Company, LLC ATL901 ATL853 ATL671 ATL020 2.58% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25
Renaissance Canadian Growth Fund McLean Budden Limited ATL902 ATL843 ATL669 ATL022 2.63% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25Renaissance Canadian Small-Cap Fund CIBC Global Asset Management Inc. ATL905 ATL852 ATL670 ATL023 2.59% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25U.S. EQUITY FUNDS
Renaissance U.S. Equity Value Fund Metropolitan West Capital Management, LLC ATL502 ATL501 ATL515 ATL024 2.73% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25Renaissance U.S. Equity Value Fund (US$) Metropolitan West Capital Management, LLC ATL743 ATL742 ATL744 ATL025 2.73% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25Renaissance U.S. Equity Growth Fund Aletheia Research and Management, Inc. ATL913 ATL833 ATL661 ATL026 2.73% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25Renaissance U.S. Equity Growth Fund (US$) Aletheia Research and Management, Inc. ATL973 ATL733 ATL761 ATL027 2.73% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25
Renaissance U.S. Equity Growth Currency Neutral Fund CIBC Global Asset Management Inc. (Aletheia Research and Management, Inc. is the investment manager of the underlying fund)
Renaissance International Dividend Fund Kleinwort Benson Investors ATL914 ATL856 ATL677 ATL032 2.36% 0-5% 5.00% 3.00% 0.75 0.25 0.75 0.25 0.75Renaissance International Equity Fund Walter Scott & Partners Limited ATL1868 ATL1869 ATL2869 ATL1644 2.80% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25
Renaissance International Equity Currency Neutral Fund CIBC Global Asset Management Inc. (Walter Scott & Partners Limited is the investment manager of the underlying fund)
Renaissance Optimal Global Equity Currency Neutral Portfolio
CIBC Global Asset Management Inc. (Aletheia Research and Management, Inc., NWQ Investment Management Company, LLC, RARE Infrastructure Limited, Wellington Management Company and Wintergreen Advisers, LLC are the investment managers of the underlying funds)
Renaissance Global Value Fund NWQ Investment Management Company, LLC ATL1030 ATL1031 ATL2031 ATL1625 2.80% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25Renaissance Global Growth Fund Walter Scott & Partners Limited ATL504 ATL503 ATL516 ATL034 2.82% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25
Renaissance Global Growth Currency Neutral FundCIBC Global Asset Management Inc. (Walter Scott & Partners Limited is the investment manager of the underlying fund)
Renaissance Global Focus Fund Aletheia Research and Management, Inc. ATL510 ATL509 ATL511 ATL036 2.85% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25
Renaissance Global Focus Currency Neutral Fund CIBC Global Asset Management Inc. (Aletheia Research and Management, Inc. is the investment manager of the underlying fund)
Renaissance European Fund BlackRock Investment Management International Limited ATL917 ATL163 ATL673 ATL030 2.80% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25
Renaissance Asian Fund Hamon Investment Management Limited ATL1512 ATL1519 ATL2519 ATL1639 3.35% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25Renaissance China Plus Fund Hamon Investment Management Limited ATL1050 ATL1051 ATL2051 ATL1627 3.30% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25Renaissance Emerging Markets Fund Pictet Asset Management Limited ATL920 ATL858 ATL675 ATL029 3.05% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25SPECIALTY FUNDS
Renaissance Global Infrastructure Fund RARE Infrastructure Limited ATL059 ATL061 ATL060 ATL062 2.62% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25
Renaissance Global Infrastructure Currency Neutral Fund CIBC Global Asset Management Inc. (RARE Infrastructure Limited is the investment manager of the underlying fund)
Renaissance Global Real Estate Fund Cohen & Steers Capital Management Inc. ATL1255 ATL1257 ATL1256 ATL1258 1.86% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25
Renaissance Global Real Estate Currency Neutral Fund CIBC Global Asset Management Inc. (Cohen & Steers Capital Management Inc. is the investment manager of the underlying fund)
Renaissance Global Health Care Fund Wellington Management Company, LLP ATL1161 ATL1162 ATL2162 ATL1635 3.28% 0-5% 5.00% 3.00% 1.00 0.50 1.00 0.50 1.00Renaissance Global Resource Fund Front Street Investment Management Inc. ATL1860 ATL1861 ATL2861 ATL1666 3.35% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25Renaissance Global Science & Technology Fund CIBC Global Asset Management Inc. ATL1027 ATL1871 ATL2871 ATL1645 3.00% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25Renaissance Global Science & Technology Fund (US$) CIBC Global Asset Management Inc. ATL1227 ATL1371 ATL2371 ATL1637 3.00% 0-5% 5.00% 3.00% 1.25 0.50 1.25 0.50 1.25
Select and Elite Class: There will be no automatic transfer into the Select Class (including Select-T6 Class or Select-T8 Class within the Renaissance Optimal Income Portfolio or Select-T4 Class, Select-T6 or Select-T8 Class within the Renaissance Optimal Global Equity Portfolio) or Elite Class (including Elite-T6 Class or Elite-T8 Class within the Renaissance Optimal Income Portfolio or Elite-T4 Class, Elite-T6 or Select-T8 Class within the Renaissance Optimal Global Equity Portfolio) from other Renaissance classes when the minimum investment of the Select classes or Elite classes has been reached. Conversions and switches into the Select classes or Elite classes will be subject to the minimum investment requirements governing each class. As a result, an investor must hold a minimum investment of $250,000 to convert or switch into the Select classes, and $500,000 to convert or switch into the Elite classes. Note: See the Renaissance Investments family of funds Simplified Prospectus for the tax treatment of conversions and switches.All MERs as at June 30, 20111 Annualized MER for the period ending June 30, 2011 (as disclosed in each fund’s interim management report of fund performance. Renaissance Investments may have waived fees or absorbed expenses
otherwise payable by a fund or portfolio, with the exception of any taxes or new fees introduced by regulators or governments. At the discretion of Renaissance Investments, this practice may continue indefinitely and can be terminated at any time.
2 All units held under the back-end load option on November 1, 2010 will maintain the trailing commission structure that was in place prior to November 1, 2010. Purchases of units under the back-end load option made after November 1, 2010 will be subject to the trailing commission structure detailed above.
3 All units held under the low load option on December 1, 2009 will maintain the trailing commission structure that was in place prior to December 1, 2009. Purchases of units under the low load option made after December 1, 2009 will be subject to the trailing commission structure detailed above.
4 Trailer fees may change at any time without prior notice.
Live Better
renaissance investments 133
Off the beaten trail, 21st century style
Asian vacation confidential
In the age of the smart phone and the cheap charter fl ight, does the proverbial hidden gem of a travel destination still exist?
134 renaissance investments
As much as it may seem that the days of travel to exotic far-away lands is a thing of the past, you would be surprised at how easy it can still be to get away from it all in our wired-up era. Asia offers many spots where you can immerse yourself in fascinating cultures and scenery by day – and then, return to a luxury resort for a gourmet dinner and good night’s sleep.
Even if you can’t be a pioneer or the first person into newly opened-up Vietnam, for example, you can still have an experience that’s genuine, unique and fresh, says Jonathan Lansdell, trip planner at Toronto-based Butterfield & Robinson Travel, which specializes in walking and cycling tours. “It’s all about how you travel and what you do once you’re there.”
Butterfield’s Vietnam cycling tour – which wheels past banana plantations and villages, with stops at rice-paper craft shops and dragon-fruit farms – has been recommended by Travel + Leisure magazine, and readers have named the company one of the top three tour operators in the world. “We get out into mountains and jungles while a lot of tourists just want to flop and drop,” says Landsell.
Those flopping, dropping travelers do have an excellent reason to want to stick around their resorts, however. Asia’s five-star hotels offer a level of service unparalleled in the west. And the beaches of Southeast Asia, with their fine white sand and perfect waves can be hard to leave behind. Throw in a few spectacular swimming pools, luxury spas and golf courses, and you can start to understand why you may need to set aside an extra week to enjoy the beach once you’re finished exploring.
Here are our sort-of-secret suggestions for your Asian itinerary:
The mountains of Bhutan
As far as travel secrets go, it’s hard to top a hidden kingdom; this is how Bhutan, located in the Himalayas between India and China, has been described for centuries.
It may not, however, stay hidden much longer. After years of restricting access to a few thousand visitors per year, the Wall Street Journal reported this spring that the country has launched “an ambitious economic development program that includes plans to jack up the number of foreign visitors from fewer than 50,000 to 100,000 annually by 2012, and higher in years beyond.”
That means you’ll have to go soon if you want to beat the throngs and step back in time to experience what life was like in
another era. One of the country’s main attractions is the so-called Tiger’s Nest, a 17th-century monastery on a cliff face in the Paro valley. For luxury lovers, Bhutan does have a five-star hotel, the Amankora Paro. It’s part of the Aman resort chain, which started up in Thailand, and, according to Butterfield’s Landsell, has followers so devoted that they visit every new resort. No matter where they stay, however, Landsell
“Even if you can’t be a pioneer or the first person into newly opened-up Vietnam, for example, you can still have an experience that’s genuine, unique and fresh.”
Photo courtesy of Aman Resorts
A return hike to the Tiger’s Nest monastery (left) from Amankora Paro lodge is four hours in duration
renaissance investments 135
says, many travellers to Bhutan come back telling him, the experience made them feel 10 or 15 years younger.
The rainforests of Borneo
For most North Americans, a rainforest holiday means a trip to Costa Rica, but if you’ve got some extra time or are already heading to Asia for other reasons, consider Borneo as a different destination. To get to the one-and-only Borneo Rainforest Lodge, located in the Danum Valley on the northern tip of the island, requires a bumpy, two-and-half-hour drive. Yet, despite being deep in the heart of the jungle, the lodge offers up all the amenities including excellent meals designed to fuel guests up for their rainforest treks, night safaris, jungle canopy walks and bird watching.
Visitors might spot endangered species like the Sumatran rhino, Benteng elephant, clouded leopard, Bornean gibbon, leaf monkey and orangutan, the last of which is found only in Borneo. Bird life is extensive too, meaning that if you’re not lucky enough to see a rare rhinoceros, you still have a good chance of spotting a rhinoceros hornbill, one of the biggest birds in Asia’s rainforests.
The beaches of Boracay
Boracay is a small island – just 10 square kilometers –in the Philippines, located some 300 kilometers south of Manila. It’s one of several spots in the archipelago nation that offers excellent scuba diving and snorkeling in warm, mostly tranquil waters just a half hour boat ride away. If you’re not already a diver, it’s also a great place to take a course. The island’s White Beach, with its fine pow-der-like sand and reputation as one of the world’s best beaches, runs along the west-ern shore and is sheltered from the wind for most of the year. The northern and southern ends of the island are windier as is Bulabog Beach on the island’s eastern side, which makes it an ideal location for water sports like windsurfing and kiteboarding.
Boracay’s 72-par golf course, designed by Australian golfer Graham Marsh, used to be strictly private but now welcomes the public. In 2009, a Shangri-La resort and spa opened on the northern tip of the island where it has its own exclusive beaches and offers guests their very own swimming pools. Needless to say there’s wifi too so, if the urge strikes, you can always tweet pool-side pictures to your friends back home.
The clouded leopard lives in Borneo while sun worshippers inhabit Boracay’s White Beach (right)
136 renaissance investments
Brain Calisthenics
Word scramble
Unscramble the following letters to spell words from the Invest Well article on page 8:
1. tiruaalas
2. lidanoitzartsuni
3. myocdimot
4. scomsuren
5. glaminono
6. lilibon
7. dudeharetqear
8. mocacernoocmi
9. mutilih
10. crosleephit
Sudoku
Complete the Sudoku puzzle so that each and every row, column and 3x3 box contains the numbers one through nine only once.
1 4 6 9 3 7
6 8 4
5 1
7 6 9 1 3 8
3 1
2 1 7 8 4 5
9 2
3 9 6
8 1 4 6 7 3
Spot the difference: Russia
Can you spot the five differences between the pictures below?
Source: 4puz.com
Check your answers at www.renaissanceinvestments.ca/braincalisthenics
To learn more about how Renaissance Investments can help you and your clients invest well and live better, visit www.renaissanceinvestments.ca or call 1 888 888 FUND (3863).
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.Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. The indicated rates of return are the historical annual compounded total returns for the class A units unless otherwise noted, including changes in unit value and reinvestment of all distributions, but do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. For money market funds, the performance data provided assumes reinvestment of distributions only but does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, nor are they guaranteed. There can be no assurance that a money market fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment will be returned to you. The values of many mutual funds change frequently. Past performance may not be repeated. †Current yield is an annualized historical yield based on the seven-day period ended on June 30, 2011 and does not represent an actual one-year return. ™ Axiom, Axiom Portfolios, Renaissance Investments and “invest well. live better.” are registered trademarks of CIBC Asset Management Inc.
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