Report Card – Q1, 2010 Compliments of: Investment Planning Counsel,, Phone: Email: Website: ...
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Transcript of Report Card – Q1, 2010 Compliments of: Investment Planning Counsel,, Phone: Email: Website: ...
Report Card – Q1, 2010
Compliments of:
<Advisor Name>
Investment Planning Counsel
<Street Address>
<City>, <Prov>, <Postal Code>
Phone: <Telephone Number>
Email: <Email address>
Website: www.ipcc.ca
Prepared for:
<Client Name(s)>
<Address>
<City>, <Prov>
<Postal Code>
Date: <Date>
Quarter Ending March 31, 2010
The Report Card provides a comprehensive review of past, current and potential factors that may impact your investments. Our goal is to continuously monitor your investments to help you meet your financial objectives.
About This Report
• While this is a quarterly communiqué, the comments in this Report Card refer to the last three and 12 months.
• Market discussions are related to the indices and do not analyze or reflect your personal investments.
• Counsel Portfolio Services examines the performance and risk management of each mandate within your Counsel investment solution.
• We review the performance, risk management and overall effectiveness of each sub-advisor and underlying fund manager.
• Counsel investment solutions adopt a long-term approach to investing. Each portfolio solution is properly diversified to reflect an appropriate:
– Asset mix– Geographic allocation– Investment style mix
• A market-cycle typically refers to a period of between six and eight years.• Please refer to the chart at the end of this presentation for further information on
Counsel portfolio solutions.• The benchmarks used for each Counsel investment solution can be found at the
end of this presentation.
Agenda
1. Market & Economic Overview
2. What The Investment Specialists Say
3. Review Of Counsel Investment Solutions
4. Appendix: Counsel’s View Of The Investment Specialists
1. Market & Economic Overview
Index Country3-Month Return
1 Year Return
Since Mar 9, 2009 Low Returns
World MarketsMSCI World International 4.16 43.14 58.57MSCI Emerging Markets International 2.11 77.26 98.27MSCI EAFE International 3.63 40.52 52.14North American MarketsS&P 500 U.S. 5.39 49.77 69.43NASDAQ Composite U.S. 5.91 58.32 80.39Russell 2000 U.S. 8.85 62.76 88.75S&P/TSX Composite Canada 3.14 42.15 59.15Dow Jones Industrial Average U.S. 4.11 42.68 59.15European MarketsFSE DAX Germany 3.29 50.65 62.82Euronext Paris CAC 40 France 0.97 47.58 58.82FTSE 100 U.K. 5.99 50.42 62.91Wiener Borse Austria 5.55 55.25 79.01Euronext BEL 20 Belgium 5.45 51.45 67.90ISEQ Overall Ireland 6.82 44.84 58.39Euronext AEX Holland 3.31 64.78 74.06OSE Oslo Bors Benchmark Norway 1.38 66.43 80.59Euronext Lisbon 20 Portugal - 4.27 36.36 42.88Spain IBEX 35 Spain - 8.95 39.11 52.64SWX SPI Switzerland 6.78 45.21 60.87OMXC 20 Denmark 13.77 67.74 73.66Sweden Affarsvarlden General Sweden 8.56 62.59 67.84Far East MarketsNZX 50 N.Z. 1.17 26.16 30.10S&P/ASX All Ordinaries Australia 0.21 38.52 53.13Nikkei 225 Average Japan 5.15 36.75 50.70Emerging MarketsHang Seng HIS Hong Kong - 2.89 56.45 72.23Shanghai SE Composite China - 5.13 31.01 38.90BSE SENSEX India India 0.36 80.54 101.53BOVESPA Ibovespa Brazil 2.60 71.95 82.67Bolsa De Caracas IBC General Venezuela Venezuela 5.94 33.59 51.63
Performance
Global Stock Markets: Index Movements
• Overall, North American equity markets did well, with small cap equities outperforming for the quarter and one year periods.
• Affected by the debt crisis in Greece, equity market in other heavily indebted European nations suffered.
• Taking a pause from its rapid recovery, emerging markets did poorly for the quarter.
Performance is calculated using local currency. Data as at: Mar 31, 2010Source: Morningstar Direct, Counsel Portfolio Services
The Recent Recovery In Perspective
• Bear markets last an average of 13 months, and plunge an average of 28.0%, but all losses are restored an average of 19 months after the bear’s end.
• The most recent bear was unusually long at 17 months (but not nearly the longest), and the most severe since the Great Depression.
• Symmetry is evident in the recovery since March. The profile is similar to the norm, but the scale of advance is the greatest of the post-war era.
• If this recovery continues to track a “normal” cycle, losses in the bear market would likely be recovered by September 2010.
Source: The Global Investment Outlook, Capital Markets Update, April 7, 2010, RBC Investment Strategy Committee
• We are more likely to now be in the second phase of the recovery.
• Expect it to be slower and more volatile.
The Dow’s Performance In The First Quarter
Source: WSJ Market Data Group
large increase
Source: Bloomberg.com
Dow’s Performance By Decade• This chart shows the price
performance of the Dow for each decade since 1900.
• How do the 10 years just passed rank?
• From the close of 1999 through 2009, the Dow had the second worst performance on record.
• Only the decade of the Great Depression (the 1930s) was worse.
• The most recent decade shares an unfortunate similarity with the 1930s: it was a decade during which the Dow actually ended lower than where it started.
Only twice since 1900’s has the Dow experienced negative decades
This was followed by strong performing decades
Bear Market Rallies
All major market rallies of the last 110 years are plotted.
Each dot represents a major stock market rally as measured by theDow Jones Industrial Average.
• The Dow has begun a major rally 27 times over the past 110 years.
• This equates to an average of one rally every four years.
• Most major rallies (73%) resulted in a gain of between 30% and 150% and lasted between 200 and 800 trading days (blue shaded box).
• As it stands right now, the current Dow rally (red star) has entered the low range of a "typical" rally, and would currently be classified as both short in duration and below average in magnitude.
Source: Chart of the day
Dramatic Swings In Sideways Markets
• The period from 1965 to 1981 was a range bound market, very similar to what we are seeing today.
• We’re in year 10 of a minimum 15 year sideways market.
• This may mean lower growth and higher volatility for the broad market.
Potential for more volatility to come
We are here
Secular Bear Market ExampleThe swings are more dramatic than most investors realize
Source: Crestmont Research
Opportunity - Even In Range Bound Markets
• In the past range bound market – mutual funds did better than the index
Dow Jones
Industrial
Average
0
200
400
600
800
1000
1965 '66 '67 '68 '69 '70 '71 '72 '73 '74 '75 '76 '77 '78 '79 '80 '81 '82
1965 1982
$100,000 $577,265Average Fund Manager
Average Fund Increase +477% 10.2% / Year
$100,000 Dow Jones Industrials Total Return $271,214
Source: Sionna Investment Managers Inc.
Canadian Currency Performance
• Commodity prices strengthened boosting the Canadian dollar toward parity with U.S. dollar.
• European sovereign debt concerns helped boost the Canadian dollar against the Euro.
• Canada is fiscally more prudent compared to other nations.
Source: “The Global Investment Outlook, RBC Investment Strategy Committee, Fall 2009,” RBC Global Asset Management
Source: Bank of Canada
0.550.6
0.650.7
0.750.8
0.850.9
0.951
1.05
3/31
/200
94/
30/2
009
5/31
/200
96/
30/2
009
7/31
/200
98/
31/2
009
9/30
/200
910
/31/2
009
11/3
0/200
912
/31/2
009
1/31
/201
02/
28/2
010
3/31
/201
0
0.550.6
0.65
0.70.750.8
0.850.9
0.951
1.05
3/31
/200
9
4/30
/200
9
5/31
/200
9
6/30
/200
9
7/31
/200
9
8/31
/200
9
9/30
/200
9
10/3
1/200
9
11/3
0/200
9
12/3
1/200
9
1/31
/201
0
2/28
/201
0
3/31
/201
0
CAD vs. U.S. Dollar CAD vs. Euro
Source: Bank of Canada
Canada: Equities Versus Fixed Income
• Equity markets have significantly outperformed cash and bonds and it is possible that equity allocations have moved beyond the upper limit of desirable weightings. Rebalancing is key.
• Following a tremendous 12 month rally, equity returns are likely to be more muted going forward. • There are still many unresolved issues in the background:
• European sovereign debt issues
• High debt and deficit levels in other western governments
• Weak residential and commercial real estate in the U.S.
• Impending exit strategies by Central banks.
• Even during “up” markets it is important for investors to be disciplined in asset allocation.
Short-term: Equities vs. Bond
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 month 3 month 6 month 1 year
Bonds - DEX Universe Equities - S&P/TSX
Long-term: Equities vs. Bonds
-2%
0%
2%
4%
6%
8%
10%
3 year 5 year 10 year 15 year 20 year
Bonds - DEX Universe Equities - S&P/TSX
Source: Globe and Mail
Canadian Market OverviewInvestment Style Performance Market Cap Performance
Source: Morningstar Direct
MSCI Canada Growth Index
MSCI Canada Value Index.
S&P TSX Completion Total Return
S&P TSX 60 Total Return
S&P TSX Small Cap Total Return
Source: Morningstar Direct
• Many of the sectors that dominated the rally last year were flat or negative in the first quarter.
• Economic activity rebounded strongly, and GDP growth in Canada exceeded 6% on an annualized basis.
• The Financials sector was the best performer during the quarter as banks reported earnings and loan losses that were, in most cases, better than analyst expectations
• The Energy and Materials sectors had flat or negative returns as investors gravitated towards quality and safety.
U.S. Market Overview
• A mix of disappointing employment data and aggressive language around banking sector regulation continued to cause jitters in the markets.
• Due to cost-cutting in the corporate sector last year, earnings surprises have been better than expected.
• Mid and small cap equities have led the recovery. Value stocks have outperformed growth.
• The Financials sector improved supported by the government stimulus programs.
Investment Style Performance Market Cap Performance
S&P 500 Total Return
S&P Mid Cap 400 Total Return
S&P Small Cap 600 Total Return
Source: Morningstar Direct Source: Morningstar Direct
Russell 1000 Growth Index
Russell 1000 Value Index
International Market Overview
• The strength of the Canadian dollar has substantially reduced returns on most international equities as measured in Canadian dollars.
• Fears over Greece’s budget deficit and that of several Mediterranean countries as well as the stability of the European Union has become a concern.
• China recorded negative performance following concerns over its pace of growth and government programs to reign in inflation
• Technology positions offered the better returns – this is a global phenomenon and is indicative of growth situations.
Investment Style Performance
MSCI EAFE Growth
MSCI EAFE Value
Source: Morningstar Direct
2. What The Investment Specialists Say…
On Canada
• “Given the persistent strength of the recovery, we remain cautious about the near-term outlook for government bond yields.” – Acuity Investment Management Inc.
• “Canadian financial institutions continue to justify their new reputation as global leaders.” – Leon Frazer & Associates Inc.
• “Although Canada is well positioned and has outperformed many of the world’s markets during the first 10 years of (the current) sideways market, and it is likely to continue to do so, the Canadian market will not be spared volatility swings. – Sionna Investment Managers Inc.
On The U.S.• “Economic data continues to improve, notably in the manufacturing, housing and
employment sectors in the U.S. However, we believe expectations for a stronger economy have largely been priced in by the market, and valuation and sentiment indicators are neutral.” – TD Asset Management Inc.
On Europe
• “In Europe, investors also responded positively to an improving business climate and to Greece’s efforts to reduce its deficit even though one could wonder about the challenges the Greek government is likely to face in implementing some of the draconian austerity measures it has announced.” – GLG Inc.
• “The key worry is that should Greece collapse, other European countries could follow, which could place pressure on stocks in general due to the fear factor coming into play. Our view is that Greece will be supported by the European Union (EU), or International Monetary Fund, or both.” – Howson Tattersall Investment Counsel
• “Europe’s economic recovery will likely slow as Mediterranean countries are forced to reduce government spending.” – Marsico Capital Management, LLC
On Interest Rates• “While yields may rise further as the markets normalize following the financial
crisis, we do not anticipate a sharp spike to a substantially higher level such that it could derail the recovery.” – Acuity Investment Management Inc.
• “The U.S. Federal Reserve (Fed) is still concerned that the economy is not yet ready to have the monetary stimulus removed from the system due to the sluggishness of the consumer and the high unemployment rate. Even if rates move up, the moves will likely be small and gradual.” – Howson Tattersall Investment Counsel
• “In our view, the U.S. Federal Reserve is likely to keep short term rates low through the balance of 2010.” – Marsico Capital Management, LLC
• “The one thing that may result from increased sovereign risk is higher interest rates globally.” – Leon Frazer & Associates Inc.
• “Some countries (Australia, Norway, Israel, Vietnam and Malaysia) have already begun to increase rates. The timing and rate at which other countries normalize their interest rates will be very much country specific, but the direction (up) will not. We must note that these are the short term interest rates that the central banks control, not the long term rates which the bond markets preside over and are much more important to the valuation of equities.” – Mawer Investment Management Inc.
On Inflation
• “We are not overly concerned about inflation risks at this time given the significant output gap that exists around the world. However, we believe a factor that could boost interest rates longer term is the “crowding out” effect caused by funding massive government budget deficits around the world.” – Picton Mahoney Asset Management
• Due to the high unemployment and excess capacity, not just in the U.S., but also in other Organization for Economic Co-operation and Development (OECD) countries, inflationary pressures remain low.” – Thornmark Asset Management Inc.
• “Currently, inflation remains subdued. With high unemployment and below normal capacity utilization rates, the risks to rising inflation remain reasonably low for the time being.” – Howson Tattersall Investment Counsel
On Currency
• “Our view is that the Canadian dollar is likely to remain high relative to the U.S. dollar.” – Howson Tattersall Investment Counsel
• “As the U.S. economy continues to recover, we anticipate that the U.S. dollar could gain support versus the Canadian dollar. Another “wild card” is China, as it attempts to reign in growth and inflation. A slowing Chinese economy would dampen demand for natural resources which could also impact the Canadian dollar.” – Marsico Capital Management, LLC
• “China’s appetite for commodities may be creating a bubble.” – Mackenzie Cundill Investment Management Ltd.
• “The Canadian dollar has already appreciated materially. It is now at a level, particularly against the U.S. dollar and British pound, which it has rarely attained. With the big move already happening, this provides investors with a stronger Canadian dollar to use to buy non-Canadian equities.” – Mawer Investment Management Ltd.
On Commodities
• “Commodities are currently at high historical levels. Should China begin to raise rates or clamp down on their expansion plans, the prices of metals will likely come under pressure.” – Howson Tattersall Investment Counsel
• “The focus is clearly on China, the biggest consumer of raw materials, to see if it can reign in growth and the threat of inflation. ” – Marsico Capital Management, LLC
• “We believe much of the optimism in base metals may be overdone due to the fact that commodities tend to be late cycle performers and the recovery in the developed world is still in its early stages.” – Leon Frazer & Associates Inc.
• “As the global expansion maintains momentum through 2010, led by Asia, it is expected that demand for commodities will remain strong. We believe that oil prices may also remain high and move towards $100 over the summer. We also are of the view that Gold is considered to be fairly valued. ” –Thornmark Asset Management Inc.
On Sovereign Risks In Europe
• “Sovereign debt risk in Europe is effectively a canary in a coal mine. The proverbial “PIIGS” countries (Portugal, Ireland, Italy, Greece and Spain) are potentially at risk, as governments there, and in many other areas, have expanded their balance sheets to fund economic growth before and during the current downturn. There is potential that if there is a default, it may mark the beginning of a trend.”– Mackenzie Cundill Investment Management Ltd.
• “Within our investment horizon, we do not expect European sovereign debt issues to destabilize the global economy.” – Thornmark Asset Management Inc.
• “We anticipate that the impact of the sovereign crises in Europe will likely have a muted impact on global stock market performance overall. The countries involved are too small to generate much direct impact on major markets, and the probability of other governments in Europe, along with the International Monetary Fund (IMF), stepping in to bail out countries on the verge of default is very high.” – PanAgora Asset Management Inc.
• “Sovereign risk is not quarantined in Europe. We would suggest that sovereign risk is mounting in all countries as governments around the globe attempt to recover from the worst recession since the Great Depression. If the economic recovery continues to take hold, sovereign risk should begin to subside.” – Leon Frazer & Associates Inc.
On Market Volatility
• “Market volatility is an ever present reality for investors. It is interesting to us that no one complained about the upside volatility from 2006 to the first half of 2008. It was only after the recent downturn that people have begun to evaluate how volatile their investments can be. ” – Leon Frazer & Associates Inc.
• “Following such a tremendous 12-month rally, equity returns are likely to be more muted going forward, we anticipate that more meaningful corrections may be in store periodically.” – Acuity Investment Management Inc.
• “A lot of good news has been priced into the market. The market has been reacting quite strongly to economic numbers. But any disappointing numbers, particularly with job creation, would likely put pressure on the markets. As well, the world is awash in debt and investors…The success or failure of these indebted nations in dealing with their debt problems may also create volatility for the market.” – Howson Tattersall Investment Counsel
• “In North American markets, volatility is finally normalizing. We do not expect a material change in volatility.” – Thornmark Asset Management Inc.
• “We do not view volatility as risk. Instead we see volatility as an opportunity to purchase quality businesses trading at a discount to intrinsic value due to short-term issues.” – Invesco Trimark Ltd.
On Market Recovery & Outlook
• “From an absolute point of view, the macro data suggests a relatively fragile macroeconomic picture…data suggests that the major world economies are transitioning from a phase of inventory replenishment-driven recovery to one where consumer confidence is no longer falling and businesses are moving to spend again after a one and a half year period of not doing so.” – GLG Inc.
• “Profit growth has resumed, which will likely lead to more hiring by companies over time. While employment growth and the housing recovery will likely be a slow drawn out process, the trend seems to indicate that the worst is over.” – Howson Tattersall Investment Counsel
• “We are more bullish then consensus about the strength of the U.S. recovery…we believe that the trends that were put in place last year will continue to provide a favorable backdrop for U.S. stocks.”– Marsico Capital Management, LLC
• “ We continue to believe 2010 will be a year of economic recovery, albeit slow, and equity markets will see modestly positive returns.” – Leon Frazer & Associates Inc.
• “We are optimistic about the unfolding global economic recovery. We are struck by the observation that today’s economic reality is better than anyone thought it would be. And we suspect that this trend will continue. – Forum Partners Europe (U.K.)
On Market Recovery & Outlook
• “We believe that equity markets could trade sideways for the foreseeable future due to the absence of any catalysts to significantly move the market higher or lower.” – Leon Frazer & Associates Inc.
• “We are cautious about the next 6–18 months as governments begin to withdraw their stimulus, interest rates rise and taxes go up. We believe that these upcoming headwinds pose a significant challenge to the economic recovery and that the pace of growth going forward will be slow at best .” – Leon Frazer & Associates Inc.
• “The recovery, is progressing and potentially may slow in quarters ahead. China bubbles or sovereign debt issues could easily surprise negatively.” – Mackenzie Cundill Investment Management Ltd.
• “We do not expect a bear market to begin in 2010, but we do expect stock market weakness to occur mid-year, largely related to fears of the onset of a new monetary tightening cycle in the U.S.” – Picton Mahoney Asset Management
• “We highlight the potential for volatility during the remainder of 2010, as this will be a critical time for policy decisions.” – Mawer Investment Management Ltd.
• “We expect 2010 should deliver positive stock market returns by the time it is done, but there could be a few sharp swings along the way”. – Picton Mahoney Asset Management
On Market Recovery & Outlook
• ”Global economic conditions are robust and sustainable.” – Thornmark Asset Management Inc.
• “As is often the case in the transition from recovery to growth phases, we believe that it is likely that markets will overshoot fair value, so there is upside to 2010 market returns. Although modest sounding, this is a healthy equity return and far better than that expected from fixed income or cash markets.” – Thornmark Asset Management Inc.
• “Despite the massive size (S&P 500 up 74%, TSX up 54%) of the rally since March, opportunities remain as long as the economy avoids slipping back into recession (a prospect that we view as very unlikely). Profits are recovering from far below normalized levels, and aggressive cost cutting has introduced unexpected operating leverage, which will likely further buoy earnings when revenues ultimately begin to rise. Valuations assigned to normalized profits remain near the most conservative levels of the post-war era in most major economies, suggesting even a sub-par recovery in profits may be enough to sustain a bull market. .” – RBC Asset Management Inc.
3. Review of Counsel Investment Solutions
Counsel Balanced Portfolio
* Target asset allocation weights adjusted in October 2009, following annual review of Counsel portfolios.** Target asset allocation weights adjusted following merger of Counsel Select America (U.S. equities mandate) into Counsel U.S. Growth. Counsel U.S. Value and Counsel U.S. Growth were added as new underlying funds to the Portfolio.
This Portfolio invests in underlying mutual funds (which may be managed by Counsel) currently sub-advised by the sub-advisors listed beside each investment mandate. For information on the underlying funds, please refer to the prospectus, which is available on our website at www.counselservices.com or on the SEDAR website at www.sedar.com.
Mandate
Target Asset
Allocation (Oct 2009)*
Target Allocation (Prior to
Feb 2010)**
Current Target
Allocation Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10Fixed income 40.00% 40.00% 40.00% 39.50% 38.05% 37.93% 38.34% 38.01% 38.02% 38.28% 39.29% 39.30% 40.49% 40.49% 39.99%Canadian value equities 6.50% 8.00% 8.00% 6.49% 6.48% 6.75% 6.61% 6.58% 6.41% 6.60% 8.51% 8.39% 7.90% 7.90% 8.03%Canadian growth equities 6.50% 8.00% 8.00% 6.46% 6.51% 6.74% 6.47% 6.70% 6.64% 6.76% 8.34% 8.50% 8.33% 8.33% 8.60%U.S. value equities 0-9.00% 0-7.50% 7.50% - - 0.08% 0.12% 0.22% 0.30% 0.33% 0.57% 0.77% 0.79% 0.79% 7.35%U.S. growth equities 0-9.00% 0-7.50% 7.50% - - 0.08% 0.12% 0.22% 0.29% 0.32% 0.56% 0.77% 0.77% 0.77% 6.96%International value equities 9.00% 7.50% 7.50% 9.04% 9.10% 9.13% 8.98% 9.17% 9.08% 9.05% 7.37% 7.32% 7.27% 7.27% 7.16%Internationa growth equities 9.00% 7.50% 7.50% 9.57% 9.34% 9.16% 9.41% 9.17% 9.37% 9.13% 7.56% 7.46% 7.21% 7.21% 7.05%Global small cap 5.00% 8.00% 8.00% 5.24% 5.66% 5.66% 5.87% 6.04% 6.24% 6.53% 8.53% 8.42% 8.83% 8.83% 8.79%Global real estate 6.00% 6.00% 6.00% 5.42% 5.95% 6.02% 6.24% 6.16% 6.31% 6.09% 6.17% 6.09% 5.90% 5.90% 5.95%U.S. equities 0-18.00% 0-15.00% - 18.08% 18.43% 18.30% 17.51% 17.43% 17.24% 16.93% 13.17% 12.81% 12.55% 12.55% -
% Net Asset Value
0%5%
10%15%20%25%30%35%40%45%50%
U.S.
Europ
e
Japa
n
Emer
ging
Mark
ets
Far E
ast
Canad
a
Oth
erCas
h
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Equities Bonds Income trusts Real estate Cash & cashequivalents
Counsel Balanced PortfolioEffective Asset Class Mix Effective Top 10 Sector Allocation
Effective Geographic Mix
0%
5%
10%
15%
20%
25%
Financia
l Serv
ices
Oil &
Gas
Indu
stria
l Pro
duct
s
Techno
logy
Consu
mer
Pro
duct
s
Comm
unicat
ions &
Med
ia
Health
Car
e
Met
als & M
iner
als
Trans
porta
tion
Mer
chan
disin
g & R
etai
l
Mar-09 Dec-09 Mar-10
Counsel Balanced Portfolio
Positive and negative attribution for Q1, 2010
Positive and negative attribution for the 12 months ended 31 March, 2010
+ Positive attribution to overall Portfolio, reflecting that the mandate outperformed its relative benchmark on a gross returns basis.
- Negative attribution to overall Portfolio, reflecting that the mandate underperformed its relative benchmark on a gross returns basis.
* On January 7, 2009, the Portfolio was rebalanced to include new mutual funds as underlying funds. As a result, 12-month performance attribution for this mandate is derived by blending the performance of the new underlying mutual fund for the period after January 7, 2009, with the performance of the previous underlying fund for the period before January 7, 2009.
MandateFixed
income
Cdn value
equities
Cdn growth equities
U.S. value
equities
U.S. growth equities
Int'l value
equities
Int'l growth equities
Global small cap
Global real
estate
Portfolio Design &
ConstructionAttribution + + + + + - + + + +
MandateFixed
income
Cdn value
equities
Cdn growth equities
U.S. value
equities
U.S. growth equities
Int'l value
equities
Int'l growth equities
Global small cap
Global real
estate
Portfolio Design &
ConstructionAttribution + - + + + - + + - +
**
Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.
Return
Incept.
DateSeries 'A' 2.47 2.23 4.88 25.23 -2.11 2.09 n/a 3.13 1/15/02Net Benchmark* 0.78 0.20 0.84 14.55 -4.61 0.76 n/a 0.71
Portfolio Performance (%) Series 'A'
Compound Returns vs. Benchmark
Counsel Fixed Income
Effective Investment Mix Effective Bond Maturity
Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.
Return
Incept.
DateSeries 'A' -0.10 1.77 2.70 8.10 3.79 3.65 n/a 6.18 5/31/01Net Benchmark* -0.80 1.06 0.69 4.33 4.49 4.43 n/a 5.63
Compound Returns vs. Benchmark
Fund Performance (%)
0%
5%
10%
15%
20%
25%
30%
35%
40%
Under 1 Yr 1 - 5 Yrs 5 - 10 Yrs 10 - 20 Yrs 20 + Yrs
Mar-09 Dec-09 Mar-10
0%
10%20%
30%
40%50%
60%
Corpo
rate
Feder
al
Provin
cial
Inco
me
trust
s
Cash
& cas
h equ
ivalen
ts
Mun
icipa
l
Counsel Fixed Income
Contributors Detractors Strategic Shifts
Q1 • Security selection and an overweight corporate bonds
• Underweight government bonds
• Allocation and selection of income trusts
• None • Took advantage of bond market rally to shorten duration
Past 12 months
• Allocation and selection of income trusts
• Security selection and an overweight allocation in corporate bonds
• An underweight allocation to government bonds
• None
Counsel Canadian Value
Contributors Detractors Strategic Shifts
Q1 • Intact Financial Corp.– strong financial results
• Methanex Corp.– continued strength in the
price of methanol
• Telus Corp.– completion of significant
capital investments in 2009
• TMX Group Inc.– forced to cut its
trading fees due to increased competition
• Gerdau Ameristeel– recovery has not
resulted in improved demand for the company’s products.
• No major shifts
Past 12 months
• Methanex Corp.• Transcontinental Inc.
– continues to post improving financial results
• Imperial Oil– share price unable to
keep pace with the dramatic rise of overall market
• SPDR Gold Trust
Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.
Return
Incept.
DateSeries 'A' 4.08 3.01 5.93 30.97 n/a n/a n/a 25.73 01/14/09Net Benchmark* 3.71 2.83 6.50 40.90 n/a n/a n/a 33.95
Fund Performance (%)
Compound Returns vs. Benchmark
Effective Asset Class Mix Effective Top 10 Sector Allocation
Counsel Canadian Value
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Equities Income trusts Cash & cashequivalents
0%
5%
10%
15%
20%
25%
30%
35%
Financia
l Serv
ices
Oil &
Gas
Indu
stria
l Pro
duct
s
Gold
& P
recio
us M
etal
s
Congl
omer
ates
Comm
unicat
ions &
Med
ia
Consu
mer
Pro
duct
s
Mer
chan
disin
g & R
etai
l
Trans
porta
tion
Paper
& F
orestr
y
Mar-09 Dec-09 Mar-10
Counsel Canadian Growth
0%
5%
10%
15%
20%
25%
Financia
l Serv
ices
Met
als & M
iner
als
Oil &
Gas
Techno
logy
Indu
stria
l Pro
duct
s
Trans
porta
tion
Gold
& P
recio
us M
etal
s
Comm
unicat
ions &
Med
ia
Consu
mer
Pro
duct
s
Congl
omer
ates
Mar-09 Dec-09 Mar-10
Counsel Canadian Growth
Effective Asset Class Mix Effective Top 10 Sector Allocation
Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.
Return
Incept.
DateSeries 'A' 3.59 4.42 9.89 40.19 n/a n/a n/a 30.88 01/14/09Net Benchmark* 3.71 2.83 6.50 40.90 n/a n/a n/a 33.95
Fund Performance (%)
Compound Returns vs. Benchmark
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Equities Income trusts Cash & cashequivalents
Canadian Growth Equities
Contributors Detractors Strategic Shifts
Q1 • Materials• Financials• Overweight Red Back
Mining Inc.
• Financials• Overweight Major
Drilling Group • Cash position
• No major shifts
Past 12 months
• Materials• Energy• Underweight position
Barrick Gold Corp
• Financials• Teck Resources Ltd.• Cash position
Canadian Quantitative Growth EquitiesContributors Detractors Strategic Shifts
Q1 • Security selection – Pacific Rubiales
• Teck Resources
• Sino Forest • Materials• Energy
• Increased Energy
• Reduced Materials
Past 12 months
• Pacific Rubiales• Teck Resources
• Performance in Q2 2009
– due to an underweight position in the Energy and Financials sector (which were among the best performing sectors) and an overweight position in Materials (the worst performing sector).
Counsel U.S. Value
Contributors Detractors Strategic Shifts
Q1 • Industrials – strong stock selection
• Utilities – underweight position
• Consumer Discretionary and Technology
– weak stock selection
• Energy– overweight position
No major shifts
Past 12 months
• Financials • Energy
– strong stock selection in both sectors
• Consumer Discretionary
– lower quality retailers outperformed the mandate’s higher quality holdings
Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.
Return
Incept.
DateSeries 'A' 2.91 3.94 7.46 38.73 n/a n/a n/a 28.93 01/14/09Net Benchmark* 2.14 3.04 4.59 22.62 n/a n/a n/a 9.86
Fund Performance (%)
Compound Returns vs. Benchmark
Counsel U.S. ValueEffective Asset Class Mix Effective Top 10 Sector Allocation
0%
5%
10%
15%
20%
25%
30%
Oil &
Gas
Financia
l Serv
ices
Consu
mer
Pro
duct
s
Health
Car
e
Indu
stria
l Pro
duct
s
Met
als & M
iner
als
Techno
logy
Congl
omer
ates
Mer
chan
disin
g & R
etai
l
Trans
porta
tion
Mar-09 Dec-09 Mar-10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Equities Cash & cash equivalents
Counsel U.S. Growth
Contributors Detractors Strategic Shifts
Q1 • Software & Services– Stock selection: Baidu
• Materials– Stock selection: Dow
Chemical & BHP Biliton
• No exposure to Telecommunications Services and Utilities
– weak performing sectors
• Energy– Stock selection
• Cash & Cash Equivalents
• Financials– Stock selection
• Reduced exposure to Information and Technology Energy
• Added to Consumer Discretionary and Industrials
Past 12 months
• Underweight Energy • Telecommunication
Services and Utilities– weak performing sectors
• Cash & Cash Equivalents
• Industrials
Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.
Return
Incept.
DateSeries 'A' 5.19 3.11 8.28 24.35 n/a n/a n/a 18.25 01/14/09Net Benchmark* 1.44 0.97 6.17 19.56 n/a n/a n/a 17.42
Fund Performance (%)
Compound Returns vs. Benchmark
Counsel U.S. Growth
Effective Asset Class Mix Effective Top 10 Sector Allocation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Equities Cash & Equivalents
0%
5%
10%
15%
20%
25%
30%
Financia
l Serv
ices
Techno
logy
Indu
stria
l Pro
duct
s
Health
Car
e
Trans
porta
tion
Consu
mer
Pro
duct
s
Oil &
Gas
Met
als & M
iner
als
Mer
chan
disin
g & R
etai
l
Hospit
ality
Mar-09 Dec-09 Mar-10
Counsel International Value
Contributors Detractors
Q1 • Nokia OYJ– strong share price performance
• Seven & I Holdings– performance from low base starting point
modest improvements in the business• Canadian dollar strength
• EXOR – muted car sales and concerns over
the future profitability of Chrysler
• Deutsche Post• Vivendi
– concerns over new mobile entrants to the French market
Past 12 months
• Mediaset – cost cutting support improvement in earnings and its share price
• Samsung Electronics– improving prices for memory chips and home electronics
• Canadian dollar strength
• Seven & I Holdings• Vivendi
Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.
Return
Incept.
DateSeries 'A' 7.49 3.66 2.63 24.27 n/a n/a n/a 15.53 01/14/09Net Benchmark* 7.33 3.15 4.45 48.90 n/a n/a n/a 29.97
Fund Performance (%)
Compound Returns vs. Benchmark
Counsel International Value
Effective Asset Class Mix Effective Top 10 Sector Allocation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Equities Cash & Cash Equivalents
0%5%
10%15%20%25%30%35%40%
Financia
l Serv
ices
Comm
unicat
ions &
Med
ia
Consu
mer
Pro
duct
s
Techno
logy
Mer
chan
disin
g & R
etai
l
Indu
stria
l Pro
duct
s
Trans
porta
tion
Real E
stat
e & C
onstr
uctio
n
Met
als & M
iner
als
Mar-09 Dec-09 Mar-10
Counsel International Growth
Contributors Detractors
Q1 • Fugro N.V.– strong share price rebound
• Barclays Royal Bank of Scotland Group
– strong returns as economic outlook continues to improve and the financial system continues to stabilize
• Canadian dollar– appreciated against major
currencies
• Spanish companies– economic concerns
• HSBC Holdings– declined elative to many bank
holdings.
Past 12 months
• Fugro N.V.– strong share price rebound
• State Bank of India– directly exposed to the strong local economy
• Australian banks – benefited from recovery in the financial system and Australian dollar
• Canadian dollar– appreciated against major
currencies
• Bank of Yokohama– declined in Canadian dollar terms
due to the depreciation of the Japanese yen
• Alstom– short term fall in demand
Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.
Return
Incept.
DateSeries 'A' 2.35 -2.29 -1.11 29.74 n/a n/a n/a 22.54 01/14/09Net Benchmark* 2.17 -1.60 -0.19 20.51 n/a n/a n/a 10.90
Fund Performance (%)
Compound Returns vs. Benchmark
Counsel International GrowthEffective Asset Class Mix Effective Top 10 Sector Allocation
0%
20%
40%
60%
80%
100%
120%
Equities Cash & Cash Equivalents
0%
5%
10%
15%
20%
25%
30%
Indu
stria
l Pro
duct
s
Financia
l Serv
ices
Oil &
Gas
Techno
logy
Health
Car
e
Comm
unicat
ions &
Med
ia
Met
als & M
iner
als
Utilitie
s
Consu
mer
Pro
duct
s
Trans
porta
tion
Mar-09 Dec-09 Mar-10
Counsel Global Real Estate
Contributors Detractors Strategic Shifts
Q1 • Stock selection in Singapore
• Overweight Hotels in the U.S.
• Underweight Hong Kong and China
• Overweight the U.K.• Exposure to Latin
America• Exposure to
Western Europe
• Added capital to U.S. and Canadian companies that are expected to benefit from an improving economic recovery
Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.
Return
Incept.
DateSeries 'A' 3.59 1.55 3.25 42.15 n/a n/a n/a 22.38 01/14/09Net Benchmark* 2.61 0.21 1.79 47.18 n/a n/a n/a 23.78
Fund Performance (%)
Compound Returns vs. Benchmark
Counsel Global Real EstateEffective Asset Class Mix Effective Geographic Mix
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
U.S. Europe Japan EmergingMarkets
Far East Canada Cash
Mar-09 Dec-09 Mar-10
0%
5%
10%
15%
20%
25%
30%
35%
Equities Income Trusts Cash & CashEquivalents
Counsel Global Small Cap
Positive and negative attribution for Q1, 2010
Positive and negative attribution for the past 12 months ended March 31, 2010
+ Positive attribution to overall Portfolio, reflecting that the mandate outperformed its relative benchmark on a gross returns basis.
- Negative attribution to overall Portfolio, reflecting that the mandate underperformed its relative benchmark on a gross returns basis.
Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.
Return
Incept
. DateSeries 'A' 4.74 3.30 11.79 62.11 -6.27 n/a n/a 2.25 6/6/05Net Benchmark* 3.32 3.83 4.02 38.79 -9.76 n/a n/a -0.86
Fund Performance (%)
Compound Returns vs. Benchmark
Mandate
Cdn Small Cap
U.S. small cap
Int'l small cap
Portfolio Design &
ConstructionAttribution - - + +
Mandate
Cdn Small Cap
U.S. small cap
Int'l small cap
Portfolio Design &
ConstructionAttribution + + - +
Counsel Global Small CapEffective Asset Class Mix Effective Top 10 Sector Allocation
0%
5%
10%
15%
20%
25%
Indu
stria
l Pro
duct
s
Consu
mer
Pro
duct
s
Techno
logy
Financia
l Serv
ices
Oil &
Gas
Health
Car
e
Mer
chan
disin
g & R
etai
l
Comm
unicat
ions &
Med
ia
Met
als & M
iner
als
Trans
porta
tion
Mar-09 Dec-09 Mar-10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Equities Bonds IncomeTrusts
Mortgage &Real Estate
Cash & CashEquivalents
Canadian Small Cap
Contributors Detractors Strategic Shifts
Q1 • Energy stocks• Material stocks• Small caps, in general,
outperformed the overall market
• Transat• Oppenheimer • ATS Automation
• Took profits from Metals sector,
• Proceeds redeployed to Financials, Materials and
Energy Past 12 months
• Small caps, in general, outperformed the overall market
• Very strong performance
from – Financial stocks– Material stocks
• Hemisphere GPS• Liquidation World
U.S. Small Cap
Contributors Detractors
Q1 • Kinetic Concepts– rallied after winning a patent
infringement case
• Tempur-Pedic International – earnings that beat analyst estimates
• Smart Modular Technologies – earnings that beat analyst estimates
• Nutrisystem – results disappointing
• Synaptics
– negative investor sentiment • Currency
– strong Canadian dollar
Past 12 months
• Change in market sentiment• Tempur-Pedic and Smar Modular
• Currency– strong Canadian dollar
• Jackson Hewitt Tax Service– growing investor concern about
inability to gain market share, deteriorating fundamentals and increasing competitive pressures in the industry.
International Small Cap
Contributors Detractors Strategic Shifts
Q1 • Aggreko Plc.• Top Glove Corp
Berhad
• Fiat SPA• Renault SA• Valeo SA
• Reduce overweight in Automotive sector
• Increase overweight in Capital Goods sector
Past 12 months
• MRV Engenharia• Aixtron AG• Aggreko Plc.
• Electrolux AB• Nomura Holdings• Julius Baer Group
4. Appendix: Counsel’s View Of The Investment Specialists
Counsel’s View of Investment Specialists
Mandate/Investment Specialist
Counsel’s View Action Required
Fixed income mandate • We are happy with the Acuity team. • Its year-to-date performance, as well as its
more recent performance, has been strong.• We believe that long term investors have
been rewarded with above average performance.
No action required.
Canadian dividend mandate
• Leon Frazer was appointed to manage this mandate in January 2009.
• Lyle Stein recently joined the Leon Frazer team as Chief Executive Officer. Lyle has 30 years of investment and management experience and will be responsible for the strategic direction of the firm.
• Doug Kee, who is Chief Investment Officer, will continue to focus on the portfolio management of this mandate. We view this change as positive.
No action required.
Counsel’s View of Investment SpecialistsMandate/Investment
SpecialistCounsel’s View Action Required
Canadian value mandate
• Sionna was appointed to manage this mandate in January 2009.
• We recently completed our annual on-sight due diligence visit at Sionna and we are
happy with the results from that visit.• Counsel was recently notified that Colum McKinley, Portfolio Manager at Sionna Investment Managers Inc., has resigned from the firm. • We are satisfied Colum’s departure will not impact the management of Counsel
Canadian Value. There are no larger issues of concern within Sionna that led to Colum’s departure and, therefore, our initial investment thesis for hiring the firm remains intact.
No action required.
Canadian growth mandate
• Picton Mahoney was appointed to manage the mandate in January 2009.
• We recently completed our annual on-sight due diligence visit at Picton Mahoney and we are happy with the results from that visit• There has been no change to the philosophy, people or process of Picton Mahoney.
No action required.
Counsel’s View of Investment SpecialistsMandate/Investment
SpecialistCounsel’s View Action Required
Canadian growth mandate
• Montrusco Bolton was appointed to manage this mandate in January 2009.
• We are happy with the philosophy, people and process of Montrusco Bolton.
• An annual due diligence visit of Montrusco is scheduled to be conducted in Q2 2010.
No action required.
U.S. value mandate • Over the last two years, the firm’s assets under management has gone from approximately $8 billion to $4.9 billion. The firm is profitable at its current level of assets under management and, in our opinion, is not at risk. The core portfolio management team remains in place.
• Recent performance has been strong, but we are not entirely satisfied with their long-term performance. We will continue to investigate the qualitative changes that have recently occurred within the firm.
• There are no immediate risk concerns for the mandate and we have scheduled a due diligence visit to Dreman for Q2 2010.
Under review.
Counsel’s View of Investment Specialists
Mandate/Investment Specialist
Counsel’s View Action Required
U.S. growth mandate • We recently completed our annual on-sight due diligence visit at Marsico and we are happy with the results of that visit.• There has been no change to the philosophy, people or process of Marsico.
No action required.
International value mandate
• Mackenzie Cundill was appointed to manage this mandate in January 2009.
• There has been no change to the philosophy, people or process of Mackenzie Cundill.
No action required.
International growth mandate
• The portfolio management team at Mawer continues to add value to the international growth equities mandate on an absolute as well as risk adjusted basis.
• We are happy with the philosophy, people and process of Mawer.
No action required.
Counsel’s View of Investment Specialists
Mandate/Investment Specialist
Counsel’s View Action Required
Global real estate mandate
• We are happy with the transition of Daniel Pine, Corrado Russo and the rest of the global real estate team from Citigroup Alternative Investments LLC to Forum Partners Europe (UK) LLP.
No action required.
Canadian mid cap mandate • We are happy with the Acuity portfolio
management team that is responsible for the mid-cap mandate.
No action required
Canadian dividend mandate • We are happy with the philosophy, people and
process of RBC and the performance of the current lead portfolio managers.
No action required.
Counsel’s View of Investment Specialists
Mandate/Investment Specialist
Counsel’s View Action Required
Income mandate • We are happy with the qualitative and quantitative results of Acuity’s mandate.
• There has been no change to the investment philosophy, process or people at Acuity.
No action required
Bonds mandate • We are happy with the philosophy, people and process of TD Asset Management.
• Their performance, on an absolute and risk adjusted basis, has been consistent.
No action required.
Short Term bond mandate
• TD was appointed to manage this mandate on January 14, 2010
• We are happy with the philosophy, people and process of TD Asset Management.
No action required.
Counsel’s View of Investment Specialists
Mandate/Investment Specialist
Counsel’s View Action Required
Canadian small cap mandate
• We are happy with the philosophy, people and process of Howson.
• The investment specialist has had a consistently strong outperformance over the past quarter, and over every period since the inception of this mandate.
• A point of note is that Bob Tattersall, Executive Vice President, Director and Portfolio Manager, may retire at the end of this year. However, at this time we do not expect his retirement will impact this mandate in any way.
• The current portfolio management team, which includes Scott Carscallen, Portfolio Manager, and Will Aldrige, Assistant Portfolio Manager, have largely been working independently of Bob for many years now and they have successfully guided the portfolio through these turbulent markets.
No action required.
Counsel’s View of Investment Specialists
Mandate/Investment Specialist
Counsel’s View Action Required
U.S. small cap mandate • We are happy with the philosophy, people and process of Invesco.
• The mandate has had some difficulty over the last quarter after negative investor sentiment on two of its holdings, i.e. Nutrisystem Inc. and Synaptics Inc. However, this portfolio management team has produced consistently good results, both on an absolute and risk adjusted basis, over short and long term periods.
No action required.
Counsel’s View of Investment Specialists
Mandate/Investment Specialist
Counsel’s View Action Required
International small cap mandate
• We are happy with the philosophy, people and process of GLG.
• The portfolio management team did well this past quarter producing a positive return in a quarter relative to the benchmark MSCI EAFE Small Cap Index, which was negative.
• Early last year the mandate had some difficulty due to its exposure to the automobile sector and to Japan
• However, the portfolio management team has been able to overcome this issue and has kept pace with their benchmark over the last twelve months.
No action required.
Counsel’s View of Investment SpecialistsMandate/Investment
SpecialistCounsel’s View Action Required
Asset allocation mandate (Counsel Managed Portfolio)
• We are happy with the philosophy, people and process of Thornmark.
• Thornmark’s asset allocation strategy has added value to the Portfolio over the last quarter and 12 months.
• Following the unitholder vote on January 25, 2010 to change the Portfolio’s investment objective, Thornmark was retained as a portfolio sub-advisor. In addition to providing asset allocation advice, Thornmark will implement asset allocation changes by investing a portion of the Portfolio’s assets in Canadian, U.S. and international exchange traded funds.
No action required.
Mandate/Investment Specialist
Counsel’s View Action Required
Asset allocation mandate (Counsel Income Managed Portfolio)
• We are happy with the philosophy, people and process of Thornmark.
• Thornmark’s asset allocation strategy has added value to the Portfolio over the last quarter and six months. However, the overall asset allocation strategy has lagged the overall Portfolio benchmark (comprised of 40% DEX Universe Bond, 60% S&P/TSX Composite) over longer periods. This underperformance can be attributed to the market turn of March 2009, which was initially led by poor quality stocks. As such, the underperformance is understandable. However, the portfolio management team will likely deliver strong performance going forward.
No action required.
Counsel’s View of Investment Specialists
Counsel’s View of Investment SpecialistsMandate/Investment
SpecialistCounsel’s View Action Required
Income & Growth mandate (Counsel Income Managed Portfolio)
• We are happy with the philosophy, people and process of Thornmark.
• Thornmark has performed well on longer term periods (1 year+). The portfolio management team has demonstrated a strong ability to preserve capital during down markets while participating in bull markets.
No action required
Asset allocation mandate (Counsel World Managed Portfolio)
• We are happy with the people, philosophy and process of PanAgora.
• Following the unitholder vote on January 25, 2010, PanAgora will be retained as a portfolio sub-advisor. In addition to providing asset allocation advice, PanAgora will implement asset allocation changes by investing a portion of the Portfolio’s assets in Canadian, U.S. and international exchange traded funds.
No action required
Counsel Portfolios
Net BenchmarksNet benchmark return is calculated using the actual management expense ratio(s) of the equivalent exchange traded fund(s) and weighing that/those MER(s) by the benchmark/hybrid benchmark weight(s). The weighted MER(s) is/are then added to a typical retail management fee of 1%.
Counsel Conservative Portfolio• Net benchmark is comprised of 60% DEX Universe Bond, 40% MSCI World Total Return.
Counsel Regular Pay Portfolio• Net benchmark is comprised of 50% DEX Universe Bond, 20% MSCI World Total Return, 30% S&P 60 Total Return.
Counsel Balanced Portfolio• Net benchmark is comprised of 40% DEX Universe Bond, 60% MSCI World Total Return.
Counsel Growth Portfolio• Net benchmark is comprised of 20% DEX Universe Bond, 80% MSCI World Total Return.
Counsel All Equity Portfolio• Net benchmark is comprised of 100% MSCI World Total Return.
Counsel Income Managed Portfolio• Net benchmark is comprised of 40% DEX Universe Bond, 60% S&P/TSX Composite Total Return.
Counsel Managed Portfolio• Benchmark is comprised of 40% DEX Universe Bond, 15% MSCI World Total Return, 45% S&P/TSX Composite Total Return.
Counsel World Managed Portfolio• Net Benchmark is comprised of 40% DEX Universe Bond, 60% MSCI World Total Return.
Net BenchmarksNet benchmark return is calculated using the actual management expense ratio(s) of the equivalent exchange traded fund(s) and weighing that/those MER(s) by the benchmark/hybrid benchmark weight(s). The weighted MER(s) is/are then added to a typical retail management fee of 1%. In February 2009, the typical retail management fee for Counsel Fixed Income was revised from 1% to 0.5%.
Counsel Fixed Income • Benchmark is comprised of 100% TSX/DEX Universe Bond Index.
Counsel Canadian Value• Benchmark is comprised of 100% S&P/TSX Composite Index.
Counsel Canadian Growth• Benchmark is comprised of 100% S&P/TSX Composite Index
Counsel U.S. Value• Benchmark is comprised of 100% Russell 1000 Value Index
Counsel U.S. Growth• Benchmark is comprised of 100% Russell 1000 Growth Index
Counsel International Value• Benchmark is comprised of 100% MSCI EAFE Value Index.
Counsel International Growth• Benchmark is comprised of 100% MSCI EAFE Growth Index
Counsel Global Small Cap• Benchmark is comprised of 100% MSCI World Small Cap Total Return.
Counsel Global Real Estate• Benchmark is comprised of 100% FTSE EPRA/NAREIT
Disclaimer
This report may contain forward-looking statements which reflect our current expectations or forecasts of future events. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as: “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “preliminary”, “typical” and other similar expressions. In addition, these statements may relate to future corporate actions, future financial performance of a fund or a security and their future investment strategies and prospects. Forward-looking statements are inherently subject to, among other things, risks, uncertainties and assumptions which could cause actual events, results, performance or prospects to differ materiality from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, the volatility of global equity and capital markets, business competition, technological change, changes in government regulations, changes in tax law, unexpected judicial or regulatory proceedings, catastrophic events and the ability of Counsel Portfolio Services to attract or retain key employees. The foregoing list of important risks, uncertainties and assumptions is not exhaustive. Please consider these and other factors carefully and not place undue reliance on forward-looking statements.
The forward-looking information contained in this report is current only as of the date of this report. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The indices cited are widely accepted benchmarks for investment performance within their relevant regions, sectors or asset class, represent non-managed investment portfolios, exclude management fees and expenses related to investing in the indices, and are not necessarily indicative of future investment returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
To learn more about Counsel’s investment solutions, please speak to your Advisor.
Review Checklist Your portfolio mix remains consistent
with your risk tolerance.
Your portfolio mix has been rebalanced
to your pre-determined mix (see
Portfolio Review).
Your portfolio’s long-term performance
is acceptable given your investment
strategy and financial objectives.
Sub-advisors and underlying fund
managers have been effective in their
respective areas of expertise.
Do you have any questions or
concerns?
Is an action plan required?
We are committed to helping youachieve your financial goals through:
• effective investments
• accountability of all parties
• operating with your objectives and goals as our guide
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