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GLOBAL INVESTING. IS IT TIME TO RELOCATE SOME OF YOUR PORTFOLIO?. Name Title Company DATE. 2. 3. 1. AGENDA. THE BACKYARD BIAS. HAVING A GLOBAL PERSPECTIVE. GLOBAL GROWTH OPPORTUNITIES. THE BACKYARD BIAS. Outside Canada 38%. Canada 62%. CANADIANS HAVE A BACKYARD BIAS.

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Global investing

GLOBAL INVESTING

IS IT TIME TO RELOCATE SOME OF YOUR PORTFOLIO?

Name

TitleCompany

DATE


Agenda

2.

3.

1.

AGENDA

THE BACKYARD BIAS

HAVING A GLOBAL PERSPECTIVE

GLOBAL GROWTH OPPORTUNITIES


The backyard bias

THE BACKYARD BIAS


Canadians have a backyard bias

OutsideCanada38%

Canada62%

CANADIANS HAVE A BACKYARD BIAS

CANADIANS HAVE THE MAJORITY OF THEIR ASSETS INVESTED IN CANADA

Source: IFIC mutual fund assets, as of June 30, 2011. Includes Equity, Balanced and Fixed Income Mutual Fund Assets.


You can t blame them

YOU CAN’T BLAME THEM

CANADA HAS OUTPERFORMED THE WORLD MARKET OVER THE PAST 10 YEARS

Canada

World

Source: Morningstar, Canada as represented by the S&P/TSX Total Return Index, World as represented by MSCI World Index in Canadian Dollars. January 3rd, 200 to December 1, 2011. The chart above is for illustrative purposes only.


Canada s strong performance

  • 3 SECTORS:

  • 78% of Canadian market

CANADA’S STRONG PERFORMANCE

CONCENTRATION IN 3 SECTORS HAS HELPED PERFORMANCE OVER THE PAST 10 YEARS

Source: Morningstar, as of November 30th, 2011.


Canada s strong performance1

CANADA’S STRONG PERFORMANCE

RISE IN DOLLAR HAS MIRRORED RISE IN MARKET

Canadian Dollar

S&P/TSX

Source: Yahoo Finance. Bank of Canada

December 31, 2001 to December 23, 2011


Peformance factors change

  • 4 SECTORS:

  • 9% of Canadian market

  • 43% of U.S. market

  • Positive performance YTD

  • 3 SECTORS:

  • 78% of Canadian market

  • Negative performance YTD

PEFORMANCE FACTORS CHANGE

CANADIAN CONCENTRATION IN 3 SECTORS HAS HURT PERFORMANCE.

YTD: +1%

YTD: -6.9%

Sector Weight

Sector Performance

Source: Morningstar, as of November 23rd, 2011.


Peformance factors change1

PEFORMANCE FACTORS CHANGE

CANADIAN DOLLAR HAS STABILIZED

Source: Bank of Canada as of January 4th, 2010 to December 1st, 2011.


Long term trend

LONG TERM TREND

HISTORICALLY CANADIAN OUTPEFORMANCE LED TO LONGER LARGER GLOBAL OUTPERFORMANCE

CANADA OUTPERFORMS

WORLD OUTPERFORMS

Difference between S&P/TSX Total Return Index and MSCI World Index ($Cdn) rolling 5 year periods, as of November 30, 2011

Source: Morningstar, S&P/TSX Total Return Index and MSCI World Index ($Cdn). The S&P / TSX Total Return Index and MSCI World Index is unmanaged and unavailable for direct investment. Assumes reinvestment of capital gains and dividends and no taxes. Index past performance is not indicative of future results. For illustrative purposes only.


Having a global perspective

HAVING A GLOBAL PERSPECTIVE


Tale of two worlds

WORLD BASED ON ECONOMIC SIZE

TALE OF TWO WORLDS

WORLD BASED ON GEOGRAPHIC SIZE

Source: As of 2008, CIA Factbook for GDP data. Economic size based on GDP Growth Rate. Natural Earth website for shapefiles of the world.


Canada s small global footprint

CANADA’S SMALL GLOBAL FOOTPRINT

SMALL PERCENTAGE OF THE WORLDS LARGEST AND MOST RECOGNIZABLE COMPANIES BASED ON THE FORTUNE GLOBAL 500 LIST ARE IN CANADA

CANADA

2%

REST OF THE WORLD

Source: Fortune Global 500, 2011.


Small global footprint

$1,800,000

$1,600,000

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0

6 Largest Companies

Canada

SMALL GLOBAL FOOTPRINT

6 LARGEST COMPANIES IN THE WORLD ARE LARGER THAN THE ENTIRE CANADIAN MARKET

MARKET CAPITALIZATION IN 000’S

Source: Morningstar, Financial Times Global 500.

Canada’s market cap as of Nov 30, 2011. Companies market caps are as of Oct 31, 2011.


Global growth opportunities

GLOBAL GROWTH OPPORTUNITIES


Importance of global diversification

IMPORTANCE OF GLOBAL DIVERSIFICATION

THE BEST PERFORMING COUNTRIES CHANGE FROM YEAR TO YEAR

Source: Paltrack, Dynamic Funds. All Indices are represented in Canadian dollars

Mexico – BMV IPC. U.S. – S&P 500 Total Return. England – FTSE 100 Total Return. Canada – S&P/TSX Total Return. Germany – FSE DAX Total Return. Brazil – BOVESPA. France - Euronext Paris CAC 40 PR. Japan – Nikkei 225 Average PR. Hong Kong – Hang Seng Hong Kong Composite.


Cpp has gone global

Emerging Markets

Canadian Equities

Foreign Developed

Markets

CPP HAS GONE GLOBAL

CANADIAN PENSION PLAN INVESTS THE MAJORITY OF THEIR EQUITY PORTFOLIO OUTSIDE OF CANADA

Source: Canadian Pension Plan Annual Report, as of March 31, 2011.


U s corporate revenue is diversified

OutsideU.S.

In theU.S.

U.S. CORPORATE REVENUE IS DIVERSIFIED

U.S. COMPANIES EARN A SIGNIFICANT AMOUNT OF REVENUE OUTSIDE THE U.S.

Source: RBC Economics, % of revenue of S&P 500 Companies.


And growing

AND GROWING

U.S. CORPORATE PROFITS

Source: U.S. Department of Commerce, Bureau of Economic Analysis.


However u s stocks remain cheap

HOWEVER U.S. STOCKS REMAIN CHEAP

PRICE TO EARNINGS LEVELS OF THE S&P 500

Source: Morningstar, November 30th 1999 to October 31st 2011.


Global investing

OPPORTUNITY IN EMERGING MARKETS

THE RISE OF THE DOMESTIC CONSUMER

NUMBER OF HOUSEHOLDS IN CHINA WITH DISPOSABLE INCOME ABOVE $10,000 U.S.

MILLIONS

Source: Euromonitor International “Top 10 largest economies in 2020” July 7, 2010


Global investing

OPPORTUNITY IN EMERGING MARKETS

INDIA AND CHINA PURCHASED 70% MORE PASSENGER VEHICLES THAN THE U.S. IN 2010

MILLIONS

Source: Time Mag. “Your Next Job: Made in India or China” March 17, 2011


Global investing

OPPORTUNITY IN EMERGING MARKETS

CHINA WILL BUILD ENOUGH SKYSCRAPERS TO FILL 10 NEW YORK-SIZED CITIES BY 2025

Sources: McKinsey & Co. report "Preparing for China's urban billion" March 2009


Global investing

EMERGING MARKETS SET TO DRIVE ECONOMIC GROWTH

2012 FORECASTED GDP GROWTH

Source: Goldman Sachs Global ECS Research, Dec. 2010


You re already a global investor

Kitchen

Computers

Wireless Phone

Automobile

Entertainment

Electrolux

Lenovo

Iphone

GM

Samsung

Frigidaire

HP

Blackberry

Chrysler

Panasonic

Whirlpool

Apple

Samsung

Ford

LG

Maytag

Dell

Nokia

BMW

Sony

Kitchenaid

Acer

HTC

Mercedes

Sharp

Jenn-Air

Gateway

Motorola

Nissan

Bose

Bosch

Toyota

eMachines

Yamaha

Siemens

Honda

Toshiba

Miele

Mazda

Hyundai/Kia

Volkswagen

Mitsubishi

Fiat

Volvo

YOU’RE ALREADY A GLOBAL INVESTOR


Important information

IMPORTANT INFORMATION

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 units 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. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated

Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any funds managed by Goodman & Company, Investment Counsel Ltd. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.

This document is not to be distributed or reproduced without the consent of Goodman & Company, Investment Counsel. Dynamic Funds is a division of Goodman & Company, Investment Counsel Ltd.


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