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Verus Valentine's Day Client Luncheon 2013

Verus Valentine's Day Client Luncheon 2013

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Verus Valentine's Day Client Luncheon 2013

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  1. Verus Wealth Management Adding value since 1985 Setting a target with you is good. Delivering on it is better.

  2. Disclaimer The comments and opinions expressed herein are the result of work done by Verus Wealth Management. They may differ from the opinions of Scotia Capital and should not be considered representative of Scotia’s Capital’s beliefs, opinions or recommendations. This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed. It is for information purposes only, and is subject to change at any time. ® Registered trademark of The Bank of Nova Scotia, used by ScotiaMcLeod under license. ScotiaMcLeod is a division of Scotia Capital Inc. Scotia Capital Inc. is a Member–Canadian Investor Protection Fund. This publication is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any of the securities mentioned in it. The author is an employee of ScotiaMcLeod, a division of Scotia Capital Inc. ("SCI"), but the data selection, analysis and views expressed herein are solely those of the author and not those of SCI. The author has taken all usual and reasonable precautions to determine that the information contained in this publication has been obtained from sources believed to be reliable and that the procedures used to summarize and analyze such information are based on approved practices and principles in the investment industry. However, the market forces underlying investment value are subject to sudden and dramatic changes and data availability varies from one moment to the next. Consequently, neither the author nor SCI can make any warranty as to the accuracy or completeness of information, analysis or views contained in this publication or their usefulness or suitability in any particular circumstance. You should not undertake any investment or portfolio assessment or other transaction on the basis of this publication, but should first consult your investment advisor, who can assess all relevant particulars of any proposed investment or transaction. SCI and the author accept no liability of whatsoever kind for any damages or losses incurred by you as a result of reliance upon or use of this publication in contravention of this notice.

  3. What is in the news: The State of the Union address Speaker of the House, John Boehner Vice President, Joe Biden

  4. Apple: Making Macs in the U.S. Tim Cook, CEO of Apple

  5. Bringing home the troops

  6. What we said in 2012 are saying in 2013 Debt levels remain obstacles to growth in many countries. Continued financial and political volatility in Europe may also contribute to: 1. Declining business and consumer confidence 2. Slower economic growth rates 3. Prolonged period of low interest rates

  7. It has been a great three years… As of Jan 31st, 2013

  8. Five Star Wealth Manager Award Once again we are proud to announce that Verus Wealth Management was awarded the Five Star Wealth Managers award for 2012. The 2012 Five Star Wealth Managers are a select group, representing less than 2% of the wealth managers in the Vancouver area.

  9. Verus Portfolio Performance

  10. Verus Portfolio Performance *Since Inception Sep 20, 2011: 16.68% Annualized

  11. Skin in the game – we are in this together

  12. Tough way to make money (10.0%) Net of fees

  13. Tough way to make money 0.3% Net of Fees

  14. The million dollar question! Very few people ask…

  15. The million dollar question… How have we managed to deliver superior risk adjusted returns over the last three years?

  16. Unique Investment Policy Statements (IPS) • Top down call/ Macro-economic view • Proactive rather than reactive • Firm belief that buy, hold and prosper is dead • Hold managers accountable to buy and sell disciplines • Outstanding security/selection

  17. The Cardinal Rules • Never fall in love with a stock. • Never be afraid to fire a manager.

  18. Genus Capital Management Inc. Verus Canadian Strategic Value & Verus U.S. Opportunities Portfolios $1.2 Billion AUM Pension funds, foundations, endowments, governments, universities, aboriginal communities, mutual fund companies, and investment dealers

  19. Genus Capital Management Inc. IPS remains the same with a few revisions: • A concentrated portfolio of 10 to 25 names • Maximum cash weighting in the portfolio of 60%

  20. Gross Gross Source: Genus Capital Management

  21. Verus Canadian Strategic Value Source: Genus Capital Management

  22. Gross Gross

  23. Verus U.S. Opportunities Source: Genus Capital Management

  24. Anchor Managed Funds – off to a great start! • An excellent solution for your TFSAs, RESPs, and small Registered Accounts • IPS, PortfolioHoldings, and TradeExecution are exactly the same as your separately managed accounts: - Verus Dividend Growth - Verus Defensive Income - Verus High Income • Performance net of fees remains the same. Source: Genus Capital Management

  25. Anchor Managed Funds – off to a great start! The Differences: • Mutual funds are unitized – no $100,000 minimum investment ($5,000 minimum purchase) • Transparency • MER of 1.00% is imbedded – you never see it. • Service Fee: • Verus Class A: 1.00% of NAV; • Verus Class F: Nil; 1.00% PPlus fee charged to your account net-net, it’s the same! • How it looks in your account:

  26. Verus International Growth Source: Santa Barbara Asset Management

  27. Maximizing returns while managing exposure Source: Santa Barbara Asset Management

  28. Outperforming the benchmark Performance vs. International Equity Style Group Source: Santa Barbara Asset Management

  29. Slower Global Growth Continues

  30. China’s GDP GDP growth forecast at 9.4% over next five years Source: IMF World Economic Outlook Database, September 2011

  31. Inflation: Still not a problem Global Inflation Forecast – y/y % change Source: Scotiabank Economics; Verus Wealth Management

  32. U.S. housing market in recovery mode

  33. Housing market will help unemployment rates Jan 1990 Jan 1992 Jan 1994 Jan 1996 Jan 1998 Jan 2000 Jan 2002 Jan 2004 Jan 2006 Jan 2008 Jan 2010 Jan 2012 Jan 2014

  34. Oil and gold to remain range-bound Source: Thomson

  35. Forecast Currency Returns (vs C$) Source: Scotia Economics Forecasts; Scotia McLeod PAG

  36. “Cash is not King.” “Cash is not king. What is king is cashflow.” David Rosenberg Chief economist and strategist at Gluskin Sheff Source: http://blackswaninsights.blogspot.ca/

  37. The Only Real Bear Left Standing Gary Shilling appears to be one of the last bears left standing. The famed U.S. economist and money manager remains decidedly downbeat on the outlook for markets and the global economy. Source: topics.pionline.com

  38. Government of Canada T-Bills and bonds Source: Bloomberg

  39. Bond prices in relation to interest rate movement BOND PRICES INTEREST RATES $105.00 8.5% $104.00 8.0% $103.00 7.5% $102.00 7.0% $101.00 6.5% $100.00 6.0% $99.00 5.5% $98.00 5.0% $97.00 4.5% $96.00 4.0% $95.00 3.5% $94.00 3.0% $93.00 2.5% $92.00 2.0% Rate PAR Bond

  40. Bond prices in relation to interest rate movement BOND PRICES INTERESTRATES $105.00 8.5% $104.00 8.0% $103.00 7.5% $102.00 7.0% $101.00 6.5% $100.00 6.0% $99.00 5.5% $98.00 5.0% $97.00 4.5% $96.00 4.0% $95.00 3.5% $94.00 3.0% $93.00 2.5% $92.00 2.0% Bond PAR Rate

  41. Forecast Bond Returns

  42. More pension plans put on watch list • As of early December 2012, there were more than 125 plans on the list, up from 115 at the end of March and 49 at the end of March, 2011. • Canada’s financial regulator has “serious concern” about the viability of a rising number of private pension plans, a sign that plans are struggling to meet obligations at at time of low interest rates and weak investment returns. Source: Yahoo Finance | OSFI Annual Report

  43. Source: The 9th Annual Demographia International Housing Affordability Survey

  44. Housing bubble could deflate slowly Source: The Vancouver Sun

  45. Credit counselling agency seeing huge increases • Household debt to income ratio has risen to a record high of 164.6% in the most recent assessment, approaching levels reached in the US before the housing crash of 2007-08 • (Statistics Canada). • In January 2012, the number of people seeking help rose 30%, year over year. • This January, we’ve seen another 7% rise. Scott Hannah, Credit Counselling Society’s President and CEO Source: Burnabynow.com

  46. The Bus Driver Setting a target with you is good. Delivering on it is better.

  47. HAPPY VALENTINES DAY! Thank you for coming. As always, it was a pleasure to have you.

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