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ENERGY AND INFRASTRUCTURE: WHAT A DIFFERENCE FIVE YEARS MAKES.

ENERGY AND INFRASTRUCTURE: WHAT A DIFFERENCE FIVE YEARS MAKES. Greg Dean, CFA Analyst & Portfolio Manager. SO MUCH FOR PEAK OIL …. +80% since 2008. Source: Tudor Pickering . SLOWLY REDUCING OUR RELIANCE ON THE MIDDLE EAST. Crude oil imports peaked in June 2005 (-35% since!).

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ENERGY AND INFRASTRUCTURE: WHAT A DIFFERENCE FIVE YEARS MAKES.

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  1. ENERGY AND INFRASTRUCTURE:WHAT A DIFFERENCE FIVE YEARS MAKES. Greg Dean, CFAAnalyst & Portfolio Manager

  2. SO MUCH FOR PEAK OIL … +80% since 2008 Source: Tudor Pickering

  3. SLOWLY REDUCING OUR RELIANCE ON THE MIDDLE EAST Crude oil imports peaked in June 2005 (-35% since!) Source: Tudor Pickering

  4. U.S. IS THE GLOBAL LEADER IN OIL SUPPLY GROWTH • Grew 40% more than Saudi Arabia in 2012 • Canada + U.S. = 1 million barrels / day of oil growth in 2013 + 2014 respectively • Essentially illegal to export crude oil from the U.S. … so now what? Source: EIA, Peters & Co.

  5. IMPORTS OF LIGHT CRUDE WILL SOON BE ELIMINATED 3 years ago we were importing > 2mm bbl/d Now < 700k bbl/d At this pace we could be net exporters by February! Source: Tudor Pickering

  6. IF WE CAN’T EXPORT, WHERE WILL IT GO?

  7. WE NO LONGER HAVE ESTABLISHED ROUTES TO MARKET Examples: - Crude-by-rail (east/west coasts and Gulf of Mexico) - Reversing/building pipelines (Seaway, Energy East, others) - Manitoba project (OmniTRAX)

  8. WHAT ABOUT DEMAND FOR OIL? Not growing as fast as supply (~1%/year or 900k bbl/d): • China not growing as fast as many expected (+4%/ 360k bbl/d) • Cars are 30% more fuel efficient today Source: IEA

  9. SO WHY HAS THE PRICE OF OIL BEEN SO STRONG? 1. Seasonally strong demand of crude by refiners Two main reasons: 2. Higher than normal outages for maintenance Source: Kessler Energy

  10. SO HOW DO WE MAKE $$ IN ENERGY? By remaining disciplined and flexible … • Energy infrastructure companies • Select exploration and production companies (price x volume) • Refiners

  11. RAGING RIVER EXPLORATION – CASE STUDY Was spun out of Wildstream Exploration in late 2011 / early 2012 -Management/board own ~14% of the company - 100% focused on light oil in the Viking (Saskatchewan) - Clean balance sheet (debt to cashflow < 1x) - We are up > 100% in 18 months June 2013 - Producing ~4,400 barrels / day June 2012 - Producing ~1,700 barrels / day Source: Bloomberg

  12. YOU CAN PROFIT IN THIS MARKET If you have conviction in what you own • We talk to management often • Site tours and conferences If you have flexibility • Never get married to a thesis or position • Open mandates - no sector restrictions By protecting capital • Proper diversification • No ‘filler’ positions – we hold cash

  13. GROWING THE TEAM

  14. Have you seen our blog? Visit and sign up for our frequently updated blog at: http://blogs.ci.com/cambridge "Our job is to find a few intelligent things to do, not to keep up with every damn thing in the world." - Charlie Munger CAMBRIDGE BLOG

  15. DOWNSIDE PROTECTION IS THE FOCUS *December 31, 2007 †February 15, 2011 **Cambridge Global Asset Management took over management of Cambridge American Equity Corporate Class in June 2011, inception date of fund is February 24, 2000** Source: RBC Dexia As of August 31, 2013

  16. CAMBRIDGE IS NOT BENCHMARK FOCUSED Source: CI Investments

  17. Thank YouFOR ADVISOR USE ONLY Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise indicated and except for returns for periods less than one year, the indicated rates of return are the historical annual compounded total returns including changes in security value. All performance data assume reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ®CI Investments, the CI Investments design, Cambridge, Perspective, Synergy Mutual Funds, Harbour Advisors, Harbour Funds, Global Managers, American Managers, Insight and Insight Program, Legacy Funds, and CI Guaranteed Investment Funds are registered trademarks of CI Investments Inc. ™Portfolio Select Series, Portfolio Series, Signature Global Asset Management, Signature Funds, G5|20 Series, the G5|20 Series design and CI Guaranteed Retirement Cash Flow Series are trademarks of CI Investments Inc.

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