Issuu on Google+

The Renaissance

Volume V Issue II

Advisor

Q2 JUNE 30, 2011 QUARTERLY FUND PROFILES / PRACTICE MANAGEMENT / OUTLOOK / OPINION

Live Better

Asian vacation confidential Off the beaten trail, 21st century style Back of the Napkin

The secret fears of the wealthy How to uncover and address what troubles the affluent

Invest Well

Resource rich Capitalizing on the global resource supply chain from the ground up


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 Wahl National Sales Director Renaissance Investments 416 943 6959


Booming Hong Kong

133 8

Blissful Boracay

Table of Contents Tax and Estate 5 specialized tax reports

p

2

Economic Outlook Commodities forecast

p

3

Back of the Napkin The secret fears of the wealthy

p

5

Thanks to Our Supporters Work’s a beach

p

7

Invest Well Resource rich

p

8

Solution Highlight Portfolio staples

p 13

Axiom Portfolios Profiles Portfolio Essentials Performance Essentials

p 14 p 32 p 33

Renaissance Investments Fund Profiles Money Market Funds Fixed Income Funds Balanced Funds Equity Income Funds Canadian Equity Funds U.S. Equity Funds Global Equity Funds Specialty Funds Fund Essentials Performance Essentials

p 34 p 36 p 44 p 58 p 62 p 70 p 76 p 84 p 116 p 130 p 132

Live Better Asian vacation confidential

p 133

Brain Calisthenics

p 136


Tax and Estate

Managing Director, Tax & Estate Planning Jamie Golombek

5 specialized tax reports 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. 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 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.

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. 2 renaissance investments


Economic Outlook

Deputy Chief Economist, CIBC Benjamin Tal

Commodities forecast 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. 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.

of severe winter weather on consumption, and rising generation demand. Notwithstanding 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

“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.” 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

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.

renaissance investments 3


Look for prices for both lumber (left) and potash (right) to move modestly upwards in coming months

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

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.

“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.” 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 production 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

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 reconstruction 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.

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. 4 renaissance investments


Back of the Napkin

Director, Strategic Insights Grant Shorten

The secret fears of the wealthy How to uncover and address what troubles the affluent

In a few short years, most of the financial 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… You’re either reading this article because you have a genuine interest in the mind of the affluent 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 office 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 confidently express the belief that “rich people don’t have real fears.” While the “fearless affluent” hypothesis is a widespread fundamental belief, it is one that is held almost exclusively by those who have not yet achieved affluence. In reality, nothing could be further from the truth. The wealthy do, in fact, bring a surprising set of fears to the table, fears that are both substantial and, often, completely justified. Having addressed thousands of high-networth investors over the last decade, and through my on going research on the affluent marketplace, I have isolated and identified what I believe to be the three primary fears of the affluent. 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 affluent 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 affluent community.

renaissance investments 5


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 lifestyle evolves and matures around our changing financial means, our income becomes the life-blood that feeds our lifestyle, 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 psychoemotional 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.

6 renaissance investments

> 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.


Thanks to Our Supporters

Work’s a beach 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.

Name: Eyal Amon Firm: Manulife Securities Years in business: 19 Team members: 11

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.

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. renaissance investments 7


Invest Well Booming Hong Kong reaps the rewards of China’s rise

Resource rich

Capitalizing on the global resource supply chain from the ground up

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. 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 firming 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.

8 renaissance investments

“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.

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 inflation and interest rates heading higher.

How quickly things changed.

“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.

By the second quarter, China was making headlines for all the wrong reasons. Inflation was heating up, bank reserve requirement ratios were being increased and Chinese central bankers had hit the


Slowing growth, falling prices

Commodity price indices, 2005-2011 Current US$ prices (2000 =100)

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.

500 METALS & MINERALS

400 ENERGY

300

Source: World Bank, Global Economic Prospects June 2011

200 AGRICULTURAL

100 Jan-05

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.

Jan-06

Jan-07

Jan-08

Jan-09

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.

Quickly, the answers are no, no and no.

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.

China’s march to miracle

Gross domestic product

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.

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. Source: World Bank, Development Indicators 2011

Jan-10

Jan-11

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.

GDP in current U.S. dollars. Not adjusted for inflation. $5 T $4.5 T $4 T $3.5 T $3 T $2.5 T $2 T $1.5 T $1 T $500 B $0 1960

CHINA $4.985 Trillion 2009

1965

1970

1975

1980

1985

1990

1995

2000

2005

2009

renaissance investments 9


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

A buying opportunity in emerging markets 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 10 renaissance investments

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)

“At the end of the day, any resource company is only worth what it has in the ground and how cheaply it extracts it.” 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 differentiation 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 wellconnected 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.


Chinese commodities super-cycle?

Full resource-chain circle

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.

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 powerhouses 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.

World metal consumption '000 tons 40,000 CHINA

30,000 OECD

20,000 REST OF WORLD

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, largecap names offer an important element of liquidity and steady dividends.

10,000

0 2000

2002

2004

2006

2008

2010

Source: World Bank, Metal Statistics

China crude oil consumption by the year 9000

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 longterm resource demand.”

7200

5400

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.

3600

1800

0 1982

1985

1988

1991

Source: International Energy Agency

1994

1997

2000

2003

2006

2009

See fund profiles: Renaissance Global Resource Fund Renaissance Emerging Markets Fund Renaissance China Plus Fund

p126 p114 p112

renaissance investments 11


From resources to riches The 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 resources

Using resources

Beyond resources

Craig Porter, Renaissance Global Resource Fund

William Lui, Renaissance China Plus Fund

Stephen Burrows, Renaissance Emerging Markets 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 energyhungry 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. 12 renaissance investments

China National Materials Co. Ltd. For a direct play on the Chinese manufacturing story and the massive infrastructure requirements 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. Ltd AviChina 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.

Bank Mandiri Burrows 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. Sberbank For 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.


Axiom Portfolios

Axiom Portfolios Axiom Portfolios provide the benefits and peace-of-mind of sophisticated portfolio management, while simplifying the administration, management and reporting of a portfolio.

With eight portfolios to choose from, investing in Axiom Portfolios provides: s Access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world s Risk management, through rigorous due diligence and built-in rebalancing s Multiple levels of diversification s 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

14 renaissance investments

Axiom Portfolio Managers Axiom Portfolios have access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world.

anso Investment Counsel Ltd.


Multiple Levels of Diversification Axiom 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. Equity 8.8% Canadian Equity 6.0% International Equity 3.0% Emerging Markets Equity Income Generation 12.2% Canadian Monthly Income Fixed Income 60.0% Canadian Fixed Income

Axiom Balanced Growth Portfolio* Equities 32.0% Canadian Equity 12.0% U.S. Equity 8.0% International Equity 5.0% Emerging Markets Equity Income Generation 8.0% Canadian Monthly Income Fixed Income 30.0% Canadian Fixed Income 5.0% Global Bond

Axiom Long-Term Growth Portfolio* Equities 40.0% Canadian Equity 10.0% U.S. Equity 8.0% International Equity 7.0% Emerging Markets Equity Income Generation 15.0% Canadian Monthly Income Fixed Income 15.0% Canadian Fixed Income 5.0% Global Bond

Axiom Foreign Growth Portfolio* Equities 43.0% U.S. Equity 33.0% International Equity 10.0% Emerging Markets Equity Fixed Income 14.0% Global Bond

Axiom Diversified Monthly Income Portfolio* Equities 18.4% Canadian Equity 5.0% U.S. Equity Income Generation 36.6% Canadian Monthly Income Fixed Income 40.0% Canadian Fixed Income

Axiom Canadian Growth Portfolio* Equities 56.0% Canadian Equity Income Generation 24.0% Canadian Monthly Income Fixed Income 20.0% Canadian Fixed Income

Axiom Global Growth Portfolio* Equities 29.0% U.S. Equity 21.0% International Equity 16.0% Canadian Equity 10.0% Emerging Markets Equity Income Generation 4.0% Canadian Monthly Income Fixed Income 10.0% Canadian Fixed Income 10.0% Global Bond

Axiom All Equity Portfolio* Equities 38.0% U.S. Equity 24.0% International Equity 18.0% Emerging Markets Equity 16.0% Canadian Equity Income Generation 4.0% Canadian Monthly Income

*Target asset class allocations renaissance investments 15


Axiom Portfolios

Portfolio Essentials UND CODES

Axiom Balanced Income Portfolio

Axiom Diversified Monthly Income Portfolio

Axiom Balanced Growth Portfolio

Axiom Long-Term Growth Portfolio

Axiom Canadian Growth Portfolio

Axiom Global Growth Portfolio

Axiom Foreign Growth Portfolio

Axiom All Equity Portfolio

Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load

ATL975 ATL976 ATL977 ATL926 ATL928 ATL927 ATL950 ATL952 ATL951 ATL981 ATL2601 ATL2603 ATL2602 ATL2604 ATL2606 ATL2605 ATL2607 ATL2609 ATL2608 ATL2610 ATL2612 ATL2611 ATL2616 ATL2618 ATL2617 ATL2622 ATL2624 ATL2623 ATL2613 ATL2615 ATL2614 ATL2619 ATL2621 ATL2620 ATL2625 ATL2627 ATL2626

ATL983 ATL985 ATL984 ATL929 ATL931 ATL930 ATL953 ATL955 ATL954 ATL788 n/a n/a n/a ATL072 ATL074 ATL073 ATL081 ATL083 ATL082 n/a n/a n/a ATL075 ATL077 ATL076 ATL084 ATL086 ATL085 n/a n/a n/a ATL078 ATL080 ATL079 ATL087 ATL089 ATL088

ATL986 ATL988 ATL987 ATL932 ATL934 ATL933 ATL956 ATL958 ATL957 ATL789 ATL2628 ATL2630 ATL2629 ATL2631 ATL2633 ATL2632 ATL2634 ATL2636 ATL2635 ATL2637 ATL2639 ATL2638 ATL2643 ATL2645 ATL2644 ATL2649 ATL2651 ATL2650 ATL2640 ATL2642 ATL2641 ATL2646 ATL2648 ATL2647 ATL2652 ATL2654 ATL2653

ATL992 ATL994 ATL993 ATL935 ATL937 ATL936 ATL959 ATL961 ATL960 ATL791 ATL2655 ATL2657 ATL2656 ATL2658 ATL2660 ATL2659 ATL2661 ATL2663 ATL2662 ATL2664 ATL2666 ATL2665 ATL2670 ATL2672 ATL2671 ATL2676 ATL2678 ATL2677 ATL2667 ATL2669 ATL2668 ATL2673 ATL2675 ATL2674 ATL2679 ATL2681 ATL2680

ATL989 ATL991 ATL990 ATL938 ATL940 ATL939 ATL962 ATL964 ATL963 ATL790 ATL2682 ATL2684 ATL2683 ATL2685 ATL2687 ATL2686 ATL2688 ATL2690 ATL2689 ATL2691 ATL2693 ATL2692 ATL2697 ATL2699 ATL2698 ATL2703 ATL2705 ATL2704 ATL2694 ATL2696 ATL2695 ATL2700 ATL2702 ATL2701 ATL2706 ATL2708 ATL2707

ATL995 ATL997 ATL996 ATL941 ATL943 ATL942 ATL965 ATL967 ATL966 ATL792 ATL2736 ATL2738 ATL2737 ATL2739 ATL2741 ATL2740 ATL2742 ATL2744 ATL2743 ATL2745 ATL2747 ATL2746 ATL2751 ATL2753 ATL2752 ATL2757 ATL2759 ATL2758 ATL2748 ATL2750 ATL2749 ATL2754 ATL2756 ATL2755 ATL2760 ATL2762 ATL2761

ATL998 ATL778 ATL999 ATL944 ATL946 ATL945 ATL968 ATL970 ATL969 ATL794 ATL2709 ATL2711 ATL2710 ATL2712 ATL2714 ATL2713 ATL2715 ATL2717 ATL2716 ATL2718 ATL2720 ATL2719 ATL2724 ATL2726 ATL2725 ATL2730 ATL2732 ATL2731 ATL2721 ATL2723 ATL2722 ATL2727 ATL2729 ATL2728 ATL2733 ATL2735 ATL2734

ATL782 ATL784 ATL783 ATL947 ATL949 ATL948 ATL971 ATL979 ATL978 ATL796 ATL2763 ATL2765 ATL2764 ATL2766 ATL2768 ATL2767 ATL2769 ATL2771 ATL2770 ATL2772 ATL2774 ATL2773 ATL2778 ATL2780 ATL2779 ATL2784 ATL2786 ATL2785 ATL2775 ATL2777 ATL2776 ATL2781 ATL2783 ATL2782 ATL2787 ATL2789 ATL2788

Class A Select Class Elite Class Class F Class T4 Class T6 Class T8 Select-T4 Class Select-T6 Class Select-T8 Class Elite-T4 Class Elite-T6 Class Elite-T8 Class

2.08% 1.90% 1.40% 1.22% 2.00% 1.98% 1.93% 1.93%1 1.94% n/a n/a 1.46%1 n/a

2.23% 1.99% 1.46% 0.99% n/a 2.10% 2.11% n/a 2.03% 2.05% n/a 1.49% 1.46%

2.38% 2.16% 1.54% 1.02% 2.31% 2.27% 2.26% 2.21% n/a 2.21%1 n/a 1.57%1 n/a

2.63% 2.36% 1.67% 1.18% 2.40%1 2.78%1 2.50%1 n/a n/a n/a n/a 1.67%1 1.60%1

2.55% 2.18% 1.57% 1.14% 2.58%1 2.51%1 2.42%1 n/a n/a 2.28%1 n/a n/a n/a

2.77% 2.34% 1.64% 1.34% n/a 2.82%1 n/a n/a n/a n/a n/a n/a n/a

2.75% 2.25% 1.68% 1.33% n/a n/a n/a 2.30% n/a n/a n/a n/a n/a

2.75% 2.35% 1.68% 1.41% 2.82%1 n/a 2.64%1 n/a n/a n/a n/a n/a n/a

Front-End Load Back-End Load Low Load Front-End Load SELECT, SELECT-T4, Back-End Load SELECT-T6, SELECT-T8 CLASS Low Load Front-End Load ELITE, ELITE-T4, ELITE-T6, Back-End Load ELITE-T8 CLASS Low Load

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

1.00 0.50 1.00 0.50 1.00 0.70 0.40 0.70 0.40 0.70

1.00 0.50 1.00 0.50 1.00 0.70 0.40 0.70 0.40 0.70

1.10 0.50 1.10 0.50 1.10 0.80 0.40 0.80 0.40 0.80

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

ATL FUND CODES

CLASS A

SELECT CLASS

ELITE CLASS

Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load

CLASS F CLASS T4

CLASS T6

CLASS T8

SELECT-T4 CLASS

SELECT-T6 CLASS

SELECT-T8 CLASS

ELITE-T4 CLASS

ELITE-T6 CLASS

ELITE-T8 CLASS MERs (%)

COMMISSIONS

CLASS A, T4, T6, T8

TRAILERS3 (%)

CLASS A, T4, T6, T8 & SELECT, SELECT-T4, SELECT-T6, SELECT-T8 CLASS

ELITE, ELITE-T4, ELITE-T6, ELITE-T8 CLASS

Front-End Load Back-End Load 1-6 years2 Back-End Load 7+ years2 Low Load 1-3 years Low Load Thereafter Front-End Load Back-End Load 1-6 years2 Back-End Load 7+ years2 Low Load 1-3 years Low Load Thereafter

32 renaissance investments


Renaissance Investments

Renaissance Investments family of funds Renaissance 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 Contents MONEY MARKET FUNDS

Renaissance Money Market Fund Renaissance Money Market Fund – Premium Class Renaissance Canadian T-Bill Fund Renaissance U.S. Money Market Fund FIXED INCOME FUNDS

Renaissance Short-Term Income Fund Renaissance Canadian Bond Fund Renaissance Real Return Bond Fund Renaissance Corporate Bond Capital Yield Fund Renaissance Corporate Bond Capital Yield Fund – Premium Class Renaissance High-Yield Bond Fund Renaissance Global Bond Fund BAL ANCED FUNDS

Renaissance Canadian Balanced Fund Renaissance Optimal Income Portfolio EQUIT Y INCOME FUNDS

Renaissance Canadian Dividend Fund Renaissance Canadian Monthly Income Fund

34 renaissance investments

p 36

p 36 p 38 p 40 p 42 p 44

p 44 p 46 p 48 p 50 p 52 p 54 p 56 p 58

p 58 p 60 p 62

p 62 p 64

Renaissance Diversified Income Fund Renaissance Millennium High Income Fund CANADIAN EQUIT Y FUNDS

p 66 p 68 p 70

Renaissance Canadian Core Value Fund p 70 Renaissance Canadian Growth Fund p 72 Renaissance Canadian Small-Cap Fund p 74 U.S. EQUIT Y FUNDS

Renaissance U.S. Equity Value Fund Renaissance U.S. Equity Growth Fund Renaissance U.S. Equity Growth Currency Neutral Fund Renaissance U.S. Equity Fund GLOBAL EQUIT Y FUNDS

Renaissance International Dividend Fund Renaissance International Equity Fund Renaissance International Equity Currency Neutral Fund Renaissance Global Markets Fund Renaissance Optimal Global Equity Portfolio Renaissance Optimal Global Equity Currency Neutral Portfolio

p 76

p 76 p 78 p 80 p 82 p 84

p 84 p 86 p 88 p 90 p 92 p 94

Renaissance Global Value Fund Renaissance Global Growth Fund Renaissance Global Growth Currency Neutral Fund Renaissance Global Focus Fund Renaissance Global Focus Currency Neutral Fund Renaissance Global Small-Cap Fund Renaissance European Fund Renaissance Asian Fund Renaissance China Plus Fund Renaissance Emerging Markets Fund S P E C I A LT Y F U N D S

Renaissance Global Infrastructure Fund Renaissance Global Infrastructure Currency Neutral Fund Renaissance Global Real Estate Fund Renaissance Global Real Estate Currency Neutral Fund Renaissance Global Health Care Fund Renaissance Global Resource Fund Renaissance Global Science & Technology Fund

p 96 p 98 p 100 p 102 p 104 p 106 p 108 p 110 p 112 p 114 p 116

p 116 p 118 p 120 p 122 p 124 p 126 p 128


Invest with Confidence When your clients invest with Renaissance Investments, they’re in good hands. We search the world for independent investment managers and put them to work on their behalf. We begin with a universe of thousands of potential investment managers, and then

Universe of Investment Managers

Quantitative Filters

apply in-depth quantitative and qualitative filters to identify those with a proven ability 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.

Manager Candidates

Qualitative Six Step Process

Once selected for Renaissance Investments, managers undergo continuous monitoring and assessment. In order to remain part of our clients’ portfolios, they must demonstrate consistency with their investment disciplines and the rigorous standards of our products.

Managers Selected for Renaissance Investments

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.

renaissance investments 35


Renaissance Investments

Fund Essentials ATL FUND CODES

MERs

COMMISSIONS

TRAILERS4 (%)

INVESTMENT MANAGERS

Front-End Load

Back-End Load

Low Load

Class F

Class A (%)

Front-End Back-End Low Load Load Load

Back-End Back-End Front-End Load Low Load Low Load Load Load 1–6 years2 7+ years2 1–3 years 3 4+ years3

CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc.

ATL1025 ATL1200 ATL922 ATL974

ATL1125 n/a ATL643 ATL363

ATL2125 n/a ATL681 ATL762

n/a n/a n/a n/a

0.46% 0.36% 0.41% 0.17%

0-5% 0-5% 0-5% 0-5%

5.00% n/a 5.00% 5.00%

3.00% n/a 3.00% 3.00%

0.10 0.15 0.10 0.05

0.10 n/a 0.10 0.05

0.10 n/a 0.10 0.05

0.10 n/a 0.10 0.05

0.10 n/a 0.10 0.05

CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. Brandywine Global Investment Management, LLC

ATL1021 ATL1022 ATL251 ATL1002 ATL1202 ATL908 ATL1028

ATL1121 ATL1122 ATL291 ATL1102 n/a ATL823 ATL1872

ATL2121 ATL2122 ATL267 ATL2102 n/a ATL667 ATL2872

ATL1630 ATL1631 ATL010 ATL016 n/a ATL015 ATL1646

1.43% 1.55% 1.66% 1.63%1 0.93%1 2.01% 2.02%

0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5%

5.00% 5.00% 5.00% 5.00% n/a 5.00% 5.00%

3.00% 3.00% 3.00% 3.00% n/a 3.00% 3.00%

0.50 0.50 0.75 0.75 0.50 0.75 0.75

0.25 0.25 0.25 0.25 n/a 0.25 0.25

0.50 0.50 0.75 0.75 n/a 0.75 0.75

0.25 0.25 0.25 0.25 n/a 0.25 0.25

0.50 0.50 0.75 0.75 n/a 0.75 0.75

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

Brandywine Global Investment Management, LLC, CIBC Global Asset Management Inc., RARE Infrastructure Limited

ATL048 ATL2401 ATL2404 ATL053 ATL2407 ATL2410 ATL056 ATL2413 ATL2416

ATL050 ATL2403 ATL2406 ATL055 ATL2409 ATL2412 ATL058 ATL2415 ATL2418 1

ATL049 ATL2402 ATL2405 ATL054 ATL2408 ATL2411 ATL057 ATL2414 ATL2417

ATL051 n/a n/a n/a n/a n/a n/a n/a n/a

1.90% 1.66%1 1.31%1 1.90% 1.63%1 1.23%1 1.91% 1.63%1 n/a

0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5%

5.00% 4.00% 3.00% 5.00% 4.00% 3.00% 5.00% 4.00% 3.00%

3.00% 2.00% 1.00% 3.00% 2.00% 1.00% 3.00% 2.00% 1.00%

1.00 1.00 0.75 1.00 1.00 0.75 1.00 1.00 0.75

0.50 0.50 0.25 0.50 0.50 0.25 0.50 0.50 0.25

1.00 1.00 0.75 1.00 1.00 0.75 1.00 1.00 0.75

0.35 0.35 0.25 0.35 0.35 0.25 0.35 0.35 0.25

1.00 1.00 0.75 1.00 1.00 0.75 1.00 1.00 0.75

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 Renaissance Diversified Income Fund Renaissance Millennium High Income Fund

CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. Morrison Williams Investment Management Ltd.

ATL910 ATL247 ATL1879

ATL859 ATL271 ATL1880

ATL668 ATL204 ATL2880

ATL155 ATL017 ATL1650

2.50% 2.52% 2.58%

0-5% 0-5% 0-5%

5.00% 5.00% 5.00%

3.00% 3.00% 3.00%

0.75 1.10 0.75

0.35 0.25 0.50

1.10 0.75 1.25

0.25 0.35 0.25

0.75 1.10 0.75

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 Renaissance Canadian Small-Cap Fund

McLean Budden Limited CIBC Global Asset Management Inc.

ATL902 ATL905

ATL843 ATL852

ATL669 ATL670

ATL022 ATL023

2.63% 2.59%

0-5% 0-5%

5.00% 5.00%

3.00% 3.00%

1.25 1.25

0.50 0.50

1.25 1.25

0.50 0.50

1.25 1.25

Renaissance U.S. Equity Value Fund Renaissance U.S. Equity Value Fund (US$) Renaissance U.S. Equity Growth Fund Renaissance U.S. Equity Growth Fund (US$)

Metropolitan West Capital Management, LLC Metropolitan West Capital Management, LLC Aletheia Research and Management, Inc. Aletheia Research and Management, Inc.

ATL502 ATL743 ATL913 ATL973

ATL501 ATL742 ATL833 ATL733

ATL515 ATL744 ATL661 ATL761

ATL024 ATL025 ATL026 ATL027

2.73% 2.73% 2.73% 2.73%

0-5% 0-5% 0-5% 0-5%

5.00% 5.00% 5.00% 5.00%

3.00% 3.00% 3.00% 3.00%

1.25 1.25 1.25 1.25

0.50 0.50 0.50 0.50

1.25 1.25 1.25 1.25

0.50 0.50 0.50 0.50

1.25 1.25 1.25 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)

ATL1250

ATL1252

ATL1251

ATL1253

2.19%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance U.S. Equity Fund

INTECH Investment Management LLC

ATL911

ATL855

ATL662

ATL028

1.92%

0-5%

5.00%

3.00%

0.75

0.25

0.75

0.25

0.75

Renaissance U.S. Equity Fund (US$)

INTECH Investment Management LLC

ATL797

ATL799

ATL798

ATL097

1.86%

0-5%

5.00%

3.00%

0.75

0.25

0.75

0.25

0.75

Renaissance International Dividend Fund Renaissance International Equity Fund

Kleinwort Benson Investors Walter Scott & Partners Limited

ATL914 ATL1868

ATL856 ATL1869

ATL677 ATL2869

ATL032 ATL1644

2.36% 2.80%

0-5% 0-5%

5.00% 5.00%

3.00% 3.00%

0.75 1.25

0.25 0.50

0.75 1.25

0.25 0.50

0.75 1.25

Renaissance International Equity Currency Neutral Fund

CIBC Global Asset Management Inc. (Walter Scott & Partners Limited is the investment ATL1240 manager of the underlying fund)

ATL1242

ATL1241

ATL1243

2.10%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Global Markets Fund

Wintergreen Advisers, LLC

MONEY MARKET FUNDS

Renaissance Money Market Fund Renaissance Money Market Fund – Premium Class Renaissance Canadian T-Bill Fund Renaissance U.S. Money Market Fund (US$) FIXED INCOME FUNDS

Renaissance Short-Term Income Fund Renaissance Canadian Bond Fund Renaissance Real Return Bond Fund Renaissance Corporate Bond Capital Yield Fund Renaissance Corporate Bond Capital Yield Fund – Premium Class Renaissance High-Yield Bond Fund Renaissance Global Bond Fund BALANCED FUNDS

Renaissance Canadian Balanced Fund (formerly Renaissance Canadian Balanced Value Fund) Renaissance Optimal Income Portfolio Renaissance Optimal Income Portfolio – Select Class Renaissance Optimal Income Portfolio – Elite Class Renaissance Optimal Income Portfolio – Class T6 Renaissance Optimal Income Portfolio – Select-T6 Class Renaissance Optimal Income Portfolio – Elite-T6 Class Renaissance Optimal Income Portfolio – Class T8 Renaissance Optimal Income Portfolio – Select-T8 Class Renaissance Optimal Income Portfolio – Elite-T8 Class EQUITY INCOME FUNDS

CANADIAN EQUITY FUNDS

U.S. EQUITY FUNDS

GLOBAL EQUITY FUNDS

ATL1029

ATL1873

ATL2873

ATL1647

2.76%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Portfolio (formerly Renaissance Global Multi Management Fund)

ATL1902

ATL1903

ATL2903

ATL1652

2.73%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Portfolio – Select Class Renaissance Optimal Global Equity Portfolio – Elite Class Renaissance Optimal Global Equity Portfolio – Class T4 Renaissance Optimal Global Equity Portfolio – Select-T4 Class Renaissance Optimal Global Equity Portfolio – Elite-T4 Class Renaissance Optimal Global Equity Portfolio – Class T6 Renaissance Optimal Global Equity Portfolio – Select-T6 Class Renaissance Optimal Global Equity Portfolio – Elite-T6 Class Renaissance Optimal Global Equity Portfolio – Class T8 Renaissance Optimal Global Equity Portfolio – Select-T8 Class Renaissance Optimal Global Equity Portfolio – Elite-T8 Class

ATL2419 ATL2422 ATL2425 ATL2434 ATL2437 ATL2428 ATL2440 ATL2443 ATL2431 ATL2446 ATL2449

ATL2421 ATL2424 ATL2427 ATL2436 ATL2439 ATL2430 ATL2442 ATL2445 ATL2433 ATL2448 ATL2451

ATL2420 ATL2423 ATL2426 ATL2435 ATL2438 ATL2429 ATL2441 ATL2444 ATL2432 ATL2447 ATL2450

n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

n/a n/a 2.85%1 n/a n/a n/a 2.24% n/a n/a n/a n/a

0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5%

4.00% 3.00% 5.00% 4.00% 3.00% 5.00% 4.00% 3.00% 5.00% 4.00% 3.00%

2.00% 1.00% 3.00% 2.00% 1.00% 3.00% 2.00% 1.00% 3.00% 2.00% 1.00%

1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90

0.50 0.40 0.50 0.50 0.40 0.50 0.50 0.40 0.50 0.50 0.40

1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90

0.50 0.40 0.50 0.50 0.40 0.50 0.50 0.40 0.50 0.50 0.40

1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90

130 renaissance investments

Aletheia Research and Management, Inc., NWQ Investment Management Company, LLC, RARE Infrastructure Limited, Wellington Management Company, Wintergreen Advisers, LLC


Renaissance Investments

Fund Essentials ATL FUND CODES

MERs

COMMISSIONS

TRAILERS (%)

Front-End Load

Back-End Load

Low Load

Class F

Class A (%)

Front-End Back-End Low Load Load Load

Back-End Back-End Load Front-End Load Low Load Low Load Load 1–6 years2 7+ years2 1–3 years 3 4+ years3

Renaissance Optimal Global Equity Currency Neutral Portfolio

ATL1265

ATL1267

ATL1266

ATL1268

238%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Currency Neutral Portfolio – Select Class

ATL1270

ATL1272

ATL1271

n/a

n/a

0-5%

4.00%

2.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Currency Neutral Portfolio - Elite Class

ATL1273

ATL1275

ATL1274

n/a

n/a

0-5%

3.00%

1.00%

0.90

0.40

0.90

0.40

0.90

ATL1276 CIBC Global Asset Management Inc. (Aletheia Research and Management, Inc., NWQ Investment Management Company, LLC, ATL1285 RARE Infrastructure Limited, Wellington Management Company and Wintergreen Advisers, LLC are the ATL1294 investment managers of the underlying funds)

ATL1278

ATL1277

n/a

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

ATL1287

ATL1286

n/a

n/a

0-5%

4.00%

2.00%

1.25

0.50

1.25

0.50

1.25

ATL1296

ATL1295

n/a

n/a

0-5%

3.00%

1.00%

0.90

0.40

0.90

0.40

0.90

Renaissance Optimal Global Equity Currency Neutral Portfolio – Class T6

ATL1279

ATL1281

ATL1280

n/a

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Currency Neutral Portfolio – Select-T6 Class

ATL1288

ATL1290

ATL1289

n/a

n/a

0-5%

4.00%

2.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Currency Neutral Portfolio – Elite-T6 Class

ATL1297

ATL1299

ATL1298

n/a

1.71%

0-5%

3.00%

1.00%

0.90

0.40

0.90

0.40

0.90

Renaissance Optimal Global Equity Currency Neutral Portfolio – Class T8

ATL1282

ATL1284

ATL1283

n/a

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Currency Neutral Portfolio – Select-T8 Class

ATL1291

ATL1293

ATL1292

n/a

n/a

0-5%

4.00%

2.00%

1.25

0.50

1.25

0.50

1.25

ATL1300

INVESTMENT MANAGERS

GLOBAL EQUITY FUNDS (continued)

Renaissance Optimal Global Equity Currency Neutral Portfolio – Class T4 Renaissance Optimal Global Equity Currency Neutral Portfolio – Select-T4 Class Renaissance Optimal Global Equity Currency Neutral Portfolio – Elite-T4 Class

Renaissance Optimal Global Equity Currency Neutral Portfolio – Elite-T8 Class

ATL1302

ATL1301

n/a

n/a

0-5%

3.00%

1.00%

0.90

0.40

0.90

0.40

0.90

Renaissance Global Value Fund Renaissance Global Growth Fund

NWQ Investment Management Company, LLC Walter Scott & Partners Limited

ATL1030 ATL504

ATL1031 ATL503

ATL2031 ATL516

ATL1625 ATL034

2.80% 2.82%

0-5% 0-5%

5.00% 5.00%

3.00% 3.00%

1.25 1.25

0.50 0.50

1.25 1.25

0.50 0.50

1.25 1.25

Renaissance Global Growth Currency Neutral Fund

CIBC Global Asset Management Inc. (Walter Scott & Partners Limited is the investment ATL1235 manager of the underlying fund)

ATL1237

ATL1236

ATL1238

2.08%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

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)

ATL1245

ATL1247

ATL1246

ATL1248

2.36%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Global Small-Cap Fund

Wellington Management Company, LLP

ATL1040

ATL1041

ATL2041

ATL1626

3.02%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

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 Renaissance China Plus Fund Renaissance Emerging Markets Fund

Hamon Investment Management Limited Hamon Investment Management Limited Pictet Asset Management Limited

ATL1512 ATL1050 ATL920

ATL1519 ATL1051 ATL858

ATL2519 ATL2051 ATL675

ATL1639 ATL1627 ATL029

3.35% 3.30% 3.05%

0-5% 0-5% 0-5%

5.00% 5.00% 5.00%

3.00% 3.00% 3.00%

1.25 1.25 1.25

0.50 0.50 0.50

1.25 1.25 1.25

0.50 0.50 0.50

1.25 1.25 1.25

RARE Infrastructure Limited

SPECIALTY FUNDS

Renaissance Global Infrastructure Fund

ATL059

ATL061

ATL060

ATL062

2.62%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

CIBC Global Asset Management Inc. Renaissance Global Infrastructure Currency Neutral Fund (RARE Infrastructure Limited is the investment manager of the underlying fund)

ATL1230

ATL1232

ATL1231

ATL1233

2.41%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

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)

ATL1260

ATL1262

ATL1261

ATL1263

2.01%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Global Health Care Fund Renaissance Global Resource Fund Renaissance Global Science & Technology Fund Renaissance Global Science & Technology Fund (US$)

Wellington Management Company, LLP Front Street Investment Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc.

ATL1161 ATL1860 ATL1027 ATL1227

ATL1162 ATL1861 ATL1871 ATL1371

ATL2162 ATL2861 ATL2871 ATL2371

ATL1635 ATL1666 ATL1645 ATL1637

3.28% 3.35% 3.00% 3.00%

0-5% 0-5% 0-5% 0-5%

5.00% 5.00% 5.00% 5.00%

3.00% 3.00% 3.00% 3.00%

1.00 1.25 1.25 1.25

0.50 0.50 0.50 0.50

1.00 1.25 1.25 1.25

0.50 0.50 0.50 0.50

1.00 1.25 1.25 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, 2011 1 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. renaissance investments 131


Live Better

Off the beaten trail, 21st century style

Asian vacation confidential

In the age of the smart phone and the cheap charter ight, does the proverbial hidden gem of a travel destination still exist?

renaissance investments 133


A return hike to the Tiger’s Nest monastery (left) from Amankora Paro lodge is four hours in duration

Photo courtesy of Aman Resorts

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 Torontobased 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.

134 renaissance investments

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.

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

“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.” 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.

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


The clouded leopard lives in Borneo while sun worshippers inhabit Boracay’s White Beach (right)

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-andhalf-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 powder-like sand and reputation as one of the world’s best beaches, runs along the western 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.

Bhutan www.amanresorts.com www.tourism.gov.bt

Borneo www.borneorainforestlodge.com www.sabahtourism.com

Boracay www.shangri-la.com www.tourism.gov.ph

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 poolside pictures to your friends back home.

renaissance investments 135


Brain Calisthenics

Word scramble

Sudoku

Unscramble the following letters to spell words from the Invest Well article on page 8:

Complete the Sudoku puzzle so that each and every row, column and 3x3 box contains the numbers one through nine only once.

1. tiruaalas 2. lidanoitzartsuni

1

3. myocdimot

6

4. scomsuren

5

5. glaminono

7

4

6

9

3

8

4 1

6

9

1

3

3

6. lilibon 7. dudeharetqear

2

8. mocacernoocmi

9

9. mutilih

3

10. crosleephit

8

7

8 1

1

7

8

4

5 2

9 1

4

6 6

7

3

Source: 4puz.com

Spot the difference: Russia Can you spot the ďŹ ve differences between the pictures below?

Check your answers at www.renaissanceinvestments.ca/braincalisthenics 136 renaissance investments


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 ONLY Renaissance 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.

Printed in Canada on 25% Post Consumer Recycled Paper


Looking for an income fund that offers more than just income? Look no further than the Renaissance Optimal Income Portfolio. 1st Quartile Performance

1 year

2 years

3 years

Since Inception3

Renaissance Optimal Income Portfolio Performance1

12.2%

9.9%

4.0%

3.3%

2

1

Quartile

st

st

1

2

nd

n/a

Pension-style portfolio builds wealth while generating income

1% Annual trailer5 to recognize your valuable service

Inflation Protection from infrastructure and real-return bond components

Enhanced income potential through three T-Class payout options: 4%, 6% and 8%

Competitive MERs across Class A, Select and Elite Class options, from as low as 1.31%4

Visit www.renaissanceinvestments.ca/oip for more. 1

Performance as at June 30, 2011. 2Source: Morningstar, for the periods specified ending June 30, 2011 for Class A units of the Renaissance Optimal Income Portfolio. ©2011 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 3Inception date: November 13, 2007. 4MER for Elite Class units of the Renaissance Optimal Income Portfolio as at February 28, 2011. The Class A MER is 1.90% and the Select Class MER is 1.66%, both annualized as at February 28, 2011 (as disclosed in each fund or portfolio’s annual 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. 5Class A front-end load units. Please read the Renaissance Investments family of funds Simplified Prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Renaissance Investments is offered by CIBC Asset Management Inc. ™Renaissance Investments and “invest well. live better.” are registered trademarks of CIBC Asset Management Inc. 02440E(201107)


/mktg_ri_ramagazine_