Download Active Management can help make these kinds of market declines

The benefits of being an
active investor
Investing has Changed
October 23, 2013
Agenda
1
Active Mindset and why it’s important
2
Active Management redefined
3
Active Advice
2
What is an Active Mindset?
3
Investors have seen
a fair share of volatility
Active Management can help make these kinds of
market declines feel a little less painful.
S&P/TSX Composite Index
Source: Bloomberg, as of March 31, 2013
4
Active Management is under attack
5
Active Management is hard to find
Closet index funds are more prevalent making it harder
to find a truly active manager.
Source: “Active Share and Mutual Fund Performance” by Antti Petajisto of the NYU Stern School of Business,
September 2010.
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Active Management
Investing is
complicated
Active Portfolio Managers
use skill and conviction to
navigate the markets
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To find the right
opportunities… the
diamonds in the rough
Understand what you’re paying for
Comparing active vs. passive
Passive
Style
Return
Risk
Active
Passively buy and hold a
selection of securities that match the index
Manager can actively shift the
portfolio among securities and
asset classes in response to
market conditions
Return mirrors the market index
Manager can potentially
outperform the market through
asset allocation
and security selection
Risk mirrors the market index
Manager can potentially reduce
risk through asset allocation and
security selection
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The value of Active Management
It isn’t just about the end result. Protection in down years is
just as important.
Hypothetical illustration assuming a onetime initial investment of $100,000.
For illustration purposes only. Does not represent an actual investment product
or service offered by IA Clarington Investments Inc.
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It isn’t just about returns
Historical Total Returns as at September 30th, 2013
1 year
3 years
5 years
Since Inception*
IA Clarington Canadian Conservative Equity Fund, Series F
7.5%
7.1%
7.7%
5.9%
S&P/TSX Composite Index
7.1%
4.1%
4.8%
5.3%
Source: Zephyr StyleADVISOR, December 31, 2007– December 31, 2011. Hypothetical illustration
assuming a onetime initial investment of $200,000 on December 31, 2007. For illustrative purposes only. It
is not possible to invest directly in a market index. See disclaimer for important information on Series F
mutual funds. *Fund inception date: October 7, 2005.
10
Active Advice delivers results
Research shows Canadians are better off working with an advisor.
Source: Ipsos Reid ‘Canadian Financial Monitor’, 2009.
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Active Advice keeps you on track
Your advisor can help you
• Grow your wealth
• Reduce your taxes
• Keep your focus
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Evaluating Active Managers
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In summary
• Investing has changed – heightened volatility seems to be
‘the new normal’
• Active Management can help manage market risk, giving
you more peace of mind
• In combination with Active Management, Active Advice is
essential in helping you to achieve the outcomes that
matter most to you
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Thank you
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Disclaimer
Series F mutual funds are only available to investors through a fee-based account with a full- service investment dealer. The
fees associated with Series F funds differ from other series of mutual funds largely based on the fact that the cost of advice
provided by a licensed investment advisor is not paid by the mutual fund company from the fund’s MER, but as part of an
account fee paid directly to the advisor. This fee can range depending on client, account types, level of assets and advisor and
is negotiated between the client and his or her advisor. As a result, the MERs and performance of Series F funds may differ
from those of other series of the same fund and the performance may be superior to other series of the same fund as a result
of the potentially lower MERs. For information on the fees and performance of other series of the IA Clarington funds
presented, please visit www.iaclarington.com or call 1-800-530-0204. 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 include changes in share or unit value and reinvestment of all dividends or 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. Returns for time periods of more than one year are historical annual compounded total returns while returns
for time periods of one year or less are cumulative figures and are not annualized. Mutual funds are not guaranteed, their
values change frequently and past performance may not be repeated.
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