Your SlideShare is downloading. ×
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Investment Manager Outlook
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Investment Manager Outlook

416

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
416
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Investment Manager Outlook Date: December 2009 Author: Sadiq S. Adatia, CFA, Chief Investment Officer Country: Canada Synopsis: Russell’s quarterly survey of Canadian investment managers and their views of the market.
  • 2. RuSSell InveStment mAnAgeR OutlOOk Summary of key findings key trends / December 2009 Investment manager Survey* Cash Energy $CAD vs $U.S.. Industrials LESS MORE MORE LESS BULLISH BULLISH BULLISH BULLISH *Compared to survey results from September 2009 Investment manager Outlook Poll. While some investment managers are treading cautiously in the current market, the vast majority are optimistic about the year ahead. Fully 83 percent of investment managers believe the S&P/tSX will experience gains in 2010. In contrast, only nine percent anticipate a decline. the investment managers expressed these views in the latest quarterly Russell Investment manager Outlook poll conducted by Russell in november of 2009. Investment managers continue to feel confident in broad market Canadian equities, with 65 percent expressing bullish sentiment and just 18 percent saying they are bearish. the energy sector continues to be the darling of the Canadian market, with 71 percent of managers bullish and only 14 percent bearish. Financial stocks also remain in favour, with 61 percent of managers bullish and 21 percent bearish. Bullish sentiment towards Canadian bonds rose from just 6 percent of managers to 18 percent. With cash offering near-zero returns, bonds may be seen as a viable alternative to equities. A solid 64 percent of investment managers remain bullish towards emerging market equities, and bears have fallen from 28 percent to just 15 percent. meanwhile, bullish sentiment towards u.S. and eAFe equities slipped to 44 percent and 47 percent respectively as market watchers look for positive post-stimulus economic news. At Russell, we strongly believe in the market’s long-term prospects, and continue to counsel full participation in the markets. We strongly recommend that investors enter the market while taking a thoughtful approach to diversification in order to mitigate risk and take advantage of critical opportunities. n Russell Investments // Investment Manager Outlook / December 2009 p1
  • 3. About the Investment manager Outlook As creators of the Russell indexes and a firm that researches more than 5,200 investment manager products, Russell Investments has extraordinary access to senior-level Canadian investment decision-makers. Prior to the end of each media relations quarter, Russell surveys a sample of those investment managers to collect their contacts top-line opinions about the direction of the markets, sectors/styles to watch, and tOROntO trends on the horizon that could impact investment strategy. the result of this survey is the Russell Investment manager Outlook. thien Huynh manager, three of the four questions posed to investment managers are repeated each Communications quarter, so that results can be measured over time. the poll also includes one 416-640-2529 topical question that changes each quarter. In addition to providing quantitative results, Russell reviews the data collected each quarter, and provides a qualitative analysis from a senior investment strategist (see page 3). the Russell Investment Manager Outlook is completed and distributed at the end of each quarter. this report includes responses from investment managers with a variety of investment focuses. The manager research that Russell conducts for investment purposes is done entirely independent of the Russell Investment Manager Outlook, and responses to the survey are on a purely voluntary basis. Russell Investments // Investment Manager Outlook / December 2009 p2
  • 4. COmmentARy & AnAlySIS Consensus: markets to rise in 2010 By Sadiq S. Adatia, CFA, Russell Investments Canada limited In the current quarter, some investment managers appear to be taking more cautious positions as they wait for economic fundamentals to catch up with soaring equity markets. But looking ahead to the coming year, optimism abounds as fully 83 percent of investment managers believe the S&P/tSX will experience gains in 2010. In contrast, only nine percent anticipate a decline. the investment managers expressed these views in the latest quarterly Russell Investment manager Outlook poll conducted by Russell in november of 2009. Investment managers continue to feel confident in broad market Canadian equities, with 65 percent expressing bullish sentiment and just 18 percent saying they are bearish. this confidence is built on a foundation of strong bank earnings, improving economic statistics, rising commodity prices, and a rebounding residential real estate market. Indeed, despite continuing high unemployment numbers, Canada’s relative prosperity remains the envy of the world. As such, money continues to flow into the Canadian dollar, helping to keep it aloft versus the u.S. dollar. Sixty percent of investment managers surveyed remain bullish towards the loonie, while only 17 percent expect it to soften in the coming months. Sentiment towards small cap Canadian equities isn’t as rosy, with the number of bulls falling from 62 percent of managers to 47 percent in the latest quarter, and bears rising six percentage points to nearly one-third of managers. this may reflect the fact that they have already outperformed large caps significantly this year, and that some managers may now be favouring large caps to protect against a potential stumble in the current bull market run. Sentiment towards Canadian bonds was revived somewhat this quarter, with 18 percent of managers now bullish versus only 6 percent last quarter. With some managers feeling cautious about equities, and cash offering near-zero returns (and garnering a measly 6 percent bullish sentiment), Canadian bonds may offer an attractive middle ground. High-yield bonds, meanwhile, have divided manager opinion: roughly one-third bullish, one-third bearish, and one-third neutral. meanwhile, a solid 64 percent of investment managers remain bullish towards emerging market equities this quarter, and bears have fallen from 28 percent to just 15 percent. China and India continue to be seen as offering strong growth prospects and solid performance potential. Russell Investments // Investment Manager Outlook / December 2009 p3
  • 5. COmmentARy & AnAlySIS Consensus: markets to rise in 2010 (continued) Bullish sentiment towards u.S. and eAFe equities slipped to 44 percent Manager Expectations by Asset Class and 47 percent respectively in the latest quarter. Both of these markets (As of December 2009) have experienced strong upswings, and we suspect that Canadian and CANADIAN EQUITIES (BROAD MARKET) emerging market equities may now be seen as offering better growth at 18% 65% this time. EMERGING MARKET EQUITIES 15% 64% In addition, there is some concern that improving u.S. economic data $CAD VS $U.S. is more a reflection of government stimulus than bona fide growth. We 17% 60% believe it will take until the first or second quarter of 2010 to gain a CANADIAN EQUITIES (SMALL CAP) clearer picture of the state of the u.S. economy, and it’s quite possible 35% 47% that investment managers will re-assess their outlooks for u.S. equities EAFE EQUITIES 24% 47% at that time. U.S. EQUITIES Despite mixed data from the Canadian and u.S. housing markets, bullish 32% 44% sentiment towards real estate is now up to 28 percent of managers—the CANADIAN HIGH YIELD BONDS 33% 33% highest level seen in many quarters. thirty-four percent of managers REAL ESTATE remain bearish. It should be noted, however, that the improved 34% 28% performance of residential housing has not been matched in the CANADIAN BONDS commercial sector, where the outlook remains decidedly gloomy. 62% 18% CASH the majority of investment managers are content with equity market 62% 6% valuations. Fifty-six percent consider stocks to be fairly valued, and 17 percent say it is undervalued. About one-in-four expressed concern = % Bearish1 = % Bullish2 that it is overvalued. turning to individual equity sectors, energy continues to be the darling note: Bearish = percent of managers of the Canadian market, with 71 percent of managers bullish and only responding with 1-3 on a scale of 1-7. 14 percent bearish. With the shares of Canadian oil producers priced Bullish = percent of managers responding with 5-7 on a scale of 1-7. Scores for for roughly $65/barrel, the recent trading range in the area of $75-plus neutral (4) are not included. implies continued upside potential. See detailed charts on the following pages. Financial stocks also remain in favour, with 61 percent of managers bullish and 21 percent bearish. Sentiment deteriorated slightly since last quarter, perhaps in reaction to manulife Financial’s dividend cut and equity financing, but bank earnings remain strong and dividends have continued to flow uninterrupted. Russell Investments // Investment Manager Outlook / December 2009 p4
  • 6. COmmentARy & AnAlySIS Consensus: markets to rise in 2010 (continued) Sentiment towards the information technology sector—often considered Manager Expectations by Sector a proxy for Research in motion—slipped from 63 percent bullish to (As of December 2009) 57 percent bullish. this may reflect concerns that competition for ENERGY RIm’s Blackberry product is heating up. 14% 71% FINANCIAL SERVICES Record-high gold prices continue to prop up sentiment towards the 21% 61% materials sector, which is currently at 54 percent bullish and 32 percent INFORMATION TECHNOLOGY bearish. We suspect that the materials sector ex-gold would not garner 18% 57% as strong an endorsement from investment managers. MATERIALS 32% 54% the telecom sector continues to hold appeal, with bulls up from 48 TELECOMMUNICATIONS SERVICES percent to 52 percent, and bears holding steady at 32 percent. the sector 32% 52% offers solid yields, healthy earnings, and modest valuations—attractive INDUSTRIALS traits for investors seeking a relatively conservative equity play. 18% 46% CONSUMER DISCRETIONARY 46% utilities, industrials, consumer discretionary, and consumer staples are 21% traditionally considered defensive sectors with solid if unspectacular CONSUMER STAPLES 21% 29% growth potential. this may explain why bullishness towards all four HEALTH CARE declined this quarter. In the current rising market environment, 32% 29% investment managers are likely finding more compelling growth UTILITIES opportunities elsewhere. 52% 22% Recent disappointing earnings from consumer discretionary stocks = % Bearish1 = % Bullish2 (such as Shoppers Drug mart Inc.) and continued weak performance from consumer staples stocks—one of the worst-performing sectors of the past year—have contributed to this weaker sentiment. note: Bearish = percent of managers responding with 1-3 on a scale of 1-7. At Russell, we strongly believe in the market’s long-term prospects, Bullish = percent of managers responding and continue to counsel full participation in the markets. We share with 5-7 on a scale of 1-7. Scores for investment managers’ low opinion of holding cash, and recommend neutral (4) are not included. that investors enter the market while taking a thoughtful approach to See detailed charts on the following pages. diversification in order to mitigate risk and take advantage of critical opportunities. n Russell Investments // Investment Manager Outlook / December 2009 p5
  • 7. ReSultS valuation of the Canadian equity market Question: Which of these general valuation conditions best describes the Canadian equity market? Key Findings: • 17% of managers consider the market undervalued • 56% of managers consider the market fairly valued • 28% of the managers consider the market overvalued 100 80 % of Respondents 60 56 40 28 17 20 0 100 80 % of Respondents 60 40 20 0 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Overvalued Overvalued Fairly valued note: numbers may not add to Fairly Valued undervalued 100 percent due to rounding. Undervalued Russell Investments // Investment Manager Outlook / December 2009 p6
  • 8. ReSultS Asset class expectations Question: What are your expectations for the performance of the following asset classes over the next 12 months? Key Findings: • Canadian market tops equity sentiment with 65 percent of managers bullish • Real estate stages modest rebound: 28 percent of managers now bullish • Few managers favour cash, with just 6 percent now bullish past current Canadian Equities (Broad Market) Canadian Equities (Small Cap) 60 60 50 44 50 Scale is 1 to 7 40 38 40 32 32 1 = Strongly bearish 30 30 4 = neutral 24 24 21 21 21 20 18 18 18 15 20 7 = Strongly bullish 12 12 11 10 9 9 9 10 6 6 6 0 0 3 0 3 3 0 Chart data is based on 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 percentage of respondents. U.S. Equities EAFE Equities 60 60 50 50 40 38 40 35 30 29 29 29 30 26 24 30 24 21 21 20 18 18 20 15 12 9 10 6 6 10 3 3 3 0 0 0 0 0 0 0 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 Emerging Market Equities Canadian Bonds 60 60 50 50 50 38 40 40 33 3Q09 4Q09 28 31 note: numbers may not add to 30 27 30 21 25 24 21 100 percent due to rounding. 20 16 18 20 13 9 9 9 10 3 6 6 10 3 3 3 3 0 0 0 0 0 0 0 1 2 Russell Investments // Investment Manager6Outlook / December 2009 1 2 3 4 5 7 3 4 5 6 7 p7
  • 9. 50 50 44 40 38 40 32 32 30 30 24 24 21 21 21 20 18 18 18 20 15 12 12 11 10 9 9 9 10 6 6 6 3 3 3 0 0 0 0 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 ReSultS Asset class expectations (continued) 60 U.S. Equities EAFE Equities 60 50 50 40 38 40 35 30 29 29 29 30 26 24 30 24 21 21 20 18 18 20 15 12 9 10 6 6 10 3 3 3 0 0 0 0 0 0 0 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 Emerging Market Equities Canadian Bonds 60 60 50 50 50 Scale is 1 to 7 38 40 40 1 = Strongly bearish 33 31 30 28 25 27 24 30 4 = neutral 21 21 20 16 18 20 7 = Strongly bullish 13 9 9 9 10 6 6 10 3 3 3 3 3 0 0 0 0 0 Chart data is based on 0 0 percentage of respondents. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 Canadian High Yield Bonds Canadian Real Estate 60 60 50 50 41 40 38 40 34 33 31 31 30 25 30 22 21 21 22 20 20 12 12 13 13 9 10 6 6 6 10 3 0 0 0 0 0 0 0 0 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 Cash $CAD vs $U.S. 60 60 50 50 40 35 40 32 32 31 30 29 30 30 23 23 21 20 18 18 20 15 15 12 11 12 9 10 6 6 6 6 10 3 3 3 0 0 0 0 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 3Q09 4Q09 note: numbers may not add to 100 percent due to rounding. Russell Investments // Investment Manager Outlook / December 2009 p8
  • 10. ReSultS Sector expectations Question: What are your expectations for the performance of the following sectors over the next 12 months? Key Findings: • energy continues as market darling with 71 percent of managers bullish • Record-high gold prices continue to prop up materials sector • Bulls waning on defensive sectors as better opportunities are seen elsewhere past current Utilities Telecommunication Services 60 60 50 48 50 Scale is 1 to 7 40 40 40 1 = Strongly bearish 30 28 28 26 24 24 30 4 = neutral 19 21 21 20 14 17 14 17 16 20 7 = Strongly bullish 12 10 7 8 4 4 10 3 0 3 0 0 0 3 0 Chart data is based on 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 percentage of respondents. Financial Services Industrials 60 60 50 46 50 43 40 40 36 40 33 29 30 30 21 20 18 18 17 18 20 14 14 14 11 10 6 7 7 10 4 4 4 3 0 0 0 0 0 0 0 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 60 Materials Energy 60 50 50 43 40 36 40 30 3Q09 4Q09 30 29 32 30 note: numbers may not add to 27 21 23 21 20 100 percent due to rounding. 20 20 11 13 14 13 11 13 14 10 7 10 3 3 4 4 3 4 0 0 0 0 0 0 2 Russell Investments //3 Investment Manager Outlook7 / December 2009 1 2 4 5 6 1 3 4 5 6 7 p9
  • 11. 50 40 40 40 30 28 28 26 24 24 30 19 21 21 20 17 17 16 20 14 14 12 10 7 8 4 4 10 3 3 3 0 0 0 0 0 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 ReSultS Sector expectations (continued) 60 Financial Services Industrials 60 50 46 50 43 40 40 36 40 33 29 30 30 21 20 18 18 17 18 20 14 14 14 11 10 6 7 7 10 4 4 4 3 0 0 0 0 0 0 0 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 60 Materials Energy 60 50 50 43 Scale is 1 to 7 40 36 40 30 29 32 1 = Strongly bearish 30 27 30 21 23 21 4 = neutral 20 20 20 7 = Strongly bullish 11 13 14 13 11 13 14 10 7 10 3 3 4 4 3 4 0 0 0 0 0 0 Chart data is based on 1 2 3 4 5 6 7 1 2 3 4 5 6 7 percentage of respondents. 60 Consumer Staples Consumer Discretionary 60 50 50 50 41 40 36 40 34 32 30 28 30 25 21 21 20 18 17 20 14 10 10 11 10 10 3 4 4 3 3 4 3 4 3 0 0 0 0 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 60 Health Care Information Technology 60 50 50 43 40 39 40 33 30 29 30 25 25 23 25 20 18 18 20 14 14 14 13 13 11 10 7 7 7 7 10 4 4 3 4 0 0 0 0 0 0 1 2 3 4 5 6 7 1 2 3 4 5 6 7 3Q09 4Q09 note: numbers may not add to 100 percent due to rounding. Russell Investments // Investment Manager Outlook / December 2009 p 10
  • 12. ReSultS Predicted S&P/tSX performance for 2010 Question: What are your expectations for the performance of the S&P/tSX for the 12 months ending December 2010? a. up 10% or more b. up less than 10% c. Flat d. Down less than 10% e. Down 10% or more Key Findings: • Fully 83 percent of managers expect market gains in 2010 • thirty-seven percent expect a gain of 10 percent or more • Only nine percent predict a market decline 50% 46% 45% 40% 37% 35% % of Respondents 30% 25% 20% 15% 10% 9% 6% 5% 3% 0% Up 10% or more Up less than 10% Flat Down less than 10% Down 10% or more note: numbers may not add to 100 percent due to rounding. Russell Investments // Investment Manager Outlook / December 2009 p 11
  • 13. Supplementary information the Asset Classes are based on an appropriate, broad-based index applicable to that sector. For example, returns for the broad Canadian equity market are based on the S&P/tSX Composite Index. Annualized Asset Class Returns to november 2009 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 -10.00 Canadian equity Canadian equity US equity EAFE equity Emerging Canadian Canadian high Cash (Broad Market) (Small Cap) markets equity bonds yield bonds 1 Yr (%) 3 Yrs (%) 5 Yrs (%) 10 Yrs (%) Annualized Asset Class Returns to november 2009 Asset Classes 1 Year (%) 3 Years (%) 5 Years (%) 10 Years (%) Canadian equity (Broad market) 27.75 -0.67 7.60 6.51 S&P/TSX Composite Index5 Canadian equity (Small Cap) 62.36 -5.42 1.17 n/A S&P/TSX Small Cap Index5 u.S. equity 8.02 -8.41 -1.50 -3.16 Russell 3000® Index6 eAFe equity 17.58 -7.55 2.13 -1.06 MSCI EAFE Index3 emerging markets equity 57.71 2.83 13.31 7.35 MSCI Emerging Markets Index3 Canadian bonds 10.01 5.39 5.75 6.82 DEX Universe Bond Index4 Canadian high yield bonds 17.99 6.83 6.88 8.49 DEX High Yield Index4 Cash 0.54 2.49 2.77 3.10 DEX 30 Day T-Bill Index4 Index Sources: 3 mSCI , 4 PC Bond, 5 tSX group Inc., 6 Russell Investments Canada limited Russell Investments // Investment Manager Outlook / December 2009 p 12
  • 14. Asset class definitions Canadian equity (Broad Market) U.S. equity Index Source: S&P/TSX Composite Index5 Index Source: Russell 3000® Index6 Canadian equity is a growth asset u.S. equity is a growth asset involving involving the purchase of ownership the purchase of ownership interests— interests—and the rights to profits and and the rights to profits and voting that voting that this implies—in a company this implies—in companies listed on an listed on the S&P/tSX Composite American equity benchmark, such as Index. equities may be purchased the Russell 3000® Index. from the global Industry Classification Standard sectors, including financials, the Russell 3000® Index offers energy, materials, industrials, consumer investors access to the broad discretionary, consumer staples, u.S. equity universe representing health care, information technology, approximately 98% of the u.S. market. telecommunications, and utilities. the risks faced by u.S. equity include liquidity risk, market risk and company- the risks faced by Canadian equities specific risk. the value of investments include liquidity risk, market risk and is subject to changes to management, company-specific risk. the value of product distribution, investor investments is subject to changes to confidence, internal operations and the management, product distribution, company’s business environment. investor confidence, internal operations and the company’s EAFE equity business environment. Index Source: MSCI EAFE Index3 mSCI eAFe is a morgan Stanley Capital Canadian equity (Small Cap) Index Source: S&P/TSX Small Cap Index 5 International index that is designed to measure the performance of the these securities are small overseas developed stock markets of capitalization stocks which are europe, Australasia, and the Far east. represented by the S&P/tSX Small Cap International equities have historically Index. the S&P/tSX Small Cap Index produced higher long-term returns is a benchmark of smaller Canadian than lower risk investments; however companies that have been included in they tend to be relatively less liquid and the S&P/tSX Composite Index, but are more volatile than domestic equities. not members of the S&P/tSX 60 or the S&P/tSX midcap Indices. International equities entail different risks than those typically associated with domestic equities, including currency fluctuations, political and economic instability, accounting changes and foreign taxation. Russell Investments // Investment Manager Outlook / December 2009 p 13
  • 15. Asset class definitions (continued) Emerging markets equity Canadian high yield bonds Index Source: MSCI Emerging Markets Index3 Index Source: DEX High Yield Bond Index4 Index investments in emerging or Index high yield bonds are non- developing foreign markets involve investment grade debt obligations. exposure to economic structures that In general, when interest rates rise, are generally less diverse and mature, the value of bonds will decline. and to political systems which can be Bond investors should carefully expected to have less stability than consider risks such as interest rate those of more developed countries. risk, credit risk, inflation, securities As a result, emerging markets lending, repurchase and reverse securities may be less liquid and repurchase transaction risk. more volatile than domestic and Portfolios that invest primarily in more developed foreign markets. high yield bonds are subject to additional risks such as limited Canadian bonds liquidity and increased volatility. Index Source: DEX Universe Bond Index4 Cash Index Canadian bonds (Canadian Index Source: DEX 30-day T-Bill Index4 fixed income) are a defensive asset providing debt capital to Index cash is a defensive, low- organizations in return for coupon risk asset that typically involves payments and return of capital at instruments such as 90-day expiry. Canadian bonds may be sold government treasury Bills, high which finance a variety of sectors quality short term notes and including government, corporate, and commercial paper issued by major international fixed income products. financial institutions and blue the sector chosen will determine, in chip companies. Cash provides part, the bond’s level of risk. diversification and liquidity benefits to a portfolio; however cash generally the primary risks associated with provides lower investment returns Canadian bonds include interest than investments such as fixed rate risk, inflation risk and credit income or equities. While highly risk. In general, there is a negative liquid, cash generally has not kept relationship between interest rates and pace with inflation. the value of bonds. Russell Investments // Investment Manager Outlook / December 2009 p 14
  • 16. methodology and background about Russell Methodology About Russell Investments Russell Investments conducted the Russell Investment group provides Russell Investment manager Outlook strategic advice, world-class survey between november 11 and implementation, state-of-the-art november 20, 2009. the survey was performance benchmarks and a range sent to investment managers with a of institutional-quality investment variety of investment focuses. Having products. With more than C$187.2 a financial relationship with Russell billion in assets under management Investments was not part of the criteria as of September 30, 2009, Russell for being included in the survey. Investments serves individual, institutional and advisor clients In total, 28 investment management around the world. Russell Investments firms and 36 investment managers provides access to some of the world’s from Canada participated in the best money managers. It helps survey. the large majority of individual investors put this access to work in respondents to the Russell Investment corporate defined benefit and defined manager Outlook have senior-level contribution plans, and in the life investment decision responsibilities, savings of individual investors. and are often portfolio managers. Other participants included investment Founded in 1936, Russell Investments strategists, research analysts and is a subsidiary of northwestern mutual others. the manager research that and is headquartered in tacoma, Russell Investments conducts for Washington, with additional offices investment purposes is done entirely in new york, toronto, london, Paris, independent of Russell Investment Sydney, Singapore, Auckland and manager Outlook, and responses to the tokyo. Russell Investments Canada survey are on a purely voluntary basis. limited is a wholly-owned subsidiary of Frank Russell Company. For more information, please visit www.russell.com/ca. Russell Investments // Investment Manager Outlook / December 2009 p 15
  • 17. general disclosures 1 We define bearish as on balance, an this is a publication of Russell Investments organization’s or individual’s predominant Canada limited. It should not be construed view based on a belief that general market as investment advice. It is not a solicitation or conditions for the period in question will be recommendation to purchase any services of negative, and relative valuations of securities any organization. in general will trend downward. this view nothing in this publication is intended to should not be considered investment advice constitute legal, tax, securities or investment nor does it apply to any specific security. advice, nor an opinion regarding the 2 We define bullish as on balance, an appropriateness of any investment, organization’s or individual’s predominant nor a solicitation of any type. view based on a belief that overall market the contents are intended for general conditions for the period in question will be information purposes only, and you are urged positive, and relative valuations of securities to consult your own investment advisor in general will trend upward. this view should concerning your own situation and any not be considered investment advice nor does specific investment questions you may have. it apply to any specific security. For further information about these contents, 3 mSCI Index Information: mSCI makes please contact Russell Investments Canada no express or implied warranties or limited. the information contained herein has representations and shall have no liability been obtained from sources that we believe to whatsoever with respect to any mSCI data be reliable, but its accuracy and completeness contained herein. the mSCI data may not be are not guaranteed. Russell Investments further redistributed or used to create indices Canada limited reserves the right at any or financial products. this report is not time and without notice to change, amend, or approved or produced by mSCI. cease publishing the information. It has been 4 PC-Bond, a business unit of tSX Inc. prepared solely for information purposes. It Copyright © tSX Inc. All rights reserved. is made available on an “as is” basis. Russell the information contained herein may not Investments Canada limited does not make be redistributed, sold or modified or used to any warranty or representation regarding the create any derivative work without the prior information. Without prior written permission written consent of tSX Inc.” from Russell Investments Canada limited, it may not be reproduced, in whole or in 5 tSX Copyright 2009 tSX Inc. All rights reserved. part, in any form, other than for your own tHe uSeR AgReeS tHAt tSX InC. AnD tHe personal, non-commercial use. Commissions, trailing commissions, management fees and PARtIeS FROm WHOm tSX InC. OBtAInS expenses all may be associated with mutual DAtA DO nOt HAve Any lIABIlIty FOR fund investments. Please read the prospectus tHe ACCuRACy OR COmPleteneSS OF before investing. mutual funds are not tHe DAtA PROvIDeD OR FOR DelAyS, guaranteed, their values change frequently InteRRuPtIOnS OR OmISSIOnS tHeReIn and past performance may not be repeated. OR tHe ReSultS tO Be OBtAIneD multi-Asset multi-Style multi- manager®, tHROugH tHe uSe OF tHIS DAtA. Russell Investments, the Russell Investments tHe uSeR FuRtHeR AgReeS tHAt logo and the Russell 3000® Index are either neItHeR tSX InC. nOR tHe PARtIeS trademarks or registered trademarks of Frank FROm WHOm It OBtAInS DAtA mAke Russell Company and are used under license by Russell Investments Canada limited. Any RePReSentAtIOn, WARRAnty OR COnDItIOn, eItHeR eXPReSS OR ImPlIeD, Copyright © Russell Investments Canada AS tO tHe ReSultS tO Be OBtAIneD limited, 2009. All rights reserved. FROm tHe uSe OF tHe DAtA, OR AS tO tHe Date of first publication: December 2009 meRCHAntABle QuAlIty OR FItneSS OF tHe DAtA FOR A PARtICulAR PuRPOSe. 6 Russell Indices are registered trademarks of Frank Russell Company and are used under license by Russell Investments Canada limited. Russell Investments // Investment Manager Outlook / December 2009 p 16

×