1. To us there are no foreign markets.™
Complete Canaccord
ETF Portfolios
With today’s more complex and
globally interconnected markets,
many investors put their trust in
professional portfolio management
to build and protect their wealth.
Complete Canaccord ETF Portfolios
can offer a low-cost way for investors
to benefit from a professionally
managed portfolio of exchange-
traded funds (ETFs).
Complete Canaccord ETF Portfolios
CC ETF Portfolios are managed to maximize return
and mitigate downside risk through active portfolio
management.
Features
• More focused investment exposures which better
account for country, currency and thematic risks than
passive ETF strategies
• Top-down global macro strategy and tactical asset
allocation to better protect capital
• Low-cost global diversification to address increasingly
interconnected global markets
• Experienced investment management team with strong
track record
• Exclusive to Canaccord Genuity Wealth Management
Benefits
• Consistent value-added investment returns through both
weak and strong market conditions
• Tactical global macro strategy focuses on maximizing
returns while still adapting to weak markets to preserve
client capital through downturns
• Greater transparency and flexibility than investing in
mutual funds
• Direct ownership of securities eliminates hidden or
embedded costs or capital gains
• Potential for tax deduction on non-registered management
fees paid
Why is everyone talking about ETFs?
ETFs offer you:
• Diversification through exposure to a wide range of
asset classes, geographies and market segments
• Transparency of portfolio positioning
• Straightforward fees, with no “load” fees or trailers
• Potential tax benefits
• Increased trading flexibility and liquidity which facilitates
capital preservation during market downturns
2. Investment Strategy
Driven by a dynamic allocation process, CC ETF Portfolios
focus investment exposure in areas of market strength and
reduce capital in areas of relative weakness. The portfolio
management team aims to generate excess return and
control risk by under- and overweighting asset classes,
countries and currencies in the portfolio, selecting best-
in-class ETFs for each investment exposure. Built around
a long-term policy allocation, CC ETF Portfolios provide
diversification across both asset classes and geographies.
What is Active Management?
While passively managed portfolios aim to mirror
an index, active managers use experience, skill and
fundamental research to identify opportunities to
outperform the markets.
Through a tactical asset allocation strategy, the portfolio
management team behind the CC ETF Portfolios is able
to position a portfolio away from its benchmark, primarily
in an effort to avoid major losses. This ability to adjust
portfolios in a timely manner can give investors an
advantage in increasingly complex and volatile financial
markets, aiming to reduce drawdowns and increase
returns over time.
The tactical nature of portfolio allocations throughout
market cycles is key to this strategy. At times, the CC ETF
Portfolios can be positioned close to benchmark, benefiting
from being fully invested in a multi-asset and globally
diversified basket of securities. However, during volatile and
risky periods in the market, the portfolios can be positioned
away from their benchmark to protect capital in a more
stable and defensive way than the benchmark allocation.
Benchmark
Lead Portfolio Manager Profile
The CC ETF Portfolios investment team
is led by Cameron B. Hurst, Senior Vice
President and Chief Portfolio Manager,
North America, Canaccord Genuity
Wealth Management. Cameron is also the
Chief Portfolio Manager for Canaccord
Genuity Global Portfolio Solutions (GPS)
Optimized Portfolios in Canada.
Cameron joined Canaccord Genuity from a leading asset
management firm, where he was responsible for US and
international equity investments. Prior to that, he spent
five years at a major Canadian bank managing investments
in the US financial services and consumer staple and
discretionary sectors, with his mandates ranking in the
top decile of comparable funds during the worst years
of the financial crisis. In all, Cameron brings to the firm
over 15 years’ industry experience on Wall Street and Bay
Street, an award-winning fundamental research process
and a strong track record of both absolute and relative
performance.
Complete Canaccord ETF Portfolios
Canadian Equities
US Equities
International Equities
Canadian Short-Term Corporate Bonds
US Government Bonds
US Corporate Bonds
US Preferred Shares
Canadian Equities
US Equities
International Equities
Global Infrastructure
15%
25%
18%
16%
Canadian Short-Term Government Bonds
Canadian Aggregate Bond Index
25%
15%
20%
14%
Cash
8%
6%
11%
5%
16%
6%
CC ETF Growth Portfolio Holdings
Canadian Equities
US Equities
International Equities
Canadian Short-Term Corporate Bonds
US Government Bonds
US Corporate Bonds
US Preferred Shares
Canadian Equities
US Equities
International Equities
Global Infrastructure
15%
25%
18%
16%
Canadian Short-Term Government Bonds
Canadian Aggregate Bond Index
25%
15%
20%
14%
Cash
8%
6%
11%
5%
16%
6%
Illustrating the extent to which CC ETF Portfolios can position
away from the benchmark in times of market stress, the charts
above compare the benchmark asset allocation to that of the
CC ETF Growth Portfolio on October 1, 2014, in the midst of
resource sector declines. The CC ETF Growth Portfolio delivered
a compound annual return of 6.1% since its inception in
September 2014, compared to a benchmark return of 3.3%,
resulting in 2.8% of compound annual relative outperformance.
3. Investment Process
The portfolio management team behind the CC ETF
Portfolios follows a continuous process to ensure a
disciplined approach.
Step 1
Market & Portfolio Monitoring
Globally interconnected and accelerated through significant
technological advances, today’s real-time capital markets
demand real-time portfolio monitoring. The CC ETF portfolio
management team actively monitors their portfolios and
the markets each day to ensure timely repositioning based
on market developments.
Step 2
Technical Analysis
Technical analysis provides an unemotional lens that
gives the team insight into market and price movements,
prompting portfolio rebalancing during challenging market
environments. This critical step brings discipline to the
team’s selling strategy to better protect client capital.
Market/Portfolio
Monitoring
Technical
Analysis
Fundamental
Research
Asset
Allocation
ETF Selection
Portfolio
Construction
Step 3
Fundamental Research
Fundamental sector and company research from the
CGWM Asset Management research team is complemented
by external research resources, enhancing the team’s
understanding of key global market drivers. Combining
top-down economic and technical analysis with bottom-up
fundamental research gives the investment team a fuller
picture of the investment landscape.
Step 4
Asset Allocation
Drawing on fundamental research and technical analysis,
the team draws together all available information into
one cohesive perspective on global markets. Examining
individual factors like asset class, sector, geography,
currency, credit risk and duration, the team determines the
appropriate asset allocation for each portfolio within the
context of the prevailing market environment.
Step 5
ETF Selection
With asset allocations set, the investment team sources
best-in-class ETFs to reflect the desired investment
exposures. Focusing on key criteria like cost, liquidity, and
structure, the team screens a database of over 5,000 ETFs
to ensure rigorous standards are maintained across the
portfolios.
Step 6
Portfolio Construction
Portfolios are carefully modelled according to desired
allocations, positioning relative to benchmark and core
investment goals. Each portfolio is examined for both direct
and embedded risks, and, following successful risk checks,
portfolio trades are executed to rebalance each individual
client portfolio.
Complete Canaccord ETF Portfolios
4. Portfolios
Your Canaccord Genuity Wealth Management Investment
Advisor can help you to determine which of the six CC ETF
Portfolios is right for you.
CC ETF Conservative Portfolio is the most cautious portfolio.
Focusing on capital preservation, it is designed to achieve its
total returns from investing in a 60% fixed income and 40%
equity portfolio.
CC ETF Balanced Portfolio is designed to achieve a balance
between capital preservation and long-term growth and
income by investing in a 50% fixed income and 50% equity
portfolio.
CC ETF Enhanced Income Portfolio focuses on higher
yielding areas of the market to provide a consistently higher
internal yield than the other portfolios. By targeting 60%
equity and 40% fixed income, the portfolio aims to reduce
volatility while focusing on total return.
CC ETF Monthly Income Portfolio is constructed similarly to
the Enhanced Income Portfolio, but pays a cash distribution
each month.
CC ETF Growth Portfolio is designed to achieve long-term
capital growth from predominantly equity-based investments
by investing in a 65% equity and 35% fixed income portfolio.
CC ETF Capital Appreciation Portfolio is designed to achieve
our most aggressive rate of return over the long term by
investing in a 80% equity and 20% fixed income portfolio.
PotentialReturn
Risk
Conservative
40% Equity
60% Fixed Income
50% Equity
50% Fixed Income
60% Equity
40% Fixed Income
65% Equity
35% Fixed Income
80% Equity
20% Fixed Income
Balanced
Enhanced Income
& Monthly Income
Capital
Appreciation
Growth
Performance
As of March 31, 2016
Compound annual growth rate since inception date of September 1, 2014
Benchmarks:
Conservative: 15% S&P/TSX Capped Comp, 15% MSCI EAFE, 35% FTSE TMX Canada Bond
Universe Index, 10% S&P 500, 25% FTSE TMX Canada Short-Term Bond Index. Balanced:
20% S&P/TSX Capped Comp, 20% MSCI EAFE, 30% FTSE TMX Canada Bond Universe
Index, 10% S&P 500, 20% FTSE TMX Canada Short-Term Bond Index. Growth: 25% S&P/
TSX Capped Comp, 25% MSCI EAFE, 20% FTSE TMX Canada Bond Universe Index, 15% S&P
500, 15% FTSE TMX Canada Short-Term Bond Index. Capital Appreciation: 30% S&P/TSX
Capped Comp, 30% MSCI EAFE, 10% FTSE TMX Canada Bond Universe Index, 20% S&P
500, 10% FTSE TMX Canada Short -Term Bond Index. Enhanced Income: 22% S&P/TSX
Capped Comp, 20% MSCI EAFE, 40% FTSE TMX Canada Bond Universe Index, 18% S&P 500
Return Data Source: Canadian dollar, gross composite returns provided by Canaccord
Genuity Wealth Management (“CGWM”). The information herein has been obtained from
sources that CGWM believes to be reliable. However, CGWM does not guarantee its
accuracy or completeness and is not responsible for any errors or omissions. Reported
returns and analytics are calculated on a time-weighted basis, are gross of fees but
net of transactions costs, and are annualized for periods of longer than 12 months,
unless otherwise stated. Past performance is not necessarily indicative of future results.
Benchmark blend was created to target the same level of volatility as the portfolio and does
not necessarily represent the same asset class composition of the portfolio.
Contact your Canaccord Genuity Wealth
Management Investment Advisor to learn
more about integrating Complete Canaccord
ETF Portfolios into your wealth strategy.
Complete Canaccord ETF Portfolios
Mandate Name 3 6 1 Since Maximum
Months Months Year Inception Drawdown
Capital Appreciation -1.61% 2.74% -1.96% 5.48% -5.33%
Benchmark -2.38% 2.03% -2.60% 3.37% -7.62%
Growth -1.59% 2.12% -2.74% 6.07% -5.10%
Benchmark -1.70% 1.97% -2.02% 3.28% -6.24%
Enhanced Income -1.03% 2.90% -2.05% 5.38% -5.22%
Benchmark -1.39% 2.30% -1.37% 4.04% -5.38%
Balanced -0.70% 2.22% -1.61% 4.64% -4.11%
Benchmark -1.02% 1.89% -1.48% 3.15% -4.88%
Conservative -0.17% 1.88% -1.91% 5.05% -4.09%
Benchmark -0.68% 1.95% -0.77% 3.58% -3.90%