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About
GPS Optimized Portfolios
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A global investment opportunity from a
global wealth management firm
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Canaccord Genuity Wealth Management enables investors
to reach the coordinates that define their life goals.
With offices in 10 countries worldwide, including Wealth Management offices in Canada,
Australia, the UK and Europe, we search the globe for investment opportunities and deliver
targeted long-term and near-term investment strategies for our clients.
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* ICICI Alliance
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An innovative
investment solution
Our Optimized Portfolios, part of Canaccord Genuity Global
Portfolio Solutions (GPS), were created by Canaccord Genuity
Wealth Management in the UK in 2011.
GPS Optimized Portfolios are proprietary to Canaccord
Genuity Wealth Management and are now available in
Canada for the first time.
Using our forward-looking investment process, GPS
Optimized Portfolios analyze risk and global opportunities,
aiming to provide you with steadier returns and more
certainty by targeting a capped level of volatility.
In other words, returns include peace of mind.
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An internationally
recognized best-in-
class investing
discipline
In the UK, Canaccord Genuity Wealth Management’s
successful investment strategy based on the same model
received the Gold Standard Award for Discretionary Portfolio
Management in 2012 and 2013, as well as a five-star rating
by independent research firm Defaqto.
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Features • An award-winning investment process designed to cap volatility
• An innovative, forward-looking risk management framework
• A sophisticated approach to portfolio diversification
• Global expertise from Canaccord Genuity thought leaders
Benefits • A smoother, more confident path toward achieving
your investment objectives
• More certainty for your investments during periods
of market volatility
• The power to reduce the potential for capital loss
• Direct access to global investment ideas and opportunities
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Investing in
GPS Optimized Portfolios
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Market volatility is a reality - and it has doubled on average:
From 1962 to 1996, the S&P 500 gained or lost more than 1% one in every six trading days on average. But since 1997, such moves have
risen to one in every three trading days. Increased market volatility can lead to poor investment decisions – more buying at market peaks
and panic selling at market lows.
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Source: Yahoo Finance, S&P 500 January 1, 1962 to December 31, 2013
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An award-winning
investment process
designed to
cap volatility
At Canaccord Genuity Wealth Management, we recognize
that capital preservation is the cornerstone of any
investment strategy.
That’s why we engineered GPS Optimized Portfolios to adjust
to an appropriate level of risk.
The aim is to help you achieve your investment objectives
with more certainty while endeavouring to cap risk, and
therefore reduce the potential for loss, at the level best
suited to you.
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Modern Portfolio Theory
hasn’t evolved substantially
since it was introduced
in 1952.
Can you imagine another industry using
technology that is more than 60 years old?
As markets evolve, the tools we use to achieve
your goals have to evolve with them.
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An innovative,
forward-looking
risk management
framework
GPS Optimized Portfolios use a forward-looking process that
recognizes that risk and correlation change:
• Traditional investment management frameworks use a
simple, backward-looking measure of risk which can
grossly underestimate a portfolio’s exposure to capital
loss when markets become stressed – they don’t account
for asset correlations and volatility changing over time.
• The innovative process behind GPS Optimized Portfolios
incorporates a dynamic, forward-looking correlation
matrix that appropriately accounts for the current level of
market risk, even in stressed environments.
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The Canadian Equity Market is dominated by three sectors:
Source: Henderson Global Investors.
Period reflected for payment 2013.
Total dividend payout by country:
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A sophisticated approach to
portfolio diversification
GPS Optimized Portfolios offer global exposure,
helping to diversify investment portfolios and
reduce risk.
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Global expertise from
Canaccord Genuity
thought leaders
Our GPS Optimized Portfolios’ Security Selection
Committee is comprised of a global team of Canaccord
Genuity thought leaders:
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Cameron B. Hurst, Senior Vice President &
Chief Portfolio Manager, North America,
Canaccord Genuity Wealth Management
(CAD)
• 15 years of high-level research and
investment experience
• Focus on fundamental analysis and US &
International equity markets
• Performance ranked in the top 10% of
comparable mandates during the global
financial crisis
Martin Roberge, North American Portfolio
Strategist & Technical Analyst, Managing
Director, Canaccord Genuity Corp. (CAD)
• Highly ranked Portfolio Strategist and
Quantitative Analyst in Canada (Brendan
Wood International Survey)
• Responsible for tactical asset mix and sector
rotation research and recommendations
Robert Jukes, Global Strategist,
Canaccord Genuity Wealth Management
(UK)
• Experienced Global Strategist and Fund
Manager specializing in top-down
macroeconomic and thematic ideas
along with multi-asset risk-based
quantitative strategies
• Joined Canaccord Genuity in 2007 from
Credit Suisse, where he was Global
Equity Strategist
Tony Dwyer, US Portfolio Strategist &
Senior Managing Director, Canaccord
Genuity Corp. (US)
• Over 25 years of equities experience
• Joined Canaccord Genuity in 2012 with
the acquisition of Collins Stewart
• Former Director of Research and
Executive Committee member at Collins
Stewart
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How GPS
Optimized Portfolios work
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The evolution of risk
management – Avoiding
the worst losses is more
important than capturing
the largest gains
• Meaningful outperformance is about avoiding the
worst periods of negative returns.
• By committing to a risk target, we can meaningfully
de-risk relative to benchmark in times of market
stress – this approach is a key characterization of
GPS Optimized Portfolios.
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MSCI World: avoiding the best and the worst returns
“Hugging a benchmark when
the risks are rapidly rising will
not ensure that a client’s
investments are in line with
their risk tolerance. GPS
Optimized Portfolios cannot and
will not hug a benchmark when
the risks are rising.”
- Robert Jukes
Global Strategist,
Canaccord Genuity Wealth Management (UK)
Source: DataStream, Bloomberg,
Canaccord Genuity Wealth Management.
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GPS Optimized
Portfolios –Results
that speak for
themselves
• During the Eurozone crisis in 2011, volatility spiked
and correlations rose precipitously.
• GPS Optimized Portfolios deliberately moved away
from the benchmark and protected capital.
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GPS Optimized Portfolios UK: Actual results through Euro crisis
Source: DataStream, Thomson Reuters
Canaccord Genuity Wealth Management
- Cameron B. Hurst
Senior Vice President & Chief Portfolio Manager,
North America, Canaccord Genuity Wealth Management
“GPS Optimized Portfolios employ a
truly unique perspective on risk. By
engaging our forward-looking,
proprietary risk management
framework that appropriately
accounts for risk at the total
portfolio level, we help to provide
steadier investment performance
and peace of mind for our clients.”
Past performance may not be repeated. As this is an illustration of one of the available GPS UK portfolios, it may not
be suitable for all investors as there are different risk and objectives associated with each portfolio.
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A “boldly cautious”
approach
Our proprietary investment
process uses an innovative,
forward-looking risk process,
which explicitly recognizes that
risk and correlation change in
various market conditions.
Risk Optimizer
GPS Optimized Portfolios
Risk
Return
1
2
3
4
5
6 7
Rates... Gold... Bond Yields... Industrial Methods... Cr Credit
Spreads... Soft Commodities... Foreign Exchange Rates... Go
Bond Yields... Industrial Methods... Credit Spreads... Soft Co
ies... Foreign Exchange Rates... Gold... Bond Yields... Indust
Methods... Credit Spreads... Soft Commodities... Foreign Exc
Rates... Gold... Bond Yields... Industrial Methods... Credit
Spreads... Soft Commodities... Foreign Exchange Rates... Go
Global Market Data
Market Stress Indicator
100%
Equity
100%
Cash
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Our depth of experience in asset
allocation and security selection is an
integral input into our innovative risk
framework.
Security selection
The securities that populate our risk-focused models are
drawn from the Master Lists supplied by our Security
Selection Committee, who diligently scrutinize companies
for best-in-class fundamentals, liquidity, structure,
performance and management competency.
• Fixed Income Master List
• Equity Master List
• ETF Master List
Our global Security Selection Committee reviews
economic and international forecasts from the
UK-based Asset Allocation Committee.
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To gauge the level of
stress in the market,
Canaccord Genuity
Wealth Management
has developed a
proprietary Market
Stress Indicator (MSI).
Other indicators of market stress exist, but this
proprietary tool is the only indicator that accounts for
both determinants of portfolio risk: volatility and
correlation.
Our proprietary MSI identifies five market states,
enabling us to prepare for upcoming risks and reduce
the potential for capital loss by:
• Analyzing asset classes by volatility
and correlation
• Anticipating periods of significant market stress
• Adjusting to an appropriate level of risk with
the aim of protecting your capital
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This framework systematically heeds client risk
tolerances, appropriately accounts for portfolio risk,
even during periods of market stress, and
significantly reduces drawdown.
Over the long term, this can dramatically improve
upon benchmark return, helping us to grow your
wealth, with a focus on capital preservation.
Our risk optimizer is
a mathematical
framework that uses
inputs from the MSI
to better guard
against risk, rather
than to chase down
extra return.
Risk Optimizer
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Find out which
GPS Optimized Portfolio
is right for you
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There is a GPS Optimized Portfolios mandate for every client situation
Take the questionnaire to learn about which GPS Optimized Portfolio might be
right for you.
GPS Optimized Portfolios
Risk
Return
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2
3
4
5
6 7
100%
Equity
100%
Cash
25. canaccordgenuity.com
Australia
Canada
China
France
Germany
Guernsey
Ireland
Isle of Man
Jersey
Singapore
United States
United Kingdom
Canaccord Genuity Wealth Management is a division of Canaccord Genuity Corp.
Member – Canadian Investor Protection Fund
Member of all Canadian stock exchanges and the Investment Industry Regulatory Organization of Canada
The company of the Canaccord Genuity group of companies through which products and services are offered
may differ by location and service. See canaccordgenuitygroup.com/en/companies for more information.
To us there are no foreign markets.™