2015 Annual General Meeting Tradex Bond Fund

2015 Annual General Meeting
Tradex Bond Fund
Stephen Copeland, CFA, CFP
Senior Vice President Investments & Portfolio Manager
April 29, 2015
Foyston, Gordon & Payne: Distinguishing Characteristics
 Since the firm's inception in 1980, we have focused on:

A disciplined approach to value-oriented investing in managing equity
and fixed income portfolios; a proven and successful approach overtime

Entrepreneurial culture ensures strong alignment of interest with our
clients

We manage with conviction to drive long-term outperformance
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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Tradex Bond Fund Goals & Themes
 Designed to generate solid income at a conservative risk level
 Higher yield than bonds with less volatility than stocks
 Generate higher income in a low interest rate environment
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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Performance & Yields
Annualized to
March 31, 2015
Annual Returns to December 31
YTD*
2014
2013
2012
Since Inception
March 31, 2011
%
Tradex Bond Fund
2.5
7.4
2.8
6.1
6.8
FTSE TMX Canada universe Bond Index
4.2
8.8
-1.2
3.6
6.3
-1.7
-1.4
+4.0
+2.5
+0.5
2.6
10.6
13.0
7.2
4.4
Value Added
S&P/TSX Total Return Index
*YTD to March 31, 2015
Yields (as of March 31, 2015)
Tradex Bond Fund
3.0%
FTSE TMX Canada universe Bond Index*
1.7%
See appendix for notes & disclosures
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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Tradex Bond Fund – Asset Mix
As of March 31, 2015
Tradex Bond Fund
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
FTSE TMX Canada Universe Bond Index
4
Portfolio Performance – Asset Classes
As of March 31, 2015
Since Inception
31-March-11
Bonds
(vs. FTSE TMX Canada Universe Bond Index)
Preferred Shares
(vs. BMO CM 50 Preferred Share Index)
Common Equities
(vs. S&P/TSX Total Return Index)
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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Outlook: Environment
Environment:
• U.S. dollar remains strong – growth moderates (weather?)
• ECB begins massive QE
• Decline in euro may improve growth in Southern Europe

Germany and France benefit first

Greece remains a risk
• Inflation expected to rise in Canada as dollar depreciates
• Oil price impact on the Canadian economy is a wildcard
• U.S. Fed expected to raise rates in second half of 2015
• Bank of Canada’s actions and lack of clarity adds to volatility
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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Outlook: Strategy
Strategy:
• Common and preferred shares offer better value than bonds
• Bond term remains shorter than the index
• Selective positioning in equity markets
Tradex Bond Fund – 2015 Annual General Meeting
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 Appendix
Portfolio Performance
3 Mths
%
1 Yrs
%
2 Yrs
%
3 Yrs
%
4 Yrs
Since Inception
March 31, 2011
%
Tradex Bond Fund
2.5
6.8
5.2
5.7
6.8
Bonds
3.4
8.2
4.9
5.2
6.4
FTSE TMX Canada Universe Bond Index*
4.2
10.3
5.5
5.1
6.3
Common Shares, Income Trusts, REITs**
-0.5
0.8
7.8
8.7
8.9
S&P/TSX Total Return Index
2.6
6.9
11.4
9.6
4.4
Preferred Shares**
1.1
8.6
3.1
5.1
6.4
S&P/TSX Preferred Share Index
-4.9
-1.0
-1.7
1.0
1.9
BMO CM 50 Preferred Share Index
-4.8
-1.8
-1.4
1.0
2.2
Time Weighted Rates of Return
Period ending March 31, 2015
* Formerly known as the DEX Universe Bond Index
** Introduced into the portfolio in late April 2011 when the investment policy asset allocation was changed
See appendix for notes & disclosures
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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Portfolio Valuation
As of March 31, 2015
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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Portfolio Valuation
As of March 31, 2015
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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Portfolio Valuation
As of March 31, 2015
Tradex Bond Fund – 2015 Annual General Meeting
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Portfolio Valuation
As of March 31, 2015
Tradex Bond Fund – 2015 Annual General Meeting
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 Team & Biographies
FGP Investment Team – Experience, Depth and Knowledge
NAME
EDUCATION
FUNCTION
FOCUS
YEAR STARTED AT
FGP
YEAR STARTED IN
INDUSTRY
FGP Fixed Income Team
Steve Copeland
CFA, CFP
Investment Strategist
Fixed Income / Asset Mix
1997
1977
Rob Head
BA
Portfolio Manager
Fixed Income
1998
1990
Ryan Domsy
CFA, MEcon, FRM
Co-Portfolio Manager
Credit / Fixed Income
2010
2008
Cameron Greenwood
CFA
Co-Portfolio Manager
Fixed Income
2007
2007
Taylor Wilson
CFA, MFin
Trader
Fixed Income
2011
2011
FGP Canadian Equity Team
John Berry
CFA, MBA, P. Eng
Portfolio Manager
Large Cap & Team Leader
1998
1998
Bryan Pilsworth
CFA, MBA
Portfolio Manager
Small Cap & Telecom Services
2007
2003
Tom Duncanson
CFA
Sr. Research Analyst
Materials & Consumer Staples
2004
2004
Zubaida Mirza
CFA, MBA
Sr. Research Analyst
Energy & Utilities
2008
1996
Brandon Tu
CFA, CPA, CA, MAcc
Sr. Research Analyst
Industrials, Con. Disc. & Info. Tech.
2008
2000
Owen Ko
CFA, CPA, MBA
Sr. Research Analyst
Financials, Health Care & Telecom
2013
2001
FGP Foreign Equity Team
Andrew Fernow
CFA, MBA
Portfolio Manager
Foreign Equity & Team Leader
2007
1988
Mohammed Ahmad
CFA, MBA
Co-Portfolio Manager
Foreign Equity & Info. Tech.
1999
1999
Val De Franco
CFA, MBA
Co-Portfolio Manager
U.S. Equity, Financials & Utilities
2002
2002
Colin Pearson
CFA
Research Analyst
Health Care & Consumer
2006
2006
Andrew Aucoin
CFA
Research Analyst
Resources, Industrials & Telecom
2005
2005
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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FGP Investment Team – Fixed Income
Robert Head, BA, Senior Vice President & Portfolio Manager - Fixed Income
FGP shareholder since 2005
Rob joined FGP in 1998 as a fixed income trader. He now leads the Fixed Income team and manages FGP’s fixed income strategies. Rob is also
a member of the FGP Investment Committee. Rob’s career began in 1990 at The Equitable Life Insurance Company of Canada, first in the
actuarial department then as a trader, analyst, and fixed income portfolio manager. Rob is a graduate of the University of Waterloo (BA).
Stephen Copeland, CFA, CFP, Senior Vice President - Investments & Head of Private Client Services
FGP shareholder since 1998
Steve joined FGP in 1997 as a fixed income portfolio manager. He is now head of Private Client Services and Chair of the FGP Investment
Committee. He also manages the FGP Income Fund. Steve’s career began in 1977 at the Canada Life Assurance Company where he worked as
an equity and bond securities analyst, a bond trader, and a fixed income portfolio manager. He later moved to SwissRe Canada as VicePresident and Co-Head of Investments responsible for fixed income, real estate investment, and property management. Steve is a graduate of
Queen’s University (Honours BComm). He is a CFA charterholder and holds the Certified Financial Planner (CFP) designation.
Ryan Domsy, CFA, MEcon, FRM, Senior Credit Analyst & Portfolio Manager - Fixed Income
FGP shareholder since 2012
Ryan joined FGP in 2010 as a credit analyst. He is now a senior credit analyst and is also a co-portfolio manager. Ryan’s career began in 2008 at
DBRS where he was a senior financial analyst covering public finance and infrastructure credits. Ryan is a graduate of Queen’s University
(MEcon), holds the Financial Risk Manager designation, and is a CFA charterholder.
Cameron Greenwood, CFA, Senior Analyst & Portfolio Manager - Fixed income
FGP shareholder since 2012
Cameron’s career began when he joined FGP in 2007. He moved to the Fixed Income team as a trader in 2009 and is now a senior analyst
specializing in macroeconomic research. He is also a co-portfolio manager. Cameron is a graduate of Wilfrid Laurier University (BA) and is a CFA
charterholder.
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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FGP Investment Team – Fixed Income
Taylor Wilson, CFA, MFin, Fixed Income Trader
Taylor’s career began when he joined FGP in 2011. He joined the Fixed Income team in 2013 and is now our fixed income trader. Taylor is a
graduate of Queen’s University (MFin) and is a CFA charterholder.
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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FGP Investment Team – Canadian Equities
John Berry, CFA, MBA, P.Eng, Senior Vice President & Portfolio Manager - Canadian Equities
FGP shareholder since 2005
John’s investment career began when he joined FGP in 1998 as the firm’s very first equity analyst. He now leads the Canadian Equity team and
manages FGP’s Canadian equity strategies. He is also a member of FGP’s Investment Committee and the FGP Executive Committee. Prior to
joining the firm, John spent six years as an oil and gas consulting engineer in Calgary and Houston. John is a graduate of the University of
Waterloo (MASc in Chemical Engineering) and of the Richard Ivey School of Business at the University of Western Ontario (MBA). He is also a
CFA charterholder.
Bryan Pilsworth, CFA, MBA, President & Portfolio Manager – Canadian Equities
FGP shareholder since 2008
Bryan joined FGP in 2007 as a senior analyst covering the Telecom and Financial sectors and became FGP’s Small Cap Canadian Equity portfolio
manager in 2012. Bryan continues to manage FGP's small cap strategies, in addition to his role as President. He is a member of FGP’s
Investment Committee and the FGP Executive Committee. Bryan graduated from the Richard Ivey School of Business at the University of
Western Ontario (MBA) and from Carleton University (BComm). He was on the Dean’s Honour List at both universities. Bryan is also a CFA
charterholder.
Tom Duncanson, CFA, Senior Research Analyst
FGP shareholder since 2008
Tom’s career began when he joined FGP in 2004, becoming a Canadian equity research analyst in 2006. Now a senior research analyst, he
covers the Materials and Consumer Staples sectors for FGP’s Canadian equity portfolios. Tom is a graduate of the University of Western
Ontario (Honours BA) and is a CFA charterholder.
Zubaida Mirza, CFA, MBA, Senior Research Analyst
FGP shareholder since 2010
Zeba joined FGP in 2008 as a research analyst. Now a senior research analyst, she covers the Energy and Utilities sectors for FGP’s Canadian
equity portfolios. Zeba’s career began in 1996 with W. I. Carr Indosuez. She later moved to CIBC World Markets to work as an associate
analyst. Zeba is a graduate of the Institute of Business Administration (MBA) in Pakistan and is a CFA charterholder.
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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FGP Investment Team – Canadian Equities
Brandon Tu, CFA, CPA, CA, MAcc, Senior Research Analyst
FGP shareholder since 2011
Brandon joined FGP in 2008 as a research analyst. Now a senior research analyst, he covers the Industrials, Discretionary, and Information
Technology sectors for FGP’s Canadian equity portfolios. Brandon is a professional accountant by training, having begun his career in 2000 as
an auditor before taking on a corporate tax advisory position at KPMG. He later moved on to work as an equity research analyst at Genuity
Capital Markets. Brandon is a graduate of the University of Waterloo (MAcc). He holds the Chartered Professional Accountant, Chartered
Accountant, and U.S. Certified Public Accountant designations. He is also a CFA charterholder.
Owen Ko, CFA, CPA, MBA, Senior Research Analyst
FGP shareholder since 2013
Owen joined FGP in 2013. He covers the Financials and Health Care sectors for FGP’s Canadian equity portfolios. Owen’s career began in 2001
at Ernst & Young. He later moved to RBC then Genuity Capital Markets, where he was a research associate. Prior to joining FGP, he was a
research analyst at CIBC Global Asset Management. Owen is a graduate of the Schulich School of Business at York University (MBA), holds the
U.S. Certified Public Accountant designation, and is a CFA charterholder.
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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FGP Investment Team – Foreign Equities
Andrew Fernow, CFA, MBA, Senior Vice President & Portfolio Manager - Foreign Equities
FGP shareholder since 2008
Andrew joined FGP in 2007 to manage FGP’s international portfolios. He is now leader of our Foreign Equity team and manager of our foreign
equity portfolios. He is a member of FGP’s Investment Committee. Andrew’s career began in 1988 at New York based 13D Research Inc.,
where he covered greater China. He was director of research for Vickers Ballas in Hong Kong and Singapore, then head of equity research for
Primasia Securities in Taiwan. Just prior to joining FGP, he was Senior Vice President of Research at Sky Investment Counsel. He is a graduate of
the University of Colorado (MBA) and is a CFA charterholder.
Mohammed Ahmad, CFA, MBA, Vice President & Portfolio Manager - Foreign Equities
FGP shareholder since 2008
Mohammed’s career began when he joined FGP in 1999. He moved to the Foreign Equity team in 2003 as a research analyst and is now a coportfolio manager of international equities. Mohammed also conducts research on the Technology sector for FGP’s foreign equity portfolios
and is a member of the FGP Investment Committee. Mohammed is a graduate of the Institute of Business Administration (MBA) in Pakistan
and is a CFA charterholder.
Valentino De Franco, CFA, MBA, Vice President & Portfolio Manager - Foreign Equities
FGP shareholder since 2009
Val joined FGP in 2002 as a research analyst for Canadian equities. He moved to the Foreign Equity team in 2008 and is now a co-portfolio
manager of U.S. equities. Val also conducts research on the Financials sector for FGP’s foreign equity portfolios and is a member of the FGP
Investment Committee. Val’s career began in 1998 at CIBC where he was a financial analyst. He later moved to IBM then EDS. Val is a graduate
of the Richard Ivey School of Business at the University of Western Ontario (MBA) and is a CFA charterholder.
Colin Pearson, CFA, Research Analyst
FGP shareholder since 2012
Colin’s career began when he joined FGP in 2006. A research analyst since 2010, he covers the Health Care and Consumer sectors for FGP’s
foreign equity portfolios. He is a graduate of the University of Western Ontario (BA) and is a CFA charterholder.
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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FGP Investment Team – Foreign Equities
Andrew Aucoin, CFA, Research Analyst
FGP shareholder since 2010
Andrew’s career began when he joined FGP in 2005. A research analyst since 2010, he covers the Resources and Industrials sectors for FGP’s
foreign equity portfolios. He is a graduate of Bishop’s University (BBA) and is a CFA charterholder.
Tradex Bond Fund – 2015 Annual General Meeting
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Notes & Disclosures
Investment returns are expressed in Canadian dollars unless otherwise noted, gross of investment management fees, net of fund expenses for FGP pooled funds, and include reinvestment of
dividends and income. Returns are time weighted and annualized for periods greater than one year. Values change frequently and past investment performance may not be repeated.
FGP’s institutional and private clients’ accounts (FGP GIPS Compliant Firm) claim compliance with the Global Investment Performance Standards (GIPS) on a firm-wide basis. The FGP GIPS
Compliant Firm has been independently verified for the periods from January 1, 2000 to December 31, 2014. Verification assesses whether (1) the firm has complied with all the composite
construction requirements of the GIPS Standards on a firm wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS
Standards. The verification and performance examination reports as well as a complete listing of all composites are available upon request. Please send requests to William Cunningham at
[email protected].
Securities mentioned herein are not to be construed as recommendations to buy or sell and are not representative of Foyston, Gordon & Payne Inc. accounts/portfolios as a whole.
S&P/TSX Index Data. Source: TSX Copyright (2015) TSX Inc. All rights reserved.
Tradex Bond Fund – 2015 Annual General Meeting
April 29, 2015
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Foyston, Gordon & Payne Inc.
1 Adelaide Street East
Suite 2600
P.O. Box 200
Toronto, Ontario
Canada M5C 2V9