Your Turnkey RSP Campaign. Managing risk, generating income and beating inflation

Fork in the Road:Today’s Income Decision

AdvisorThe RenaissanceQUARTERLY FUND PROFILES / PRACTICE MANAGEMENT / OUTLOOK / OPINION Q3 – SEPT. 30, 2012

7th Century BC China decides to build a Great Wall.

TO DEFENDOUR EMPIRE,

LET’S BUILD ASMALL FENCE.

GREAT LEADERS MAKE STRONGER PLANS: TODAY’S INCOME DECISION. It’s a tough decision, but it’s time to make it. We have reached a fork in the road. The flight to “safer” assets in the face of volatile markets may have worked until now, but record low yields are proving to be a threatening force. Now is the time to plan for the future.

Renaissance is committed to going further for you. We have actionable tools, solutions and key support to make today’s income decision easier.

Get your Income Decision Toolkit today. Visit incomedecision.ca or call 1-888-888-FUND (3863).

INCOME DECISION TOOLKIT

TODAY’S INCOME SOLUTIONS

Optimal Income Portfolio

Short-TermIncome Fund

Corporate BondCapital Yield Fund

Millennium HighIncome Fund

Optimal Inflation Opportunities Portfolio(inflation mitigation)

TMRenaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may

be associated with mutual fund investments. Please read the Renaissance Investments family of funds simplified prospectus before investing.

Tax and Estate 3Deconstructing Dividends

Economic Outlook 4Should We Start Thinking About Inflation?

Back of the Napkin 6Beyond Rapport

Fork In The Road 8Today’s Income Decision

Solution Highlight 12Today’s Income Solutions

Thanks to Our Supporters 13Prepared to Listen

December –Time to Party! 14

Brain Calisthenics 17

In this issue

8

14

6

PAGE

RENAISSANCE INVESTMENTS

Letter from the National Sales Manager

My hope is that 2012 finishes very strongly for you in your practice and that your planning for a successful 2013 is well under way.

NCAA College Football is in the final stages and soon the National Championship match ups will be determined. I am an ardent fan of U.S. collegefootball and look forward to bowl season over the holidays.

One of the most successful college football coaches in history is Lou Holtz. He has had success at every school that he has coached – most notablyNotre Dame, and is an accomplished speaker. Should you ever have the opportunity to attend an event that he is speaking at, please take advantageof the chance – it will be a changing moment both in life and business.

Let me take some time to share part of the message that he delivers. He discusses 6 aspects of leadership that are integral to success and lists three key elements to live by. It is these three characteristics that I want to share with you as I have discussed with our team here at Renaissance.

The first element is Do The Right Thing. Seems simple, yet sometimes is very difficult to implement. Think of your clients in today’s environmentand how difficult it is to get them to invest in the “right” investment for the long term. Fear has gripped our clients and many are only willing tolook at safe investments regardless of your recommendation. It is imperative that we “do the right thing” for our clients.

If we do the right thing, then the second element is to Do it to the Best of Your Ability. Be persistent in your recommendations and steadfast in your resolve to implement it for the client. You believe that it is the right thing and that should shine through in your actions.

Finally, the third element to live by is Show People that You Care. Consider each interaction with your clients and their feelings. Go the extra mile for them and be genuinely interested in all aspects of their well-being – not just financial.

Do the Right Thing | Do it to the Best of Your Ability | Show People that You Care

If we live by these three elements, we will build better relationships with our clients and our friends and family. We will make better decisions andbe consistent in our advice and rapport.

As always, we welcome your comments and will continue to earn your business. We will always strive to be your trusted business partner through best of breed advice and caring about our clients.

I wish all a happy holiday season and a great start to 2013.

Sincerely,

Dave WahlNational Sales ManagerRenaissance Investments416-943-6959

Happy Holidays!

RENAISSANCE INVESTMENTS 3

www.renaissanceinvestments.ca/en/jamie_golombek/

A dividend is a distribution of after-tax income from a corporation to its shareholder(s). Although the concept of a dividend is quite straightforward, the Canadian taxation of dividends is more complex.

A corporation pays corporate income tax on income that it earns. When thecorporation’s after-tax income is distributed to the shareholder, personal tax isthen levied on that dividend. To minimize the double taxation that occurs at thecorporate and shareholder levels, an individual shareholder receives a dividendtax credit (DTC) to help offset the tax that was paid by the corporation.

Active business income exceeding the small business deduction (SBD) limit,which is $500,000 federally and for most provinces in 2012, is taxed in a corporation at the general corporate rate, which ranges from 25% to 31%, depending on the province of corporate residency. Dividends paid to individualshareholders from this income are eligible for an enhanced DTC to compensatefor the relatively high rate of corporate tax. The highest personal tax rate applied to these “eligible dividends” ranges from approximately 19% to 36%,depending on the province.

Canadian-controlled private corporations pay tax at rates ranging from 11% to19% on active business income below the SBD limit. Because this income istaxed at lower corporate rates, dividends paid from this income are not eligiblefor the enhanced DTC and are called “non-eligible dividends.”

Some income that is earned in a Canadian corporation is not taxable, such as50% of net capital gains and certain life insurance death benefits. This incomecan be distributed as a “capital dividend” that is tax-free to the shareholder.

Interestingly, at low personal marginal tax rates, the combined federal/provincial DTC may actually exceed the personal tax. For example, in Ontariofor 2012 the lowest personal tax rate is 20.05% but the DTC allowed on eligible dividends is 21.42%, leaving an excess credit that can offset tax onother income. Due to the favourable DTC at low income levels, up to $47,885of eligible dividends can be received tax-free by an Ontario individual whoclaims the basic personal amount and has no other income in 2012.

Different tax treatment applies to foreign dividends. When a dividend is paid from a non-Canadian corporation to a Canadian shareholder, a 15% withholding tax is generally applied in countries that have a tax treaty withCanada (although no withholding tax applies when dividends are paid on U.S.shares held in an RRSP or RRIF). The shareholder may claim a foreign tax credit for the withholding tax against tax otherwise payable in Canada on theforeign dividend, provided the shares are held in a non-registered account.

Deconstructing Dividends

TAX AND ESTATE

Some income that is earned in a Canadian corporation is not taxable, such as 50% of net capital gains and certain life insurance death benefits.

Follow @JamieGolombek

www.advisor.ca/togoPodcast > Estate Plans

Are For Everyone

Jamie Golombek is Managing Director, Tax and Estate Planning with CIBC Private Wealth Management. He works closely with advisors to help them provide integrated financial planning solutions for their high-net-worth clients. Jamie is frequently quoted in the media as an expert on taxation.

TODAY'S INCOME DECISION

4 RENAISSANCE INVESTMENTS

ShouldWe Start Thinking About Inflation?

ECONOMIC OUTLOOK

The U.S. Federal Reserve’s (Fed) third round of quantitative easing is differentfrom the previous two, as it is basically unlimited in scope and duration. TheFed will continue to print money until it sees a “significant improvement inthe labour market.” This could take a while. The market’s main focus was onthe impact this move will have on equity markets. But the most important reaction was regarding inflation expectations, which following the move, rose half a percentage point to 2.5%. This would suggest that the market isstarting to speculate that the Fed will be willing to tolerate somewhat higherinflation in order to improve the economic picture. And maybe this timearound, the market is right.

In fact, inflation has already been behaving in a way that is inconsistent witheconomic theory. With the U.S. economy still in a significant slack, in theory,core Consumer Price Index (CPI) measures should be decelerating. Yet on bothsides of the border, core prices have firmed around 2%. Where has the missingdisinflation gone? In part, inflation’s resistance to fall below 2% might reflectthe growing skill mismatch in the U.S. labour market, with the skill level of theunemployed inconsistent with what companies need and want. This means thatthe bargaining power of existing labour is stronger than perceived, somethingvery evident in the trajectory of real wages since the beginning of the recession.Furthermore, the Fed has done a lot to reinforce expectations that it won’t letCPI drift too low while the factors that prompted disinflation in the 1990s (especially a one-time shift in consumer goods production to emerging markets) have run their course.

Simply put, inflation might be downwardly sticky at low levels. The practicalimplication here is that when the U.S. starts seeing more consistent signs of improvement that might generate some upward inflation pressures, thestarting point of inflation will not be zero percent, but roughly 2% – the Fed’starget. Therefore it might be very easy to overshoot the target. The questionis, will the Fed tolerate such overshooting?

Our expectation is yes. At least for a while. The Fed, with its dual mandate oflow inflation and full employment, will be willing to sacrifice some inflationin order to reach the promise of full employment. Accordingly, even if we seesome signs of life, don’t expect the Fed to start removing liquidity from themarket until it is certain that the recovery is durable and sustainable. We arenot at this point yet. Overall, economic activity is far too weak to trigger anyacceleration in inflation in the near term. However, at some point in 2013, the market will start assessing the inflationary potential of three rounds ofquantitative easing on a gradually improving economy and a more tolerantcentral bank. It’s at that point that there might be some upward pressure oninflation expectations, which no doubt will find their way north of the border.

www.renaissanceinvestments.ca/en/economy/

Benjamin Tal is Deputy Chief Economist for CIBC. Described as one of Canada’s leading experts on the real estate market by the International Monetary Fund, he is responsible for analyzing economic developments and their implications for North American fixed income, equity, foreign exchange and commodities markets.

Videos > Inflation 101Inflation 201

Core Consumer Price Index

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2009 2010 2011 2012

US Canada y/y

Source: Statistics Canada, BLS (Bureau Labour Statistics)

“Inflation has already been behaving in a way that is inconsistent with

economic theory.”

TODAY’S INCOME DECISION

TM Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc.

HE WOULD NOT STOP UNTIL

HE REACHED THE MIDDLE. renaissanceinvestments.ca

INFLATIONSOLUTIONS

GREAT LEADERS SEE FURTHER. AND PREPARE FOR ALL CONDITIONS. Reaching the top is about keeping your eye on the future. It’s seeing beyond today’s headlines andunderstanding the issues that will matter to you and your clients. When it comes to inflation, Renaissance is focused on solutions that will help you navigate what lies ahead. We go the distance

so you can focus on heading straight to the top.

1953Sir EdmundHillary conquersMount Everest.

6 RENAISSANCE INVESTMENTS

Beyond RapportGoing deeper in challenging times

BACK OF THE NAPKIN

We’re living in a period of time with a unique set of obstacles and challenges,and, as a result, many advisors are taking a break from active prospectingand gathering assets. They are instead focusing their energies predominantlyon managing existing client relationships. It’s a fascinating study in humannature and a pattern we’ve seen repeated throughout our history. As thecapital markets morph from one phase to another, so does our collective advisory focus. The environment sets the mood, and, subsequently, drivesour behaviour. Sometimes we’re engaged in the process of growingwealth… sometimes we’re protecting hard-earned assets… sometimeswe’re on a quest for income…and sometimes we’re prospecting wildly fornew business. And, even though this ever-changing dynamic truly definesour professional lives… this moment in history somehow feels different.

Recently, several top-producing investment professionals have confessed tome that they are completely perplexed by our current conditions. Even theirmost mature clients, who understand the need to maintain a long-term view,are having their patience tested at every turn. And, as the frightening newsof global debt, and other markers of economic uncertainty, flows daily intoour homes, the list of reasons to avoid investing continues to grow.

So, where do we stand today?

Following the near-devastating events of 2008, and what could cynically becharacterized as a “false” recovery, we now find ourselves living in a uniqueenvironment highlighted by the convergence of three realities:

A generalized fear and mistrust of the stock market

Historically low yields in the bond market

A cash market that will cost us money in real terms

Yes, it’s true that economic struggles are nothing new, and we’ve all livedthrough dark periods punctuated by stock market crashes, secular bear markets, and range-bound consolidations. But, if you remember, many ofthose trials and tribulations also coexisted with bond and cash marketsready to serve as effective alternatives.

When there’s “no place to hide and nowhere to run”…we tend to respond as humans do – with growing frustration, mounting anxiety, and learned helplessness.

It’s not always enough to tell our clients that the S&P 500 Index is hittingfive-year highs, or to selectively snip articles on “improved corporate earnings.”The markets are driven by fear and greed, and every emotion in between –including lethargy. This is not an environment where the evidence of sound economic fundamentals automatically leads our clients to make sound investment decisions. No, this is an environment requiring a delicate emotional touch.

Ultimately, we’re in the business of finding prospects, turning them intotrusted clients… and… keeping them. Somewhere, buried deep inside thattrio of directives, is the required function of portfolio management.

1

2

3

Over the years, I’ve talked a lot about the importance of creating a genuine emotional connection with our clients and prospects. In today’s economic climate, that connection is more critical than ever!

RENAISSANCE INVESTMENTS 7

Think about it, as licensed investment professionals, we gain ready accessto a massive inventory of manufactured products, processes, and systemsdesigned to simplify the task of “money management.” If we add to that mix a basic understanding of portfolio theory, asset allocation, and prudentinvestment principles – we can soon replicate the track records of some ofthe world’s top experts. Bear in mind, this reality takes nothing away fromthe specialized expertise that some advisors bring to the table, but rather highlights the plethora of tools available to facilitate the process.

Unfortunately, that same inventory of tools is not readily available when itcomes to navigating matters of the heart and mind. Ironically, the real strugglehere has less to do with the technicalities of managing wealth, and more to do with the sensitivities of managing human nature. And, while human nature may be the greatest enemy to successful investing, it also remainsthe essence of who we are, and, therefore, needs to be factored into ourclient-communication matrix.

Gaining New Insights with Perceptual Positions

Advisors are human too, and can easily become preoccupied with their owninternal challenges during prolonged periods of uncertainty. But sometimes,we need to shake ourselves loose, step back into the ring, and aggressivelyseek a renewed understanding of what our trusted clients are facing too.

Most of us spend the majority of our waking hours living in what’s known as“first perceptual position.” While in first position, we are fully aware of thesights we see, the sounds we hear, and the emotions we feel. In this state,we are almost exclusively focused on our own needs, wants and desires,and we are, therefore, fully self-aware. Naturally, and by its very nature,

a first position bias will leave us with very little capacity for things like heartfelt empathy or sympathy.

One of the greatest skills we can learn, as advisors operating in a relationship-driven business, is the ability to travel freely and easily into “second perceptualposition” with our clients. When we move from first position into second position, we essentially leave “ourselves” behind, and travel into the otherperson’s shoes. We vividly imagine what it would be like to be that (client),with their personal history, their family, their occupation, their financialmeans, and their challenges. When this is done with full engagement, it provides a rich understanding of that person’s emotional state and theirunique set of needs.

The process itself simply requires making the decision to travel into secondposition, and then practicing the procedure regularly with clients and non-clients alike. As you do so, you will not only gain a deeper understanding ofyour clients’ needs, but you will also begin to forge stronger relationships asyour clients discover your growing ability to align elegantly with them.

By making the decision to fully identify with our clients, we gain an entranceinto their personal experience, and can then begin to communicate from aplace of real empathy.

www.renaissanceinvestments.ca/en/practicemanagement/

Grant Shorten is Director of Strategic Insights at Renaissance Investments. He offers insights and approaches that will work with your clients and have an immediate impact on your practice.

FULLY SELF-AWARE

FIRST PERCEPTUALPOSITION

FULLY CLIENT-AWARE

SECOND PERCEPTUALPOSITION

your needs enhanced understanding

clientneeds

“...forge stronger relationships as yourclients discover your growing ability to

align elegantly with them.”

For many investors, nothing is more attractive than a knowledgeable investment advisor who has also mastered the art of caring.

P E R C E P T I O N P R O C E S S

8 RENAISSANCE INVESTMENTS

F O R K I N T H E R O A D

TODAY’SINCOME DECISION

8 RENAISSANCE INVESTMENTS

51% of Canadian investors’ assets are now inbalanced, fixed income, and money market investments. That’s a 50% jump in safer assetscompared to 12 years ago.* This flight to per-ceived ‘safety’ comes with inherent risks thatinvestors can’t afford to ignore any longer.

RENAISSANCE INVESTMENTS 9

“We’ve had a major bull market in bond prices that started in September1981 and has continued to this day,” says Barry Morrison, manager of theRenaissance Millennium High Income Fund and CEO of Morrison Williams Investment Management.

“Interest rates have dropped to 284-year old lows, if you look at the U.S. and England. It’s uncharted territory, but the problem is that the typical yield on the average bond is 2.29% today, and that’s not going to cut it going forward.”

These low yields are jeopardizing income generation for Canada’s aging population. The chart below shows, just 12 years ago investors needed only $800,000 in savings to generate $50,000 in annual income from 10-year U.S. Treasuries. Today, that magic amount is four times greater, or $3.3 million, to generate that same $50,000.

The need for higher income-generating solutions is now more necessary thanever, and investors must rethink both their strategies and their attitude to risk.

Patrick O’Toole, Vice-President, Global Fixed Income, CIBC Global Asset Management, and co-manager of the Renaissance Corporate Bond CapitalYield Fund notes, “The old ways of investing in bonds (60/40 split, a ladderedbond portfolio, etc.) is not working. We have to rethink these old relationships,the credit crisis accelerated some of that thinking.”

“We are in an environment where there is going to be a lot more volatility,both in stocks and bonds,” he says, “but you want to be compensated for that more so than in the past. You are not as concerned about growth, you are concerned about stability, a little more about safety, and you want to see some return on your investment – it is a new environment.”

We have hit a fork in the road. The decision is whether to continue down the ‘traditional’ income path, or take a new route.

Opportunity is Out There

A new approach is needed to successfully generate income, manage risk andbeat inflation. This goal is not easily achievable. Professional advice is nowmore crucial than ever for most investors who lack market access, time andcommitment, research and scale – all vital to unlocking new income-generating opportunities.

Scour the Globe to Find the Best Yield

“In this day and age, it’s hard to look at government bonds and just concludeautomatically, that if you invest in a government bond, your investment issafe,” says Patrick Bradley, co-manager of the Renaissance Optimal IncomePortfolio and a member of the Global Fixed Income Team at BrandywineGlobal Investment Management.

The question is, how do you separate the good yield from the bad? “As aglobal bond manager, we have the resources to scour the globe to find goodhigh-yielding solid credits and avoid those where we think there is not thegreatest opportunity or where there is risk,” he adds.

“...the problem is that the typical yield on the average bond is 2.29% today, andthat’s not going to cut it going forward.”

Barry Morrison

Barry Morrison Patrick O’Toole Patrick Bradley

Special insights by:Uncertainty is the New Certainty

Given dim global economic prospects and unprecedented market volatility,it’s no wonder that skepticism is growing. As a result, many investors are sitting on the sidelines, moving to GICs and bonds and clinging to traditional income approaches to safeguard their capital. But with interestrates at historically low levels, traditional fixed income investing methodsaren’t as effective as they once were. Taking inflation into account, thereal returns on these investments is likely to be low, or even negative.

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

July 31, 2000

$0.8 MM

$3.3 MM

July 31, 2012

Low Yields = Less IncomeAssets needed to fund $50,000 income

Source: U.S. Department of the Treasury. Bloomberg. Calculation based on 10-yr U.S. Treasury yields.

$ Millions

Augment Returns by Diversifying Fixed Income Assets

O’Toole believes a new fixed income approach is needed. “I think advisorsand investors should be diversifying in fixed income like they’ve done in equities, do the same thing in bonds,” he says.

“Buy regular bond funds,” he adds, “(but also) look at corporate bond funds,look at high yield funds, look at real return funds. There are different vehiclesout there to look at, to try and augment returns, and to help improve your situation as far as retirement planning.”

With tighter bank lending, many companies are raising capital via corporatebond markets. Subsequently, for yield-hungry investors, corporate bonds offer attractive yields backed by solid balance sheets.

Advantages of Professional Scale

O’Toole believes that professional managers add value by identifying and accessing quality holdings, “We can get access to fixed income productsmuch more readily than say a retail investor can,” he says.

“The vast bulk of corporate issue is from new corporate bond issues that are bought by institutional investors – large players, like ourselves – so wewill tend to help drive a new issue. By that I mean we will try to set the termof that bond issue, also the spread or the coupon that ultimately the investor is receiving on that bond, so being a large institutional manager, I think, is an advantage in the Canadian marketplace.”

Move Beyond Traditional Income

Dividend Yields are More Attractive Than Ever

The financial crisis of 2008 spurred many companies to clean up their balance sheets and slash debt. Now many of these firms are financiallysound, offering solid dividends.

“I think you have an incredible market opportunity at the moment in terms of yields on dividends with well managed companies,” says Morrison.

“In a dividend income approach, you buy a diversified portfolio of securitiesthat we are on top of all the time to try and eliminate the bad apples. Yourcapital grows over time, and you have a lot more money in time. It is the dynamic of the two – of growing dividends and growing capital, versus a fixed income and fixed capital position.”

Let’s Make the Right Income DecisionIn today’s low growth and low-yield reality, investors relying on traditional income vehicles such, as GICs and cash, will likely not meet their retirementneeds and goals. Renaissance Investments recognizes that investors need

“I think advisors and investors should be diversifying in fixed income like they’ve done in equities...”

Patrick O’Toole

Get started with your own Income Decision client discussions today by getting your Renaissance Investments Income Decision Toolkit at:incomedecision.ca or call 1-888-888-FUND (3863).

Traditional incomeGICs, government bonds

Core domestic income assetsDividend stocks, corporate bonds

Non-core domestic income assetsHigh yield bonds, preferreds

Non-Canadian income assetsForeign bonds, global dividends

YOUR INCOMEDECISIONTOOLKIT Step-by-Step

Advisor GuideClient Letter

ClientPresentation

Client Video

Today’s Income Solutions –Sales Tools

Seminar Follow-up

*Source: Investor Economics

Video > Fork In The Road:Today’s Income Decision

10 RENAISSANCE INVESTMENTS

Powered by

Investors have struggled for years trying to come up with a tax-efficient way to invest in fixed income securities outside a registered plan.

We put this task to the alchemists at Renaissance Investments, who havecome up with a way to generate capital gains where the return is based onan underlying diversified, professionally-managed corporate bond portfolio,resulting in a tax advantage for investors.

Through the use of forward sale contracts, also known as ‘swap agreements,’the Renaissance Corporate Bond Capital Yield Fund seeks to generate and pay out a tax-efficient monthly distribution that will be characterized as a capital gain as opposed to ordinary income.

As the example below shows, an Ontario investor in the top marginal taxrate of 46.41%, who invested in the fund and received a 3% pre-tax return,would yield 1.92% after tax and forward contract fees by having the returnpaid out in the form of capital gains, versus only 1.61% if the same pre-taxreturn was taxed as interest income – a tax benefit of almost 20%.

1 Assumes interest income tax rate of 46.41% and capital gains tax rate of 23.20%(top Ontario tax rate for 2012, not considering the high-income surtax proposed inthe 2012 Ontario provincial budget). 2 Net pre-tax capital gains return is after assumed forward sale agreement costs used in the structure. There are risks associated with an investment in the Renaissance Corporate Bond Capital YieldFund, including risks with respect to the tax treatment of the return generated. Forfurther information regarding these risks, please refer to the Simplified Prospectus.There is a counterparty fee associated with the forward sale agreement.

Pre-tax Return 3% 4% 5%

Interest Income Scenario

Interest Income Earned 3% 4% 5%

Income Tax1 1.39% 1.86% 2.32%

Net After-tax Return 1.61% 2.14% 2.68%

Capital Gains Scenario

Net Pre-tax Capital Gains2 2.50% 3.50% 4.50%

Capital Gains Tax1 0.58% 0.81% 1.04%

Net After-tax Return 1.92% 2.69% 3.46%

An illustration of the tax treatment on interest income vs. capital gains

ADVISOR ToGoAccess the ExpertsWhen You Need Them

Access to the experts when you need them

Barry MorrisonMorrison Williams Investment Management

Patrick BradleyBrandywine Global Investment Management

Patrick O’TooleCIBC Global Asset Management

www.advisor.ca/togoListen to short podcasts from the experts quoted in this article.

to adapt and work with their advisor to successfully navigate this new income reality.

Whatever your clients’ risk tolerance, there are many ways to generate income, including fixed income diversification, equity income funds and inflation-proof investments. Our comprehensive suite of income-generating solutions can be tailored to satisfy your clients’ risk appetites and needs.

Podcast > Find Yield InDown Markets

Podcast > Don't GiveUp On Bonds

Podcast > Help ClientsBuy Bonds

TAX-EFFICIENT INTEREST INCOME NO LONGER AN OXYMORONJamie Golombek

RENAISSANCE INVESTMENTS 11

12 RENAISSANCE INVESTMENTS

Today’s Income SolutionsIt’s time to take a new approach

SOLUTION HIGHLIGHT

The flight to ‘safer’ assets in the face of volatile markets no longer generates sufficient income to meet retirementgoals, manage risk and beat inflation. Take action and explore new income opportunities to satisfy the need for income, stability and growth:

Z For more information on how to put these solutions to work for your clients, please speak to your Renaissance Investments representative.

Leverage the framework

Customizable framework to navigate today’s incomelandscape

Conservative Income

Less Risk

Core Income Enhanced Income

Inflation Mitigation

Tax-Efficient Income

Need

Solution

Core Income

Offer tax-efficient income,capital appreciation withlow volatility and inflationprotection

Renaissance Optimal Income Portfolio

Conservative Income

Offer a steady flow of income while dialingdown risk for more conservative investors

Renaissance Short-Term Income Fund

Enhanced Income

Offer enhanced income opportunities from diversified, tax-efficientsources of income

Renaissance Corporate BondCapital Yield Fund and/orRenaissance MillenniumHigh Income Fund

Inflation Mitigation

Offer inflation protection for investors while providingdiversification through non-traditional assets

Renaissance Optimal Inflation Opportunities Portfolio

Renaissance Optimal Inflation Opportunities Portfolio

Renaissance Short-Term Income Fund

Renaissance Corporate BondCapital Yield Fund

Renaissance Millennium HighIncome Fund

Renaissance Optimal Income Portfolio

TODAY’S INCOME DECISION

RENAISSANCE INVESTMENTS 13

Prepared to Listen

THANKS TO OUR SUPPORTERS

Without the support of advisors like you, Renaissance Investments would not enjoy the privilege of helping so manyCanadians realise their investment goals. Here is one of theoutstanding professionals we are so very proud to work with.

What I love about the business:

This business allows me to write my own story, chapter by chapter. In my experience, hard work, patience and service that goes beyond expectations is what turns a prospect into a client. These are all factors that I can controlmyself. I find that whatever effort you put in, you get back in return.

Another reason I enjoy this business is the fact that I can build my practice byoffering services that are personalized to my clients. I can focus my practice onwhat I believe is best for my particular clientele. This business allows me to beflexible and use solutions that I am comfortable with and that will meet myclients’ individual needs.

Lastly, I love meeting new people, listening to their needs and working closelywith them to meet those needs with a comprehensive financial plan. Often acustomized plan will comprise of an investment portfolio, insurance solutionsand other financial vehicles that I can leverage from my partners, includingRenaissance.

How I prepare and lead client meetings to ensure they are productive:

My team and I are constantly monitoring our clients’ portfolios and the currentevents of the day. In order to provide superior service to our clients, we like to take a proactive approach. If we recognize an opportunity or idea that maybenefit a specific client, I will contact the client myself to set up a meeting at their convenience. This allows us to keep our clients engaged, to discussportfolio evaluations and also provide relevant new investment ideas or strate-gies. The current economic environment has resulted in very volatile financialmarkets. By being proactive with our clients we can help them feel more atease about their investments.

What do I do to leave a good first impression with prospective clients:

I believe the initial meeting is the most important contact you will have with a client. If you are prepared to listen, it really allows you to understand theneeds of a prospective client. I never prepare any material to present in a firstmeeting, except for a team profile page. My goal in the first meeting is to

actively listen to what the client is trying to achieve – hearing their needs isessential. The best way to make a good first impression is simply to listen. Listening will show the client that I have their best interests in mind.

Best tip for gaining new clients:

The best tip for gaining new clients (and retaining current clients) is to always beyourself, be honest, be transparent and think outside the box. There is no fixed formula for investing. Clients want tax efficiency, low risk and a holistic financialplan that will cover all their needs. Over the years I have realized that no two clientsare the same. Therefore, it is important to understand their unique needs and tolerance. Secondly, you can’t be everything to everyone. It’s important to identifyprospective clients that you would like to work with. Initially, it can be difficult be-cause you are pressured to build up your client base. However, sometimes refusingbusiness can help you grow relationships with existing clients that have a positiveattitude. This will create a loyal client and a circle of strong potential references.

What I offer to the local marketplace and to my clients:

Over the past few years we have been through a difficult environment. We cannot control the financial markets and political uncertainty. We focus on what we can control, which is planning and creating low risk, tax-efficientportfolios for our clients with a high level of client service. Always be proactive – that’s the commitment I offer my clients.

Favourite hobbies:

Yoga, playing team sports, spending time with my family.

One item I can’t be in a client meeting without:

A pen and notepad! I like taking notes.

Firm: CIBC Wood GundyYears in Business: 14Team Members: 3

Darren Carmosino

Filomena Catallozzi

Rizwan Moorji

DecemberTo nurture your most valuablecorporate relationships, host aDecember holiday event. Hereare some tips on how to throwa successful bash that willmake others green with envy.

14 RENAISSANCE INVESTMENTS

~time to party!

RENAISSANCE INVESTMENTS 15

Make your event stand out

Everyone’s social calendar is packed in December, and people are pretty picky aboutwhich events they plan to attend. Make sure your party makes it to your clients’ “To Do” lists by serving up entertainment with a twist.

Before you start planning, spend a few minutes thinking about your guests. Whatwould they enjoy most? Do they have children who should be included, or will this be an adults-only event? Do they like to dress-up, or would they welcome a casualouting? Think about the ambience you want to create at your event, and the impression you would like to leave. A sit-down dinner is ideal for a small group ofpeople who know each other well, but if you want people to mix and mingle, a cocktail evening is probably a better option.

Here are some quick ideas to make your party stand out from the seasonal crowd: entertain guests with interactive technology screens (icebreakers, trivia) and games(Guitar Hero). Serve funky food: molecular gastronomy, interactive food stations, aseafood bar, or specialty cocktails. Swap dessert for a serve-yourself sundae station.Offer an incentive to guests in the form of a raffle, silent auction, seasonal gifts, awesome goody bags, or an invitation to bring their spouse and children.

TIP:Make sure you include details about your food and giveaways in your invitation.

Instead of the usual group email invitation, send a colourful email invite throughwww.evite.com or www.punchbowl.com. Both are free, and you can customizeyour invitation, upload your contact list and send it in less than half an hour. Or, make an impact with beautiful paper invitations sent by snail mail: check out templates atwww.vistaprint.com, or talk to a local printer or graphic designer.

No matter how many emails, texts or tweets you broadcast, establishing and maintaining a real connection with your clients requires an occasional injection of face-time. Hosting a seasonal event allows for real, uninterrupted conversation of the kind that lets people know they are more than just a demographic.

Plan a warm and welcoming event this December – drinks, lunch, dinner or a full-blown party. It’s the one time of the year when it’s okay to take the focus offbuilding your business and concentrate on building relationships, establishingyour reputation, and fostering peace and goodwill with your clients.

Planning an event for your clients can seem like an overwhelming task, especially for first-time hosts. But, like any big project, organizing a successful event can be broken down into a few manageable steps.

1. Plan your guest list. Include a mix of long-time clients, colleagues, staff and prospects. A party is a nice way to say thanks to your clients for another year of business, and the relaxed atmosphere gives you an opportunity to spend some pressure-free time with people you would like to know a little better.

TIP: The more people you invite, the better.

2. Choose a venue and a date. Now that you have a rough idea of how many people will be attending, choose an appropriatelocation based on available room size and convenient location.Shortlist a few of your favourites, call around for the best availabledates and times, and make a reservation as soon as you can –restaurants fill up quickly this time of year.

TIP: Don’t neglect simple things like making sure it’s easy forguests to travel to and find your venue.

3. Decide on a theme, if you want one. If a regular cocktailparty feels too low-key for you, consider throwing a Feliz Navidadevening at a Mexican restaurant or hosting a Cinq à Sept (literally,“five to seven”) party, a practical Québec tradition that gatherseveryone together for French wine and snacks, but allows gueststo be home in time for dinner.

TIP: Your party could also be centred around an event: a gallery hop; a cocktail-making evening or cooking class;or a champagne, beer or wine tasting event.

4. Send your invitations.Mailed or emailed invitations are fine.

5. If you need to, select a menu and pre-order your food.Some spots allow for pre-ordering cocktail snacks, leaving you free to chat with guests without the distraction of choosing andordering. If you are taking a large group out for a sit-down dinner, see if you can arrange with the restaurant to present a selective mini-menu to your party, with no visible prices. Thismakes ordering stress-free for everyone, and turns a dinner in apublic restaurant into a private party of your own.

TIP: Ensure your guests have a place to put their coats, andget a glass into everyone’s hand immediately by serving a“welcome drink” that can be pre-poured.

6. Get there early so you can greet your guests as they arrive.Whatever you plan, remember to respect your clients’ tastes, interests and comfort level.

TIP: Put your guests’ needs first and foremost, and yourevent will be a success.

take charge of party planning

Hosting any party can be stressful, but hosting an event for your most important clientscan really make you sweat …and the host should never look like they’re sweating. If you have planned everything carefully, there should be nothing to worry about at theparty except making sure your guests enjoy themselves. Even if some little thing does gowrong, it’s up to you to fix it quickly, smile and move on. Take your time with everyone,shake hands warmly and don’t get hung up on the many little niceties of etiquette yourgrandmother may have drilled into you. Remember, being courteous is more importantthan rules about handkerchiefs and which fork to use.

Still, rules exist for a reason, so here are the top 10 Do’s of corporate party hosting.

Be on time

Wear your business best

Consider making a brief welcome speech (30 seconds at the most) thanking your clients for their loyalty, a great year, etc.

Make sure everyone on your team knows who the guests are, includingtheir names and titles, and what they worked on over the year

Circulate and speak to those people you don’t normally talk to

Check out industry and general news before you go so you have something to chat about

Most people are their own favourite topic. If you have trouble chatting, just ask people about themselves

Network lightly – it’s supposed to be a party

Be attentive: ask people if they need their drink refreshed or something to eat

Make sure you spend a few minutes with every guest

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partyetiquetteThe basics of

16 RENAISSANCE INVESTMENTS

RENAISSANCE INVESTMENTS 17

brain calisthenics

Check your answers at www.renaissanceinvestments.ca/magazine/answers/

Spot the difference – Can you spot the five differences between the pictures below?

Sudoku – Complete the Sudoku puzzle so that each and every row, column and 3x3 box contains the numbers one through nine only once.

1 5

6 2 5

4 3 2

1 9 7

3 4 6 2

7 8 5

5 2 9

6 4 1

2 4

Word scramble – Unscramble the following letters to spell words from the article on pages 8-11:

1. stssae

2. ktimpcssei

3. rirtotery

4. avsngsi

5. ohgrtw

6. reeemtitnr

7. vecehalbia

8. aictpla

9. inlragam

10. srutisecei

Source: 4puz.com

FOR DEALER USE ONLYRenaissance Investments and the Axiom Portfolios are offered by CIBC Asset Management Inc.This material was prepared for investment professionals only and is not for public distribution. It is for informational purposes only and is not intended to convey investment,legal or tax advice. The material and/or its contents may not be reproduced or distributed without the express written consent of CIBC Asset Management Inc.™ Axiom, Axiom Portfolios and Renaissance Investments are registered trademarks of CIBC Asset Management Inc.

To learn more about how Renaissance Investments can help you and your clients, visitwww.renaissanceinvestments.caor call 1-888-888-FUND (3863).

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