The Renaissance

QUARTERLY FUND PROFILES / PRACTICE MANAGEMENT / OUTLOOK / OPINION Q4 – DEC. 31, 2014

For Advisor Use Only

The Great DisconnectInvestor Return Expectations vs. Portfolio Realities

Clients with more to invest deservemore than half efforts. Renaissanceoffers a suite of enhanced pricingoptions on fixed income and all-in-oneincome products to promote long-termportfolio growth.

PREMIUM PRICING

renaissanceinvestments.ca

Talk to us about giving your bestclients more.

HISTORYISN’T MADE

BY THOSEWHO GO

HALFWAY.Average fee advantage of 58bps1

®Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc.1 For Renaissance Premium Class funds. The MERs have been annualized as at August 31, 2014 as disclosed in the Renaissance Investments interim management report of fund performance. The Manager waived some management fees and/or absorbed some operating expenses, which reduced the MERs. Please refer to the Annual Management Reports of Fund Performance for restated MERs, which reflect what the MERs would have been if the Manager had not waived some management fees and/or absorbed operating expenses. The decision to waive management fees and/or absorb operating expenses is reviewed annually and determined at the discretion of the Manager; this practice may continue indefinitely or can be terminated at any time. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

Tax and Estate 3Use Registered Accounts to Shelter Highly Taxed Fixed Income

Economic Outlook 4Top Five Economic Themes for 2015

Back of the Napkin 6Asset Gathering Secrets of Elite Advisors, Part 3

The Great Disconnect 8

Solution Highlight 12Show Clients the Benefits of Floating-rate Loans

Thanks to Our Supporters 13Be Your Clients’ Advocate

Slow & Steady Wins the Race 14

Brain Calisthenics 17

In this issue

6

14

4

PAGE

From the Managing Director of the Renaissance Sales Team

Welcome to the Q4 2014 edition of The Renaissance Advisor. While many of you know me, this is my first letter to our readers as head of the Renaissance Investments sales team. I look forward to furthering our partnerships and building the trust you have in us as your preferred solution provider.

Building trust is the key to any successful relationship, including the relationships we have with our clients. But how do you develop trust when Canadian investors are wary of markets, scared of losing capital and invested too conservatively to meet their long-termgoals? The findings of a recent investor survey commissioned by CIBC Asset Management conclude that addressing those concerns head on is key to solidifying client satisfaction and ongoing relationships.

Our feature article, The Great Disconnect: Investors expect more than their portfolios can deliver, can assist you in tackling today’s investor concerns. It offers results from our survey and expert insights from Luc de la Durantaye and Grant Shorten. To prime you for client conversations, Grant outlines a quick 7-step guide to educating clients on risk and return.

And once clients are more comfortable with risk, remember that Renaissance Investments has diversified solutions for every risk level. Renaissance Optimal Portfolios are all-in-one solutions that provide investors with the opportunity to generate income, benefit from capital appreciation and manage volatility.

Also in this edition: Jamie Golombek discusses maximizing registered plan saving, Benjamin Tal outlines five top economic themes for 2015, and Grant explains how to capitalize on networking events.

We thank you for your business and welcome your feedback.

Shelly McLeanManaging Director, National SalesRenaissance Investments

Building Trust and Client Relationships

3

www.renaissanceinvestments.ca/en/jamie_golombek/

A recent survey commissioned by CIBC Asset Management* shows that Canadian investors’ return expectations may not be aligned with their portfolios. Nearly half of investors list “growth” as their main objective andone-third feel they need annual returns of 6% or higher. Despite these returnexpectations, a large portion of investors are primarily invested in lower-yielding GICs, savings accounts and guaranteed investments.

Indeed, investors may be likely to become even more entrenched in conservative investments as market volatility increases. Seventeen percentof survey respondents say recent volatility has impacted their investmentplans and another 22% are unsure. For investors reacting to market turbulence,56% say they will invest more conservatively for more protection.

Poor investment returns on conservative, fixed-income investments can be further eroded by high tax rates when investments are held in non-registered accounts. Fixed-income investments, including bond funds, earn interest income, which is taxed at rates up to 50% depending on the investor’s marginal tax rate and province of residence. So, an investor who earns 2% on a GIC may only get to keep 1% after taxes are deducted.

Clients can maximize their long-term, after-tax returns by focusing not juston asset allocation but on the asset location – in other words, the type of accounts in which they hold their investments.

The 2008 federal budget predicted that, “As the TFSA matures over the next 20 years, it is estimated that, in combination with existing registeredplans, it will permit over 90% of Canadians to hold all their financial assetsin tax-efficient savings vehicles.” And there’s good reason for clients tomake the most of these plans.

For 2015, the annual Tax-free Savings Account (TFSA) contribution limit is$5,500 and an investor who has been at least 18 years of age since 2009and has never contributed to a TFSA has a cumulative contribution limit of

$36,500. Most Canadians know that investment income earned in a TFSAwill be completely tax-free, which can make the most of returns earned onthe investor’s portfolio.

What investors often don’t realize is that the same benefit may be obtainedby investing in a Registered Retirement Savings Plan (RRSP) when the investor’s marginal tax rate is similar in the year of contribution and the year of withdrawal. This was demonstrated in our previous report, Blindedby the Refund. And, if a client’s marginal tax rate is expected to decrease in retirement, an RRSP can yield an even greater after-tax return. For 2015,the RRSP contribution limit is $24,930, less any pension adjustment, so investors who had earned income of at least $138,500 in 2014 can contribute the maximum amount.

So for 2015, make sure your clients are maximizing their tax registered plan contributions.

TAX AND ESTATE

Follow @JamieGolombek

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.

Use Registered Accounts to Shelter Highly Taxed Fixed Income

*The results presented in this document were gathered through a Web survey conducted by Leger from November 21 to 25, 2014 among a representative sample of 1,505 English- or French-speaking Canadians, 18 years of age or older, who have an investment portfolio for retirement. Using data from Statistics Canada, theresults were weighted according to gender, age, region, language spoken at home, education and whether ornot children are present in the household to ensure a sample representative of the entire population under review.

4

Top Five Economic Themes for 2015

ECONOMIC OUTLOOK

1. The Global Economy to Surprise on the Upside

Monetary policy was eased in many countries, oil prices fell dramatically, andmany countries are receiving an additional boost from weaker currencies. TheBank of Japan expanded its balance sheet aggressively; the European CentralBank announced a series of easing measures, and most likely will announce anadditional increase in balance sheet expansion target and sovereign bond purchase in January.

The main impact of these policy measures will be felt in the second half of 2015.Add the positive impact of lower oil prices on global growth and the notable softening of the yen and the euro alongside many other currencies, and there aregood reasons to be a bit more optimistic about 2015. The extraordinary amount ofstimulus won’t be ignored by the market. It’s very reasonable to assume that bothEuropean and Japanese equity markets will react positively to such stimulus, andwe might even see some modest upward pressure on long-term yields.

2. Self-sustained Recovery in the United States

True, the U.S. dollar has gained significant ground in the past six months, butwith exports accounting for only 14% of GDP (half the OECD’s average), in manyways, the U.S. is still an economic island. And domestically, overall activity isstrong – led by the significant acceleration in the pace of job creation.

Credit expansion in 2015 is likely to form the base for the next leg of the improvement. With delinquency rates in the banking sector back to pre-recessionlevels, and still a significant amount of pent-up demand for credit, look for some acceleration in overall credit growth in the United States.

3. Long Energy?

It’s impossible to predict where oil prices are going in the coming months. Globaloversupply will peak in the first quarter, and we won’t see a significant slowingin shale oil activity in the coming six months, as most of the players are fullyfunded for that long. Therefore, any notable adjustment in the physical marketwon’t be very evident until the second half of 2015. Given that, is it reasonable to assume that in a year to 18 months from now, oil prices will be higher? Remember that any improvement in energy valuations won’t be a linear trajectory. Most of it will occur in the first stage of any price recovery.

“BB-rated investments that still offer leverageto the business cycle and a relative decrease in duration, should attract investors as we enterthe economic recovery’s next phase...”

%

0

5

10

15

20

25

30

1980 1990 2000 2012

United StatesOECD Average

Source: The World Bank, CIBC

%

90

92

94

96

98

100

Jan.

201

4

Mar

. 201

4

May

201

4

July

201

4

Sept

. 201

4

Nov

. 201

4

-4.5%

Effective Exchange Rate Has Fallen

Source: Eurostat, Bloomberg, CIBC

Percentage of Exports in GDP

5

www.renaissanceinvestments.ca/en/economy/www.renaissanceinvestments.ca/en/economy/

Furthermore, the rout in oil will undoubtedly create areas of stress in the energysector. But it might also be presenting opportunities to gain exposure to assetsthat are more or less unaffected by oil’s decline, and whose prospects actuallylook better thanks to lower energy prices. BB-rated investments that still offerleverage to the business cycle and a relative decrease in duration should attractinvestors as we enter the economic recovery’s next phase, and the tighter monetary policy that it will bring.

4. Canada: Changing of the Guard

Even if oil prices improve a bit from this point, the dramatic decline in prices ischanging the economic landscape of Canada. The net impact of the fall in oilprices to date will probably work to cut GDP growth by 0.3%-0.5% in 2015. Butthe main damage will be in the west – mainly in Alberta, where we expect a notable softening in economic activity, and possibly an adjustment in the housingmarket. At the same time, Ontario and Quebec will, in fact, benefit from lower oil prices. This is also working at the margin to change prospects for the manufacturing sector in Canada. The combination of a strong U.S. economy,falling dollar and a significant improvement in productivity is already working to improve overall activity in Canadian manufacturing. The drop in energy prices (most importantly natural gas prices) will add to this momentum.

5. Higher Interest Rates – At Different Speeds

At this point, it appears that the U.S. Federal Reserve (Fed) is planning to startraising rates in June 2015. A lot can change between now and then, but for now that is the plan. Note that the Fed is facing the risk of raising rates too early(or by too much) or too late (or by too little). From a risk management perspective,the best approach might be to start early, and move the federal funds rate toaround 1% before pausing. At this point, the market is pricing in an even slowerpace of rate hikes. Therefore, it is possible that we might see yields in the bellyof the curve (say two to five years) rise in the first quarter of the year. As for theBank of Canada (BoC), lower oil prices have removed any need to raise rates anytime soon. In fact, the BoC cut its overnight rate to 0.75% in January, a clear negative for the Canadian dollar.

Benjamin Tal is Deputy Chief Economist for CIBC. Described as one of Canada’s leading experts onthe 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.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

CAN USA RUS FRA DEU JPN GBR ITA

kg

Kilogram of Oil Equivalent Per Capita (2012)

“As for the Bank of Canada, lower oil prices have removed any need to raise rates any time soon.”

Source: The World Bank, CIBC

6

Asset Gathering Secrets of Elite AdvisorsPart 3 – Capitalizing on Networking Opportunities

BACK OF THE NAPKIN

Something magical happens when we venture into the minds of those who consistently excel in a particular area of expertise. We are able to systematically model their excellence by carefullyunpacking their personal values, beliefs, methodsand approaches.

In this three-part series, we’ll discover how some of the most successful advisors consistently find qualified prospects and gather assets at an above-average rate.

What may be most striking is that “elite” advisors often do not engage inshocking, surprising, or even overly creative activities. What separates successful asset gatherers from the average…is mastery of the fundamentals!

This group has determined that their time and resources are precious, andthat it’s essential to avoid wasting them on low-impact marketing activities.Rather, they focus on 2-3 high-impact prospecting tactics.

Elite advisors understand the marketplace has changed. Although they mayhave built their businesses through traditional methods, they recognize thattoday’s game is won in the arenas of word-of-mouth marketing, face-to-facecontact, and through personal introductions and referrals. Specific tacticsmay vary, but three methods consistently top the list:

In part three of this series, we will focus on:

“CAPITALIZING ON NETWORKING OPPORTUNITIES”

Capitalizing on Networking Opportunities

Personal networking captures the very essence of selling. It’s perhaps themost primal form of marketing, but remains one of the most powerful waysto connect with prospects and create long-term relationships.

The challenge that some advisors face, and why so many abandon networkingactivities, is a failure to capitalize on the art and science of the networkingdynamic. The elite advisor, however, understands that every component oftheir networking engagement demands precise execution.

Let’s take a closer look at each component:

The First Impression

The initial impact we have at a networking function is critical. Research suggests it takes just one-tenth of a second to form a lasting first impressionabout someone. And, once that impression is formed, it’s virtually impossibleto change! Therefore, it’s essential to “show up” and convey confidence,warmth, professionalism and trustworthiness. Masterful networkers knowthe importance of gearing up for events in advance, and then delivering theelements of a strong first impression. Given the split-second of time wehave, these are primarily visual and include:

• Confident posture and expressive body language

• Appropriate attire

• Warm smile and welcoming facial expressions

• Perfect handshake (matching firmness, palm up, eye contact)

Once you’ve delivered a positive first impression, you can move to the next component.

The Power of Strategic Alliances

Leveraging Intimate Client

Events

Capitalizingon Networking Opportunities

7

www.renaissanceinvestments.ca/en/practicemanagement/

Creating Rapid Rapport

The ability to create instant rapport with strangers is a gift few people have. Thankfully, it’s a skill that can be learned fairly easily. Rapport sometimes occurs naturally when people find themselves easily relating. But experienced networkers are able to supercharge the process by proactively employing these strategies:

1. Discover and Highlight Common Interests

That we can build rapport by focusing on common interests isn’t rocket science, but we often neglect the importance of being proactive. To create a deeper bond, search for areas of common interests from your conversationsand focus on them. These can be any number of things – movies and entertainment, health and fitness, or something more esoteric.

2. Identify With…and Agree With…

You can also increase rapport by openly “identifying” with, and “agreeing”with, the other person. Don’t blindly agree with everything – especially anything contrary to your values and beliefs – that will quickly undermineyour self-esteem. Rather, make liberal use of phrases like, “I completelyagree” when you discover ideas, notions, or philosophical leanings that are clearly aligned with your own!

3. Align Your Communication Style

Unsurprisingly, we are drawn to those we see as similar to ourselves; thiswill often quickly turn to familiarity. Master networkers take control of thisphenomenon and employ the power of mirroring, matching, pacing and leading. When performed properly, and with respect, these techniques can create rapid rapport. The concept is as follows:

Assume a similar body posture and gesturing style to your communicationpartner. Your approach should be subtle and not mistaken as copying or mimicking. Raise or lower your voice to more closely resemble that of yourcommunication partner. You may further adjust your speed of speech tomatch theirs, while replaying some of their own key words back to themlater on. Align yourself with their general mood as you lead them to a more resourceful state.

These simple techniques are so powerful, they are sometimes criticized asbeing manipulative. However, we all communicate with a broad spectrum of options and possibilities, and it’s frequently just our current mood (or environment) that dictates our style of communication.

For Example:

We communicate very differently with a friend at a BBQ than we do with our boss at work, or a stranger at a party…yet all of those“styles” are legitimate aspects of us.

One of the highest compliments we can pay someone is to step into their model of the world, and align with them in ways that help them relax and be comfortable enough to receive our message efficiently.

Change Brain Chemistry

Changing brain chemistry is something we do every time we speak to anotherhuman being. We do this through the words we use. Our words are verypowerful; they instantly create pictures in the mind of the listener, changingtheir emotional state. Networking engagements provide the opportunity toorchestrate and direct your words to achieve a specific result. Elite networkersdevelop a “natural” ability to choose their words carefully, delete negativity,and deliver words that uplift, inspire and empower. When someone leaves a conversation feeling positive, they have a lasting impression and an openness to further the relationship.

Advancing the Relationship and Follow-up

The last piece of the networking equation is to advance the relationship. Ifjustified, ask for a business card or contact information so you can follow-up.Your first follow-up should be within 24-48 hours, so any emotional connectionremains alive. It may be a brief email, telephone call, or a handwritten noteexpressing gratitude, but your follow-up needs to contain a call-to-action. Invite them to another upcoming event, meet for coffee, or ask questions toencourage a response. Sometimes, getting someone to respond once canbegin to install a new set of behaviours.

Develop a crystal-clear definition of your target market and identify creativeways to spend time with them. Modeling the values, beliefs and approachesof top networkers, we discover they typically operate with a single prime directive – seeking opportunities to offer a “second opinion.”

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.

8

Investors expect more than their portfolios can deliver

THE GREAT DISCONNECT

9

But here’s the problem: 42% of those same survey respondents say they’reprimarily invested in GICs, savings accounts or other guaranteed investments,and they plan to stay invested in these products for the future. And 40% of those investors in low-yielding, guaranteed investments say they need annual returns of 4% or more to meet their investment goals. In reality, interest rates would have to rise significantly from current levels in order for these investors to achieve their desired returns.

Luc de la Durantaye, Managing Director, Head of Asset Allocation and Currency Management, CIBC Asset Management says, “The Bank of Canadawill remain prudent by keeping policy rates at ultra-low levels, given slowinggrowth and declining inflation.” The Bank of Canada cut its overnight rate to0.75% in January, the first rate change since September 2010.

It’s probably safe to say that annual interest rates won’t hit 6% any timesoon. Investors will need to increase the level of risk in their portfolios togenerate their desired returns. So why aren’t they currently turning towardsmore suitable investments to meet their long-term goals?

Fear and Lack of Understanding

The CIBC Asset Management survey revealed that 67% of respondents whoaren’t considering higher-returning investments say they’re afraid of losingtheir capital. Others simply aren’t aware of other options, especially youngerinvestors – some 27% of investors aged 25 to 34. And a smaller number ofinvestors find these options are either too complex or too expensive.

Grant Shorten, Director, Strategic Insights, Renaissance Investments says,“As investment professionals, our first priority must be to identify, align and agree with the sentiments that investors are experiencing. Our trustedclients need to have their feelings openly legitimized, and need to hear that they are being completely rational and justified in whatever their reaction is right now.”

Contributing to investors’ fears could be their memory of past losses.

Shorten says, “I think that advisors can use the 2008 meltdown as a tool to educate clients and instill comfort in the financial system. It makes sense that investors need reassurance before you can offer them more suitable investments to achieve their long-term growth goals.”

“Whether we look at this particular crisis, or the dotcom bubble of 2000, or the stock market crash of 1987, or the oil crisis, or the crash of 1929…The capital markets just continue to rebound and tick along – many hittingall-time highs – while providing tremendous opportunities to create real wealth.”

Shorten encourages advisors to show their clients how many months it took the markets to rebound from past downturns, noting, “It can be an eye-opening and reassuring exercise for many worried investors.”

How Equity Markets Rebound Over Time

$10,000‘92 ‘96 ‘98 ‘00 ‘02 ‘04 ‘06 ‘08 ‘10 ‘12‘94

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Asian Flu

9/11

Drop: -11.7%1 Year Later: 29.2%

Drop: -11.5%1 Year Later: -3.2%

Lehman BrothersCollapse

U.S. DebtDowngrade

Drop: -25.8%1 Year Later: -22.3%

Drop: -8.9%1 Year Later: 4.9%

S&P/TSX Composite Index MSCI World IndexS&P 500 Index

Source: Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary toMorningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to beaccurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damagesor losses arising from any use of this information. Past performance may be no guarantee of future results.The investment returns are denominated in the base currency of the Index.

Investors are seeking growth from their portfolios, but are their portfolios positioned to deliver? According to a survey of Canadian investors commissioned by CIBC Asset Management*, 46% say the main objective for their investments is growth—they don’t need the money rightaway and are investing for the long term. And they’re looking for quite a bit of growth, too: 36% think they need annual returns of 6% or higher.

10

Uncertainty is the New Certainty

Another recent bout of volatility may have some clients experiencing déjà vu.Among investors who have reacted to the market volatility, the majority(56%) say they will invest more conservatively. But de la Durantaye says,“The current situation is very different from 2008 when the financial crisiswas brought on by excessive leverage in the financial system. That leveragehas been substantially reduced.”

“The current situation is very different from 2008when the financial crisis was brought on by excessive leverage in the financial system.”

Instead, de la Durantaye notes that “Market volatility in past months is actuallycloser to the norm, but may seem unusual because financial markets have beenunusually steady over the past year.” And he sees market corrections as potential opportunities to uncover attractive investments. “Depending on theglobal market and sector, market corrections can push asset prices under theirfair value level and create more attractive buying opportunities,” he says.

Time to Take on Risk

Despite current market conditions, de la Durantaye still believes equities arepositioned to be the strongest-performing asset class. “With more modestreturns for equities and limited upside for bond yields, equities should stilloutperform bonds, but by a smaller margin than in the last 12 months.” Hesays that in his portfolios, “We remain cautiously overweight equities andexpect that central bank initiatives will support the economic expansion and generate sustainable earnings growth.”

“We remain cautiously overweight equities and expect that central bank initiatives will support the economic expansion and generate sustainable earnings growth.”

So, how do you get your clients to buy in? Grant Shorten says, “Do everythingin your power to avoid slipping into the ‘science and logic’ around capitalmarket investing, asset allocation and prudent diversification principles.” Instead, you should “Discuss how you are working with your clients to instill a renewed sense of hope and confidence, in light of the tremendousopportunities which lay ahead.”

And your most anxious clients don’t have to move all their assets rightaway – they can always start small. Shorten says, “Talk to your client aboutdividing their investable assets into two different buckets – perhaps 75%‘serious money’ and 25% ‘belief money.’ For the next few months, keep theserious money in safe, conservative investments, while stepping into a well-diversified portfolio of equity-based investments with the belief money.”

7 STEPS TO EDUCATECLIENTS ON RISKAND RETURN

REVIEW your client’s comprehensive financial plan to refresh their memory around their ultimate retirement goals.

REMIND your client of their current asset mix and their existing list of investment products.

REMIND them of their own stated investment objective of, for example, “seeking investment growth of 6-8% per year.”

SHOW them a graph of the long-term historical rates of return by asset class – and where their current investments reside on that graph. (See the Big Picture Chart available on our website.)

SHOWCASE the blatant contrast between yourclient’s expectations and the sheer unlikelihood ofachieving that growth with their current asset mix and portfolio composition.

FURTHER EXPLAIN that we are now living in a world punctuated by virtually unprecedented low yields, and that this picture is not likely to change much in the next few years.

SUMMARIZE the conversation by emphatically stating that your client needs to ratchet down their return expectations (substantially)…or embrace theidea of incorporating a significantly greater exposureto a well-diversified mix of equities and carefullychosen high-yielding securities.

1234

5

6

7

Grant Shorten

69%

vs

11

ADVISOR ToGoA

Access to the experts when you need them

Luc de la Durantaye, CIBC Asset Management Podcast > 3 Reasons to Pull Back on U.S. Equities

Craig Jerusalim, CIBC Asset Management Podcast > Don't Give Up on Canada

Patrick O'Toole, CIBC Asset Management Podcast > Short-Term Bonds are Overvalued

Scott Vali, CIBC Asset Management Podcast > Oil Got You Down? Consider Metals

Powered by Renaissance Investments.

Listen to short podcasts from these CIBC Asset Management experts.www.advisor.ca/togo

*The results presented in this document were gathered through a Web survey conducted by Leger from November 21 to 25, 2014 among a representative sample of 1,505 English- or French-speakingCanadians, 18 years of age or older, who have an investment portfolio for retirement. Using data from Statistics Canada, the results were weighted according to gender, age, region, language spoken athome, education and whether or not children are present in the household to ensure a sample representative of the entire population under review.

Investors continue to be Canada-centric

Women continue to invest more conservatively than men

Younger Canadians are confused about how to reach their investment objectives

• Of those primarily investing in stocksin the future, two thirds (69%) planto invest in Canadian stocks.

• This result is virtually the same as the 2014 survey (68%).

• The majority of female respondents invest in GICs,savings accounts and other guaranteed investments,at 52% compared to 32% of men.

• Market volatility has impacted women investors; 65% of female respondents say that recent market volatility will make them take a more conservative approach.

• Canadians aged 18-24 are much more likely to say that they will need an annual return between 2% to 4% to meet their investment goals (27% versus the national average of 14%).

• The recent stock market volatility has changed how younger Canadians plan to invest over thecoming months (28% versus the national average of 17%).

CIBC Asset Management 2015 Investor Survey: Other Key Findings

Contact your Renaissance representative forour CAM Investor Poll Results infographic.It’s a great support tool for your client discussions.

2015 Investor Survey Results

The Great Disconnect: Return Expectations vs. Portfolio Realities

12

Show Clients the Benefits of Floating-rate Loans

SOLUTION HIGHLIGHT: NEW RENAISSANCE FLOATING-RATE LOAN ONLINE TOOL

Rising rates can take a big bite out of clients’ fixed-income holdings…but floating-rate loan exposure can help to reduce their impact. Renaissance Investments has developed a new interactive online tool to help you educate your clients on the advantages of this asset class.

The tool visually explains how:

• Interest rates today are near record lows and will eventually rise

• A rise in interest rates puts traditional fixed-income assets at risk

• The floating-rate loan asset class has historically outperformed traditional fixed income during rising rate periods

• Adding this asset class to a traditional balanced portfolio can improve its risk/return characteristics

Contact your Renaissance representative for more details.renaissanceinvestments.ca1-888-888-FUND (3863)

www.renaissanceinvestments.ca/en/calculators/floatingrate/

Renaissance Floating Rate Income Fund

offers your clients access to this exciting

asset class.

13

Be Your Clients’ Advocate

THANKS TO OUR SUPPORTERS

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

What do you love about the business?

Clients are seeking advice from trusted professionals that are their advocates.Kathy Robertson, Investment Associate, and I enjoy being the professionals on their team.

What is your personal formula for building strong client relationships?

We conduct face-to-face meetings, truly listening to our clients and providesound advice for all aspects of their finances. We draft a plan and, most importantly, we execute it and regroup annually to review it!

What are the most common client concerns you hear and how do you address them?

Clients are concerned about having enough money. To ensure we address thisconcern, we draft financial plans, review them annually and rewrite them ifneeded. This keeps us current in our clients’ ever changing lives.

Clients are also worried about surviving the next market downturn. Our clients’portfolios are divided into the obvious tasks at hand. The part that is investedto provide timely cash draws has minimal equity exposure and, therefore, minimal market valuation changes. The balance of their overall investments is exposed to equities, but won’t affect their day-to-day lifestyle. Having saidthat, we harvest growth as it’s presented. The last few years, we have beenbusy harvesting and repositioning our excess for the eventual rainy day.

Are there areas or themes of financial or investment planning that you plan to focus on more in the future?

Our business is client driven and as they age their needs will change. Whatclients ask of us will likely be to assist with exiting their businesses, and

passing wealth on to the next generation. As wealth advisors with seven professional designations on the team, we feel equipped for this activity.

Best tip for gaining new clients:

Serve your existing clients well, and work in good faith with their accountants and lawyers. Client satisfaction brings with it client and centre of influence referrals.

Favourite hobbies:

I’m a yoga enthusiast. Kathy’s into golfing and hockey.

One item I can’t be without:

My BlackBerry. It’s my lifeline to the office. Kathy is dependent on her watch to keep her on time and focused.

Firm: Saunders Wealth Advisory Group of CIBC Wood Gundy

Location: Charlottetown, PE

Years in Business: 18

Team Members: 3

CyrillaSaunders

SLOW & STEADY WINS THE RACE

Whether you’re gearing up for a marathon, half-marathon or another running event this year, get ready to put your best foot forward.

AND OTHER THOUGHTS ABOUT RUNNING

14

Patience Young GrasshopperPreparing your body to run the 42.2 km distance of a full marathon “takes acertain level of maturity, it’s a mind-set,” says Smith. He has been coachingrunners of all levels for over 20 years, and has himself been a competitiverunner for almost 30 years. Marathons usually attract existing runners whoare looking to become even better runners. Training typically begins 16-18weeks ahead of time in order to “condition your individual body throughsmart and efficient training,” he says. That’s the key – smart training.

Walk Before You RunIt doesn’t happen often, but Smith says that once in a while someone willseek coaching services with the hope of completing a marathon despite having no previous running experience. If that’s the case, he says, “We usually suggest going through a qualified running clinic. You will experiencethose first few hurdles of running in a group of the same level.” Running clinics are tailored to athletes of all different levels, not strictly marathoners.

A good measure of when to seek coaching is after you’ve “successfully completed a distance of half your goal already,” he says. And to be clear,“Running a half-marathon does not mean it requires half the training.”

The risk of rushing to be in a marathon without adequate training extendsbeyond physical injury. It can take an emotional toll. Smith notes that he haswitnessed in other runners the “disconnect, or breakdown in the activity ofrunning altogether. The body and mind can only take so much.”

Don't Be Your Own Worst EnemyWe’ve long been told that each body is different. And that is certainly evidentin running. The idea behind coaching is to ask runners those questions thatcan help answer why they might not be getting the results they’re after. Inaddition to a basic distance/speed check, Smith performs a very tailored approach based on his own software. The technology can calculate and createa plan that gets tweaked into a very specific recommended approach. Basedon the objectives and information initially provided, factors include: howoften to run, how to schedule your runs based on your timetable, how long to run for and at what pace. Some runners will take this plan and go forth on their own, while others prefer to be coached in conjunction with their individual plan. This can be a great way for runners to ask questions during the process.

Many people believe the purpose of a coach is to have someone push andmotivate you along the way, but Smith says that a big part of his role isteaching people to ease up on themselves. “People can be too rigid and follow the plan too closely to the point where they aren’t flexible for lifehappenstance.” He says he is often the one telling them to slow down and take it easy. “Runners,” he says, “can be their own worst enemy.”

Since 1997, CIBC hasbeen the title sponsorof the Canadian BreastCancer FoundationCIBC Run for the Cure.

The start of a new year oftenbrings with it a set of resolutions we commit to as of January 1.

This firm decision to do, or not to do something is usually madewith the intention of bettering ourselves over the long term –with health and fitness goals often at the top of the list. Here,we speak with Kevin Smith, President of Marathon Dynamics, a Toronto-based company offering coaching services to runners,about the importance of long-term training. After all, it’s amarathon, not a sprint.

15

This single-day event brings together 65 communities acrossCanada in an effort to raise awareness and help fund innovativebreast cancer research, education and advocacy programs. Together, we raised $25 million in 2014.¹ Athletes of all levelsare welcome to participate by walking, running or volunteeringto help raise funds for the breast cancer cause. The run isscheduled for October 4, so be sure to add this great event to your list of activities in 2015.

SHOES – Purchase a good pair of running shoes designed for your archand stride type. If you’re unsure aboutwhich ones to use, visit a local runningspecialty store to get fitted. Good socksare equally important! Look for socksthat are seam-free and manage moisture to prevent blisters.

STRETCH – A proper warm-up routine that includes stretching will get the blood flowing and prevent injuries through strengthening your joints and muscles.

SLEEP – Be sure to log 7-8 hours of sleep for at least two consecutivenights before the event, and avoid anystrenuous activity the day before therun. Allow your body to repair so youcan function at your optimal level.

FUEL – Eat breakfast roughly twohours prior to the race and keep it simple, something that is high in energy and easily digestible. Fuel also includes hydration!

ENJOY – The sense of self-accomplishment that comes fromcrossing that finish line is an amazingfeeling. Remember your reason forrunning and set that as your intention.Use the post-race high as momentumfor your next goal.

¹http://cibccommunity.com/causes/cibc-run-for-the-cure/

5 THINGS TO CONSIDER BEFORE YOU RUN:

Run Smarter, Not Harder Having a coach around can be eye-opening as they are often the one who will bring the little things to your attention. Smith says, “We can recognize and help reduce tension that they might not even be aware of,like having their hands in a fist, or straining the muscles of their face.” A coach can spot if you tend to lean when you run, whether or not your hips stay under your chest, or if your strides are too long.

While proper form can help minimize injuries, it’s not the catalyst to marathon success, says Smith. He agrees that, “It’s important, but it’s not usually the missing link to why you’re not reaching your goal.” For example, some runners prefer to keep their arms rigidly tucked in, while others enjoy the feeling of letting them go loosely. What works best for person A isn’t necessarily an indicator of what will work for person B. This is precisely why everyone should be coached individually, and why runners should not get too consumed with form. Make smart choices and listen to your body.

16

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.

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

1. iprlyairm

2. dinenilgc

3. eplxcom

4. urcnsseraea

5. stndornuw

6. recatth

7. ceroicnotr

8. maignr

9. nduetrp

10. vocelviatrysen

Source: 4puz.com

5 4 2 8

6 3 4

8 7 5

2 8 7

6 5 9 7

2 8 1

2 7 4

3 4 1

8 2 7 3

If you’re spending all your time sifting throughinformation, how do you expect to focus on whatmatters to your business? We chip away the complexity from tax and estate issues to uncover clear and practical insights – so you can spend more time defining your success.

TAX & ESTATE INSIGHT

Renaissance can help you complete a clear tax picture for your clients. Download your toolkit today at:

renaissanceinvestments.ca

A CLEAR VISION ISN’T CREATED BY

THOSE WHO STOP HALFWAY.

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

2014-2015 Tax Toolkit Now Available

19

FOR ADVISOR 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.

Printed in Canada on 25% Post Consumer Recycled Paper

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

Fund was launched on November 13, 2007. ®Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc.

realoutcomes.ca

02001E(201502)