1 / 34

Large Capitalization Canadian Value Equity

Institutional Presentation. Large Capitalization Canadian Value Equity. April 2008. Presented by: Kim Shannon, CFA, MBA. Our objective.

premala
Download Presentation

Large Capitalization Canadian Value Equity

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Institutional Presentation Large CapitalizationCanadian Value Equity April 2008 Presented by: Kim Shannon, CFA, MBA

  2. Our objective • Sionna believes that investment return should be judged against investment risk. Our goal is to provide consistent, above-average returns with a minimal amount of portfolio risk.

  3. Sionna History Founded and independently owned by employees of Sionna. Established a multi-year sub-advisory agreement contract with CI Funds with$ 2.4 billion AUM in three separate funds (the largest start up in Canadian Investment Council history) 2002 Launched Sionna Canadian Large Cap Equity and Canadian Balanced Pooled Funds in June 2003 2004 CI Canadian Investment Fund awarded “Canadian Equity Fund of the Year” 2005 Kim Shannon was awarded the Morningstar Fund Manager of the Year Formed a new strategic alliance with Brandes Investment Partners & Co. and launched four new Mutual Funds 2006 Kim Shannon was awarded the RBC Canadian Woman Entrepreneur Award and the WXN’s Top 100 Most Powerful Women Award 2007

  4. Organizational Overview * On October 3, 2006, Sionna chose to terminate its sub-advisory relationship with the mutual fund client and, subsequently, to form a strategic alliance with Brandes Partners for retail mutual funds. As a result of this strategic decision, total assets under management as of December 31, 2007 were approximately $1.8 billion.

  5. Organization Sionna Advisory Council Members: 4 Independent Members Kim Shannon Kim Shannon, CFA, MBAPresident & CIO 25 Years Industry Experience Brian Deegan COO 20 Years Industry Experience Portfolio Management Operations Teresa Lee, CFA Portfolio Manager12 Years Industry Experience 5 Years at Sionna Colum McKinley, CFA Portfolio Manager13 Years Industry Experience 2 Years at Sionna Lawrence Li VP Systems and Portfolio Administration 26 Years Industry Experience Mary Lou McKeever VP Operations 15 Years Industry Experience Craig Harrison Trader 7 Years Industry Experience Iain Butler, CFA Equity Research Analyst 8 Years Industry Experience 3 Years at Sionna Marian Hoffmann, CFA Associate Portfolio Manager 4 Years Industry Experience 4 Years at Sionna Emil Vassenine Portfolio Administration Assistant1 Year Industry Experience Dave Britton Equity Research Analyst 1 Year Industry Experience CFA Level 3 candidate 1 Year at Sionna Mel Mariampillai, CFA Equity Research Analyst 6 Years Industry Experience 2 Years at Sionna Thomas Hayes Admin Assistant, Trading/Settlement 5 Years Industry Experience Chauntay Claxton Executive Assistant 1 Year Industry Experience Tu Giang Receptionist

  6. Current Products

  7. Our Investment Philosophy is based on the following set of beliefs: • From time to time, markets price stocks inefficiently • Over time, stock prices regress to their mean, that is, their historic trading average • Combining quantitative analysis and fundamental value analysisis the most reliable means of identifying these hidden opportunities • Focusing on stock selection rather than sector timing reduces volatility • Selling is as important as buying, and requires a similar level of discipline

  8. Finding Value Price Intrinsic Value Time

  9. average stock tends to trade at $1.25 to $1.30 If Intrinsic Value is a Dollar Sell Zone Buy Zone

  10. Book Value Historical ROE Relative P/E Intrinsic Value Model We start analysis with a Quantitative Process 70-140 stock research universe 500 Stock Universe Intrinsic Value Expected Return

  11. Seek to buy stocks offering a minimum 30%expected return over a two year time horizon 15.0% < 9.5% > 5.5% per annum from each stock TSX Historical Annual Return Margin of Safety Investment Objective

  12. Investment Process Quantitative Analysis 500+ Stock Universe Qualitative 70-140Stocks 25-50Stocks Portfolio We apply a consistent and highly disciplined approach to select a focused portfolio of securities that we believe will deliver superior longterm returns while minimizing volatility.

  13. Fundamental Analysis • Corporate Interviews • Structured Research Reports 25-50 stock portfolio 70-140 research universe Qualitative Analysis …However, our Qualitative Analysis is equally important

  14. Sell Discipline • Intrinsic Value or better having been achieved • Switch opportunity that provides enhanced risk/reward tradeoff • Deterioration of : financial strength : competitive position : earnings capability

  15. Portfolio Composition and Risk Management • Value driven, bottom up, stock selection • Broad diversification with approximately 40 Canadian equity names.Our goal is to be broadly diversified across industry groups • Prefer above-average dividend yields • Avoid companies with excessive financial risk • Avoid companies with significant aggressive accounting practices • Employ incremental purchases and sales of securities • Favor consistent, predictable earnings and dividend paying companies • Good fundamental analysis can decrease security risk • Low turnover: typically less than 20%

  16. Investment Management Team’s Sector Responsibilities Kim Shannon Financials, Utilities Teresa Lee Energy, Materials Financials, Industrials, Telecommunication Services, Information Technology, Healthcare Colum McKinley Energy, Consumer Discretionary, Utilities, Power Trusts, Asset Managers Marian Hoffmann Gold, Forest Products, REITs, Preferred Shares, Construction & Engineering Iain Butler Consumer Staples, Insurance, Auto Parts, Agriculture, Healthcare Mel Mariampillai Dave Britton Industrials, Broadcasting & Cable, Coal & Consumable Fuels

  17. Research Calendar Each morning the research staff meet to share news on the stocks we own in our portfolio. Research meetings are held once every week to share and discuss in-depth research reports written by Sionna analysts. All-day portfolio reviews occur monthly and each mandate gets reviewed bi-monthly. We examine attribution analysis and portfolio composition and demand that every stock we hold justify its place in the portfolio.

  18. Portfolio CharacteristicsSionna Canadian Equity Pooled Fund Our portfolio characteristics reflect our value approach As at March 31, 2008 Source: CPMS & Sionna Investment Managers

  19. Consistent PerformanceSionna Composite Performance numbers are gross of fees Source: Sionna Investment Managers & Toogood

  20. Average Return in Up & Down QuartersSionna Composite 39 Up Quarters All Quarters 13 Down Quarters Performance numbers are gross of fees Source: Sionna Investment Managers & Toogood

  21. 3 Month 6 Month 1 Year 2 Years 3 Years 4 Years Portfolio (%) -1.9 -3.7 1.9 6.0 13.7 15.9 S&P/TSX (%) -2.8 -4.1 4.0 7.6 14.2 14.1 Relative Return (%) 0.9 0.4 -2.1 -1.6 -0.5 1.8 Annualized Performance Numbers Sionna Large Capitalization Canadian Equity Pooled Fund As at March 31, 2008 Source: State Street & Sionna Investment Managers Performance numbers are gross of fees

  22. Canadian Equity Sector Strategy Sionna Sector Weights versus S&P/TSX Composite Energy Materials Consumer Staples Utilities Industrials Health Care Consumer Discretionary Information Technology Financials Telecommunication As at March 31, 2008 Source : Sionna Investment Managers and Toogood

  23. Operations Overview

  24. People People are our sole resource We are focused on developing and retaining high caliber investment professionals through continuous training, individual responsibility, thought leadership, and performance-oriented compensation. Focus on Client Service They give us our purpose and we will communicate our philosophy, process, actions, and results in an educated, honest, responsive, and grateful fashion. Experienced Staff Senior Operational Staff have on average over 20 years of experience in the Financial Services Industry Best of Breed Philosophy We constantly evaluate our people, systems, policies, etc. to ensure that they meet the needs of Sionna and more importantly, our clients.

  25. Client Services & Reporting Schedule Quarterly Stewardship Reports • Investment Results • Economic climate • Market outlook • Transaction summary • Portfolio listings • Compliance report Quarterly Review Meetings (Conference calls as required) Interim informal meetings

  26. Systems Best of Breed approach Outsource when appropriate and develop internally for competitive advantage. Outsourced Systems StateStreet (Fund Admin, Accounting & Custody) Internal Systems Toogood Financial Systems (Portfolio Administration) Bloomberg (Daily Pricing) Thomson (Portfolio Analytics)

  27. Policies & Procedures • Policies & Procedures Manual • Policies & Procedures documented since firm inception. • Policies & Procedures manual reviewed at minimum on a yearly basis • Periodic audits of Policies & Procedures • Changes in Policies & Procedures communicated to staff on a regular basis.

  28. Compliance • Compliance Policies • Code of Ethics, Fairness, Privacy, Soft Dollar, etc. • CD copy of Sionna’s Policy Manual is available upon request • Business Continuity Planning / Disaster Recovery Planning • Similar to the Policies & Procedures manual, this is a living document that is reviewed on a yearly basis • Component testing of plan is executed on a yearly basis.

  29. Industry Participation • Investment Counsel Association • Member of Operations Committee which discuss activities, regulatory changes and information related to the operation of their investment management business. • Participate in other Financial Services forums to address operational issues.

  30. Appendix

  31. Our Management Team Appendix Kim Shannon, CFA, MBA President & CIO Sionna Investment Managers. Kim founded Sionna in the summer of 2002, and has 25 years of investment management experience. She was previously Chief Investment Officer and Senior Vice President at Merrill Lynch Investment Managers, Canada. Kim is a past President of the Toronto Society of Financial Analysts and is currently on the Boards of the Canadian Coalition for Good Governance, the Accounting Standards Oversight Committee and the CFA Institute's Financial Analysts Seminar. Kim was awarded the Morningstar Fund Manager of the Year for 2005. Kim was also awarded the RBC Canadian Woman Entrepreneur Award and the WXN’s Canada’s Most Powerful Women Top 100 Award in 2007. Brian Deegan, COO Sionna Investment Managers Brian joined Sionna Investment Managers in November, 2007 as Chief Operating Officer. Brian has over 20 years of experience in the Investment Industry. He was previously employed at Lyons Asset Management as a founding partner, responsible for all operational aspects of this Investment Counsel firm.  Prior to that, Brian held senior leadership positions at Assante Advisory Services, AIM Canada, and Trimark Investment Management Inc. in Operations and Information Technology roles. Brian has a Bachelor of Arts (Economics) degree from the University of Western Ontario.

  32. Teresa joined Sionna Investment Managers in March, 2003 and has 12 years of experience in the investment industry. She was previously employed at the Jim Pattison Group, managing a concentrated portfolio of investments. Prior to that position, Teresa was a Portfolio Manager for the Royal & SunAlliance Pension Fund (large cap fund) and for the Royal & SunAlliance Canadian Growth Fund (small cap segregated fund). Teresa holds a Bachelor of Commerce degree with Honours from the University of British Columbia. She is currently on the board of directors of the Toronto CFA Society as Chair of the Awards committee. Teresa Lee, CFA, Portfolio Manager, Equities Colum joined Sionna Investment Managers in October, 2005 and has 13 years of experience in the investment industry. He was previously employed for six years at TD Asset Management, where he was lead manager for their North American small cap product offering, including the TD Canadian Small Cap Fund and the Private Client Fund. Prior to moving to TD, Colum spent one and one-half years at Sun Life as a Senior Investment Analyst and three years at Marleau, Lemire Securities as a Research Associate. Colum holds a Bachelor of Arts degree from the University of Western Ontario. He is a member of the CICA (Canadian Institute of Chartered Accountants) User Advisory Committee. Colum McKinley, CFA, Portfolio Manager, Equities Marian Hoffmann, CFA, Associate Portfolio Manager Marian joined Sionna Investment Managers in January, 2004 and has 4 years of experience in the investment industry. She was previously an Equity Research Analyst at Sionna before becoming an Associate Portfolio Manager. Marian holds a Bachelor of Arts degree with a major in Economics from Yale University. She is a member of the Toronto CFA Society. Our Investment Management Team Appendix

  33. Our Investment Management Team Appendix Iain joined Sionna in February, 2005. He has 7 years of industry experience at CIBC Mellon, Templeton Management, and Agilerus Investment Management. Iain holds an Honours B.A. in Business Administration from Wilfrid Laurier University. Iain Butler, CFA, Equity Research Analyst Mel Mariampillai, CFA, Equity Research Analyst Mel joined Sionna in September, 2005. He has 6 years of industry experience at RBC Dominion Securities. Mel holds a B.Sc. in Microbiology and Immunology from McGill University. Dave Britton, Equity Research Analyst Dave joined Sionna in September, 2006. He holds an Honours Bachelor of Business Administration degree with distinction from Wilfrid Laurier University and has successfully completed Level II of the CFA Program. While working on his degree, he interned with KBSH Capital Management and KPMG LLP.

  34. Contact Us Sionna Investment Managers Inc. Kim Shannon, CFA, MBAPresident & CIOPhone : (416) 203-8812Fax : (416) 203-8033 Email : kim_shannon@sionna.ca Address : 8 King Street East, Suite 1600 Toronto, Ontario M5C 1B5 Website : www.sionna.ca Brian DeeganChief Operating OfficerPhone : (416) 203-8891Fax : (416) 203-8033 Email : brian_deegan@sionna.ca

More Related