Cambridge Global Asset Management

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Jan 21, 2014 ... Client Services. English: 1-800-563-5181. French: 1-800-668-3528. CI Digital Roadshow – Summary of a presentation on global investing by.
Market Commentary

CI Digital Roadshow – Summary of a presentation on global investing by Alan Radlo, Principal & Chief Investment Officer and Bob Swanson, Principal & Portfolio Manager Cambridge Global Asset Management January 21, 2014 Alan Radlo – Stability as a centerpiece      

Cambridge portfolios utilize hedging on occasion in order to preserve capital, not as a money-making strategy itself. The Cambridge global portfolios have changed since their launch in 2008, when they were about 40% Canadian. We first increased our U.S. exposure then broadened our global investments. However, there are still several world-class companies in Canada – many are top holdings. Research is done on a global basis to get the best value for our fund investors. We invest for growth and stability. Cambridge currently has no holdings located in Latin America, or the Third World generally. We have significant exposure to the U.S., with increasing exposure to Europe. Our global portfolio features a mix of large and small-cap positions, including a Swedish 3D printing company. International markets in general are more attractive at this time than North American markets, but our analysis is still conducted on a stock-by-stock basis.

Bob Swanson – Global expansion on the horizon    

The U.S. is now experiencing better growth than Canada, while there has been tremendous progress outside of North America. We expect opportunities to occur on a more global basis for the next five to 10 years. European performance has been strong over the last year with Eurozone economic sentiment improving. Central bankers, particularly in the U.S., are trying to hold rates down to continue to stimulate their economies. Positive impacts from those policies are emerging, with economic numbers beginning to support the equity market. Cambridge offers a variety of global mandates with broad diversification, including Cambridge Global Equity Corporate Class, Cambridge Global Dividend Fund and Cambridge High Income Fund. Canada and the U.S. are representing a smaller proportion of the funds as we find additional opportunities in global markets. The mandates and holdings of our funds are shifting to become more global. As such, investors will see a higher degree of overlap between funds.

2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I Head Office / Toronto 416-364-1145 1-800-268-9374

Calgary 403-205-4396 1-800-776-9027

Montreal 514-875-0090 1-800-268-1602

Vancouver 604-681-3346 1-800-665-6994

Client Services English: 1-800-563-5181 French: 1-800-668-3528

Market Commentary

Automotive and media are themes that are now global in scope and are reflected in the portfolios. Our financials holdings are centered on the U.K., but are growing as Europe improves.

Cambridge Global Equity Fund 

We are avoiding companies that pay out too high a dividend or where 100% of cash flow is allocated to dividends and share buybacks. We seek companies with a balance of internal growth and shareholder value. We seek companies with consistent sales growth, earnings and dividend growth.

Cambridge High Income Fund 

Currently, the equity content outweighs the bond content of the portfolio on the assumption that interest rates will continue to rise. We have an increasing focus on reducing interest rate sensitivity by investing in dividend-growing equities and global names.

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. This commentary is provided as a general source of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Cambridge Global Asset Management is a business name of CI Investments Inc. used in connection with its subsidiary, CI Global Investments Inc. Certain portfolio managers of Cambridge Global Asset Management are registered with CI Investments Inc. ®CI Investments, the CI Investments design and Cambridge are registered trademarks of CI Investments Inc. Published January 2014.