/mktg_ri_ramagazine_

The Renaissance

Volume IV Issue IV

Advisor

Q4 DECEMBER 31, 2010 QUARTERLY FUND PROFILES / PRACTICE MANAGEMENT / OUTLOOK / OPINION

Invest Well

World tour 2011 How market developments of 2010 will impact the year ahead Back of the Napkin

The pillars of asset gathering Five ways to grow your business this year

Live Better

Back into the groove Vinyl records make a comeback

Letter from the National Sales Manager

In the last edition of The Renaissance Advisor, I suggested making this the “Year of the Client.” Today, I want to focus on overcoming some of the hurdles that could prevent us from achieving our business goals in 2011.

I often hear advisors state that compliance is too onerous and takes up too much time; that the marketing department is not responsive enough and there is insufficient return on marketing investments; that market volatility is still keeping clients on the sidelines (even though equity market returns have been above average in the prior year); that constant inquiries from clients make it almost impossible to focus on business building, even though you desperately want to achieve your growth targets.

While it’s true that other people and external events can create obstacles to our success, I would like to put forth a motto for 2011 that can empower you to overcome these obstacles:

“You are responsible for your own success.”

By relying less on the actions or abilities of others, you have more control over your own destiny.

Of course, it’s still wise to make the most of your partners, colleagues and associates, but you must never forget that you are the person in control of the quantity and the quality of the activities that will help you grow your business.

When it comes to quantity, it’s all about being accountable for the amount of activity you put into your sales and marketing plan, and never allowing yourself to deviate from that effort. In terms of quality, why not pick an area where you are not as efficient as you would like to be, and seek training to help you improve?

All great companies utilize training programs, and your advisory practice should not be any different.

Consider 2011 as a year where the client reigns supreme and you don’t let day to day noise obscure the path to your success.

We are practicing the same principles at Renaissance Investments and have several training sessions scheduled throughout the year to improve our ability to earn your business and become your trusted business partner.

As always, I welcome your thoughts and feedback around this topic and any other that you may want to discuss.

Dave Wahl National Sales Manager Renaissance Investments 416 943 6959

133 8

Table of Contents Tax and Estate Blinded by the refund

p 2

Economic Outlook DĂŠjĂ vu

p 3

Back of the Napkin The pillars of asset gathering

p 4

Thanks to Our Supporters The professional

p 7

Invest Well World tour 2011

p 8

Solution Highlight Portfolio staples & top performers

p 13

Axiom Portfolios Profiles Portfolio Essentials Performance Essentials

p 14 p 32 p 33

Renaissance Investments Fund Profiles Money Market Funds Fixed Income Funds Balanced Funds Equity Income Funds Canadian Equity Funds U.S. Equity Funds Global Equity Funds Specialty Funds Fund Essentials Performance Essentials

p 34 p 36 p 44 p 58 p 62 p 70 p 76 p 84 p 116 p 130 p 132

Live Better Back into the groove

p 133

Brain Calisthenics

p 136

Tax and Estate

Managing Director, Tax & Estate Planning Jamie Golombek

Blinded by the refund Everyone loves a refund. And why shouldn’t you? It means extra cash in your jeans that you can spend on that new LED flat-screen TV or perhaps that spring vacation you look forward to annually.

Unlike RRSPs, contributions to a TFSA are from after-tax funds and therefore are not tax deductible from income and do not result in a “refund” come tax season. The big advantage, however, is that not only are

“Not only are income and gains on investments held within a TFSA not taxed annually while inside the TFSA, but they can be subsequently withdrawn tax-free at any time.”

But Canadians’ love of their RRSP tax refund may in fact be doing them a disservice come retirement time. That’s because with the introduction of Tax-Free Savings Accounts (TFSA) in 2009, Canadians have a powerful new retirement savings tool in their quiver that in some cases may prove to be the better retirement vehicle.

Canadians who were at least 18 in 2009 and, as of 2011, have not yet opened up a TFSA can immediately contribute $15,000 to a TFSA, consisting of $5,000 of accumulated room for each of 2009, 2010 and 2011.

income and gains on investments held within a TFSA not taxed annually while inside the TFSA but they can be subsequently withdrawn tax-free at any time.

In addition, since TFSA withdrawals are tax-free, they are not included in “net income” and, as a result, do not negatively impact government benefits and tax credits that are income-tested and could otherwise be reduced if funds were withdrawn from an RRSP or a RRIF.

It goes without saying that Canadians who can afford to both maximize RRSP contributions as well as make their annual $5,000 TFSA contribution would generally be well-advised to do both. But the reality is that most Canadians simply don’t have enough available cash annually to afford to contribute the max to both plans and, as a result, must make an important decision, namely, which savings vehicle should take priority: the RRSP or the TFSA? It all comes down to what your expected marginal effective tax rate (METR) will be upon ultimate RRSP or TFSA withdrawal.

The METR takes into account not only statutory tax rates but loss of government benefits and credits, such as GIS, OAS or the Age Credit.

To learn more about which plan may be best for your client, download a copy of my newest report, “Blinded b y the Refund: Why TFSAs may beat RRSPs as better retirement savings vehicles for some Canadians” from the Renaissance Investments website.

Jamie Golombek, CA, CPA, CFP, CLU, TEP is Managing Director, Tax & Estate Planning with CIBC Private Wealth Management in Toronto. 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.

Follow Jamie on Twitter @JamieGolombek.

This article is provided for informational purposes only and is not intended to provide specific financial, investment, tax, legal or accounting advice for you, and should not be relied upon in that regard. The views expressed in the article are the personal views of Jamie Golombek and should not be taken as the views of CIBC Asset Management Inc. 2 renaissance investments

Economic Outlook

Deputy Chief Economist, CIBC Benjamin Tal

Déjà vu The economic performance of 2010 was extremely non-linear, as booming activity earlier in the year gave way to a much more subdued performance in the second half of the year. It appears that this non-linear performance is going to repeat itself in 2011.

The current positive momentum is largely due to potential growth stemming from President Obama’s tax framework as well as the direct and indirect impact of the second wave of quantitative easing recently introduced by the U.S. Fed. This move will add roughly half a percentage point to U.S. economic growth this year, with clear positive implications for Canadian growth.

As was the case in 2010, expectations of higher interest rates down the road will work to support domestic economic activity earlier in the year, as households and businesses try to beat the rate hike and front-load their leveraged-based purchasing activity. Accordingly, while we expect overall GDP growth in Canada to average 2.6% this year, the first half of the year will be much stronger than the second half.

“While we expect overall GDP growth in Canada to average 2.6% this year, the first half of the year will be much stronger than the second half.”

Furthermore, with the U.S. Fed still busy printing money, the Bank of Canada is more likely to sit on its hands a bit longer in order to avoid diverging from U.S. policy for too long. Accordingly, we don’t expect the Bank of Canada to start raising rates before midyear. This delay in monetary tightening in Canada will be at the heart of the non-linear trajectory of GDP growth.

a flight to safety triggered by slowing global growth, further deterioration of fiscal positions in Europe and event risks such as large Eurozone refinancing needs and Irish elections.

Canada’s massive current account deficit, which reached its highest level in more than 20 years at more than 4% of Q3 GDP, means the Canadian dollar will be vulnerable to capital outflows, which further bolsters our view that the loonie could decline a few cents in the near term, bottom out by mid-year and then rise again as a result of domestic monetary tightening.

As for the loonie, despite generating a lot of headlines, the Canadian dollar actually moved in a relatively narrow range of roughly 8% this year — from 92 cents to parity — and rose less than 4% net for 2010.

We are likely to see the loonie lose some ground early in the year as the relative resiliency of our domestic economy is overshadowed by

This article is provided for informational purposes only and is not intended to provide specific financial, investment, tax, legal or accounting advice for you, and should not be relied upon in that regard. The views expressed in the article are the views of Benjamin Tal and should not be taken as the views of CIBC Asset Management Inc. renaissance investments 3

Back of the Napkin

Director, Strategic Insights Grant Shorten

Five ways to grow your business this year

The pillars of asset gathering During the challenging markets of the last two years, advisors have been preoccupied with managing emotions, restructuring portfolios and maintaining existing relationships. But with the sting of 2008 fading into the past, more and more advisors are ready to focus on gathering new assets.

In my ongoing work with investment advisors and financial planners, I am struck by how often we tend to complicate the subject of “asset gathering.” I have witnessed countless scenarios where advisors fail to make decisions around their asset-gathering campaigns, simply because they are overwhelmed by the perceived number of available options.

Let’s simplify the decision-making process right now. There are essentially five pillars of asset gathering available to you, and here they are:

I

Referrals Statistics show that the majority of established advisors gather most of their new business from referrals. Interestingly, the referral method is the only approach that’s primarily reactive. Although you can choose to be more or less proactive in asking for referrals, the most common approach is simply to wait for the telephone to ring, or for a warm introduction to be made.

The referral category can be further expanded to include “cross-referral” partnerships or strategic alliances. These mutually beneficial

4 renaissance investments

relationships can be with a wide variety of people, from the typical bankers, accountants and lawyers to seemingly less-likely connections at a sports club or construction business.

Regardless of whether your referrals come from existing clients or from cross-referral networking activities, gathering assets employing this modality can be a consistent source of new business. The most important first step is to ensure that providing referrals is easy for your clients to do. Let your clients know that you are ready and open to receive introductions, but be targeted in who you approach, and be direct on your desired outcome.

II

III

IV

Seminars

Cold calling and warm calling

Networking

Over the last decade, I have had the pleasure of acting as the keynote speaker at hundreds of high-net-worth seminars, and have coached countless advisors on how to conduct successful client events. Although there may be some degree of “cyclicality” to the effectiveness of seminars as a prospecting method, I still believe that they remain one of the most powerful assetgathering tools at our disposal. Profitable seminars may be conducted in a wide variety of venues such as hotel meeting rooms, restaurant private function rooms, conference centres, office boardrooms, banquet halls and private clubs.

Cold calling requires very little explanation, but I think it’s safe to say that most advisors (and most of us on the planet) have an innate aversion to picking up the telephone and “pitching” strangers. I know only a handful of advisors who themselves still engage in the practice of cold calling, but a larger number who delegate the cold-calling duties to other members of their advisory teams.

Those who have found this successful have typically supplied a detailed script and hands-on coaching to the caller.

Networking can be an extremely effective method of growing an advisory practice.

This is especially true for advisors who are more extroverted by nature and who enjoy meeting new people in a wide array of settings. Strategically seek out clubs, social groups, associations and organizations that provide the opportunity to interact with individuals who have a high likelihood of meeting your “ideal client” profile.

In my experience, there are four fundamental requirements for a seminar to generate substantial new business:

The most common cold call topics are: • To offer a complimentary portfolio review • An invitation to an investment seminar

• All attendees must be properly qualified

• To present a unique investment or product idea

• You must connect personally with the audience at the seminar

• A n explanation of “how I work with my clients” — with an offer to meet in person

• You must follow-up with attendees within 24–72 hours

Warm calls are those that are made to prospective clients who are already recorded in the advisor’s contact management system, and with whom there has been some prior communication. The adoption of a proactive, tactical approach to warm-calls will most certainly result in closing more business and increasing revenues.

• T he seminar topic must address the investor question, “What’s in it for me?”

When an advisor fails to generate new business from a high-net-worth seminar, I can virtually always demonstrate that one (or more) of those four requirements was missing. If you want to make sure you do things right, please ask your Renaissance Investments representative for tools and ideas that can help.

They engage the “law of scarcity” to increase their perceived value.

The expert networker will strategically frame their service offering in terms that denote scarcity, with an implied status-requirement.

Advisors who become “expert networkers” typically embody the following characteristics: • T hey have mastered rapport-building skills.

Top networkers understand the importance of making a solid first impression. They consistently employ rapport-building tools such as identifying and aligning, mirroring, matching, pacing and leading.

renaissance investments 5

• They unleash a powerful “30-second commercial” when prompted. In the first few seconds of being asked the question, a skilled networker will be able to explain what he or she “does for a living” in such a way as to captivate the listener, and pique their interest to learn more.

• They possess an unwavering advisory identity. Strong networkers know who they are as advisors. They know what they believe, and they know why they believe those things. Their values, beliefs, vision, mission and communication style are all completely aligned and are moving in the same direction.

• T hey engage the “law of scarcity” to increase their perceived value. The expert networker will strategically frame their service offering in terms that denote scarcity, with an implied status-requirement.

By establishing the “elite” nature of their scarce resource, the perceived value of the advisor’s practice is immediately and substantially elevated. For more on this topic, ask your Renaissance Investments representative for a copy of the article entitled “The Law of Scarcity.”

6 renaissance investments

V

Advertising and mailings Advertising is often the most expensive and least effective way to gather assets. On the few occasions when I have seen advertising generate meaningful business, it was usually due to one or more of the following factors: The advertisement…

• c ontained a very direct, focused message • was geared towards a specific target audience, such as doctors • o ffered something truly extraordinary, such as a higher-than-average yield • i ncluded a specific call to action When it comes to mailings, most advisors will discover that direct, personalized mail pieces will command substantially more attention than bulk mailings. More expensive, wedding-style invitations are opened by a larger number of recipients and will also result in the highest response rate. This type

of mailing works best when the campaign is intended to invite targeted prospects to an upcoming event.

Once you categorize the five main approaches to winning new clients, it makes it easier to decide which tactics you wish to implement as you venture back into prospecting mode.

When evaluating the options available to you, I urge you to be mindful of choosing the approaches that inspire you, empower you and ultimately reinforce your nature.

To discuss the Five Pillars of Asset Gathering in more detail, I encourage you to contact your Renaissance Investments representative, who is well-versed in each of the topics mentioned in this article. I wish you continued success and a record-breaking year in 2011!

Thanks to Our Supporters

The professional What I love about the business I really like the business development aspect of the business — meeting new clients and prospecting. I have the opportunity to work with many financial planners in the Desjardins network, and with their collaboration, I am regularly in front of new prospects. I am continuously challenged to meet and exceed clients’ needs and expectations to provide tailored solutions and have them initiate a relationship with Desjardins Securities and credit union branch. When they decide to partner with us, it’s a big compliment to the team.

Best tip for gaining new clients Be nice and professional­— this is a quote from a speaker that I really appreciate, Mr. Sylvain Boudreau. When you meet a new client, you have to be genuine and natural and stay professional.

Clients will first buy into your personality and then your knowledge.

You can be the best manager on the planet, but if you are arrogant and unpleasant, you will go nowhere. As far as I’m concerned, the best trick is to always be up-to-date on market developments, but most importantly, communicate with clients and colleagues with humility and professionalism.

The book I’m currently reading I like to read books about achieving a positive attitude and happiness, and exploring the mind, such as The Secret.

Favourite vacation spot On my boat in the port of Quebec City! There’s no better feeling than taking my boat onto the water, even if I don’t go far. But my best vacations are when I leave with my wife for a few days or a week on my boat.

Favourite hobby when I’m not at work I have a passion for scuba diving. I regularly dive in Quebec and Ontario to see shipwrecks in cold waters and I dive in the Caribbean to explore coral reefs and wide varieties of fish.

Name: Steve Madore Firm: Desjardins Years in business: 10 Team members: 3

“We often recommend the Renaissance Optimal Income Portfolio because we believe in the managers and in Renaissance Investments. In addition, we like the asset allocation. The portfolio has performed very well for us.”

Without the support of advisors like you, Renaissance Investments would not enjoy the privilege of helping so many Canadians invest well and live better. Here is one of the outstanding professionals we are so very proud to work with.

Charity that means the most to me We give to the Montreal Canadiens Children’s Foundation every year.

What I offer to the local marketplace and to my clients Considering the fact that I have a financial planning background, I always build a portfolio based on the client’s profile. I take into consideration the client’s time horizon, liquidity needs and risk tolerance based on his individual plan. renaissance investments 7

Invest Well

How market developments of 2010 will impact the year ahead

World tour 2011

2010 ended pretty much the way it started — a rally in the markets, talk of global recovery and a sense of cautious optimism. However, it wasn’t an easy ride, with the threat of rising rates, a Euro debt crisis and speculation about a double-dip recession nearly derailing us along the way.

North American markets As the new year gets underway, now is the perfect time to recap some of the world economic themes of the past year — such as quantitative easing programs, the introduction of austerity measures, so-called currency wars and the continued rise of emerging markets — and ask the experts how they feel these themes might influence markets in the year ahead.

THEMES OF 2010

Quantitative easing in the U.S. Higher corporate profits and stronger balance sheets YEAR-END STATS S&P/TSX Composite Index

+20.7% (6 months) +17.6% (1 year)

S&P 500 Index

+15.3% (6 months) +9.1% (1 year)

10-year CDN bond

3.11%

10-year U.S. bond

3.33%

OUTLOOK FOR 2011

Recovery to gain strength Yield curve to steepen All data as at December 31, 2010. Source: Bloomberg

8 renaissance investments

In November 2010, the U.S. Federal Reserve (the Fed) announced a second round of quantitative easing aimed at stimulating the economy. Dubbed “QE2,” and worth as much as US$600 billion, the move was controversial, even among the member banks of the Federal Reserve. Chairman Ben Bernanke championed the view that, without further support from the Fed, the U.S. economy could fall into a deflationary spiral, with jobs and prices both heading lower.

government bonds at various maturities.

This pushes up bond prices and lowers yields, effectively making it cheaper to borrow.

for the Fed to reach its mandate of fostering growth with stable inflation, they need to be extremely stimulative.

“In our view, this policy of quantitative easing makes it likely that we’ll see a better recovery in 2011 than 2010.”

“In our view, this policy of quantitative easing makes it likely that we’ll see a better recovery in 2011 than 2010, and the bond market is already starting to anticipate that.

Until recently, the 10-year U.S. bond was below three percent because it was discounting deflationary risk, but as that risk fades, the bond market will start pricing in the risk of inflation. We believe the yield curve will steepen in 2011, and we expect to see the 10-year bond between 3.50 and 3.75 by the end of the year.”

Opponents of the plan argued that more stimulus from the Fed could be planting the seeds of the opposite phenomenon — runaway inflation and new financial market distortions that, like the housing bubble, could become dangerous and unpredictable.

The goal of quantitative easing is to make borrowing cheaper for all participants in the economy, in hopes that they will invest and consume more. Normally, the Fed could make borrowing cheaper simply by lowering its overnight rate. But with that rate already held near zero, it can’t go any lower.

Quantitative easing offers an alternative approach that sees the Fed create new money on its balance sheet and use it to buy

“Quantitative easing is definitely necessary,” argues CIBC Global Asset Management asset allocation specialist Luc de la Durantaye.

“U.S. unemployment is above nine percent and capacity utilization is very low, so there is enormous slack in the economy. In order

A number of U.S. and Canadian corporations cut costs and restructured in the early days of the downturn and their balance sheets started to reflect this in the latter half of 2010. In recent comments, the Canadian Equities team at CIBC Global Asset Management said this cost-cutting translated into higher profits and stronger balance sheets as the economy began to improve. It will also position North American corporations to exploit opportunities as the economy continues to recover.

European markets in 2010, in exchange for participation in a 20 billion euro economic rescue plan.

THEMES OF 2010

Greek debt crisis Implementation of austerity measures YEAR-END STATS MSCI Europe Index

+16.7% (6 months) -1.0% (1 year)

FTSE 100 Index

+19.2% (6 months) +3.9% (1 year)

10-year Greek bond

12.49%

10-year German bond

2.91%

OUTLOOK FOR 2011

Austerity measures to face social and political pressure Euro debt problems not expected to spread

These austerity measures can take the form of tax increases, reductions in the numbers of public sector workers and cuts in government programs. By increasing government revenues through taxes and cutting expenditures, many European countries hope to head off more serious financial trouble in the future.

“Our base case scenario is that there is a very low probability that the European Monetary Union will break up.”

All data as at December 31, 2010. Source: Bloomberg 2010 saw Europe beset by economic turmoil as governments struggled with the effects of the economic downturn. The turmoil started in Greece but was quickly followed

by Portugal, Spain and, most recently, Ireland.

As a result, many European governments are now introducing strict austerity measures.

Austerity measures can be implemented voluntarily in order to bring deficits down, or can be imposed by an outside party, such as the IMF, who may make austerity a condition to receive loans. Romania is an example where the government pledged to slash the public deficit from 7.2 percent in 2009 to 5.9 percent

renaissance investments 9

Whether by choice or necessity, the impact of current and proposed government cuts has been felt so deeply, and has given rise to public unrest in many countries such as in the U.K., where students took to the streets in protest over a proposed increase in university tuition fees.

Despite these pressures, “Our base case scenario is that there is a very low probability that the European Monetary Union (EMU) will break up,” says de la Durantaye. He notes that if a member country left the union, it would face serious economic consequences. For example, its debt would remain denominated in euros, while its local currency would depreciate as foreign investors lose confidence in the country’s ability or willingness to repay its debt in full.

“The country would have a hard time refinancing its debt, and would likely have to do so at a risk premium so high that it would end up defaulting anyway,” he adds.

While the Canadian and the U.S. governments have not imposed the same level of fiscal restraint seen in Europe, it is worth noting that we may not be insulated forever — particularly given growing budget deficits and the health care and retirement entitlements that loom as baby boomers exit the workforce.

10 renaissance investments

Emerging markets and Asia THEMES OF 2010

China remained a driver of growth Inflationary pressures mount YEAR-END STATS Nikkei 225 Index

+12.2% (6 months) +7.2% (1 year)

Hang Seng Index

+8.3% (6 months) +2.7% (1 year)

BOVESPA (Brazil) Index

+15.5% (6 months) +0.6% (1 year)

10-year Chinese bond

3.19%

10-year Brazilian bond

4.47%

OUTLOOK FOR 2011

GDP growth to remain very high Tighter monetary policy could cool things off All data as at December 31, 2010. Source: Bloomberg China continued to drive growth in 2010, and fast-emerging Brazil now exports more to China than the U.S. does. The portfolio team at Pictet Asset Management Limited, manager of the Renaissance Emerging Markets Fund, expects emerging market GDP to continue to expand at a rate of 6.6% in 2011, which would represent the fifth consecutive year that emerging economies have outpaced their developed counterparts by four percentage points or more.

From an investment point of view, the team at Pictet is focused on companies that have room to expand within emerging markets, noting that, “one of the leading retailers in Russia has a market share of less than five percent and is currently opening two stores every week, and the largest Brazilian insurance broker has a market share of just one percent. We also see upside in the financial sector. While advanced economies find themselves dealing with a multi-year

consumer deleveraging, the outlook for vibrant emerging consumer demand remains underpinned by secular credit growth.”

“In 2010, emerging markets were clearly in a better position for growth and outperformance than developed markets.

Looking at 2011, it gets a bit trickier...”

Currencies THEMES OF 2010

U.S. dollar weakened against many currencies Canadian dollar surpasses parity YEAR-END STATS CDN$ / US$ exchange

$1.0053

Renminbi / US$ exchange

$6.59160

OUTLOOK FOR 2011

Canadian dollar may reach as high as $1.05 U.S. Chinese renminbi to appreciate vs. USD All data as at noon on December 31, 2010. Source: XE.com

Cohen & Steers Capital Management, Inc., manager of the Renaissance Global Real Estate Fund, also believes that emerging markets will continue to develop faster than the global average, and that real estate is ideally positioned to capture growing asset values and economic growth. They recently expressed the view that, as more countries adopt the REIT structure and global capital continues to seek higher growth, more companies will go public and create more real estate investment opportunities in the region. de la Durantaye concurs that emerging markets will continue to grow in 2011, although perhaps at a slower pace: “In 2010, emerging markets were clearly in a better position for growth and outperformance than developed markets.

Looking at 2011, it gets a bit trickier, because emerging market monetary policy is still extremely accommodative, which is fueling demand for commodities, energy and food and adding inflationary pressure to their economies. This is likely to trigger tighter monetary policy, which could be a cold shower for emerging markets’ relative performance.”

Many Canadians welcome a rising Canadian dollar, as can be seen by the long line-ups of happy shoppers that form at U.S. border crossings. But when the loonie is up, that means the world’s benchmark currency — the U.S. dollar — is down. In the recent economic environment, this has been more than just a temporary anomaly, but part of a global battle that some pundits are calling an all-out currency war.

Where did it all begin? In the years leading up to the financial crisis, there were generally two types of countries in the world. First, the “deficit” countries, such as the U.S. and the UK, who import more than they export, and must borrow in order to do so. Second, the “surplus” countries, such as China and Japan, which export heavily and lend to the deficit countries.

While the overall Eurozone has tended to balance its imports and exports, there are significant internal imbalances. For example, Germany has a big surplus, while Spain, Greece and others run at a deficit.

Since the financial crisis, the relationship between deficit and surplus has become somewhat strained. Most notably, the U.S. wants to export more in order to help its economy recover, but China doesn’t want to lose its exporting edge.

So, while U.S. authorities have held interest rates at record lows and allowed the greenback to drift lower, making American exports cheaper, The People’s Bank of China has bought trillions of U.S. Treasuries to prop up the dollar and keep Chinese exports cheaper. China isn’t the only one: Korea has intervened in the market to keep its currency down, and so has Japan. Some

have called this phenomenon a “race to the bottom,” as countries try to make their exports cheaper through currency intervention.

“We expect to see some balance return to currencies in 2011,” says de la Durantaye.

“We think the U.S. dollar will depreciate relative to key Asian currencies — most notably, China. China has to develop its domestic market and rebalance its economy less towards exports and more towards domestic consumption. It’s in their best interest to give Chinese citizens a currency with more buying power. China tends to move slowly, but we expect a five-to-seven percent appreciation of the renminbi in 2011.”

“Europe will be muddling through its debt problems in 2011, but we don’t see a large systemic risk outside Europe.”

Concerns about the fiscal condition of some European countries and their sovereign debt issues have recently resurfaced.

However, de la Durantaye thinks there is too much pessimism towards Europe. “In the core Eurozone economies, easier financial conditions point to relatively strong growth in 2011. We expect weakness in the peripheral countries to be more than offset by the strength in Germany, France and Italy. Europe will be muddling through its debt problems in 2011, but we don’t see a large systemic risk outside Europe.”

As for Canada, de la Durantaye predicts a “two-way tension”: downward tension on a loonie that is overvalued relative to the U.S., which boasts more competitiveness and renaissance investments 11

lower inflation, and upward tension based on rising commodity prices that should take the loonie along for the ride. “We could see the Canadian dollar reach the $1.03 or $1.05 level temporarily, but I would caution investors to leave currency trading to the professionals — it can be very difficult to time correctly.”

Tying it all together While emerging economies face the risk of runaway growth, developed economies are pursuing austerity measures, quantitative easing and currency devaluations in an attempt to get back on a path to growth.

Despite all this change taking place, we believe the principles of successful investing remain largely the same: build a diversified portfolio, remain invested for the long term and take advantage of professional portfolio management. That’s the best way to participate in the regions and sectors with attractive upside potential, while minimizing the impact of pitfalls along the way.

“We’re getting into the third year after the financial crisis,” notes de la Duranataye.

“Although there are a number of risks to our central scenario, we think 2011 could look better than 2010. We’ve seen some deleveraging in the U.S., and solid earnings have made valuations considerably more attractive. We have a positive outlook for world markets in general, and see the winds shifting from emerging markets to developed markets in 2011 for the first time in a long time.”

The views expressed in this article are the personal views of Luc de la Durantaye, Pictet Asset Management and Cohen & Steers Capital Management, Inc. and should not be taken as the views of CIBC Asset Management Inc. The commentaries provided are for general informational purposes only and do not constitute investment advice nor do they constitute an offer or solicitation to buy or sell any securities referred to. The information contained in this document has been obtained from sources believed to be reliable and is believed to be accurate at the time of publishing, but we do not represent that it is accurate or complete and it should not be relied upon as such. All opinions and estimates expressed in this document are as of the date of publication unless otherwise indicated, and are subject to change. The material and/or its contents may not be reproduced without the express written consent of CIBC Asset Management Inc. 12 renaissance investments

Two solutions for two client scenarios CLIENTS SEEKING A CORE INCOME SOLUTION – RENAISSANCE OPTIMAL INCOME PORTFOLIO Inflation, a steepening yield curve and sovereign debt problems are just a few of the challenges facing income-oriented investors. But whatever happens in 2011, the Renaissance Optimal Income Portfolio combines a range of asset classes — including dividend-paying equities, real return bonds, infrastructure assets and more — to provide your clients with steady, reliable cash flow.

Key benefits:

Income generation. A combination of income-generating asset classes

Inflation protection. Infrastructure and real return bond components offer inflation protection

Diversification. Broad diversification through a collection of asset classes and world-renowned investment managers

Low volatility with growth potential. The best of both worlds: careful risk management with some potential for capital growth

CLIENTS SEEKING A GLOBAL GROWTH SOLUTION – RENAISSANCE OPTIMAL GLOBAL EQUITY PORTFOLIO Whether domestic economies overtake emerging markets to lead growth in 2011 or not, the Renaissance Optimal Global Equity Portfolio will keep your clients in position to capitalize on the growth potential of the most compelling geographic regions and investment styles around the world while minimizing the risk of being in the wrong place at the wrong time.

Key benefits:

Optimal mix. Exposure to a complementary range of global asset classes

Style diversification. A breadth of investment styles and philosophies better position the portfolio to deliver strong long-term performance

Access to global managers. Provides exposure to world-renowned global investment managers

Regular rebalancing. Regular rebalancing ensures an optimal mix of investments at all times Concerned about currency? Reduce the risk of currency fluctuations with the Currency Neutral version of Renaissance Optimal Global Equity Portfolio.

Solution Highlight

ALL DATA TO DECEMBER 31, 2010

Portfolio staples top performers

&

PORTFOLIO STAPLES

Renaissance Corporate Bond Capital Yield Fund Renaissance Optimal Income Portfolio Renaissance Optimal Global Equity Portfolio Renaissance Global Infrastructure Fund

1 Mo. (%)

3 Mos. (%)

6 Mos. (%)

YTD (%)

1 Yr. (%)

3 Yrs. (%)

5 Yrs. (%)

0.3 0.9 3.6 2.0

(0.3) 1.6 6.0 1.8

2.1 8.3 17.2 16.9

6.1 9.0 10.5 5.7

6.1 9.0 10.5 5.7

n/a 2.7 0.0 (2.4)

n/a n/a 0.2 n/a

Since Incep. (%)

4.5 2.7 (3.4) (2.0)

Inception Date

11/18/09 11/13/07 02/16/00 11/13/07

Why should these funds be staples in your clients’ portfolios?

Renaissance Corporate Bond Capital Yield Fund

Renaissance Optimal Income Portfolio

Renaissance Optimal Global Equity Portfolio

Renaissance Global Infrastructure Fund

Enjoy the consistency and security of high-quality bonds with the tax-efficiency of capital gains.

Generate steady cash flow by accessing six institutionalstyle income asset classes in a single portfolio solution.

Tap into a world of opportunities, asset classes and investment styles through five global money managers.

Add diversification, growth potential and reliable income with built-in inflation protection to your clients’ portfolios.

TOP PERFORMING RENAISSANCE INVESTMENTS FUNDS - 5 YEARS

Renaissance China Plus Fund Renaissance Global Resource Fund Renaissance Canadian Small-Cap Fund Renaissance Emerging Markets Fund Renaissance High-Yield Bond Fund

5 Yrs. (%) 16.9 13.1 10.5 5.0 4.6

TOP PERFORMING RENAISSANCE INVESTMENTS FUNDS - 3 YEARS

Renaissance Global Resource Fund Renaissance Canadian Small-Cap Fund Renaissance Real Return Bond Fund Renaissance Canadian Bond Fund Renaissance Global Bond Fund

3 Yrs. (%) 10.4 9.7 6.0 5.2 4.9

ALL LAUNCHED OCTOBER 20, 2010

Renaissance Global Real Estate Fund Renaissance Global Real Estate Currency Neutral Fund Renaissance U.S. Equity Growth Currency Neutral Fund Renaissance International Equity Currency Neutral Fund Renaissance Optimal Global Equity Currency Neutral Portfolio Renaissance Global Growth Currency Neutral Fund Renaissance Global Focus Currency Neutral Fund

TOP PERFORMING RENAISSANCE INVESTMENTS FUNDS - 1 YEAR

Renaissance Global Resource Fund Renaissance Canadian Small-Cap Fund Renaissance U.S. Equity Growth Fund (USD) Renaissance Global Markets Fund Renaissance Millennium High Income Fund

New Funds of 2010

1 Yr. (%) 50.4 36.1 19.9 16.8 16.6

Renaissance Global Infrastructure Currency Neutral Fund

renaissance investments 13

Axiom Portfolios

Axiom Portfolios

Axiom Portfolios provide the benefits and peace-of-mind of sophisticated portfolio management, while simplifying the administration, management and reporting of a portfolio.

With eight portfolios to choose from, investing in Axiom Portfolios provides: • Access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world • Risk management, through rigorous due diligence and built-in rebalancing • Multiple levels of diversification • T-Class options available on all Axiom Portfolios, offering tax-efficient cash flow

Axiom Portfolios offer even more value at higher balances through the following three classes: Class A - $25,000 minimum investment ($5,000 minimum investment for TFSA only) elect Class - $250,000 minimum S investment lite Class - $500,000 minimum E investment

14 renaissance investments

Axiom Portfolio Managers

Axiom Portfolios have access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world.

anso Investment Counsel Ltd.

Multiple Levels of Diversification

Axiom Portfolios have been designed to manage risk and solidify the potential for returns by ensuring portfolios are broadly diversified across multiple levels. Each portfolio is diversified across asset classes, investment styles, geographic regions and market capitalizations.

There are eight portfolios available designed to meet the needs of various types of investors.

Axiom Balanced Income Portfolio* Equities 10.0% U.S. Equity 8.8% Canadian Equity 6.0% International Equity 3.0% Emerging Markets Equity Income Generation 12.2% Canadian Monthly Income Fixed Income 60.0% Canadian Fixed Income

Axiom Balanced Growth Portfolio* Equities 32.0% Canadian Equity 12.0% U.S. Equity 8.0% International Equity 5.0% Emerging Markets Equity Income Generation 8.0% Canadian Monthly Income Fixed Income 30.0% Canadian Fixed Income 5.0% Global Bond

Axiom Long-Term Growth Portfolio* Equities 40.0% Canadian Equity 10.0% U.S. Equity 8.0% International Equity 7.0% Emerging Markets Equity Income Generation 15.0% Canadian Monthly Income Fixed Income 15.0% Canadian Fixed Income 5.0% Global Bond

Axiom Foreign Growth Portfolio* Equities 43.0% U.S. Equity 33.0% International Equity 10.0% Emerging Markets Equity Fixed Income 14.0% Global Bond

Axiom Diversified Monthly Income Portfolio* Equities 18.4% Canadian Equity 5.0% U.S. Equity Income Generation 36.6% Canadian Monthly Income Fixed Income 40.0% Canadian Fixed Income

Axiom Canadian Growth Portfolio* Equities 56.0% Canadian Equity Income Generation 24.0% Canadian Monthly Income Fixed Income 20.0% Canadian Fixed Income

Axiom Global Growth Portfolio* Equities 29.0% U.S. Equity 21.0% International Equity 16.0% Canadian Equity 10.0% Emerging Markets Equity Income Generation 4.0% Canadian Monthly Income Fixed Income 10.0% Canadian Fixed Income 10.0% Global Bond

Axiom All Equity Portfolio* Equities 38.0% U.S. Equity 24.0% International Equity 18.0% Emerging Markets Equity 16.0% Canadian Equity Income Generation 4.0% Canadian Monthly Income

*Target asset class allocations renaissance investments 15

Axiom Portfolios

Portfolio Essentials UND CODES

Axiom Balanced Income Portfolio

Axiom Diversified Monthly Income Portfolio

Axiom Balanced Growth Portfolio

Axiom Long-Term Growth Portfolio

Axiom Canadian Growth Portfolio

Axiom Global Growth Portfolio

Axiom Foreign Growth Portfolio

Axiom All Equity Portfolio

Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load

ATL975 ATL976 ATL977 ATL926 ATL928 ATL927 ATL950 ATL952 ATL951 ATL981 ATL2601 ATL2603 ATL2602 ATL2604 ATL2606 ATL2605 ATL2607 ATL2609 ATL2608 ATL2610 ATL2612 ATL2611 ATL2616 ATL2618 ATL2617 ATL2622 ATL2624 ATL2623 ATL2613 ATL2615 ATL2614 ATL2619 ATL2621 ATL2620 ATL2625 ATL2627 ATL2626

ATL983 ATL985 ATL984 ATL929 ATL931 ATL930 ATL953 ATL955 ATL954 ATL788 n/a n/a n/a ATL072 ATL074 ATL073 ATL081 ATL083 ATL082 n/a n/a n/a ATL075 ATL077 ATL076 ATL084 ATL086 ATL085 n/a n/a n/a ATL078 ATL080 ATL079 ATL087 ATL089 ATL088

ATL986 ATL988 ATL987 ATL932 ATL934 ATL933 ATL956 ATL958 ATL957 ATL789 ATL2628 ATL2630 ATL2629 ATL2631 ATL2633 ATL2632 ATL2634 ATL2636 ATL2635 ATL2637 ATL2639 ATL2638 ATL2643 ATL2645 ATL2644 ATL2649 ATL2651 ATL2650 ATL2640 ATL2642 ATL2641 ATL2646 ATL2648 ATL2647 ATL2652 ATL2654 ATL2653

ATL992 ATL994 ATL993 ATL935 ATL937 ATL936 ATL959 ATL961 ATL960 ATL791 ATL2655 ATL2657 ATL2656 ATL2658 ATL2660 ATL2659 ATL2661 ATL2663 ATL2662 ATL2664 ATL2666 ATL2665 ATL2670 ATL2672 ATL2671 ATL2676 ATL2678 ATL2677 ATL2667 ATL2669 ATL2668 ATL2673 ATL2675 ATL2674 ATL2679 ATL2681 ATL2680

ATL989 ATL991 ATL990 ATL938 ATL940 ATL939 ATL962 ATL964 ATL963 ATL790 ATL2682 ATL2684 ATL2683 ATL2685 ATL2687 ATL2686 ATL2688 ATL2690 ATL2689 ATL2691 ATL2693 ATL2692 ATL2697 ATL2699 ATL2698 ATL2703 ATL2705 ATL2704 ATL2694 ATL2696 ATL2695 ATL2700 ATL2702 ATL2701 ATL2706 ATL2708 ATL2707

ATL995 ATL997 ATL996 ATL941 ATL943 ATL942 ATL965 ATL967 ATL966 ATL792 ATL2736 ATL2738 ATL2737 ATL2739 ATL2741 ATL2740 ATL2742 ATL2744 ATL2743 ATL2745 ATL2747 ATL2746 ATL2751 ATL2753 ATL2752 ATL2757 ATL2759 ATL2758 ATL2748 ATL2750 ATL2749 ATL2754 ATL2756 ATL2755 ATL2760 ATL2762 ATL2761

ATL998 ATL778 ATL999 ATL944 ATL946 ATL945 ATL968 ATL970 ATL969 ATL794 ATL2709 ATL2711 ATL2710 ATL2712 ATL2714 ATL2713 ATL2715 ATL2717 ATL2716 ATL2718 ATL2720 ATL2719 ATL2724 ATL2726 ATL2725 ATL2730 ATL2732 ATL2731 ATL2721 ATL2723 ATL2722 ATL2727 ATL2729 ATL2728 ATL2733 ATL2735 ATL2734

ATL782 ATL784 ATL783 ATL947 ATL949 ATL948 ATL971 ATL979 ATL978 ATL796 ATL2763 ATL2765 ATL2764 ATL2766 ATL2768 ATL2767 ATL2769 ATL2771 ATL2770 ATL2772 ATL2774 ATL2773 ATL2778 ATL2780 ATL2779 ATL2784 ATL2786 ATL2785 ATL2775 ATL2777 ATL2776 ATL2781 ATL2783 ATL2782 ATL2787 ATL2789 ATL2788

Class A Select Class Elite Class Class F Class T4 Class T6 Class T8 Select-T4 Class Select-T6 Class Select-T8 Class Elite-T4 Class Elite-T6 Class Elite-T8 Class

2.01% 1.82% 1.36% 1.22% 1.91% 1.92% 1.90% 1.84%1 1.84% n/a n/a 1.39%1 n/a

2.17% 1.92% 1.41% 0.96% n/a 2.02% 2.04% n/a 1.93% 1.92% n/a 1.41% 1.41%

2.31% 2.07% 1.46% 0.98% 2.21% 2.20% 2.18% 2.09%1 n/a 2.08%1 n/a 1.49%1 n/a

2.55% 2.23% 1.57% 1.21% 2.46%1 n/a 2.44%1 n/a n/a n/a n/a 1.58%1 n/a

2.44% 2.11% 1.51% 1.11% 2.50%1 2.43%1 2.41%1 n/a n/a 2.13%1 n/a n/a n/a

2.65% 2.22% 1.56% 1.32% n/a 2.65%1 n/a n/a n/a n/a n/a n/a n/a

2.64% 2.21% 1.57% 1.32% n/a n/a n/a n/a n/a n/a n/a n/a n/a

2.64% 2.23% 1.57% 1.33% 2.65%1 n/a 2.59% n/a n/a n/a n/a n/a n/a

Front-End Load Back-End Load Low Load Front-End Load SELECT, SELECT-T4, Back-End Load SELECT-T6, SELECT-T8 CLASS Low Load Front-End Load ELITE, ELITE-T4, ELITE-T6, Back-End Load ELITE-T8 CLASS Low Load

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

0-5% 5.00% 3.00% 0-5% 4.00% 2.00% 0-5% 3.00% 1.00%

1.00 0.50 1.00 0.50 1.00 0.70 0.40 0.70 0.40 0.70

1.00 0.50 1.00 0.50 1.00 0.70 0.40 0.70 0.40 0.70

1.10 0.50 1.10 0.50 1.10 0.80 0.40 0.80 0.40 0.80

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

ATL FUND CODES

CLASS A

SELECT CLASS

ELITE CLASS

Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load

CLASS F CLASS T4

CLASS T6

CLASS T8

SELECT-T4 CLASS

SELECT-T6 CLASS

SELECT-T8 CLASS

ELITE-T4 CLASS

ELITE-T6 CLASS

ELITE-T8 CLASS MERs (%)

COMMISSIONS

CLASS A, T4, T6, T8

TRAILERS (%)

CLASS A, T4, T6, T8 & SELECT, SELECT-T4, SELECT-T6, SELECT-T8 CLASS

ELITE, ELITE-T4, ELITE-T6, ELITE-T8 CLASS

Front-End Load Back-End Load 1-6 years2 Back-End Load 7+ years2 Low Load 1-3 years Low Load Thereafter Front-End Load Back-End Load 1-6 years2 Back-End Load 7+ years2 Low Load 1-3 years Low Load Thereafter

32 renaissance investments

Renaissance Investments

Renaissance Investments family of funds Renaissance Investments’ comprehensive line-up of mutual funds can provide your clients with exposure to equity and fixed-income securities from markets around the world.

These funds are ideal to build a portfolio or to add greater diversification and performance potential to your clients’ existing portfolios.

Fund Profiles Table of Contents M O N E Y M A R K E T F U N D S .. . ....................... p 36

Renaissance Money Market Fund..............p 36 Renaissance Money Market Fund – Premium Class.................................................p 38 Renaissance Canadian T-Bill Fund..............p 40 Renaissance U.S. Money Market Fund...... p 42 F I X E D I N C O M E F U N D S.. . . . . ....................... p 44

Renaissance Short-Term Income Fund .....p 44 Renaissance Canadian Bond Fund .............p 46 Renaissance Real Return Bond Fund.........p 48 Renaissance Corporate Bond Capital Yield Fund...........................................p 50 Renaissance Corporate Bond Capital Yield Fund – Premium Class........... p 52 Renaissance High-Yield Bond Fund............p 54 Renaissance Global Bond Fund ..................p 56 B A L A N C E D F U N D S .. . . . . . . . . . . ....................... p 58

Renaissance Canadian Balanced Fund......p 58 Renaissance Optimal Income Portfolio.....p 60 E Q U I T Y I N C O M E F U N D S . . . . ....................... p 62

Renaissance Canadian Dividend Fund....... p 62 Renaissance Canadian Monthly Income Fund.....................................................p 64

34 renaissance investments

Renaissance Diversified Income Fund.......p 66 Renaissance Millennium High Income Fund.....................................................p 68 C A N A D I A N E Q U I T Y F U N D S . ..................... p 70

Renaissance Canadian Core Value Fund.............................................. p 70 Renaissance Canadian Growth Fund......... p 72 Renaissance Canadian Small-Cap Fund.... p 74 U . S . E Q U I T Y F U N D S . ................................ p 76

Renaissance U.S. Equity Value Fund.......... p 76 Renaissance U.S. Equity Growth Fund...... p 78 Renaissance U.S. Equity Growth Currency Neutral Fund..................................p 80 Renaissance U.S. Equity Fund..................... p 82 G L O B A L E Q U I T Y F U N D S . .......................... p 84

Renaissance International Dividend Fund..................................................p 84 Renaissance International Equity Fund.....p 86 Renaissance International Equity Currency Neutral Fund..................................p 88 Renaissance Global Markets Fund.............p 90 Renaissance Optimal Global Equity Portfolio...................................p 92 Renaissance Optimal Global Equity Currency Neutral Portfolio...........................p 94

Renaissance Global Value Fund...................p 96 Renaissance Global Growth Fund...............p 98 Renaissance Global Growth Currency Neutral Fund................................p 100 Renaissance Global Focus Fund................p 102 Renaissance Global Focus Currency Neutral Fund................................p 104 Renaissance Global Small-Cap Fund........p 106 Renaissance European Fund......................p 108 Renaissance Asian Fund............................. p 110 Renaissance China Plus Fund.................... p 112 Renaissance Emerging Markets Fund...... p 114 S P E C I A LT Y F U N D S . .................... . . . . . . . . . . . . . p 116

Renaissance Global Infrastructure Fund...................................... p 116 Renaissance Global Infrastructure Currency Neutral Fund................................ p 118 Renaissance Global Real Estate Fund......p 120 Renaissance Global Real Estate Currency Neutral Fund................................p 122 Renaissance Global Health Care Fund..... p 124 Renaissance Global Resource Fund.........p 126 Renaissance Global Science & Technology Fund...........................................p 128

Invest with Confidence When your clients invest with Renaissance Investments, they’re in good hands. We search the world for independent investment managers and put them to work on their behalf.

We begin with a universe of thousands of potential investment managers, and then

Universe of Investment Managers

Quantitative Filters

apply in-depth quantitative and qualitative filters to identify those with a proven ability to successfully manage the mandates within our investment solutions. Our exacting approach to due diligence helps us optimize performance and manage risk for our clients.

Manager Candidates

Qualitative Six Step Process

Once selected for Renaissance Investments, managers undergo continuous monitoring and assessment. In order to remain part of our clients’ portfolios, they must demonstrate consistency with their investment disciplines and the rigorous standards of our products.

Managers Selected for Renaissance Investments

Strength Behind Your Clients Renaissance Investments’ family of funds has access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world.

renaissance investments 35

Renaissance Investments

Fund Essentials

ATL FUND CODES

MERs

COMMISSIONS

TRAILERS (%)

INVESTMENT MANAGERS

Front-End Load

Back-End Load

Low Load

Class F

Class A (%)

Front-End Load

Back-End Load

Low Load

Front-End Load

Back-End Back-End Load Load Low Load Low Load 1–6 years2 7+ years2 1–3 years 3 4+ years3

CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc.

ATL1025 ATL1200 ATL922 ATL974

ATL1125 n/a ATL643 ATL363

ATL2125 n/a ATL681 ATL762

n/a n/a n/a n/a

0.36% 0.28% 0.18% 0.23%

0-5% 0-5% 0-5% 0-5%

5.00% n/a 5.00% 5.00%

3.00% n/a 3.00% 3.00%

0.25 0.35 0.25 0.25

0.25 n/a 0.25 0.25

0.25 n/a 0.25 0.25

0.25 n/a 0.25 0.25

0.25 n/a 0.25 0.25

CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. Brandywine Global Investment Management, LLC

ATL1021 ATL1022 ATL251 ATL1002 ATL1202 ATL908 ATL1028

ATL1121 ATL1122 ATL291 ATL1102 n/a ATL823 ATL1872

ATL2121 ATL2122 ATL267 ATL2102 n/a ATL667 ATL2872

ATL1630 ATL1631 ATL010 ATL016 n/a ATL015 ATL1646

1.52% 1.50% 1.60% 1.58%1 0.97%1 1.93% 1.96%

0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5%

5.00% 5.00% 5.00% 5.00% n/a 5.00% 5.00%

3.00% 3.00% 3.00% 3.00% n/a 3.00% 3.00%

0.50 0.50 0.75 0.75 0.50 0.75 0.75

0.25 0.25 0.25 0.25 n/a 0.25 0.25

0.50 0.50 0.75 0.75 n/a 0.75 0.75

0.25 0.25 0.25 0.25 n/a 0.25 0.25

0.50 0.50 0.75 0.75 n/a 0.75 0.75

CIBC Global Asset Management Inc.

ATL508

ATL507

ATL517

ATL019

2.23%

0-5%

5.00%

3.00%

1.10

0.50

1.10

0.50

1.10

Brandywine Global Investment Management, LLC, CIBC Global Asset Management Inc., RARE Infrastructure Limited

ATL048 ATL2401 ATL2404 ATL053 ATL2407 ATL2410 ATL056 ATL2413 ATL2416

ATL050 ATL2403 ATL2406 ATL055 ATL2409 ATL2412 ATL058 ATL2415 ATL2418 1

ATL049 ATL2402 ATL2405 ATL054 ATL2408 ATL2411 ATL057 ATL2414 ATL2417

ATL051 n/a n/a n/a n/a n/a n/a n/a n/a

1.87% 1.63%1 1.29%1 1.83% 1.64%1 1.29%1 1.82% 1.66%1 n/a

0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5%

5.00% 4.00% 3.00% 5.00% 4.00% 3.00% 5.00% 4.00% 3.00%

3.00% 2.00% 1.00% 3.00% 2.00% 1.00% 3.00% 2.00% 1.00%

1.00 1.00 0.75 1.00 1.00 0.75 1.00 1.00 0.75

0.50 0.50 0.25 0.50 0.50 0.25 0.50 0.50 0.25

1.00 1.00 0.75 1.00 1.00 0.75 1.00 1.00 0.75

0.35 0.35 0.25 0.35 0.35 0.25 0.35 0.35 0.25

1.00 1.00 0.75 1.00 1.00 0.75 1.00 1.00 0.75

Renaissance Canadian Dividend Fund (formerly Renaissance Canadian Dividend Income Fund)

CIBC Global Asset Management Inc.

ATL294

ATL211

ATL266

ATL014

2.39%

0-5%

5.00%

3.00%

1.25

0.25

0.75

0.50

1.25

Renaissance Canadian Monthly Income Fund Renaissance Diversified Income Fund Renaissance Millennium High Income Fund

CIBC Global Asset Management Inc. CIBC Global Asset Management Inc. Morrison Williams Investment Management Ltd.

ATL910 ATL247 ATL1879

ATL859 ATL271 ATL1880

ATL668 ATL204 ATL2880

ATL155 ATL017 ATL1650

1.84% 2.39% 2.44%

0-5% 0-5% 0-5%

5.00% 5.00% 5.00%

3.00% 3.00% 3.00%

0.75 1.10 0.75

0.35 0.25 0.50

1.10 0.75 1.25

0.25 0.35 0.25

0.75 1.10 0.75

Renaissance Canadian Core Value Fund

CIBC Global Asset Management Inc., NWQ Investment Management Company, LLC

ATL901

ATL853

ATL671

ATL020

2.49%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Canadian Growth Fund Renaissance Canadian Small-Cap Fund

McLean Budden Limited CIBC Global Asset Management Inc.

ATL902 ATL905

ATL843 ATL852

ATL669 ATL670

ATL022 ATL023

2.54% 2.54%

0-5% 0-5%

5.00% 5.00%

3.00% 3.00%

1.25 1.25

0.50 0.50

1.25 1.25

0.50 0.50

1.25 1.25

Renaissance U.S. Equity Value Fund Renaissance U.S. Equity Value Fund (US$) Renaissance U.S. Equity Growth Fund Renaissance U.S. Equity Growth Fund (US$)

Metropolitan West Capital Management, LLC Metropolitan West Capital Management, LLC Aletheia Research and Management, Inc. Aletheia Research and Management, Inc.

ATL502 ATL743 ATL913 ATL973

ATL501 ATL742 ATL833 ATL733

ATL515 ATL744 ATL661 ATL761

ATL024 ATL025 ATL026 ATL027

2.64% 2.64% 2.64% 2.64%

0-5% 0-5% 0-5% 0-5%

5.00% 5.00% 5.00% 5.00%

3.00% 3.00% 3.00% 3.00%

1.25 1.25 1.25 1.25

0.50 0.50 0.50 0.50

1.25 1.25 1.25 1.25

0.50 0.50 0.50 0.50

1.25 1.25 1.25 1.25

Renaissance U.S. Equity Growth Currency Neutral Fund

CIBC Global Asset Management Inc. (Aletheia Research and Management, Inc. is the investment manager of the underlying fund)

ATL1250

ATL1252

ATL1251

ATL1253

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance U.S. Equity Fund

INTECH Investment Management LLC

ATL911

ATL855

ATL662

ATL028

1.86%

0-5%

5.00%

3.00%

0.75

0.25

0.75

0.25

0.75

Renaissance U.S. Equity Fund (US$)

INTECH Investment Management LLC

ATL797

ATL799

ATL798

ATL097

1.86%

0-5%

5.00%

3.00%

0.75

0.25

0.75

0.25

0.75

Renaissance International Dividend Fund Renaissance International Equity Fund

Kleinwort Benson Investors Walter Scott & Partners Limited

ATL914 ATL1868

ATL856 ATL1869

ATL677 ATL2869

ATL032 ATL1644

2.28% 2.69%

0-5% 0-5%

5.00% 5.00%

3.00% 3.00%

0.75 1.25

0.25 0.50

0.75 1.25

0.25 0.50

0.75 1.25

Renaissance International Equity Currency Neutral Fund

CIBC Global Asset Management Inc. (Walter Scott & Partners Limited is the investment manager of the underlying fund)

ATL1240

ATL1242

ATL1241

ATL1243

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Global Markets Fund

Wintergreen Advisers, LLC

MONEY MARKET FUNDS

Renaissance Money Market Fund Renaissance Money Market Fund – Premium Class Renaissance Canadian T-Bill Fund Renaissance U.S. Money Market Fund (US$) FIXED INCOME FUNDS

Renaissance Short-Term Income Fund Renaissance Canadian Bond Fund Renaissance Real Return Bond Fund Renaissance Corporate Bond Capital Yield Fund Renaissance Corporate Bond Capital Yield Fund – Premium Class Renaissance High-Yield Bond Fund Renaissance Global Bond Fund BALANCED FUNDS

Renaissance Canadian Balanced Fund (formerly Renaissance Canadian Balanced Value Fund) Renaissance Optimal Income Portfolio Renaissance Optimal Income Portfolio – Select Class Renaissance Optimal Income Portfolio – Elite Class Renaissance Optimal Income Portfolio – Class T6 Renaissance Optimal Income Portfolio – Select-T6 Class Renaissance Optimal Income Portfolio – Elite-T6 Class Renaissance Optimal Income Portfolio – Class T8 Renaissance Optimal Income Portfolio – Select-T8 Class Renaissance Optimal Income Portfolio – Elite-T8 Class EQUITY INCOME FUNDS

CANADIAN EQUITY FUNDS

U.S. EQUITY FUNDS

GLOBAL EQUITY FUNDS

ATL1029

ATL1873

ATL2873

ATL1647

2.67%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Portfolio (formerly Renaissance Global Multi Management Fund)

ATL1902

ATL1903

ATL2903

ATL1652

2.66%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Portfolio – Select Class Renaissance Optimal Global Equity Portfolio – Elite Class Renaissance Optimal Global Equity Portfolio – Class T4 Renaissance Optimal Global Equity Portfolio – Select-T4 Class Renaissance Optimal Global Equity Portfolio – Elite-T4 Class Renaissance Optimal Global Equity Portfolio – Class T6 Renaissance Optimal Global Equity Portfolio – Select-T6 Class Renaissance Optimal Global Equity Portfolio – Elite-T6 Class Renaissance Optimal Global Equity Portfolio – Class T8 Renaissance Optimal Global Equity Portfolio – Select-T8 Class Renaissance Optimal Global Equity Portfolio – Elite-T8 Class

ATL2419 ATL2422 ATL2425 ATL2434 ATL2437 ATL2428 ATL2440 ATL2443 ATL2431 ATL2446 ATL2449

ATL2421 ATL2424 ATL2427 ATL2436 ATL2439 ATL2430 ATL2442 ATL2445 ATL2433 ATL2448 ATL2451

ATL2420 ATL2423 ATL2426 ATL2435 ATL2438 ATL2429 ATL2441 ATL2444 ATL2432 ATL2447 ATL2450

n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

n/a n/a 2.71%1 n/a n/a n/a n/a n/a n/a n/a n/a

0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5%

4.00% 3.00% 5.00% 4.00% 3.00% 5.00% 4.00% 3.00% 5.00% 4.00% 3.00%

2.00% 1.00% 3.00% 2.00% 1.00% 3.00% 2.00% 1.00% 3.00% 2.00% 1.00%

1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90

0.50 0.40 0.50 0.50 0.40 0.50 0.50 0.40 0.50 0.50 0.40

1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90

0.50 0.40 0.50 0.50 0.40 0.50 0.50 0.40 0.50 0.50 0.40

1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90 1.25 1.25 0.90

130 renaissance investments

Aletheia Research and Management, Inc., NWQ Investment Management Company, LLC, RARE Infrastructure Limited, Wellington Management Company, Wintergreen Advisers, LLC

Renaissance Investments

Fund Essentials

ATL FUND CODES

MERs

COMMISSIONS

TRAILERS (%)

Front-End Load

Back-End Load

Low Load

Class F

Class A (%)

Front-End Load

Back-End Load

Low Load

Front-End Load

Back-End Back-End Load Load Low Load Low Load 1–6 years2 7+ years2 1–3 years 3 4+ years3

Renaissance Optimal Global Equity Currency Neutral Portfolio

ATL1265

ATL1267

ATL1266

ATL1268

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Currency Neutral Portfolio – Select Class

ATL1270

ATL1272

ATL1271

n/a

n/a

0-5%

4.00%

2.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Currency Neutral Portfolio - Elite Class

ATL1273

ATL1275

ATL1274

n/a

n/a

0-5%

3.00%

1.00%

0.90

0.40

0.90

0.40

0.90

ATL1276 CIBC Global Asset Management Inc. (Aletheia Research and Management, Inc., NWQ Investment Management Company, LLC, ATL1285 RARE Infrastructure Limited, Wellington Management Company and Wintergreen Advisers, LLC are the ATL1294 investment managers of the underlying funds)

ATL1278

ATL1277

n/a

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

ATL1287

ATL1286

n/a

n/a

0-5%

4.00%

2.00%

1.25

0.50

1.25

0.50

1.25

ATL1296

ATL1295

n/a

n/a

0-5%

3.00%

1.00%

0.90

0.40

0.90

0.40

0.90

Renaissance Optimal Global Equity Currency Neutral Portfolio – Class T6

ATL1279

ATL1281

ATL1280

n/a

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Currency Neutral Portfolio – Select-T6 Class

ATL1288

ATL1290

ATL1289

n/a

n/a

0-5%

4.00%

2.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Currency Neutral Portfolio – Elite-T6 Class

ATL1297

ATL1299

ATL1298

n/a

n/a

0-5%

3.00%

1.00%

0.90

0.40

0.90

0.40

0.90

Renaissance Optimal Global Equity Currency Neutral Portfolio – Class T8

ATL1282

ATL1284

ATL1283

n/a

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Optimal Global Equity Currency Neutral Portfolio – Select-T8 Class

ATL1291

ATL1293

ATL1292

n/a

n/a

0-5%

4.00%

2.00%

1.25

0.50

1.25

0.50

1.25

INVESTMENT MANAGERS

GLOBAL EQUITY FUNDS (continued)

Renaissance Optimal Global Equity Currency Neutral Portfolio – Class T4 Renaissance Optimal Global Equity Currency Neutral Portfolio – Select-T4 Class Renaissance Optimal Global Equity Currency Neutral Portfolio – Elite-T4 Class

Renaissance Optimal Global Equity Currency Neutral Portfolio – Elite-T8 Class

ATL1300

ATL1302

ATL1301

n/a

n/a

0-5%

3.00%

1.00%

0.90

0.40

0.90

0.40

0.90

Renaissance Global Value Fund Renaissance Global Growth Fund

NWQ Investment Management Company, LLC Walter Scott & Partners Limited

ATL1030 ATL504

ATL1031 ATL503

ATL2031 ATL516

ATL1625 ATL034

2.69% 2.70%

0-5% 0-5%

5.00% 5.00%

3.00% 3.00%

1.25 1.25

0.50 0.50

1.25 1.25

0.50 0.50

1.25 1.25

Renaissance Global Growth Currency Neutral Fund

CIBC Global Asset Management Inc. (Walter Scott & Partners Limited is the investment manager of the underlying fund)

ATL1235

ATL1237

ATL1236

ATL1238

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Global Focus Fund

Aletheia Research and Management, Inc.

ATL510

ATL509

ATL511

ATL036

2.74%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Global Focus Currency Neutral Fund

CIBC Global Asset Management Inc. (Aletheia Research and Management, Inc. is the investment manager of the underlying fund)

ATL1245

ATL1247

ATL1246

ATL1248

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Global Small-Cap Fund

Wellington Management Company, LLP

ATL1040

ATL1041

ATL2041

ATL1626

2.94%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance European Fund

BlackRock Investment Management International Limited

ATL917

ATL163

ATL673

ATL030

2.72%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Asian Fund Renaissance China Plus Fund Renaissance Emerging Markets Fund

Hamon Investment Management Limited Hamon Investment Management Limited Pictet Asset Management Limited

ATL1512 ATL1050 ATL920

ATL1519 ATL1051 ATL858

ATL2519 ATL2051 ATL675

ATL1639 ATL1627 ATL029

3.24% 3.16% 2.92%

0-5% 0-5% 0-5%

5.00% 5.00% 5.00%

3.00% 3.00% 3.00%

1.25 1.25 1.25

0.50 0.50 0.50

1.25 1.25 1.25

0.50 0.50 0.50

1.25 1.25 1.25

RARE Infrastructure Limited

SPECIALTY FUNDS

Renaissance Global Infrastructure Fund

ATL059

ATL061

ATL060

ATL062

2.52%

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

CIBC Global Asset Management Inc. Renaissance Global Infrastructure Currency Neutral Fund (RARE Infrastructure Limited is the investment manager of the underlying fund)

ATL1230

ATL1232

ATL1231

ATL1233

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Global Real Estate Fund

Cohen & Steers Capital Management Inc.

ATL1255

ATL1257

ATL1256

ATL1258

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Global Real Estate Currency Neutral Fund

CIBC Global Asset Management Inc. (Cohen & Steers Capital Management Inc. is the investment manager of the underlying fund)

ATL1260

ATL1262

ATL1261

ATL1263

n/a

0-5%

5.00%

3.00%

1.25

0.50

1.25

0.50

1.25

Renaissance Global Health Care Fund Renaissance Global Resource Fund Renaissance Global Science & Technology Fund Renaissance Global Science & Technology Fund (US$)

Wellington Management Company, LLP Front Street Investment Management Inc. CIBC Global Asset Management Inc. CIBC Global Asset Management Inc.

ATL1161 ATL1860 ATL1027 ATL1227

ATL1162 ATL1861 ATL1871 ATL1371

ATL2162 ATL2861 ATL2871 ATL2371

ATL1635 ATL1666 ATL1645 ATL1637

3.19% 3.23% 2.92% 2.92%

0-5% 0-5% 0-5% 0-5%

5.00% 5.00% 5.00% 5.00%

3.00% 3.00% 3.00% 3.00%

1.00 1.25 1.25 1.25

0.50 0.50 0.50 0.50

1.00 1.25 1.25 1.25

0.50 0.50 0.50 0.50

1.00 1.25 1.25 1.25

Select and Elite Class: There will be no automatic transfer into the Select Class (including Select-T6 Class or Select-T8 Class within the Renaissance Optimal Income Portfolio or Select-T4 Class, Select-T6 or Select-T8 Class within the Renaissance Optimal Global Equity Portfolio) or Elite Class (including Elite-T6 Class or Elite-T8 Class within the Renaissance Optimal Income Portfolio or Elite-T4 Class, Elite-T6 or Select-T8 Class within the Renaissance Optimal Global Equity Portfolio) from other Renaissance classes when the minimum investment of the Select classes or Elite classes has been reached. Conversions and switches into the Select classes or Elite classes will be subject to the minimum investment requirements governing each class. As a result, an investor must hold a minimum investment of $250,000 to convert or switch into the Select classes, and $500,000 to convert or switch into the Elite classes. Note: See the Renaissance Investments family of funds Simplified Prospectus for the tax treatment of conversions and switches.

All MERs as at August 31, 2010 1 Annualized MER for the period ending August 31, 2010 (as disclosed in each fund’s annual management report of fund performance. Renaissance Investments may have waived fees or absorbed expenses otherwise payable by a fund or portfolio, with the exception of any taxes or new fees introduced by regulators or governments. At the discretion of Renaissance Investments, this practice may continue indefinitely and can be terminated at any time.

2 All units held under the back-end load option on November 1, 2010 will maintain the trailing commission structure that was in place prior to November 1, 2010. Purchases of units under the back-end load option made after November 1, 2010 will be subject to the trailing commission structure detailed above.

3 All units held under the low load option on December 1, 2009 will maintain the trailing commission structure that was in place prior to December 1, 2009. Purchases of units under the low load option made after December 1, 2009 will be subject to the trailing commission structure detailed above.

renaissance investments 131

Live Better

Vinyl records make a comeback

Back into the groove

You may have a collection of LPs in your basement, or perhaps you sold them in a yard sale long ago. Or maybe you’re young enough to have never heard music recorded on vinyl. What’s for sure is that, in recent years, many music lovers have pushed aside their CDs and iPods and are getting back into the groove. renaissance investments 133

The warm sound of vinyl Vinyl records are made by cutting a continuous groove into a vinyl disk. This groove mirrors the original sound’s waveform, creating a playback that enthusiasts describe as “warm,” “three-dimensional,” “alive” and “textured.”

Digital recordings, while being free from the surface noise of dust and scratches, don’t actually capture the complete sound wave. Instead, a series of snapshots called “samples” are used to approximate the original sound.

Some audiophiles insist that digital technology renders music flat, cold and even soulless. But, according to David Jones, most music lovers simply enjoy music in a variety of formats, rather than argue over sound superiority.

Hiss, crackle, pop. How can analog recordings, with all their imperfections, compete with today’s flawless digital sound?

“What vinyl records really offer is a different listening experience,” says David Jones — music lover, DJ, radio personality and owner of Vinyl Records in Vancouver.

“It isn’t just about sound. Absolutely, the sound is different — warmer, richer.” But David maintains there are other draws for the younger music crowd as well as nostalgic middle-agers who are driving the resurgence of vinyl records.

“With iPods, music has become a solitary activity. Listening to records with friends is a social experience that people are enjoying.

Music lovers who grew up with LPs get a real kick out of playing their old favourites the way they used to — lifting the toner arm, setting the record on the platter, placing the needle. Also, the large-format cover art and liner notes engage and connect the listener more with the artist and the music.”

Twenty years ago, vinyl records disappeared from music stores. Yet, in 2009, three million vinyl records were sold in the U.S., up from

two million the year before (and no telling how many used records changed hands).

While vinyl accounts for only about 2% of the North American recorded-music market,1 it’s growing dramatically.

Something old, something new “Depending on the rarity, condition of the record and where you buy it, you can get albums from $2 to $5,000,” says David. He carries 15,000 new and used vinyl records in his Vancouver shop with the most popular categories being classic rock, funk, soul and jazz.

“For example, jazz recordings on the Blue Note label are quite rare and can range from $3,000 to $5,000. Recently, I sold a Bob Marley single for $500. But, most of the used LPs I have list around $25 to $35 plus shipping.”

New records start at about $20. Indie bands and small record labels were the first to head back to vinyl, and some even offer a free MP3 download with each record purchase. But today, major commercial artists such as Coldplay and Norah Jones are also jumping on the bandwagon.

A brief history of music 1877

1888

1949

1949

1957

Thomas Edison invents the hand-cranked phonograph, which reads tin foil cylinders

First flat disk record

First LP (Columbia)

First 45 (RCA)

First recording in stereo

134 renaissance investments

1960s and 1970s LPs and 45s reign supreme

You’ll also find some re-releases of classics — The Beatles’ Abbey Road and Michael Jackson’s Thriller were two of the most popular vinyl records in 2009. 2

Turntable tips “The first thing you need to understand is that, unlike a CD player or iPod, turntables are mechanical,” says Paul Wong, Sales Associate at The Sound Room in Vancouver.

“The quality of sound you get depends entirely on the precision of the mechanics.”

“For example, a $200 turntable will have a crudely cut diamond on the needle, which results in poor sound but, more importantly, could damage your records, while a $2,000 turntable is manufactured for accuracy within one micron — the width of a human hair.”

Those seeking ultimate sound can pay well into the six-digit range for a turntable, and as much as $20,000 for a precision needle.

But, fear not. Paul maintains that a good turntable in the $500 to $600 range will allow you to achieve great sound and protect your record collection. If you have a sound

system with an older receiver or amplifier that has an input marked “phono,” you are ready to plug and play. But if it’s a newer model, you’ll need to buy a phono pre-amp, another box in the $100–$150 range.

Where to buy records Mainstream stores such as HMV carry some vinyl records, but most vinyl can be found in used record stores and on the Internet.

“With the Internet, our records are available to a wide audience,” says David. “We went one step further than many sites by downloading sound samples for thousands of albums, so people can listen and buy wherever they are.” As a result, David gets orders from all over the world.

If you’re willing to do some digging, vinyl records also show up at garage sales, estate sales and auctions. And, if you become involved in the hobby, you’ll soon have a circle of friends, acquaintances and connections with whom you can buy and trade.

Occasionally, you may even find a record show in your area.

Vinyl records will always be a niche market, appealing to music lovers who want to savour a different experience. But David feels the important thing is that “today, you can enjoy music in every format — it’s not one or the other. You can have MP3s on your iPod for portability, listen to your CDs in your car and, when you get home, you can sit back and enjoy your vinyl collection.”

1

http://www.theglobeandmail.com/report-on-business/yourbusiness/grow/expanding-the-business/the-rich-sound-of-avinyl-revival/article1629293/

2 http://www.businesswire.com/news/home/20110106006565/ en/Nielsen-Company-Billboard%E2%80%99s-2010-MusicIndustry-Report

David Jones grew up in the golden era of vinyl records. He worked at Sam the Record Man as a teenager, and became a disk jockey and radio personality before opening his own store “Vinyl Records” in Vancouver, where he has 15,000 new and used records.

1993

1981

1982

1985–1992

1991

LP sales peak at 1.1 billion

First compact disc (pioneered jointly by Sony and Philips)

Cassette tapes dominate

CDs Mainstream record companies dominate stop recording on vinyl

Source: http://musicbusinessresearch.wordpress.com/2010/03/29/the-recession-in-the-music-industry-a-cause-analysis/

2000

2008

CD sales peak at 2.5 billion

Music downloading cuts CD sales in half

renaissance investments 135

Brain Calisthenics

Word scramble

Sudoku

Unscramble the following letters to spell words from this issue’s “Invest Well” article:

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

1. atitauntiqve 2. yetrisuta

7 4

3. rryccuen 4. dleevreagnig

9

5. niaesgnr

1

9

4

8

6

2

5 9

4

2

6

5

6. tdiecfi 7. mnnrebii

6

8. lbbbeu

8

2

1 5

8 2

8

1

3

9

3 9

7

1

9. claisf 10. scruteurtedr

1

3

7

2 5

8 Source: 4puz.com

Spot the difference: Emerging markets Can you spot the five differences between the pictures below?

Check your answers at www.renaissanceinvestments.ca/braincalisthenics

More tax refunds.

More income opportunities.

RRSPs are just the first step. Leverage our tax and investment strategies to maximize tax savings all year long. Help your clients get:

More tax refunds • More after-tax income • More tax planning solutions •

Make the most of your RRSP client meetings this season.

To see how Renaissance Investments can help you optimize your clients’ tax planning strategies, visit www.renaissanceinvestments.ca/moreopportunities 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. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Renaissance Investments is offered by CIBC Asset Management Inc. ™ Renaissance Investments and “invest well. live better.” are registered trademarks of CIBC Asset Management Inc.

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

FOR DEALER USE ONLY Renaissance 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. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.

The indicated rates of return are the historical annual compounded total returns for the class A units unless otherwise noted, including changes in unit value and reinvestment of all distributions, but do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. For money market funds, the performance data provided assumes reinvestment of distributions only but does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, nor are they guaranteed. There can be no assurance that a money market fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment will be returned to you. The values of many mutual funds change frequently.

Past performance may not be repeated. †Current yield is an annualized historical yield based on the seven-day period ended on December 31, 2010 and does not represent an actual one-year return. ™ Axiom, Axiom Portfolios, Renaissance Investments and “invest well. live better.” are registered trademarks of CIBC Asset Management Inc. 02440E(201101)

Printed in Canada on 25% Post Consumer Recycled Paper