The Renaissance Advisor by renaissancemag

The Renaissance QUARTERLY FUND PROFILES / PRACTICE MANAGEMENT / OUTLOOK / OPINION

Q2 â&#x20AC;&#x201C; JUN. 30, 2014

Go Global Without Leaving Home Access to global growth is closer than you think ALSO INSIDE:

New Series: Asset Gathering Secrets of Elite Advisors Fantasy Football: For armchair quarterbacks everywhere

For Advisor Use Only

A STRONG DEFENSE ISNâ&#x20AC;&#x2122;T BUILT BY THOSE WHO GO HALFWAY.

RISING RATE PROTECTION With rising interest rates on the horizon, clients need a plan to protect portfolios. Renaissance has partnered with the experts at Ares Management to bring demonstrated, institutional floating-rate loan management to individual Canadian investors.

Exclusive Access to Institutional Floating Rate Expertise Help clients prepare for what lies ahead with Renaissance Floating Rate Income Fund.

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ÂŽRenaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

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In this issue

4 12

Tax and Estate Owning a U.S. Vacation Property

Back of the Napkin Asset Gathering Secrets of Elite Advisors, Part 1

Go Global Without Leaving Home

Solution Highlight All-in-one Solutions Suitable for Any Investor

Fantasy Football

Thanks to Our Supporters Helping Clients Make Better Decisions

Brain Calisthenics

Letter from the Renaissance Sales Team

Building Momentum Welcome to the summer edition of The Renaissance Advisor. It’s long been said that the only constant in life is change; and, although we can’t speak for everyone, there’s something about this time of year when change feels almost palpable. We begin to shift gears and build momentum to propel us through a new season of expectations. And, while the days become a little shorter, the hours at work become a bit longer as we aim to achieve a fresh set of goals. A change you’ll see here in the magazine is that we’ve cut down the individual fund profiles from two pages to one page. Keeping with best practices, we understand the value of making the most important details easily accessible for you. The new one-page format is designed to give you the information you need, in a simple and concise manner. We hope you find this change helpful. Also in this issue, we explore the idea of global investing, particularly for those clients wary of looking outside of domestic markets. With the generator of growth currently resting outside of North America, how do you access opportunities for clients stubbornly concentrated on our domestic market? With insight from Benjamin Tal, Luc de la Durantaye, and some of our expert investment managers, you’ll be able to suggest solutions that benefit your clients while addressing their concerns. On another note, we are gearing up for the new season of our Renaissance Advisor Live & Interactive roadshow events. We are travelling to 22 centres across Canada this fall so that you can connect face-to-face with our experts like: Canada’s tax guru, Jamie Golombek; practice management professional, Grant Shorten; and leading economist, Benjamin Tal. They’ll offer timely insights to support your clients and build your business. Renaissance Advisor Live & Interactive is a top-rated advisor roadshow according to Environics Research Group; it’s safe to say that this is an event you don’t want to miss. Lastly, as of May 31, 2014, CIBC Asset Management’s total assets under management crossed the $100 billion mark. As part of the CIBC Asset Management family, Renaissance Investments is incredibly proud to celebrate this exciting milestone – one that you helped us achieve with your continued support. For that, we truly thank you. At Renaissance, we continue to strive to be your most trusted business advisor. We welcome your feedback and look forward to seeing you at Renaissance Advisor Live & Interactive 2014.

The Renaissance Sales Team

Owning a U.S. Vacation Property TAX AND ESTATE

It seems everywhere we look, Canadians are snapping up U.S. vacation properties. If your clients hold vacation properties beyond Canada’s borders, it doesn’t mean that they are outside the reach of the taxman. Here are a few things Canadians should know about U.S. property ownership.

Rental Income If your clients are like many vacation property owners, chances are that they rent or at least try to rent the property when it isn’t occupied. The U.S. imposes a withholding tax of 30 percent on gross rental income; however, you can make an election so the withholding tax doesn’t apply. If your clients choose to elect, they would need to report their net rental income – that is, after deducting applicable expenses – on a U.S. income tax return and pay tax on that rental income, if any, at graduated U.S. tax rates.

Not so in the United States. Instead, U.S. estate tax applies to Canadians who die owning “U.S. situs property,” which includes U.S. real estate. The estate tax is levied on the fair market value of property at graduated rates up to 40 percent. For 2014, there is a $5.34 million exemption from U.S. estate tax that, under the Canada-U.S. tax treaty, is pro-rated for Canadian residents. (It’s effectively equal to the US$5.34 million exemption multiplied by the ratio of U.S. situs property to a client’s worldwide estate.) Thus, if a client’s worldwide estate, including their Canadian principal residence, is under US$5.34 million in 2014, they probably don’t need to worry about U.S. estate tax. If a client’s estate is worth more than US$5.34 million, they may want to consider strategies that can mitigate the effect of U.S. estate tax, such as purchasing life insurance to cover any tax liability upon death; borrowing by way of “non-recourse” debt against the property; or using a trust or partnership to hold their U.S. vacation property. Be sure to recommend your clients get expert cross-border tax advice before proceeding.

Net rental income is also taxable in Canada. The good news is that you can generally claim a foreign tax credit on Canadian tax returns for any U.S. tax that has been paid on the net rental income. Selling Your U.S. Vacation Property When your clients sell their U.S. property, they may find that the purchaser must withhold 10 percent of the proceeds, and you can generally claim the amount withheld as a credit against any capital gains tax owing when a U.S. tax return is filed.

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

Although the capital gain may also be taxable in Canada, a foreign tax credit is generally available in Canada for any U.S. tax that was paid.

Follow @JamieGolombek

Estate Considerations

www.advisor.ca/togo Podcast > Foreign Tax Tips from Golombek

If a client dies owning U.S. vacation property, the increase in value from the date of purchase to the date of death is generally taxable as a capital gain on their final Canadian tax return.

www.renaissanceinvestments.ca/en/jamie_golombek/

Asset Gathering Secrets of Elite Advisors Part 1 – The Power of Strategic Alliances

BACK OF THE NAPKIN

In part one of this series, we focus on:

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

In this three-part series, we’ll discover how some of the most successful advisors consistently find qualified prospects and gather assets at an above-average rate. What may be most striking is that “elite” advisors often do not engage in shocking, surprising, or even overly creative activities. What separates successful asset gatherers from the average…is mastery of the fundamentals!

“THE POWER OF STRATEGIC ALLIANCES” The Power of Strategic Alliances “Strategic alliance” describes any mutually beneficial relationship an advisor develops with another professional – who also maintains their own group of clients. Common alliances are developed between an advisor and one or more of the following: • Accountant • Family lawyer

• Estate planner • Private banker

• Estate lawyer

These relationships are based upon a mutually beneficial exchange of client referrals, along with the assurance of quality care for the clients of both parties. An Example:

This group has determined that their time and resources are precious, and that it’s essential to avoid wasting them on low-impact marketing activities. Rather, they focus on 2-3 high-impact prospecting tactics. Elite advisors understand the marketplace has changed. Although they may have built their businesses through traditional methods, they recognize that today’s game is won in the arenas of word-of-mouth marketing, face-to-face contact, and through personal introductions and referrals. Specific tactics may vary, but three methods consistently top the list:

You meet with a client in the market for a new home. You ask if they have a good real estate lawyer to assist them and they indicate they don’t. You provide the contact information of your strategic alliance partner – an attorney who handles real estate deals. You endorse the lawyer, explaining several of your clients have been extremely satisfied with their work. The attorney receives a call from the client and the connection is made. The attorney is grateful for the referral, ensuring you remain top-of-mind when they uncover the need for the services of a good advisor.

Establishing Strategic Alliances

The Power of Strategic Alliances

Leveraging Intimate Client Events

Capitalizing on Networking Opportunities

Most advisors are aware of the benefits of creating a network of strategic alliances, yet many fail to begin. The first step is possibly the greatest stumbling block, because it often requires a change of mindset. To fully capitalize on the advantages of alliances, an advisor must be willing to

adopt a “family office” mindset. Often, advisors focus their efforts on the “investment” component of a client’s affairs, neglecting the other three core disciplines of the “family office.” The four disciplines are typically defined as: investments, tax and accounting, insurance and legal. Decide where the greatest need exists within your practice. Which of the four disciplines could you add that would have the most immediate impact? This question is not primarily driven around “capturing more assets,” it’s about creating another layer of service for your clients. This is where we see the greatest motivational difference between the elite advisor and the rest of the pack. Find your first strategic alliance professional through your personal network, local listings, references from friends and anecdotal endorsements from clients. Some find it effective to seek a professional in the same office building or within walking distance. Engaging the Law of Reciprocity Once you’ve identified a short list of professionals, meet to enquire about their approach to their discipline, the breadth of their services and to determine a suitable fit. Explain that you are seeking an (attorney) who has the capacity and resources to assist YOUR clients. Gauge their reaction, body language and demeanor; look for signs of positive surprise, excitement, and a curiosity and interest in YOUR business. You may even discuss your shift towards a “family office” structure, and the importance of building a strong team of experts with whom to refer business. This may be a good time to suggest:

“...perhaps your clients have investment needs and would appreciate connecting with an advisor...”

By explaining your specific strategies, you’ll demonstrate that this is not just an alliance of convenience, but a defined method to generate referrals. Make it easy for your partner to seek opportunities to refer business to you. Teach them how you typically work with your clients, and provide them with specific scenarios to look for to capitalize on your strengths.

An Example: Frame your advisory identity to your alliance partner with phrases like, “Our clients view us as guardians of their wealth. We are holistic wealth managers and act as the central coordinators for all of our clients’ financial needs.” Or…”We specialize in reducing taxes, protecting income, and growing wealth.”

Be the first to refer business. When your alliance partner thanks you, gently remind them of what to look for in order to leverage your services. A strategic alliance network is a powerful way to access a pre-established client base, with the endorsement of another trusted professional. This asset-gathering method is virtually unmatched in how it combines wordof-mouth marketing and the power of personal introductions.

This Asset Gathering Secrets of Elite Advisors Series continues in future editions of The Renaissance Advisor. Upcoming insights from Grant will include: PART 2 – LEVERAGING INTIMATE CLIENT EVENTS PART 3 – CAPITALIZING ON NETWORKING OPPORTUNITIES

The law of reciprocity is a natural instinct and will be automatically initiated at the time of your first outgoing referral. Consider booking another meeting with your prospective partner to discuss your approaches in more detail and specific ways to partner toward a common goal.

An Example: You explain to your attorney alliance partner that you’re implementing a new client campaign by incorporating an Estate Planning Checklist into your wealth management review meetings. As part of this process, you’ll strongly encourage clients to ensure they have an updated will, power of attorney for personal care, and a power of attorney for property. During client meetings, you’ll also provide clients with the name of a “good lawyer” who can assist in preparing these important documents.

Grant Shorten is Director of Strategic Insights at Renaissance Investments. He offers insights and approaches that will work with your clients and have an immediate impact on your practice. Video > Fee Transparency & You: Validating Your Trailer Video > Fee Transparency & You: Client Conversations www.renaissanceinvestments.ca/en/practicemanagement/

GO GLOBAL WITHOUT LEAVING HOME

Opportunities to access global growth are closer than you think.

The global economy is no longer in recession. But lingering memories of 2008 remain for many investors, who continue to avoid equities in favour of secure, low-return investments. According to a survey of Canadian investors by CIBC Asset Management, 59 percent plan to invest primarily in GICs, savings accounts, bonds or bond funds. What’s more, only 32 percent of equity investors plan on investing outside of Canada.1

But Benjamin Tal, Deputy Chief Economist of CIBC, thinks stocks are the place to be. “I believe the stock market will outperform the bond market in 2014,” he says. “The bond market will start being more interesting in late 2015, maybe 2016, when we start realizing we are overshooting interest rates.”

global leaders in a range of sectors, and global infrastructure can offer P stable returns with a low correlation to other asset classes. clients relatively Canada’s Turn in the Spotlight Tal notes that while the Canadian stock market might not have matched the record post-recession gains in other countries, it’s been one of the strongest global performers in 2014. “While the current backdrop is not without challenges, the TSX still has a number of factors working in its favour,” Tal says, noting that the S&P/TSX Composite Index has more exposure to the global business cycle than its American counterpart, the S&P 500. ”The energy sector used to be a major factor. It still is, but we’ve seen financials and we’ve seen industrials entering the picture, so the market is different.” Global Growth Should Support Canadian Stocks 0.7

Correlation with global GDP growth 1984-date

0.6 0.5

Luc de la Durantaye, Managing Director, Asset Allocation and Currency Management, CIBC Asset Management, has a similar view.“A bias in asset allocation strategies to overweight equities and underweight government bonds in balanced portfolios should provide excess returns,” he says, adding that “We expect the global economy to regain traction over the coming quarters after weakness in the first half of 2014.”

0.4 0.3 0.2 0.1 0.0 S&P 500

TSX Composite

Real GDP Projections (as of Summer 2014)

Source: CIBC World Markets, June 2014.

Percentage y/y 5%

Last 12 Months Next 12 Months

4% 3%

“Last year was a transition year between something bad and something better,” Tal says. “I think the theme of the TSX outperforming in 2014 is working, given the assumption that the global economy will surprise on the upside and given the correlation between the TSX and the global economy, especially in the energy space and in the commodity space.”

2% 1% 0% World

Emerging

Developed

“Last year was a transition year between something bad and something better.” Benjamin Tal

Source: CIBC Asset Management Inc.

There are many ways for investors to access global growth, even if they don’t want to venture too far to buy stocks on international markets. In fact, some of the best opportunities are very close to home, with many Canadian stocks driven by global demand for commodities. The U.S. market also has 1

But even with recent gains, the market isn’t overvalued. “The Canadian market is not cheap – it’s not expensive, but it’s not cheap,” says Tal. “It’s more or less where it should be based on how the market is reacting to interest rates.”

The results presented in this article were gathered through a web survey conducted by Leger in December 2013 among a representative sample of 1,503 English- or French-speaking Canadians, 18 years of age or older, who have an investment portfolio for retirement. Using data from Statistics Canada, the results were weighted according to gender, age, region, language spoken at home, education and whether or not children are present in the household to ensure a sample representative of the entire population under review.

a result of the U.S. Federal Reserve (Fed) starting to talk about tapering its asset purchases.”

Emerging Markets: An Emerging Trend? After underperforming last year, emerging markets are on the rebound, and exposure to these less-developed countries could give clients’ portfolios a boost. Tal notes that, “Emerging markets GDP will top the advanced countries for the first time this year and their fast-rising share of global market cap also makes them increasingly too big to ignore.” Emerging Markets Share of Global GDP (Nominal) Emerging markets are making greater contributions to global growth, and some believe that trend will continue. 50

Percentage of global GDP

Once the Fed actually started tapering, the markets’ reaction has been smoother, and Langley notes that “we’ve seen two or three quarters of good economic stability amongst the large emerging-market economies.” But this year brings new geopolitical challenges. Langley says, “2014 is a year where most of the significant emerging markets have elections. From our perspective, the key risk around elections is radical changes or shifts in public policy. If public policy remains fairly stable, then it’s a good place to invest.”

Forecast

More from CIBC Asset Management’s Luc de la Durantaye: 40

Video > Global Equity Outlook www.renaissanceinvestments.ca Podcast > Global Economy Braced by Central Banks www.advisor.ca/togo

30 20 10

Get Emerging-market Growth Without Leaving North America 0

’88 ’90 ’92 ’94 ’96 ’98 ’00 ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’16 ’18 Year

Source: IMF World Economic Outlook October 2013. RS Investment Management Co. LLC.

According to Luc de la Durantaye, emerging-market equity performance has improved overall, but also compared to developed markets. He notes that positive election results in India, growth in China and European monetary policy have supported this outperformance. “In terms of valuation, emerging markets are the most attractive proposition in the equity space. There is a risk premium priced in because a number of regions have specific cyclical challenges, but we believe these challenges can be overcome,” says de la Durantaye. “For example, China has succeeded in stabilizing its growth activity and from that perspective, the Asia region looks relatively attractive compared to say Latin America, where Brazil and Chile will face commodity price challenges.”

For clients hesitant to jump into the emerging-market space, there are ways to access global growth besides buying Brazilian stocks. In Canadian and U.S. equities, look for companies with global exposure. The TSX/S&P Composite Index is heavily weighted to commodities, like gold and oil, which have increased global demand, and the energy sector has been a strong performer in 2014. But aside from major partners like the U.S. and China, Canadian companies should also be looking at other markets. “The share of Canada’s trade with China has risen in recent years,” Tal says, “But that hasn’t been true of other emerging markets. While trade with those areas did expand from three to seven percent between 2001 and 2009, it has shown little change in the last half-decade.” To access opportunities in emerging markets, it might be better to look south of the border. Clients can purchase actively-managed mutual funds with exposure to emerging markets to find opportunities not available through hard-to-purchase emerging-market equities or index-based ETFs. Luc de la Durantaye says,

“In terms of valuation, emerging markets are the most attractive proposition in the equity space.” Luc de la Durantaye However, emerging equity markets’ performance isn’t always tied to their local economies. Nick Langley, portfolio manager and investment director of RARE Infrastructure Limited, says, “In 2013 we saw a real concern over the economic stability of a number of emerging markets, and we saw a lot of capital flow out of the emerging markets. That really occurred as

“Although there have been more and more managers coming into the space, the emerging markets still have a lot of market inefficiencies, so going active is probably not a bad choice.” Buy America: It’s Not Just for Obama Anymore… Investors can also look to the U.S. for global economic growth, since many U.S. companies are multi-national. What’s more, they can further diversify their portfolios by investing in the United States. David Hollond, Chief Investment Officer, U.S. Growth Equity at American Century Investments (American Century) says, “If a Canadian investor added the U.S. equity market, they would gain access to many other sectors, including consumer

staples, health care, consumer discretionary and information technology that would add crucial diversification and potential return-generation benefits to their holdings.” However, de la Durantaye warns not to rely too heavily on a U.S. market that might be overvalued. “We continue to expect U.S. equities to deliver positive returns, but this market could lose its market leadership over the coming six to 12 months,” he says, noting that the U.S. economic cycle is more advanced than that of Japan or Europe. “The U.S. market has the highest valuation and profit margins are at historical highs,” he adds, “making it difficult to gain further ground from current elevated levels.”

Langley says that global infrastructure “ends up having a very low correlation to a number of other asset classes, because what’s driving the returns in these stocks is the underlying regulatory environment and economic activity. This results in a reasonable capital protection in down markets while getting a pretty good share of the upside in up markets.”

Global Infrastructure: A Better Diversifier than Global Equities Correlation with S&P/TSX Composite Index 1.0 Renaissance Global Infrastructure Fund MSCI World Index

0.9

Even if the markets aren’t delivering high returns, clients can look to U.S. dividend-paying stocks as a consistent source of income in any economy. Phil Davidson, Chief Investment Officer, U.S. Value Equity at American Century says his team’s focus “remains on the long-term value of dividends to investors and not on the potential near-term ramifications of macroeconomic events – our process remains consistent throughout varying market conditions. We believe stocks of sound businesses with sustainable dividend payouts have always played a compelling, multifaceted role in our Equity Income portfolio to enhance total return and potentially reduce risk.”

0.8 0.7 Correlation

Tal does see growth in a more traditional sector of the U.S. market. He says, “I am actually bullish on American banks. I think that American banks over the next two-to-three years will do fine, due to the fact they will have their volume, namely credit, but also due to the steepening yield curve in terms of long-term interest rates rising faster than short-term interest rates. This is clearly a positive for banks in terms of spreads and profit.”

0.6

Lower correlation means better diversification properties

0.5 0.4 0.3 0.2 0.1 0

Source: Bloomberg, CIBC Asset Management.

Within the infrastructure space, Langley sees a couple of industries that are particularly well positioned. “Rail companies are involved in moving a lot of

The Global Infrastructure Advantage

goods around, so as economic activity picks up, these are the monopoly providers of transport,” he says. And smartphones are also contributing to

Investors also can’t overlook the importance of infrastructure to the global economy. Tal says, “To maintain the global infrastructure stock at its current 70 percent of GDP, the world will have to invest a staggering $60 trillion between now and 2030. Rising urbanization levels, power infrastructure and other requirements mean the emerging markets outside of China are likely to account for fully a third of that – as much as $8 trillion, through decade’s end.” But it’s not just in emerging markets where infrastructure is an attractive investment. Langley says, “The U.S. has been through a monetary easing phase, and now we’re starting to see growth in the United States. And so, we want to own infrastructure in the U.S. In other areas of the globe, we’re still in an easing phase, which means we want to own some utilities in those different regions. That helps balance the risk in the portfolio and drives what we expect to be fairly stable returns over the next investment cycle.”

new infrastructure investment. “The wireless tower businesses have been benefitting from the roll-out of the 4G voice and data network, in the U.S. in particular. As telecommunications companies get more subscribers onto those networks, they need to come to the wireless tower businesses and they need to rent more space.” Global Growth: An All-in-one Solution With an all-in-one investment solution like the Renaissance Optimal Suite of Portfolios, clients can invest in fixed income and equities across several asset classes to suit their risk appetite and meet their income needs. Renaissance Optimal Portfolios holdings include Canadian and global bonds, dividend-paying stocks, global infrastructure and other instruments that can provide the global growth exposure your clients need, without unnecessary risk. See Solution Highlight to learn more.

Don’t Let the Canadian Dollar Bring Your Returns Down If your clients are looking to invest globally, they’ll have to contend with currency risk. This occurs when the Canadian dollar goes up and a Canadian-dollar-priced fund that holds foreign securities sees the value of its returns decline. But you can combat currency risk with a currency-hedging strategy. Currency hedging uses foreign currency forward contracts (a contract between two parties to buy or sell currencies for an agreed-upon price at a future date) to lock in the exchange rate of an investment. This protects the investor if the Canadian dollar rises in value; however, if the Canadian dollar falls, the currency-hedged investor won’t benefit. For shorter-term investors who want to eliminate the impact of currency fluctuations on their returns, a currency-hedging strategy might be suitable. It can also benefit an investor who feels that the dollar will appreciate over time and wants to “buy low” on the loonie.

Renaissance Investments Offers a Lineup of Currency-neutral Funds, Including:

Hear further insights on global markets and much more from our experts...

ADVISOR ToGo Access to the experts when you need them

Listen to additional insights from these Renaissance experts and others

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Nick Langley RARE Infrastructure

Podcast > Where are Emerging Markets Going?

Nick Langley RARE Infrastructure

Podcast > Infrastructure: A Wise Investment

George Dent Walter Scott & Partners

Podcast > A Tour of Global Markets

Jason Yablon Cohen & Steers

Podcast > Where to Invest in China

Jason Yablon Cohen & Steers

Podcast > Capture Global Real Estate Growth

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FANTASY

FOR THE ARMCHAIR QUARTERBACK IN ALL OF US As the popularity of the NFL has exploded, so has fantasy football. For a sports fan, running a fantasy football team can be like managing an investment portfolio. You try to “buy” players low and sell high (to another owner via trade), look for bargains in the draft, and deal with lineup volatility in the form of bye weeks and injuries. And just like your investments, there’s no guarantee that your fantasy quarterback will follow-up a 300-yard performance with another strong effort the next week.

What makes fantasy football so appealing is the same reason fans mark their calendars during football season: each team plays just once a week, almost always on Sunday. The simplicity of the NFL schedule allows you to set your roster on Sunday morning and forget it…until your star running back starts having a monster game. Then you’ll be checking back constantly to see how many fantasy points he’s piling up.

GETTING STARTED Most fantasy football leagues are run online, with popular platforms including Yahoo, CBS Sportsline and ESPN. These sites allow the league commissioner to easily set the number of teams, maximum roster sizes, scoring formats, and send email invitations to potential league members. To join a league, you will need to create an account with the website in question; it is usually free to do so (unless your commissioner charges league dues).

THE DRAFT Once you join a league, the draft is the first big event and can take place anywhere from a month to a week before the NFL season starts. But whether you have a live draft or submit a list of players to be chosen in an “automatic” (non-live) draft, it helps to do some research beforehand. See the sidebar on page 14 for tips on how to get the most out of your draft picks.

SETTING YOUR STARTING LINEUP Fantasy football only requires a few minutes of your time each week. Once you’ve drafted your team, you really only need to check your roster on Sundays before kickoff to make sure you don’t have any injured players in your starting lineup. Although it can vary from league to league, a starting lineup usually consists of one quarterback (QB), two running backs (RB), two or three wide receivers (WR), one tight end (TE), one “flex” position that can be filled by an RB, WR or TE, one kicker and one team defence (although some leagues draft individual defensive players). Beware of the dreaded bye week: each NFL team takes off one week per season, with three or four teams off at a time. If you’ve got more than one starting player with a bye or an injury, you’ll have to make a move, either via trade or waivers.

WORKING THE WAIVER WIRE Unless you’re in a 32-team league, there are going to be more starting players in the NFL than there are in your fantasy league. The ones that aren’t on anyone’s fantasy team go to the waiver wire, a list of fantasy free agents that can be claimed by anyone. Each league has its own waiver rules, but common ones include not allowing players to be claimed while games are in progress, and awarding waiver priority based on draft position. In this case, the team with the last draft pick gets first waiver priority, but once you claim a player, you go to the back of the line for the next claim.

TRADING PLAYERS Trading players is pretty straightforward, but most leagues have some sort of trade-review process, in which either the appointed commissioner or all other members of the league can protest and/or veto the trade. This is done in the name of fairness – if you’re not ripping somebody off, your trade shouldn’t get vetoed. But you might want to take note of the guy who keeps voting against your trades, so you can exact some revenge on the fantasy battlefield.

ON ANY GIVEN SUNDAY… While there are a few different scoring formats for fantasy football, the one that works best is head-to-head, with each team pitting its starting lineup against a new opponent each week. As the old adage goes, on any given Sunday, anyone can beat anybody else…unless you forget to update your starting lineup when half your team has a bye week.

TOP

5 TIP 1

FANTASY FOOTBALL DRAFT TIPS

Know the importance of a good running back

Running backs are the most consistent fantasy football performers. Unlike quarterbacks and wide receivers, an RB is largely in charge of his own performance. That’s why you should always draft at least one RB, if not two, in the first two rounds. Most fantasy football leagues award more points for rushing yards than passing yardage.

TIP 2 Don’t reach for a tight end Almost all leagues make you start a tight end, a large player who’s half-blocker, half-receiver. While the top two or three tight ends can put up big receiving numbers, there are no fantasy points for blocking. Once the best ones are gone, you can afford to wait.

TIP 3 Don’t wait for a quarterback While you probably shouldn’t draft a quarterback in the first round, you can’t wait until the 12th round, either. (A typical draft has 16 rounds.) The difference last season between the top QB and a projected 12th round pick in this year’s Yahoo fantasy drafts was 2,856 yards and 36 touchdowns. Yahoo has most of the top 10 QBs coming off the board between the fifth and seventh rounds.

TIP 4 Don’t forget about the backup If your star first-round running back has a history of injuries, it doesn’t hurt to draft that player’s backup in a later round. Chances are, his team isn’t going to completely change its game plan when their top rusher takes a week off, so you’ll want to have that second-stringer in your starting lineup.

TIP 5 Always draft a kicker last A kicker is only as good as his offence, which he needs to get him into scoring position. And most NFL kickers rarely miss, making them largely interchangeable.

Helping Clients Make Better Decisions THANKS TO OUR SUPPORTERS

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

How do you address the potential for rising interest rates with clients? We recommend exposure to floating-rate loans. Best tips for gaining new clients: Get involved when important financial decisions need to be made, such as: the sale of property, the transition of a business and retirement. Align success with clients’ outcomes. Finally, be transparent about your fees.

What do you love about the business? Favourite hobbies:

Helping clients make better decisions with their money, so their confidence and personal net worth are both increased.

I enjoy hot yoga and the great outdoors.

What is your personal formula for building strong client relationships?

One item I can’t be without:

I learn the client’s history with wealth, get to know their family and provide them with the tools and advice they need to make better investment decisions. Specifically, we protect clients from the trends, the media, the products − and most importantly the behaviour − that could imperil their wealth.

My BlackBerry.

Are there areas or themes of financial or investment planning that you plan to focus more on this year? My team is focusing on illustrating the benefits of estate planning to clients. We’re doing this to maximize the benefits of clients’ wealth for the people they care about or charities they support. Also, we’re placing an emphasis with clients on the progress they’re making towards their long-term goals, so they know they have enough to retire or move away from full-time employment.

Gilbert Sreih Firm: CIBC Wood Gundy, Montreal, QC Years in Business: 20+ Team Members: 6

What are the most common client concerns you hear currently and how do you address them? Inflation is the concern we’re hearing most. To address this in client portfolios, we are starting to add exposure to these hard assets: • Real return bonds • Global real estate

• Global infrastructure • Commodities

brain calisthenics Word scramble – Unscramble the following letters to spell words from the article on pages 6-10:

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

1. tnvigoorheos

2. cmdimioeots

3. irtatinson

4. ntreoamy 5. aicycllc 6. geyner

7. pnetegensi 8. pmnooyol 9. tseumrnnist

3 4

10. iolneo

8 5

Source: 4puz.com

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

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

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

FOR ADVISOR 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. 速 Axiom, Axiom Portfolios and Renaissance Investments are registered trademarks of CIBC Asset Management Inc.

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Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Renaissance Optimal Income Portfolio Fund Facts or simplified prospectus before investing. The indicated rates of return are the historical annual compounded total returns for the Class A units, as at June 30, 2014, 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. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ÂŠ 2014 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Overall rating and quartile rankings are as of June 30, 2014 and are subject to change monthly. The ratings are calculated from a fundâ&#x20AC;&#x2122;s 3- and 5-year returns measured against 91-day Treasury bill and peer group returns. The top 10% of the funds in a category get five stars. Quartile rankings are comparisons of the performance of a fund to other funds in a particular category. The quartile rankings above reflect performance of Class A units of the fund. The quartiles divide the data into four equal segments expressed in terms of rank (1, 2, 3 or 4). The top 25% of the funds in a category are in the first quartile and the next 25% are in the second quartile, and the next 25% are in the third quartile. The bottom 25% of funds (with the poorest performance) are in the fourth quartile. The Renaissance Optimal Income Portfolio is categorized as a Canadian Fixed Income Balanced Fund. For each period, the number of funds in the category is as follows: 1 Year: 276, 2 years: 255, 3 years: 203, 5 years: 155. For greater details see www.morningstar.ca. ÂŽRenaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. 02001E(201407)