The Renaissance Advisor by renaissancemag

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

Q4 – DEC. 31, 2014

The Great Disconnect Investor Return Expectations vs. Portfolio Realities

For Advisor Use Only

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PAGE

In this issue

6 4

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

Economic Outlook Top Five Economic Themes for 2015

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

The Great Disconnect

Solution Highlight Show Clients the Benefits of Floating-rate Loans

Thanks to Our Supporters Be Your Clientsâ&#x20AC;&#x2122; Advocate

Slow & Steady Wins the Race

Brain Calisthenics

From the Managing Director of the Renaissance Sales Team

Building Trust and Client Relationships Welcome to the Q4 2014 edition of The Renaissance Advisor. While many of you know me, this is my first letter to our readers as head of the Renaissance Investments sales team. I look forward to furthering our partnerships and building the trust you have in us as your preferred solution provider. Building trust is the key to any successful relationship, including the relationships we have with our clients. But how do you develop trust when Canadian investors are wary of markets, scared of losing capital and invested too conservatively to meet their long-term goals? The findings of a recent investor survey commissioned by CIBC Asset Management conclude that addressing those concerns head on is key to solidifying client satisfaction and ongoing relationships. Our feature article, The Great Disconnect: Investors expect more than their portfolios can deliver, can assist you in tackling todayâ&#x20AC;&#x2122;s investor concerns. It offers results from our survey and expert insights from Luc de la Durantaye and Grant Shorten. To prime you for client conversations, Grant outlines a quick 7-step guide to educating clients on risk and return. And once clients are more comfortable with risk, remember that Renaissance Investments has diversified solutions for every risk level. Renaissance Optimal Portfolios are all-in-one solutions that provide investors with the opportunity to generate income, benefit from capital appreciation and manage volatility. Also in this edition: Jamie Golombek discusses maximizing registered plan saving, Benjamin Tal outlines five top economic themes for 2015, and Grant explains how to capitalize on networking events. We thank you for your business and welcome your feedback.

Shelly McLean Managing Director, National Sales Renaissance Investments

Use Registered Accounts to Shelter Highly Taxed Fixed Income TAX AND ESTATE

A recent survey commissioned by CIBC Asset Management* shows that Canadian investors’ return expectations may not be aligned with their portfolios. Nearly half of investors list “growth” as their main objective and one-third feel they need annual returns of 6% or higher. Despite these return expectations, a large portion of investors are primarily invested in loweryielding GICs, savings accounts and guaranteed investments. Indeed, investors may be likely to become even more entrenched in conservative investments as market volatility increases. Seventeen percent of survey respondents say recent volatility has impacted their investment plans and another 22% are unsure. For investors reacting to market turbulence, 56% say they will invest more conservatively for more protection. Poor investment returns on conservative, fixed-income investments can be further eroded by high tax rates when investments are held in nonregistered accounts. Fixed-income investments, including bond funds, earn interest income, which is taxed at rates up to 50% depending on the investor’s marginal tax rate and province of residence. So, an investor who earns 2% on a GIC may only get to keep 1% after taxes are deducted. Clients can maximize their long-term, after-tax returns by focusing not just on asset allocation but on the asset location – in other words, the type of accounts in which they hold their investments. The 2008 federal budget predicted that, “As the TFSA matures over the next 20 years, it is estimated that, in combination with existing registered plans, it will permit over 90% of Canadians to hold all their financial assets in tax-efficient savings vehicles.” And there’s good reason for clients to make the most of these plans.

$36,500. Most Canadians know that investment income earned in a TFSA will be completely tax-free, which can make the most of returns earned on the investor’s portfolio. What investors often don’t realize is that the same benefit may be obtained by investing in a Registered Retirement Savings Plan (RRSP) when the investor’s marginal tax rate is similar in the year of contribution and the year of withdrawal. This was demonstrated in our previous report, Blinded by the Refund. And, if a client’s marginal tax rate is expected to decrease in retirement, an RRSP can yield an even greater after-tax return. For 2015, the RRSP contribution limit is $24,930, less any pension adjustment, so investors who had earned income of at least $138,500 in 2014 can contribute the maximum amount. So for 2015, make sure your clients are maximizing their tax registered plan contributions. *The results presented in this document were gathered through a Web survey conducted by Leger from November 21 to 25, 2014 among a representative sample of 1,505 English- or French-speaking Canadians, 18 years of age or older, who have an investment portfolio for retirement. Using data from Statistics Canada, 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.

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. Follow @JamieGolombek

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

www.renaissanceinvestments.ca/en/jamie_golombek/

Top Five Economic Themes for 2015 ECONOMIC OUTLOOK

1. The Global Economy to Surprise on the Upside Monetary policy was eased in many countries, oil prices fell dramatically, and many countries are receiving an additional boost from weaker currencies. The Bank of Japan expanded its balance sheet aggressively; the European Central Bank announced a series of easing measures, and most likely will announce an additional increase in balance sheet expansion target and sovereign bond purchase in January. The main impact of these policy measures will be felt in the second half of 2015. Add the positive impact of lower oil prices on global growth and the notable softening of the yen and the euro alongside many other currencies, and there are good reasons to be a bit more optimistic about 2015. The extraordinary amount of stimulus won’t be ignored by the market. It’s very reasonable to assume that both European and Japanese equity markets will react positively to such stimulus, and we might even see some modest upward pressure on long-term yields. Effective Exchange Rate Has Fallen 100

Percentage of Exports in GDP 30

United States OECD Average

25 20 15 10 5 0

1980

1990

2000

2012

Source: The World Bank, CIBC

98 -4.5%

3. Long Energy?

94 92

Nov. 2014

Sept. 2014

July 2014

May 2014

Mar. 2014

Jan. 2014

Source: Eurostat, Bloomberg, CIBC

2. Self-sustained Recovery in the United States True, the U.S. dollar has gained significant ground in the past six months, but with exports accounting for only 14% of GDP (half the OECD’s average), in many ways, the U.S. is still an economic island. And domestically, overall activity is strong – led by the significant acceleration in the pace of job creation.

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

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

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

Furthermore, the rout in oil will undoubtedly create areas of stress in the energy sector. But it might also be presenting opportunities to gain exposure to assets that are more or less unaffected by oil’s decline, and whose prospects actually look better thanks to lower energy prices. BB-rated investments that still offer leverage to the business cycle and a relative decrease in duration should attract investors as we enter the economic recovery’s next phase, and the tighter monetary policy that it will bring. Kilogram of Oil Equivalent Per Capita (2012) 8,000

7,000 6,000

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

5,000 4,000

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

3,000 2,000 1,000 0 CAN

USA

RUS

FRA

DEU

JPN

GBR

ITA

Source: The World Bank, CIBC

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

Benjamin Tal is Deputy Chief Economist for CIBC. Described as one of Canada’s leading experts on the real estate market by the International Monetary Fund, he is responsible for analyzing economic developments and their implications for North American fixed income, equity, foreign exchange and commodities markets.

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

Asset Gathering Secrets of Elite Advisors Part 3 – Capitalizing on Networking Opportunities

BACK OF THE NAPKIN

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

“CAPITALIZING ON NETWORKING OPPORTUNITIES”

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.

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

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.

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

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! 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:

Capitalizing on Networking Opportunities

Let’s take a closer look at each component:

The First Impression The initial impact we have at a networking function is critical. Research suggests it takes just one-tenth of a second to form a lasting first impression about someone. And, once that impression is formed, it’s virtually impossible to change! Therefore, it’s essential to “show up” and convey confidence, warmth, professionalism and trustworthiness. Masterful networkers know the importance of gearing up for events in advance, and then delivering the elements of a strong first impression. Given the split-second of time we have, these are primarily visual and include: • Confident posture and expressive body language • Appropriate attire • Warm smile and welcoming facial expressions

The Power of Strategic Alliances

Leveraging Intimate Client Events

Capitalizing on Networking Opportunities

• Perfect handshake (matching firmness, palm up, eye contact) Once you’ve delivered a positive first impression, you can move to the next component.

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

For Example: We communicate very differently with a friend at a BBQ than we do with our boss at work, or a stranger at a party…yet all of those “styles” are legitimate aspects of us. One of the highest compliments we can pay someone is to step into their model of the world, and align with them in ways that help them relax and be comfortable enough to receive our message efficiently.

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

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

3. Align Your Communication Style Unsurprisingly, we are drawn to those we see as similar to ourselves; this will often quickly turn to familiarity. Master networkers take control of this phenomenon and employ the power of mirroring, matching, pacing and leading. When performed properly, and with respect, these techniques can create rapid rapport. The concept is as follows: Assume a similar body posture and gesturing style to your communication partner. Your approach should be subtle and not mistaken as copying or mimicking. Raise or lower your voice to more closely resemble that of your communication partner. You may further adjust your speed of speech to match theirs, while replaying some of their own key words back to them later on. Align yourself with their general mood as you lead them to a more resourceful state. These simple techniques are so powerful, they are sometimes criticized as being manipulative. However, we all communicate with a broad spectrum of options and possibilities, and it’s frequently just our current mood (or environment) that dictates our style of communication.

Change Brain Chemistry Changing brain chemistry is something we do every time we speak to another human being. We do this through the words we use. Our words are very powerful; they instantly create pictures in the mind of the listener, changing their emotional state. Networking engagements provide the opportunity to orchestrate and direct your words to achieve a specific result. Elite networkers develop a “natural” ability to choose their words carefully, delete negativity, and deliver words that uplift, inspire and empower. When someone leaves a conversation feeling positive, they have a lasting impression and an openness to further the relationship. Advancing the Relationship and Follow-up The last piece of the networking equation is to advance the relationship. If justified, ask for a business card or contact information so you can follow-up. Your first follow-up should be within 24-48 hours, so any emotional connection remains alive. It may be a brief email, telephone call, or a handwritten note expressing gratitude, but your follow-up needs to contain a call-to-action. Invite them to another upcoming event, meet for coffee, or ask questions to encourage a response. Sometimes, getting someone to respond once can begin to install a new set of behaviours. Develop a crystal-clear definition of your target market and identify creative ways to spend time with them. Modeling the values, beliefs and approaches of top networkers, we discover they typically operate with a single prime directive – seeking opportunities to offer a “second opinion.”

Grant Shorten is Director of Strategic Insights at Renaissance Investments. He offers insights and approaches that will work with your clients and have an immediate impact on your practice.

www.renaissanceinvestments.ca/en/practicemanagement/

THE GREAT DISCONNECT Investors expect more than their portfolios can deliver

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

But here’s the problem: 42% of those same survey respondents say they’re primarily invested in GICs, savings accounts or other guaranteed investments, and they plan to stay invested in these products for the future. And 40% of those investors in low-yielding, guaranteed investments say they need annual returns of 4% or more to meet their investment goals. In reality, interest rates would have to rise significantly from current levels in order for these investors to achieve their desired returns. Luc de la Durantaye, Managing Director, Head of Asset Allocation and Currency Management, CIBC Asset Management says, “The Bank of Canada will remain prudent by keeping policy rates at ultra-low levels, given slowing growth and declining inflation.” The Bank of Canada cut its overnight rate to 0.75% in January, the first rate change since September 2010. It’s probably safe to say that annual interest rates won’t hit 6% any time soon. Investors will need to increase the level of risk in their portfolios to generate their desired returns. So why aren’t they currently turning towards more suitable investments to meet their long-term goals?

Shorten says, “I think that advisors can use the 2008 meltdown as a tool to educate clients and instill comfort in the financial system. It makes sense that investors need reassurance before you can offer them more suitable investments to achieve their long-term growth goals.” “Whether we look at this particular crisis, or the dotcom bubble of 2000, or the stock market crash of 1987, or the oil crisis, or the crash of 1929… The capital markets just continue to rebound and tick along – many hitting all-time highs – while providing tremendous opportunities to create real wealth.” Shorten encourages advisors to show their clients how many months it took the markets to rebound from past downturns, noting, “It can be an eye-opening and reassuring exercise for many worried investors.” How Equity Markets Rebound Over Time $70,000

Lehman Brothers Collapse

9/11 Drop: -11.5% 1 Year Later: -3.2%

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

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

$60,000 $50,000 Asian Flu Drop: -11.7% 1 Year Later: 29.2%

$40,000 $30,000

U.S. Debt Downgrade $20,000

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

Drop: -8.9% 1 Year Later: 4.9%

$10,000 ‘92

‘94

‘96

S&P/TSX Composite Index

‘98

‘00

‘02

S&P 500 Index

‘04

‘06

‘08

‘10

‘12

MSCI World Index

Source: 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 may be no guarantee of future results. The investment returns are denominated in the base currency of the Index.

Uncertainty is the New Certainty

7 STEPS TO EDUCATE CLIENTS ON RISK AND RETURN Grant Shorten

1 2 3 4

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

SHOWCASE the blatant contrast between your client’s expectations and the sheer unlikelihood of achieving that growth with their current asset mix and portfolio composition.

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

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

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

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

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

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

“The current situation is very different from 2008 when the financial crisis was brought on by excessive leverage in the financial system.” Instead, de la Durantaye notes that “Market volatility in past months is actually closer to the norm, but may seem unusual because financial markets have been unusually steady over the past year.” And he sees market corrections as potential opportunities to uncover attractive investments. “Depending on the global market and sector, market corrections can push asset prices under their fair value level and create more attractive buying opportunities,” he says. Time to Take on Risk Despite current market conditions, de la Durantaye still believes equities are positioned to be the strongest-performing asset class. “With more modest returns for equities and limited upside for bond yields, equities should still outperform bonds, but by a smaller margin than in the last 12 months.” He says that in his portfolios, “We remain cautiously overweight equities and expect that central bank initiatives will support the economic expansion and generate sustainable earnings growth.”

“We remain cautiously overweight equities and expect that central bank initiatives will support the economic expansion and generate sustainable earnings growth.” So, how do you get your clients to buy in? Grant Shorten says, “Do everything in your power to avoid slipping into the ‘science and logic’ around capital market investing, asset allocation and prudent diversification principles.” Instead, you should “Discuss how you are working with your clients to instill a renewed sense of hope and confidence, in light of the tremendous opportunities which lay ahead.” And your most anxious clients don’t have to move all their assets right away – they can always start small. Shorten says, “Talk to your client about dividing their investable assets into two different buckets – perhaps 75% ‘serious money’ and 25% ‘belief money.’ For the next few months, keep the serious money in safe, conservative investments, while stepping into a well-diversified portfolio of equity-based investments with the belief money.”

CIBC Asset Management 2015 Investor Survey: Other Key Findings

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

69 %

Investors continue to be Canada-centric

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

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

Women continue to invest more conservatively than men

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

The Great Disconnect: Return Expectations vs. Portfolio Realities

2015 Investor Survey Results

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

• The majority of female respondents invest in GICs, savings accounts and other guaranteed investments, at 52% compared to 32% of men. • Market volatility has impacted women investors; 65% of female respondents say that recent market volatility will make them take a more conservative approach.

*The results presented in this document were gathered through a Web survey conducted by Leger from November 21 to 25, 2014 among a representative sample of 1,505 English- or French-speaking Canadians, 18 years of age or older, who have an investment portfolio for retirement. Using data from Statistics Canada, 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.

ADVISOR ToGo Access to the experts when you need them

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

Luc de la Durantaye, CIBC Asset Management

Podcast > 3 Reasons to Pull Back on U.S. Equities

Craig Jerusalim, CIBC Asset Management

Podcast > Don't Give Up on Canada

Patrick O'Toole, CIBC Asset Management

Podcast > Short-Term Bonds are Overvalued

Scott Vali, CIBC Asset Management

Podcast > Oil Got You Down? Consider Metals

Show Clients the Benefits of Floating-rate Loans SOLUTION HIGHLIGHT: NEW RENAISSANCE FLOATING-RATE LOAN ONLINE TOOL

Rising rates can take a big bite out of clients’ fixed-income holdings…but floating-rate loan exposure can help to reduce their impact. Renaissance Investments has developed a new interactive online tool to help you educate your clients on the advantages of this asset class. The tool visually explains how: • Interest rates today are near record lows and will eventually rise • A rise in interest rates puts traditional fixed-income assets at risk • The floating-rate loan asset class has historically outperformed traditional fixed income during rising rate periods • Adding this asset class to a traditional balanced portfolio can improve its risk/return characteristics

www.renaissanceinvestments.ca/en/calculators/floatingrate/ Renaissance Floating Rate Income Fund offers your clients access to this exciting asset class.

Contact your Renaissance representative for more details. renaissanceinvestments.ca 1-888-888-FUND (3863)

Be Your Clients’ Advocate THANKS TO OUR SUPPORTERS

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

passing wealth on to the next generation. As wealth advisors with seven professional designations on the team, we feel equipped for this activity. Best tip for gaining new clients: Serve your existing clients well, and work in good faith with their accountants and lawyers. Client satisfaction brings with it client and centre of influence referrals.

What do you love about the business? Clients are seeking advice from trusted professionals that are their advocates. Kathy Robertson, Investment Associate, and I enjoy being the professionals on their team. What is your personal formula for building strong client relationships? We conduct face-to-face meetings, truly listening to our clients and provide sound advice for all aspects of their finances. We draft a plan and, most importantly, we execute it and regroup annually to review it! What are the most common client concerns you hear and how do you address them? Clients are concerned about having enough money. To ensure we address this concern, we draft financial plans, review them annually and rewrite them if needed. This keeps us current in our clients’ ever changing lives. Clients are also worried about surviving the next market downturn. Our clients’ portfolios are divided into the obvious tasks at hand. The part that is invested to provide timely cash draws has minimal equity exposure and, therefore, minimal market valuation changes. The balance of their overall investments is exposed to equities, but won’t affect their day-to-day lifestyle. Having said that, we harvest growth as it’s presented. The last few years, we have been busy harvesting and repositioning our excess for the eventual rainy day.

Favourite hobbies: I’m a yoga enthusiast. Kathy’s into golfing and hockey. One item I can’t be without: My BlackBerry. It’s my lifeline to the office. Kathy is dependent on her watch to keep her on time and focused.

Cyrilla Saunders Firm: Saunders Wealth Advisory Group of CIBC Wood Gundy Location: Charlottetown, PE Years in Business: 18 Team Members: 3

Are there areas or themes of financial or investment planning that you plan to focus on more in the future? Our business is client driven and as they age their needs will change. What clients ask of us will likely be to assist with exiting their businesses, and

Whether youâ&#x20AC;&#x2122;re gearing up for a marathon, halfmarathon or another running event this year, get ready to put your best foot forward.

SLOW & STEADY WINS THE RACE

AND OTHER THOUGHTS ABOUT RUNNING

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

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

Walk Before You Run It doesn’t happen often, but Smith says that once in a while someone will seek coaching services with the hope of completing a marathon despite having no previous running experience. If that’s the case, he says, “We usually suggest going through a qualified running clinic. You will experience those first few hurdles of running in a group of the same level.” Running clinics are tailored to athletes of all different levels, not strictly marathoners. A good measure of when to seek coaching is after you’ve “successfully completed a distance of half your goal already,” he says. And to be clear, “Running a half-marathon does not mean it requires half the training.”

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

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

Don't Be Your Own Worst Enemy We’ve long been told that each body is different. And that is certainly evident in running. The idea behind coaching is to ask runners those questions that can help answer why they might not be getting the results they’re after. In addition to a basic distance/speed check, Smith performs a very tailored approach based on his own software. The technology can calculate and create a plan that gets tweaked into a very specific recommended approach. Based on the objectives and information initially provided, factors include: how often to run, how to schedule your runs based on your timetable, how long to run for and at what pace. Some runners will take this plan and go forth on their own, while others prefer to be coached in conjunction with their individual plan. This can be a great way for runners to ask questions during the process. Many people believe the purpose of a coach is to have someone push and motivate you along the way, but Smith says that a big part of his role is teaching people to ease up on themselves. “People can be too rigid and follow the plan too closely to the point where they aren’t flexible for life happenstance.” He says he is often the one telling them to slow down and take it easy. “Runners,” he says, “can be their own worst enemy.”

Since 1997, CIBC has been the title sponsor of the Canadian Breast Cancer Foundation CIBC Run for the Cure. 15

5 THINGS TO CONSIDER BEFORE YOU RUN:

Run Smarter, Not Harder Having a coach around can be eye-opening as they are often the one who will bring the little things to your attention. Smith says, “We can recognize and help reduce tension that they might not even be aware of, like having their hands in a fist, or straining the muscles of their face.” A coach can spot if you tend to lean when you run, whether or not your hips stay under your chest, or if your strides are too long. While proper form can help minimize injuries, it’s not the catalyst to marathon success, says Smith. He agrees that, “It’s important, but it’s not usually the missing link to why you’re not reaching your goal.” For example, some runners prefer to keep their arms rigidly tucked in, while others enjoy the feeling of letting them go loosely. What works best for person A isn’t necessarily an indicator of what will work for person B. This is precisely why everyone should be coached individually, and why runners should not get too consumed with form. Make smart choices and listen to your body.

SHOES – Purchase a good pair of running shoes designed for your arch and stride type. If you’re unsure about which ones to use, visit a local running specialty store to get fitted. Good socks are equally important! Look for socks that are seam-free and manage moisture to prevent blisters.

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

SLEEP – Be sure to log 7-8 hours of sleep for at least two consecutive nights before the event, and avoid any strenuous activity the day before the run. Allow your body to repair so you can function at your optimal level.

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

This single-day event brings together 65 communities across Canada in an effort to raise awareness and help fund innovative breast cancer research, education and advocacy programs. Together, we raised $25 million in 2014.¹ Athletes of all levels are welcome to participate by walking, running or volunteering to help raise funds for the breast cancer cause. The run is scheduled for October 4, so be sure to add this great event to your list of activities in 2015. ¹http://cibccommunity.com/causes/cibc-run-for-the-cure/

ENJOY – The sense of selfaccomplishment that comes from crossing that finish line is an amazing feeling. Remember your reason for running and set that as your intention. Use the post-race high as momentum for your next goal.

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

1. iprlyairm

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

2. dinenilgc

3. eplxcom

4. urcnsseraea

5. stndornuw

8 4

5 7 9

6. recatth

2 7. ceroicnotr

8. maignr

7 3

9. nduetrp

4 8

10. vocelviatrysen

4 1 2

Source: 4puz.com

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

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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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