Annualized returns for Cymbria

Annualized returns for EdgePoint Wealth Management

These are the benchmark indexes we’ve chosen for our portfolios:

EdgePoint Global Portfolio: The MSCI World Index is a market-capitalization-weighted index comprising equity securities available in developed markets globally. The index was chosen as it’s a widely used benchmark of the Global equity market.

EdgePoint Canadian Portfolio: The S&P/TSX Composite Index is a market-capitalization-weighted index comprising the largest and most widely held stocks traded on the Toronto Stock Exchange. The index was chosen as it’s a widely used benchmark of the Canadian equity market.

EdgePoint Canadian Growth & Income Portfolio: 60% S&P/TSX Composite Index / 40% ICE BofAML Canada Broad Market Index. The S&P/TSX Composite Index is a market-capitalization-weighted index comprising the largest and most widely held stocks traded on the Toronto Stock Exchange. The ICE BofAML Canada Broad Market Index tracks the performance of publicly traded investment-grade debt denominated in Canadian dollars and issued in the Canadian domestic market. The blended benchmark was chosen because the former is a widely used benchmark of the Canadian equity market and the latter representative of fixed-income opportunities consistent with the Portfolio’s mandate.

EdgePoint Global Growth & Income Portfolio: 60% MSCI World Index / 40% ICE BofAML Canada Broad Market Index. The MSCI World Index is a market-capitalization-weighted index comprising equity securities available in developed markets globally. The ICE BofAML Canada Broad Market Index tracks the performance of publicly traded investment grade debt denominated in Canadian dollars and issued in the Canadian domestic market. The blended benchmark was chosen because the former is widely used for the Global equity market and the latter representative of fixed-income opportunities consistent with the Portfolio’s mandate.

Why our performance may not be similar to their benchmarks: We manage our Portfolios independently of the indexes we use as long-term performance comparisons. Differences including security holdings and geographic/sector allocations may impact comparability and could result in periods when our performance differs materially from the index. Additional factors such as credit quality, issuer type and yield may impact fixed-income comparability.

Forward looking statements

This presentation may contain forward-looking statements including strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or negative versions thereof and similar expressions.

In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about economic factors.

Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by EdgePoint. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factors, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events.

We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that we have no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Report on Fund Performance.

Endnotes

1 Source, Cymbria: Fundata Canada Inc. Source, MSCI World Index: Morningstar Direct. As at March 31, 2020. Total returns in C$. Security selection return calculated excluding EdgePoint’s value and its dividends while adjusting for Normal Course Issuer Bids (NCIB) or Liquidity Realization Opportunities (LRO) and excluding any EdgePoint changes in valuation or dividends. An NCIB is a process where a company slowly repurchases shares at a lower price and cancels them. An LRO is an agreement to buy shares from a willing seller at an agreed upon price when Cymbria shares trade at a discount to net asset value. The MSCI World Index is a broad-based, market-capitalization-weighted index comprising equity securities available in developed markets globally. The index was chosen for being a widely used benchmark of the global equity market. We manage our Portfolios independently of the indexes we use as long-term performance comparisons. Differences including security holdings and geographic/sector allocations may impact comparability and could result in periods when our performance differs materially from the index. Additional factors such as credit quality, issuer type and yield may impact fixed-income comparability from the index.

2 In C$. As at April 30, 2020. Series A is available to all investors on a front-end sales charge basis. Series B was available to all investors on a low-load sales charge basis until it was discontinued effective December 3, 2018. Series F is available to investors in a fee-based/advisory fee arrangement and doesn’t require EdgePoint to incur distribution costs in the form of trailing commissions to dealers. Series I is available to investors who meet the investment minimum and have a Series I Subscription Agreement with EdgePoint.

3 Portfolio activity for the period April 30, 2019 and April 30, 2020. Increased positions are holdings where the number of purchased units were at least 10% of the position as at April 30, 2019. Number of new businesses and sold businesses excludes companies that were both bought and sold intra-period.

4 Source, EdgePoint returns: Fundata Canada Inc. Source, benchmark returns: Investor Economics. Annualized total returns in C$. EdgePoint Series F and the benchmark returns are since November 17, 2008. Series F is available to investors in a fee-based/advisory fee arrangement and doesn’t require EdgePoint to incur distribution costs in the form of trailing commissions to dealers. Benchmarks are the MSCI World Index (EdgePoint Global Portfolio) and the S&P/TSX Composite Index (EdgePoint Canadian Portfolio). The MSCI World Index is a broad-based, market-capitalization-weighted index comprising equity securities available in developed markets globally. The index was chosen for being a widely used benchmark of the global equity market. The S&P/TSX Composite Index is a market-capitalization-weighted index comprising the largest and most widely held stocks traded on the Toronto Stock Exchange. The index was chosen for being a widely used benchmark of the Canadian equity market. Index returns are net of fees. We manage our Portfolios independently of the indexes we use as long-term performance comparisons. Differences including security holdings and geographic/sector allocations may impact comparability and could result in periods when our performance differs materially from the index. Additional factors such as credit quality, issuer type and yield may impact fixed-income comparability from the index.

5 Source, EdgePoint returns: Fundata Canada Inc. Source, benchmark returns: Investor Economics. Annualized total returns in C$. Series F is available to investors in a fee-based/advisory fee arrangement and doesn’t require EdgePoint to incur distribution costs in the form of trailing commissions to dealers. EdgePoint Series F and the benchmark returns are since November 17, 2008. Benchmarks are a 60% MSCI World Index/40% ICE BofAML Canada Broad Market Index blend (EdgePoint Global Growth & Income Portfolio) and a 60% S&P/TSX Composite Index/40% ICE BofAML Canada Broad Market Index blend (EdgePoint Canadian Growth & Income Portfolio). Index returns are net of fees. The MSCI World Index is a market-capitalization-weighted index comprising equity securities available in developed markets globally. The S&P/TSX Composite Index is a market-capitalization-weighted index comprising the largest and most widely held stocks traded on the Toronto Stock Exchange. The ICE BofAML Canada Broad Market Index tracks the performance of publicly traded investment-grade debt denominated in Canadian dollars and issued in the Canadian domestic market.  The blended benchmark constituents  was chosen because the MSCI World Index is a widely used benchmark for the global equity market, the S&P/TSX Composite Index is a widely used benchmark of the Canadian equity market and the ICE BofAML Canada Broad Market Index is representative of fixed-income opportunities consistent with the Portfolios’ mandates.  We manage our Portfolios independently of the indexes we use as long-term performance comparisons. Differences including security holdings and geographic/sector allocations may impact comparability and could result in periods when our performance differs materially from the index. Additional factors such as credit quality, issuer type and yield may impact fixed-income comparability from the index.

6 Source: Empirical Research Partners Analysis, National Bureau of Economic Research. The valuation spread is the difference between the valuation of top quintile of large capitalization U.S. stocks relative to the average valuation for large capitalization U.S. stocks. The chart shows the disparity of valuations as measured by the number of standard deviations above or below the average valuations. For measurement purposes, a standard deviation of zero is the average, while a positive measure means a greater-than-average difference in valuations and a negative measure means a lower-than-average difference. Prior to 1952, the spread measurement was price-to-book value for the 1,500 largest stocks.

7 Source: FactSet Research Systems Inc. Price-to-earnings ratio calculated with unreported fiscal-year end 2021 consensus estimates.The above companies are all constituents in the S&P 500 Index, a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. They come from several sectors, but all exhibited significant multiple expansion during 2019. Price-to-earnings ratio is the ratio of a company’s share price to the company’s earnings per share.

8 Source: Empirical Research Partners Analysis, National Bureau of Economic Research. The group of companies are large-capitalization U.S. stocks in the lowest quintile of beta. There are total of 166 companies in the group. Beta is a measure of an individual stock’s volatility relative to the market. Stocks with a beta of 1 move in line with the market. The lower the number, the less volatile a stock is relative to the market, while a higher number indicates that the price is more volatile compared to the market.