ANNUAL
R E P O R T
PRIME
2016
Investment Fund
Contents 2
Program Director’s Message
3
A Year in Review
4
2017 Macro Outlook
6
Fund Summary
8
Sector Overviews
19 Fund Managers and Analysts
23
Performance Overview
PRIME Supporters & Partners
• Over 2016, the PRIME Fund returned 17.59%, underperforming the S&P/TSX Composite Index by 350 basis points • Since inception, the Fund’s compound annual growth rate is 9.15%, while that of the S&P/TSX Composite Index is 5.53%
PRIME Program Director Gary Smith
The PRIME Program is a great success story for the Alberta School of Business. PRIME began modestly at the start of this century. I was fortunate to become involved in 2005 after the program had been running for a few years and was well established. Yet when I joined it was early enough that we could not yet see what PRIME would become. Now, in my twelfth year as Program Director, with our earliest alumni now holding senior positions in major businesses, I am amazed at what I see. PRIME has now become a “go to” program for firms looking to hire the best and brightest new graduates. I am kept busy in the first weeks of each academic year fielding calls from major financial institutions that want to get in front of the PRIME students as part of their recruiting process. Part of this is due to our alumni, who reach back to PRIME to hire our students. But it is much more than this. The real driver is the track record of our students in these organizations. Our graduates find excellent jobs in well-known firms and then they produce results. Firms reach for students in PRIME for a single reason: they are excellent. Internally, a culture has developed where the student-managers provide guidance to their analysts not only on portfolio matters, but also on career and life matters. A virtuous circle has developed where the culture improves our students’ knowledge base, helping them to succeed in their summer jobs, which very often leads to the offer of permanent positions. Then, as alumni, they reach back to provide advice and mentorship, making our students that much better. It has been one of the great joys of my career to watch PRIME evolve to what it is today. The nuts and bolts of PRIME are what they have been since the beginning. That is, a select team of third and fourth year Alberta School of Business students have been tasked with running a Canadian equity portfolio with a long-term horizon. The details in the pages that follow show that, since inception, PRIME’s performance track record has been exemplary. These pages also show that relative performance in 2016, an excellent year for Canadian equities, was disappointing. While the PRIME Fund earned a total return of 17.59% over 2016, it lagged the S&P/TSX Index’s total return of 21.09%. While we are disappointed with the year’s results, we remain confident that, by adhering to our style, long-run results will continue to be excellent. I thank the PRIME Fund’s client, the University of Alberta Endowment, and Edmonton CFA Society for their efforts. Sincere thanks are also due to the Fund’s mentors and sponsors. Last, but certainly not least, I wish to thank the many years of PRIME alumni that are in the broader business community. Your support and advice is extraordinarily important and very much appreciated. The quality of our graduates is testimony to your efforts.
Gary R. Smith PRIME Program Director
2
PRIME FUND ANNUAL REPORT 2016
A Year in Review The PRIME Fund realized a return of 17.59% over the course of 2016, underperforming the S&P/TSX Composite Index’s return of 21.09% by -3.50%. This underperformance was mainly driven by the Materials and Healthcare sectors, as well as by the relatively large cash position held through the first few quarters of the year. Breaking down this underperformance further, sector allocation played a much larger role in the final outcome than the individual stock selection did, with the -3.50% being distributed between allocation and selection by a factor of -2.94% and -0.56% respectively. As previously mentioned, the main driver of underperformance was the Materials sector. This was caused by an underweighted position in the sector as a whole, as well as a relatively low exposure to Metals and Mining, specifically gold. As this year was marked by increased uncertainty due to various geopolitical events, precious metal prices
increased by a rate not seen since the aftermath of the financial crisis. While the Fund was able to capture some of this upside, our exposure to non-mining based companies weighed heavily on the relative return. Beyond Materials, the next main drag to the performance of the Fund was the relatively large cash position held for large parts of the year. While recent additions have alleviated this concern moving forward, the strong performance of the S&P/TSX Composite Index over the course of 2016 caused the cash holding to negatively impact the overall performance of the Fund, resulting in a negative attribution of 1.24%. Finally, continued problems concerning Concordia and Valeant Pharmaceuticals weighed heavily on the Healthcare sectors performance over the past year. While these positions are no longer held within the Fund, the relative performance during our holding period negatively impacted the Fund’s return in 2016.
2016 was a year marked by events. With outcomes such as the United Kingdom’s decision to leave the European Union as well a Trump presidency, the unlikely was proved possible many times last year. While these developments do speak to the general population’s restlessness and desire for more protectionist ideologies, the total impact of these decisions has not yet been fully absorbed by the world economy. Certain events, such as the dramatic devaluation of the Pound Sterling and the renegotiation of various trade agreements in the United States have shown potential shocks and therefore add considerable uncertainty to an already sluggish economic backdrop. This division in public opinion has also lent itself to a divergence in monetary policy across countries. While the U.S. has continued its economic recovery and raised rates, many other countries are still struggling with low economic growth and are responding with lower and, in some cases, negative interest rates and sizable quantitative easing plans. While the future effectiveness of such programs is yet to be seen, they are expected to continue into 2017, albeit at a slower rate.
ed States is our main trading partner by far. While Canada has not been targeted as much as Mexico or China, changes, especially to the trilateral NAFTA agreement, could have a tangible negative effect on Canada’s exports. Furthermore, divisions between the United States and Mexico could leave Canada in a difficult political situation with the balance of economic benefit and foreign relations caught in the mix. Moving to the international stage, China’s growth, while not as strong as in previous years, is still moving forward at a healthy rate of 6.7%. Booming property markets, strong fiscal support as well as loose monetary policies have supported the Chinese economy through 2016. Nonetheless, as construction slows and debt levels rise, certain risks to future growth do present themselves as China continues its move to a more consumer-based economy. Further compounding these risks, the divide between the United States and China continues to grow as Trump renegotiates international trade agreements. While it is expected that China will attempt to fill the gap left by the United States in the Trans-Pacific Partnership, the tensions created by potential tariffs imposed by the Trump administration could negatively affect China’s economy in 2017 and beyond. As for Latin America, many political shifts happened during 2016. With the impeachment of Dilma Rousseff in Brazil as well as the socioeconomic crisis occurring in Venezuela, tensions surrounding government and corruption have been brought to light throughout the past year. As these countries attempt to stabilize their economies and begin their move away from the political left, many obstacles remain in the way of recovery. While this shift does have benefits, the current global economic landscape does not create the most welcoming environment, with uncertainty surrounding international trade weighing heavily on future growth prospects.
Certain countries such as Canada are moving to fiscal stimulus measures in an attempt to prod the economy. With the 2017 budget set to be released in the coming months, infrastructure spending does seem to be the main focal point, as the government has shifted its view that the current problems underpinning the Canadian economy are more structural in nature as opposed to cyclical. Whether or not deficit creation will be the answer to economic recovery, the move away from purely monetary policy changes could be positive, with the United States adopting similar measures. Despite the possible boost created by this stimulus package, potential adjustments to NAFTA and other trade agreements do pose a threat to the Canadian economy, as the Unit-
PRIME FUND ANNUAL REPORT 2016
3
2017 Macroeconomic Outlook One key takeaway from 2016 is the presence of a potential global paradigm shift which could see more countries adopt semi-protectionist strategies in an attempt to push their economies further. Following the likes of Brexit and the economic policies of Donald Trump, other countries may also follow suit out of frustration at the perceived stagnation of the global and local economies. Amplified by the migrant crisis currently affecting the Middle East as well as the presence of religious extremist groups, right-wing political ideologies have seen a resurgence throughout 2016. With the importance of economic and political sovereignty taking center stage, these strategies could hamper global trade and foreign relations if broadly implemented. The emergence and gain in traction of such political parties in France and the Netherlands, especially following Brexit and more importantly Donald Trump’s election in the United States, is a definite cause for concern, specifically for the European Union. While nothing is set in stone, the potential divisions in Europe are distressing, particularly considering that a precedent has now been set in America. While these future changes may never materialize, they do have the effect of adding to the uncertainty present in the 2017 economic and political landscape.
Real GDP Growth (YoY %)
3.0%
2015 2016 2017E 2018E
2.0%
1.0%
0.0%
Canada US Europe Source: IMF World Economic Outlook (Oct2016)
FX Rate (CAD/USD)
1.50 1.45 1.40 1.35
Interest Rate Outlook
One year after its last increase, the U.S. Federal Reserve raised its federal funds rate to between 0.5 and 0.75 percent in December 2016. The rate hike is indicative of the health of a U.S. economy that has continued to outpace the Canadian recovery – a trend we believe is set to continue throughout 2017. This move created a divergence between U.S. and Canadian monetary policy as the Bank of Canada held its target overnight rate at 0.5 percent in its January announcement. Given the Bank of Canada’s recent downward revision to growth expectations for 2017 and its comfort with a growing rate divergence, we do not see a Canadian rate hike materializing until early 2018, by which time the federal government’s fiscal stimuli and recovering energy prices are expected to have strengthened the economy. As for the U.S. economy, we expect two to three rate hikes this year in the context of pre-2008 unemployment figures and a stabilized labour force participation rate. At the same time, we are mindful that the uncertainty surrounding newly-elected president Donald Trump’s fiscal and trade policies could cause a reconsideration on the Fed’s part.
1.30 1.25 1.20
Dec-15 Mar-16 Source: Bloomberg
3.00%
Dec-16
USGG10YR INDEX GTCAD10Y Govt
2.00% 1.50% 1.00% Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Source: Bloomberg
Gold’s performance over 2016 can be divided into three phases. Over the first quarter, the precious metal experienced a meteoric rise of almost 20%, reflecting geopolitical uncertainties in the United States and Europe. After remaining relatively flat over the spring of 2016, gold once again rose following the United Kingdom’s surprise decision to leave the European Union at the end of June. After hitting a high of nearly $1,400 in August due to the ramifications of Brexit, gold prices declined slowly for the rest of the year, ending at around $1,150 in December. Moving into 2017, we do believe gold could be subject to future rises in price due to increased geopolitical risk. As tensions in a post-Brexit Europe rise and the Trump administration begins to deploy its policies, uncertainty surrounding the global economic landscape could create significant upside potential for gold.
4
Sep-16
10Y Gov't Bond Yields
2.50%
0.50%
Gold Outlook
Jun-16
$1,375
Gold (USD/t oz)
$1,300 $1,225 $1,150 $1,075 $1,000
Dec-15 Mar-16 Source: Bloomberg
Jun-16
Sep-16
Dec-16
PRIME FUND ANNUAL REPORT 2016
Natural Gas Outlook Natural Gas prices rallied 41% in 2016 resulting from the market correcting from the supply glut, with U.S. gas storage levels returning to within the 5 year average range. December marketable production in Canada decreased 5.4% over 2016; meanwhile, upward pressure from increased demand amplified the price movement. Warmer than normal temperatures kept spot prices relatively low at the start of year, however increases in drilling were outpaced by the increase of U.S. exports near the end of the year (which was up approximately 45% YoY). In terms of fundamentals, we see gas prices remaining stable at current levels through 2017. The continued trend of growing natural gas electricity generation capacity has resulted in an increase of 1 Bcf of natural gas consumption in the U.S. since last year. We expect Alberta’s new $20 per tonne of CO2 carbon tax, which foreran Canada’s plan for a federal carbon tax by 2018, will accelerate the switch from coal to natural gas for electricity generation. Meanwhile, Trump’s proposed border adjustment tax is a cause for concern in the Canadian energy sector, as it would cause Canadian products to be sold at an even greater discount to U.S. products. However, Canada is edging closer to market access to Asia, therefore becoming less dependent on exporting across the southern border. Canadian LNG projects continue to face headwinds from environmental groups in addition to falling LNG prices. Many of these projects were proposed in 2014, and the price received for LNG exports has since dropped 60%. While Petronas’ Pacific NorthWest LNG and Shell’s LNG Canada projects remain challenged, the much smaller Woodfibre LNG project is expected to begin construction in 2017, which may usher the way for more BC LNG export terminals to come online in the coming years.
Crude Oil Outlook
With WTI dipping below $30/bbl, crude hit multi-year lows at the beginning of 2016. Despite the slump in commodity prices fueled by an oversupply, progress was made towards finding a balance in the market as we moved through the rest of 2016. The main focus going forward for 2017 will be monitoring the implementation of the OPEC production cut. The Organization of the Petroleum Exporting Countries is reducing its crude output by about 1.2 million bpd, with further cuts coming from Russia and other non-OPEC countries. Although early supply-cut numbers are promising, the data is somewhat overshadowed by increased rig activity and production across the United States that we believe will keep crude prices from pushing up throughout the first half of 2017. That, alongside stagnant demand growth in OECD nations, will leave crude prices range bound from $50/bbl to $60/bbl through the upcoming year.
Base Metals Outlook
At the end of 2015, the general outlook for base metals was rather bleak. Supply was outstripping demand due to resilient production and lower volumes being used by countries like China. While this sentiment continued to plague markets for the first part of 2016, the picture changed rather dramatically near the end of the year. For metals such as copper, while construction in China showed signs of slowing, stimulus packages concerning infrastructure investments gave prices a significant lift in the last quarter of 2016. Similar announcements from the Trump administration as well as the entrance of speculators also improved pricing conditions for base metals. While the picture has dramatically improved since last year, it does remain to be seen how much of a lasting impact these various stimulus packages will have on supply and demand forces. We remain cautious with regard to certain runups in price, as some may not be supported by the market fundamentals.
PRIME FUND ANNUAL REPORT 2016
Henry Hub Natural Gas (USD/MMBtu) $4.00 $3.00 $2.00 $1.00
Dec-15 Mar-16 Source: Bloomberg
$60
Jun-16
Sep-16
Dec-16
WTI Crude (USD/bbl)
$50 $40 $30 $20
Dec-15 Mar-16 Source: Bloomberg
$60
Jun-16
Sep-16
Dec-16
Brent Crude (USD/bbl)
$50 $40 $30 $20
Dec-15 Mar-16 Jun-16 Source: Bloomberg
$275
Sep-16
Dec-16
Copper (USD/lb)
$250 $225 $200 $175
Dec-15 Mar-16 Source: Bloomberg
Jun-16
Sep-16
Dec-16
5
FUND
S U M M A R Y Key Fund Data
Fund Performance to Date 50% 13.9%
25%
-2.4% 2.0%
14.3% 13.6%
0%
Total Assets:
6.9%
12.6%
7.2% 0.0%
-1.1% 0.8%
0.9%
-3.5% -0.6%
-0.9%
$1,968,930
Fund Management Style: GARP
3.9%
Risk Profile: Fund Beta 1.03
-25%
*as at December 31, 2016
-3.9%
-50%
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 PRIME Annual Return
S&P/TSX Annual Return
2016 Top Attribution Contributors Enerplus Corp
Figure 1 | PRIME Fund and S&P/TSX Composite Index Annual Performance (Since PRIME’s Inception)
Open Text Corp Bank Of Nova Scotia Saputo Inc CGI Group Inc
Fund Valuation Statistics
Secure Energy Services Inc
Metric PRIME Fund Price To Earnings Ratio (P/E Ratio) 23.45x Price To Book Ratio (P/B Ratio) 2.12x Price To Cash Flow Ratio (P/CF Ratio) 11.26x Expected Dividend Yield (Div Yield) 2.67% Reported Dividend Yield 2.34% 3 Yr Eps Growth -1.25% 5 Yr Eps Growth 5.02% 10 Yr Eps Growth 7.64% ROE Using Est Eps 20.75% PEG Ratio 5.99x
S&P/TSX 23.02x 1.92x 10.75x 3.05% 2.75% -1.87% 4.70% 6.33% 14.37% 6.43x
Valeant Pharmaceuticals* Potash Corp Of Saskatchewan Finning International Inc Blackberry Ltd* * Not currently held by the PRIME Fund
2016 Bottom Attribution Contributors West Fraser Timber Co Ltd Keyera Corp Agrium Inc Aecon Group Inc
PRIME tracks portfolio-level metrics to assess the Fund’s consistency with its ‘Growth at a Reasonable Price’ (GARP) mandate. PRIME is within mandate based on these metrics. PRIME’s low PEG multiple, combined with high EPS growth, suggest adherence to our GARP mandate. The Fund’s yield is noticeably lower than that of the market; this discrepancy is due to the Fund’s mandated underweight allocation to Financials, which includes many higher yielding entities.
6
Concordia International Corp* Cenovus Energy Inc Barrick Gold Corp* Teck Resources Ltd* Goldcorp Inc * Not currently held by the PRIME Fund
PRIME FUND ANNUAL REPORT 2016
2016 Performance Overview 0.11%
Utilities Real Estate
0.26%
Health Care
-1.12%
Consumer Staples
0.41%
Consumer Discretionary
Total
0.12%
Telecommunication
Allocation
-0.07%
Selection
0.55%
Information Technology -1.99%
Materials
-0.43%
Industrials Energy
0.17%
Financials
0.05%
-2.5%
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
2.0%
1.5%
2.5%
Figure 2 | Attribution of PRIME Fund performance relative to the S&P/TSX Composite Index and its sub-indices for the year ending 31 December 2016 Allocation Measures an investment manager’s ability to effectively allocate his/her portfolio’s assets to various segments Selection Measures an investment manager’s ability to select securities within a given segment relative to a benchmark
Sector Weightings S&P/TSX
40% 30%
S&P/TSX
23%
PRIME
20%
0%
-3.50%
18%
25%
15%
23%
13%
20% 10%
PRIME
10% 10%
10%
6% 6% 5% 5%
8%
2% 2% 2%
0%
5%
-0.27%
-2.63%
-0.91%
0.77%
Q1 2016
Q2 2016
Q3 2016
Q4 2016
3% 0% FY2016
Figure 4 | Quarterly performance of the PRIME Fund and the S&P/TSX Composite Index and its sub-indices for the year ended 31 December 2016
Figure 3 | Sector weightings for the PRIME Fund and S&P/TSX Composite Index and its sub-indices as at 31 December 2016
As per the Fund’s mandate, no single sector may encompass more than 25% of the Fund’s total capitalization, necessitating underweight allocations in the Financials sector. The Fund currently holds larger positions in cash and funds, as it took a more defensive approach in the face of high volatility in the final months of 2016, as this was a transitory period of re-allocation and analysis.
The PRIME Fund seeks to achieve long-term capital appreciation by investing in Canadian equities. The program adheres to a ‘Growth at a Reasonable Price’ (GARP) strategy. Generally, we seek to identify high quality businesses that are somewhat undervalued and demonstrate good earnings growth potential. The challenge taken up by PRIME students is to stay within the guidelines of the portfolio and invest in the most appropriate stocks. Company fundamentals and macroeconomic factors play a major part in the decision of where to invest. Students are constantly challenged by market fluctuations and short-term trends.
PRIME FUND ANNUAL REPORT 2016
7
Consumer Discretionary Key Sector Data
CALENDAR YEAR RETURNS +2.5%
14% 12%
Total Sector Assets: $112,542
+7.8%
10%
Sector Weight of Total Fund:
8%
5.76%
6%
Risk Profile:
4% 2%
+3.0%
0%
-8.3%
-0.5%
Sector Beta 0 . 6 6 *as at December 31, 2016
-2% -4% Q1 Q2 TSX Consumer Discretionary
Q3 Q4 2016 PRIME Consumer Discretionary
SECTOR OVERVIEW
Sector Holdings
• With a total return of 13.19%, our holdings outperformed the S&P/TSX Consumer Discretionary benchmark by 2.54%. Strong performances across all of our holdings drove the outperformance.
Cogeco Cable Inc. (CCA)
• Dollarama’s (TSX:DOL) return for the year was 23.60%, making it the strongest performing stock in PRIME’s Consumer Discretionary portfolio, as well as one of the strongest performers in the sector. Dollarama has continued to experience growth by several metrics, most notably within same store sales. The company also plans to open 60 to 70 new stores in the coming year to continue their expansion plans in an unsaturated market. It also has recently completed construction of a new warehouse and distribution center and has been selling higher priced items that have led to higher margins.
Dollarama Inc. (DOL) Cineplex Inc. (CGX)
• Cogeco’s (TSX:CCA) return was 10.01% for the year. The company continues to have favorable growth prospects in the United States, particularly in their Business ICT services segment. Management is looking to generate higher operating margins in their Canadian and American broadband services segments in 2017. Cogeco also intends to grow their residential broadband services by building on the success of their next-generation TiVo. • Cineplex (TSX:CGX) returned 11.20% during 2016. The company made excellent progress during the year to diversify from their traditional exhibition segment. Box office revenues have shown increasing trends, due in part to several big name movies being released throughout 2016. In other segments of the business, Cineplex looks to realize significant growth in their digital media and gaming segments as well as expanding their SCENE loyalty program base. The company completed the test launch of “The Rec Room” in 2016 and now plans to add more locations around the country to further their diversification strategy.
8
PRIME FUND ANNUAL REPORT 2016
Consumer Staples Key Sector Data
CALENDAR YEAR RETURNS
20%
+9.3%
+10.5%
15%
Total Sector Assets: $127,453
Sector Weight of Total Fund:
10%
6.52%
-0.7%
5%
Risk Profile:
0%
Sector Beta 0 . 8 5 +1.1%
-5%
*as at December 31, 2016
-1.4%
-10% Q1 Q2 TSX Consumer Staples
Q3 Q4 2016 PRIME Consumer Staples
SECTOR OVERVIEW
Sector Holdings
• Our Consumer Staples holdings had an excellent performance in 2016, returning 16.81% during the year. This was enough to outperform the benchmark by 9.33%. A large reason for this outperformance was Saputo.
Alimentation Couche-Tard Inc. (ATD-B)
• Saputo Inc. (TSX:SAP) returned 45.51% in 2016. The company has and will continue to be impacted by foreign exchange rates as well as cheese and butter prices. It has significant operations in other countries, many of which are faster growing dairy markets than what we have in Canada. These operations could be impacted substantially by changes to international trade policies made by the new political administration in the United States. We continue to monitor the kinds of impact potential protectionist trade policies in the United States could have on the company.
Saputo Inc. (SAP) S&P/TSX Capped Consumer Staples ETF
• Alimentation Couche-Tard (TSX:ATD-B) returned 0.46% during the year. The company has continued to grow both in North America and globally, announcing the acquisition of CST Brands Inc. in August. This acquisition brought Couche-Tard an additional 1,500 store locations, and the company expects to realize significant synergies from it. It has also carried on with their global rebranding strategy by existing stores into the “Circle K” brand. We believe Couche-Tard will continue to see strong operating results in spite of low fuel prices and fluctuating foreign exchange rates.
PRIME FUND ANNUAL REPORT 2016
9
Energy Key Sector Data
CALENDAR YEAR RETURNS
40% -0.9%
35%
Total Sector Assets: $449,510
30%
Sector Weight of Total Fund:
25%
23.00%
20% 15% 10% 5%
Risk Profile:
+7.2%
-3.8%
Sector Beta 1 . 5 3
-2.4%
*As at December 31, 2016
-1.5%
0% Q1
Q2 TSX Energy
Q3
Q4 PRIME Energy
2016
SECTOR OVERVIEW
Sector Holdings
• The PRIME Fund’s Energy Sector was up 34.65% on the year, contributing 17 basis points of alpha to the Fund.
Keyera Corp. (KEY)
• Enerplus Corporation (TSX:ERF) was the top performer in the Energy portfolio, returning an impressive 175%. Not only has Enerplus been able to reduce operating costs by over 25% in the first nine months of the year, they have been very consistent with reaching production estimates. The company’s success can also largely be attributable to key non-core asset sell-offs and a $230 million common equity financing deal that substantially strengthened its balance sheet. Enerplus’ net debt-to-trailing cash flow ratio is pegged at 1.4x for 2016 vs 2.8x for its intermediate peers. Looking ahead, the company has allocated 73% of its $450 million 2017 budget to North Dakota, where it looks to add 30 net wells and expects a 25% increase in liquids production.
Canadian Natural Resources Ltd. (CNQ)
Suncor Energy Inc. (SU) Enbridge Inc. (ENB) Husky Energy Inc. (HSE) Cenovus Energy Inc. (CVE) Gibson Energy Inc. (GEI) Enerplus Corp. (ERF) Secure Energy Services (SES)
• Secure (TSX:SES) was a top performer in the portfolio, realizing a return of 75.81% over the year. Better than forecasted revenue and margins for the PRD segment allowed SES to weather lower commodity prices. Completion of the Kakwa FST project along with the Petrolama acquisition have considerably expanded Secure’s existing storage and midstream infrastructure. We believe Secure will be able to continue to grow in the more favourably priced commodity environment of 2017. • Keyera (TSX:KEY) was the worst-performing Energy Sector holding returning 4.54%. Lower than expected revenue from the NGL infrastructure and O&G reserve segments along with higher G&A expenses caused Keyera to underperform in the midstream space. Despite lower production and drilling activity during 2016, Keyera maintained an impressive 4% dividend payout which they seek to grow in the following year. With increasing drilling activity in the WCSB, the PRIME Fund has an optimistic outlook for Keyera in 2017.
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PRIME FUND ANNUAL REPORT 2016
Financials Key Sector Data
CALENDAR YEAR RETURNS
30%
Total Sector Assets: +1.1%
25%
Sector Weight of Total Fund:
20%
24.78%
15%
+1.4%
Risk Profile: Sector Beta 1 . 0 1
10% 5%
$484,313
-1.0%
+0.5%
*as at December 31, 2016
-0.9%
0% Q1 Q2 TSX Financials
Q3
Q4 2016 PRIME Financials
SECTOR OVERVIEW
Sector Holdings
• The sector had a relatively strong performance in 2016, realizing a return of 24.95%, outperforming the S&P/TSX Financial sector benchmark by 1.11%. The Financial sector was able to contribute 0.04% alpha despite being mandated under the restriction of allocating a maximum of 25% of the Fund to a single sector. At the end of 2016, the Financial sector accounted for 34.44% of the S&P/TSX Composite Index.
Toronto-Dominion Bank (TD)
• Toronto-Dominion Bank (TSX:TD) was the sector’s top performer returning 26.95%. With a large U.S. exposure, the bank capitalized on strong U.S. retail performance and a rate hike that improved net interest margins. • In the first half of 2016, most Canadian banks saw higher formations and spikes in loan losses. Looking forward, strengthened oil prices have reduced future loan losses assumptions, with strong Q4 results supporting that view. Regulatory pressures in Canada continued to intensify in 2016, negatively impacting mortgage lending and life insurance capital framework, among other areas.
Bank of Nova Scotia (BNS) Canadian Imperial Bank of Commerce (CM) Manulife Financial (MFC) Great-West Lifeco (GWO) Intact Financial (IFC) Sun Life Financial (SLF)
• Where banks with U.S. exposure are concerned, we expect the yield curve to steepen in 2017, and therefore see net interest margins increasing as short-term interest rates rise in 2017. Expected Dodd-Frank reforms and the replacement of key regulators further support a positive outlook for U.S. banking. • In 2017, the Financial sector aims to re-evaluate our current insurance holdings and look to add a diversified financial company. With the Federal Reserve continuing to increase its key interest rate alongside a weak Canadian Dollar, we are looking to identify opportunities with significant U.S. exposure.
PRIME FUND ANNUAL REPORT 2016
11
Healthcare Key Sector Data
CALENDAR YEAR RETURNS
20%
Total Sector Assets: $0
0% -20%
Sector Weight of Total Fund:
-1.7%
0.00%
-40% -60%
Risk Profile:
-18.6%
+17.0%
Sector Beta N/A
-76.1%
-80%
*as at December 31, 2016
-14.4%
-100% Q1 Q2 TSX Healthcare
Q3
Q4 2016 PRIME Healthcare
Sector Holdings
SECTOR OVERVIEW • Concordia International (TSX:CXR) returned -94.79% in 2016. The company suspended revenue guidance, after reporting underwhelming results due to reported unanticipated generic drug competition. Future revenues will also be impacted by the company being under investigation in the U.K. by the CMA. This stock was subsequently sold from the portfolio. • Valeant Pharmaceuticals (TSX:VRX) returned -87.09% during the year. The year for Valeant was characterized by scandals and legal issues. Valeant is currently in the process of selling off core assets to de-lever the company. These factors resulted in Valeant being removed from the portfolio. • PRIME’s Healthcare portfolio returned -92.74% during 2016, and this was an underperformance relative to the benchmark of -14.37%. The entire industry had a poor performance. This was due to several factors, some of which involved legal scrutiny and increasing regulatory concerns. The Fund currently has no holdings in the healthcare sector.
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PRIME FUND ANNUAL REPORT 2016
Industrials Key Sector Data
CALENDAR YEAR RETURNS
25%
Total Sector Assets: $186,437
20%
-4.5%
9.54%
15%
Risk Profile:
0.0%
10% 5%
Sector Weight of Total Fund:
Sector Beta 1 . 1 0
+1.1%
*as at December 31, 2016
+0.3%
-5.1%
0% Q1 Q2 TSX Industrials
Q3
Q4 2016 PRIME Industrials
SECTOR OVERVIEW
Sector Holdings
• The sector returned 18.15% this year, underperforming the S&P/TSX Industrial Index by 4.48%. Despite disappointing end of the year performance from Aecon (TSX:ARE) and mediocre performance from CN Railway (TSX: CNR), our overall performance was buoyed by Finning (TSX:FTT) which returned 45.43% in 2016.
Aecon Group (ARE) Canadian National Railway (CNR) Finning International Corporation (FTT)
• Aecon performed poorly towards the end of 2016. The company was affected by the reduction in price of commodities, but has been able to remain competitive through its infrastructure and mining plays. Due to the commitment of high level investments in Canadian infrastructure by the Canadian government, we believe Aecon is strongly positioned to acquire opportunities in the future and offer long-term profitability. • CN Railway had a mediocre performance with a return of 18.95% over the year. The company has shown record operation efficiency levels and solid bottom line performance. However, the company saw some reduction in revenue – largely from the energy sector, which continues to be a growing concern for Canadian railways. CN railway looks to improve performance through adding capacity by running heavier, longer trains to increase train productivity and yard productivity. This addition of capacity, combined with the bullish look on lumber transportation from U.S. housing construction, gives us confidence in CN Railway going forward. • Finning is highly dependent on the energy commodities at this moment, and is thus looking to restructure and optimize operational efficiencies. They have proven this concept by producing tractor models with increased fuel efficiency, as well as expanding their operations from predominantly mining and infrastructure industries to the forestry industry. The company’s progress has been reflected in their performance this year, and we attribute its success to improved efficiencies in operations, as well as a rally in industrial stocks as a whole due to uncertainty in North American politics.
PRIME FUND ANNUAL REPORT 2016
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Information Technology Key Sector Data
CALENDAR YEAR RETURNS
25%
+16.5%
Total Sector Assets: $101,670
20% 15%
Sector Weight of Total Fund:
+0.3%
10%
5.20%
+6.7%
5%
Risk Profile: +6.6%
0%
+1.0%
Sector Beta 0 . 7 8 *as at December 31, 2016
-5% -10% Q1 Q2 TSX Information Technology
Q3 Q4 2016 PRIME Information Technology
SECTOR OVERVIEW
Sector Holdings
• Open Text Corporation (TSX:OTC) returned a total of 26.92% for the year. The strong performance can be attributed to the successful integration of multiple acquisitions throughout 2016 along with strong earnings growth. Despite a larger focus on growing cloud revenues – a low margin segment – the company was able to roughly maintain their overall margins for the year. Growth in 2016 was mainly inorganic, but the company has put a large focus on expanding their margins and organic growth in the coming years. In September, Open Text announced an acquisition of Dell EMC’s Enterprise Content Management, including Documentum for $1.62 billion. The deal closed in January and is expected to deepen Open Text’s Enterprise Content Management and Information Life Cycle Management.
OpenText Corporation (OTC) CGI Group Inc. (GIB.A)
• CGI Group Inc. (TSX:GIB.A) saw another strong year with a 16.32% return. Their success comes from a shift towards software and IP revenue growth which drove their organic growth and margin expansion. CGI had the largest amount of growth in their Asia Pacific, U.K. and France segments for the year which compensated for non-renewal of U.S. defense contracts and lower work volumes in the Nordics and ECS segments. Going forward, we see consistent organic growth paired with continued M&A activity driving the company’s goal of doubling in size within 5-7 years.
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PRIME FUND ANNUAL REPORT 2016
Materials Key Sector Data
CALENDAR YEAR RETURNS
50%
Total Sector Assets: $211,509
40%
Sector Weight of Total Fund:
30% -23.3%
20% -7.7%
10.82%
Risk Profile:
-14.9%
Sector Beta 0 . 8 7
10% +1.9%
0%
*as at December 31, 2016
-0.8%
-10% Q1 Q2 TSX Materials
Q3
Q4 2016 PRIME Materials
SECTOR OVERVIEW
Sector Holdings
• The main driver of our sector’s underperformance was our underweight exposure to precious metals and base metals as the uncertainty of world economic events triggered a rise in the price of gold and silver. Further, infrastructure spending drove the appreciation of base metals.
Goldcorp (G)
• Silver Wheaton Corp. (TSX:SLW) and Yamana Gold, (TSX:YRI) which dropped significantly in 2015, benefited from the hike in precious and base metal prices as the top performers in Materials with returns of 0.68% and 0.40% respectively, along with Goldcorp, returning to prices held previously in mid-2015, pre-bust.
West Fraser Timber (WFT)
Yamana Gold (YRI) Silver Wheaton (SLW) Agrium (AGU) Intertape Polymer Group (ITP)
• Despite a rise in price from a U.S. infrastructure boom, West Fraser Timber Co. (TSX:WFT) further depressed our returns at -0.24%. The Canadian forestry company has jumped in share price throughout 2016, and we continue to remain bullish on West Fraser Timber as impending U.S. tariffs promise higher prices for Canadian lumber. • Intertape Polymer Group (TSX:ITP) was added to the sector in December 2016 with a weighting of 2.08% of the portfolio. Intertape is a packaging products manufacturer with promising growth prospects, offering diversification away from commodity-related price volatility.
•The S&P/TSX Capped Materials Index ETF was also added to the portfolio in December at a weight of 0.03% offering exposure to upward movements of the market as we reevaluate our position in precious and base metals. •We believe markets will remain volatile in 2017 and therefore leading to an increase in prices of base metals, raw materials and infrastructure spending. Over the course of the year, we are looking to reevaluate our holdings and our positioning in regards to these exposures.
PRIME FUND ANNUAL REPORT 2016
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Telecommunications Key Sector Data
CALENDAR YEAR RETURNS
16%
+0.2%
14%
$119,132
+0.4%
12%
Total Sector Assets: Sector Weight of Total Fund:
10%
6.10%
8% 6% 4%
-0.5%
2%
Risk Profile: -0.7%
Sector Beta 0 . 5 9 *as at December 31, 2016
0% -2%
+0.9%
-4% Q1 Q2 TSX Telecommunications
Q3 Q4 2016 PRIME Telecommunications
SECTOR OVERVIEW
Sector Holdings
• The telecommunications sector saw growth from a combination of increased wireless gross activations and growing wireless ARPU. With households increasingly focused on cord cutting, wireline revenue for the sector has been steadily declining. Wireline decline will likely continue going forward, but companies which can adapt to the evolution of overthe-top content services such as Netflix will likely see outperformance. The CRTC’s approval of broadband internet access as a basic service will be monitored to see the impact on wireline internet for the telecommunications sector. With BCE’s acquisition of Manitoba Telecom Services, there will be a difficulty in differentiating the best names within the sector. A lack of any significant business developments will make it hard for any one name to stand out in the near future.
BCE Inc. (BCE) Telus Corporation (T)
• BCE Inc. (TSX:BCE) and Telus (TSX:T) realized returns of 13.70% and 16.76% respectively. Both companies had returns relatively in line with the overall telecommunications sector, but smaller telecommunication companies outperformed the big three. Despite the Albertan headwinds, Telus showed resiliency by meeting management guidance and growing their wireless, Telus TV, and high-speed internet revenue streams. Bell continued to show leadership in the wireless sector, cost management and increasing cash flow generation which will help them expand on future opportunities for their media and wireless segments.
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PRIME FUND ANNUAL REPORT 2016
Utilities Key Sector Data
CALENDAR YEAR RETURNS
20%
Total Sector Assets: $59,870
15%
Sector Weight of Total Fund: 3.06%
10%
Risk Profile:
5% 0%
-9.6%
-7.3%
Sector Beta 0 . 9 4 -0.7%
*as at December 31, 2016
+0.1%
-18.3%
-5% Q1
Q2 TSX Utilities
Q3
Q4 PRIME Utilities
2016
SECTOR OVERVIEW • Near the end of the year, we initiated an active position in Algonquin Power & Utilities (TSX:AQN), which saw a -0.31% return. Algonquin’s underperformance relative to the benchmark can be largely attributed to negative sentiment on renewables following the Presidential election, coupled with a rising interest rate environment in the United States. Despite these factors, we believe that Algonquin will perform going forward due to the strong economics of renewables, state regulations supporting growth, and their strong regulatory relationships, which will prove advantageous in a rising rate environment.
Sector Holdings Algonquin Power & Utilities (AQN) S&P/TSX Capped Utilities ETF
• The utilities sector will still see growth from infrastructure spending. Aging infrastructure remains a big issue with some of it being up to 50 years old. Clean power looks to continue growth within the total power asset mix as businesses, state regulators and consumers show overwhelming support. Since a large portion of Canadian utility companies have exposure to the U.S., a triple rate hike as proposed would negatively impact most of the sector. Regulated names look to continue to perform, while IPPs and YieldCos will struggle due to lower power prices, weak gas prices, and their valuations being reliant on their dividend.
PRIME FUND ANNUAL REPORT 2016
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Real Estate Key Sector Data
CALENDAR YEAR RETURNS
14%
Total Sector Assets:
12%
$60,112
10%
Sector Weight of Total Fund:
8%
+5.9%
6%
-7.2%
3.08%
Risk Profile:
4% 2%
N/A
0%
N/A
Sector Beta 0 . 9 6
+1.5%
*as at December 31, 2016
-2% -4% Q1
Q2 TSX Real Estate
Q3
Q4 PRIME Real Estate
2016
SECTOR OVERVIEW
Sector Holdings
• On August 31, 2016, the S&P/TSX Composite Index added Real Estate as the 11th GICS sector, splitting off 22 companies from the Financial sector.
Tricon Capital (TCN)
• Our newly acquired position in Tricon Capital Group (TSX:TCN) has provided exposure to the U.S. real estate market, with a focus on opportunities in geographies with high population and employment growth, such as the U.S. Sunbelt and adjacent states.
S&P/TSX Capped REIT ETF
• A position in the iShares S&P/TSX Capped REIT was taken to provide further exposure to the Real Estate sector through an ETF. In 2017, the sector plans to replace the ETF with an active position in a Real Estate company.
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PRIME FUND ANNUAL REPORT 2016
Industrials
PRIME
Managers
Tariq Saad Tariq is entering the final year of his Bachelor of Commerce degree pursuing a major in Finance. He is the manager of the Industrials sector, and is looking forward to working with the current managers and incoming analysts. This past summer Tariq had the opportunity to work at CIBC Capital Markets as a Summer Analyst in their Investment Banking Division. Tariq is also a member of the CFA Investment Research Challenge team representing the University of Alberta. He intends to pursue the CFA designation after graduation, and wrote the Level I in December 2016. Outside of academics, Tariq enjoys playing soccer, skiing and classical guitar.
Materials Sam Di Pinto Sam is entering the final year of his Bachelor of Commerce degree majoring in Finance supplemented with a minor in Accounting. He spent the summer working in a buy-side role with a local institution. Upon graduation, he will be joining BMO Capital Markets’ Global Energy Investment Banking team. Sam is a member of the school’s CFA Investment Research Challenge team, and intends to pursue the CFA designation upon graduation. In addition to academics, Sam stays active by playing various sports and is a proud member of the University of Alberta Golden Bears Golf Team.
Matthieu Beaubien Matthieu is a fifth year business student with a major in Finance and a minor in Accounting. He is one of the two managers of the Materials sector, and is looking forward to working with the current managers as well as the incoming analysts. Last summer, Matthieu had the opportunity to work at ATB Financial, working on loan portfolio forecasting and analysis. He was a part of the school’s CFA Investment Research Challenge team last year, and had the chance to represent the Canadian Prairies in Chicago for the global competition. Matthieu hopes to complete the CFA designation after graduation. Outside of school, Matthieu enjoys playing guitar and traveling and hopes to one-day work in portfolio management or equity research.
Consumers & Healthcare Graham Todd Graham is entering the final year of his Bachelor of Commerce degree majoring in Finance. This summer he worked as an Investment Banking Summer Analyst at Scotiabank Global Banking and Markets, where he will continue full-time upon graduation. Outside of PRIME, Graham is a member of the school’s CFA Investment Research Challenge team and a member of the Alberta JDC West Business Strategy team. In December last year, Graham wrote the CFA’s level one exam and intends to pursue the full designation after graduation. In his spare time Graham enjoys playing hockey, cycling, golfing, and skiing.
Info Tech, Telecom, & Utilities Rory McKinley
Rory is a fourth year Bachelor of Commerce student with a major in Finance, and serves as the manager for the Technology, Telecommunications, and Utilities sector. Last summer, Rory had the opportunity to work as a Summer Analyst in BMO Capital Markets’ Global Energy Investment Banking team. He is a member of the school’s CFA Investment Research Challenge team. He intends to pursue a CFA designation upon graduation, and wrote the Level I exam in December last year. He looks forward to working with the incoming analysts to further develop the Fund. Outside of school, Rory enjoys playing guitar, producing music, and keeping active.
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PRIME
Energy
Managers
Irfan Dhanani Irfan is in his fourth year of his Bachelor of Commerce degree with a major in Finance and a minor in Business Economics and Law. As a co-manager for the Energy sector, Irfan is looking forward to expanding his knowledge of the industry and mentoring incoming analysts. This past summer, Irfan was a Canadian Equity Analyst for TELUS Pension Investments and hopes to pursue a career in capital markets after graduation. At school, Irfan has been involved in many different capacities such as the Rocky Mountain Business Seminar, Business Finance Association, Ismaili Students Association, and most recently the Alberta JDC West team. Irfan wrote the CFA Level I exam this past December and hopes to complete the full designation. Outside the university, he is a licensed private pilot and enjoys playing hockey and football.
Nolan Ryan Nolan is a fourth year Bachelor of Commerce student pursuing a major in Finance and a minor in Accounting. As a co-manager of the Energy sector, he is excited to work with the incoming analysts and to continue to add value to the Fund in the coming year. This summer, Nolan was an Analyst with TD Securities in their Investment Banking division. Nolan is a member of the University of Alberta Rotman International Trading team, and was on the school’s JDC West Finance team, placing 1st earlier this year. In December last year, Nolan wrote the CFA Level I exam, and intends to pursue the full designation upon graduation. Outside of school, Nolan’s passion for racing and cars led him to race formula cars in the United States.
Financials
Evan Boyle Evan is in his fifth and final year of his Bachelor of Commerce degree with a focus in Finance. He is one of two managers for the Financials and Real Estate sector, and is looking forward to working with the incoming analysts. Upon graduation, Evan will join Cargill Incorporated as a Commodity Merchant Associate. He is also a member of the University of Alberta’s Rotman International Trading Team and is looking forward to competing in Toronto this year. Evan enjoys traveling and recently returned from an exchange where he spent a year in Sweden studying business. Outside of academia, Evan enjoys playing hockey, table tennis, squash and other sports.
Akshaan Tejwani Akshaan is a fourth year Bachelor of Commerce student with a major in Finance and a minor in Business Economics and Law. He is one of two managers for the Financial and Real Estate sectors, and is looking forward to working with the incoming analysts and further learning from PRIME’s vast network of mentors. Over the summer, Akshaan had the opportunity to work as an Analyst for Hugessen Consulting, and is now interested in working within the capital markets industry. He also intends to pursue a CFA designation upon graduation from the PRIME program, and wrote the Level I exam in December last year. Outside of school and work, Akshaan enjoys soccer, tennis, and globetrotting.
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PRIME FUND ANNUAL REPORT 2016
Industrials
PRIME Analysts
Ryan Boyle Ryan is currently in his second year of his Bachelor of Commerce After-Degree, where he is pursuing a major in Finance. He is an analyst for the Industrials sector, and is looking forward to working with the managers and new analysts. Ryan is also a participant of the University of Alberta’s Western Invitational Trading Team competed in Calgary last year. After graduation, he intends to obtain a CFA designation. Before pursuing his Bachelor of Commerce, Ryan completed a Bachelor of Science degree with a Specialization in Immunology and Infectious Diseases. Outside of school, Ryan enjoys travelling, fishing and playing hockey.
Materials Allie Moran Allie is in her third year of her Bachelor of Commerce degree pursuing a major in Finance and a minor in Accounting. She is one of two analysts for the Materials sector and is excited to work with the managers over the coming year to increase Fund growth. Allie is an intern at the Government of Alberta in the Corporate Income Tax department, and intends to pursue the CFA designation upon graduation. Allie is also a member of the Alberta Not for Profit Association and enjoys volunteering with local Not for Profits. In her spare time Allie enjoys hiking and rock climbing in the mountains, as well as skiing, cycling, and long distance running.
Michael Bieleny Michael is in his third year of his Bachelor of Commerce degree with a major in Finance and minor in Accounting. He is one of the analysts in the Materials sector, and is looking forward to working with the rest of the PRIME team. Over the summer Michael worked at Canadian Western Bank in their commercial lending portfolio. He hopes to pursue the CFA designation and a career in Capital Markets. At school, Michael has been involved in many different capacities such as the Alberta Energy Challenge and the Business Finance Association. Outside of university, he enjoys travelling, hiking, skiing and playing hockey.
Consumers & Healthcare Mark Maksymowych Mark is a fourth year business student with a major in Finance and a minor in Accounting. He is an analyst for the Consumers and Healthcare sector, and is looking forward to learning from the current managers and the program’s extensive alumni network. Mark is also a part of the University of Alberta’s Rotman International Trading team and is looking forward to competing in Toronto this year. Mark is particularly interested in sales and trading and portfolio management, and aims to obtain a CFA designation in the future. Outside of academics, Mark enjoys playing hockey, skiing, golfing, and travelling.
Info Tech, Telecom, & Utilities Daniel Vo
Daniel is in his third year of his Bachelor of Commerce degree with a major in Finance. As the analyst for the Information Technology, Telecommunications and Utilities Sector, he hopes to gain valuable experience in portfolio management while learning from the current managers. Daniel has an interest in working in capital markets, and intends to pursue his CFA designation. In addition to PRIME, he serves as the VP Academic for the Business Finance Association. Daniel recently participated in a summer study abroad in Copenhagen, Denmark and hopes to live there one day. Outside of school, Daniel enjoys swimming, powerlifting, travelling, hiking and cooking.
PRIME FUND ANNUAL REPORT 2016
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PRIME
Energy
Analysts
Lukas Prenner Lukas is a third year Bachelor of Commerce student with a major in Finance and a minor in Accounting. He is one of two analysts for the Energy sector and is looking forward to learning from his managers. Currently, Lukas is the VP Internal for the Business Finance Association and works part time at the University of Alberta as a Finance Assistant. Upon graduation, Lukas intends to pursue a career in Capital Markets and attain a CFA designation. During his high school years, Lukas spent his time playing soccer in Europe and is a former member of the Golden Bears Soccer Team. Outside of school, Lukas enjoys golfing, poker, skiing and travelling.
Kai Brown Kai is in his third year of his Bachelor of Commerce degree with a major in Finance and a minor in Business Economics and Law. He is one of the two analysts for the Energy sector and is looking forward to learning about the sector from the managers and mentors. He is one of the members of the University of Alberta’s Rotman International Trading team and is excited to represent the school at the competition in Toronto this year. He intends to pursue the CFA designation next year and a career in capital markets upon graduation. Outside of school, Kai enjoys playing hockey, snowboarding and working on vehicles.
Financials Tanner Hughes Tanner is a third year Bachelor of Commerce student majoring in Finance, and is an analyst for the Financial and Real Estate sectors. He is also a member of the JDC West 2017 Organizing Committee and is currently a Teacher’s Assistant for Operations Management. Outside of academics, Tanner enjoys rock climbing, playing hockey and snowboarding. In the future, Tanner hopes to pursue a CFA designation.
Chad Brasseur Chad is a third year business student with a major in Finance and a minor in Accounting. He is one of two incoming analysts for the Financial and Real Estate sectors, and is excited to work with the current managers. This summer, Chad completed an internship with the Alberta Energy Regulator as part of their liability management team. He also intends to pursue a CFA designation upon graduation, starting with the Level I exam in December 2017. Outside of academics, Chad enjoys hockey, golf and snowboarding.
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PRIME FUND ANNUAL REPORT 2016
PRIME
Supporters
Program Director Gary Smith, CFA, Alberta School of Business
Board of Directors Maria Holowinsky, CFA, Adroit Investment Management Ltd. (CHAIR) Mark Huson, Alberta School of Business Ron Ritter, University of Alberta Vikas Mehrotra, Alberta School of Business Gary Smith, CFA, Alberta School of Business
Mentors Kevin Dell, CFA, Workers’ Compensation Board Orest Fialka, P.Geol., CFA, Adroit Investment Management Ltd. Maria Holowinsky, CFA, Adroit Investment Management Ltd. Keith Walton, CFA, Alberta Investment Management Corporation (AIMCo) George Wu, CFA, Gold Investment Management Ltd. Scott Russell, CFA, Telus Pension Fund
PRIME FUND ANNUAL REPORT 2016
23
PRIME
Partners
Organizational Support Alberta School of Business Edmonton CFA Society
Contributed Capital The University of Alberta School of Business Winspear Endowment The Department of Finance and Management Science The University of Alberta The Edmonton CFA Society Various members of the Edmonton business community: •
The Alberta Stock Exchange
•
Kevin Anderson
•
Gary & Sharon Elliott
•
J. Robert Reynolds
•
Levesque Beaubien Geoffrion
•
Midland Walwyn
•
TD Securities
Various Services Provided Adroit Investment Management Ltd. Computerized Portfolio Management Services Inc. State Street Trust Company Canada
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PRIME FUND ANNUAL REPORT 2016
Contact Us Room 3-02 Business Building University of Alberta Edmonton, AB T6G 2R6 Email:
[email protected]
For more information on PRIME or future reports please visit: www.ualberta.ca/business/student-organizations/prime
