INNOVATION November-December 2016

16.DanHAdvertorialAd1 2016-11-07 1:50 PM Page 1

Planes, Trains and Portfolios

Our world is built around managing risk. Planes have multiple engines; elevators have numerous braided cables and backup safety brakes; trains rely on double-headed locomotives; companies use multiple IT servers; and pipelines use coatings and cathodic protection to prevent corrosion. Outside the realms of engineering, we believe in using similar risk control systems to protect clients’ capital against the unforeseen.

At Odlum Brown Limited, we’re in the business of designing and constructing custom investment portfolios. We do this by investing in the corporate debt and equity of a collection of high-quality public companies that will preserve and grow your capital over time on a tax-efficient basis.

We use detailed checklists and mental models to gauge the attractiveness of a suitable stock or bond for a client’s investment portfolio. We stress test our investment thesis, running different scenarios to determine what could go wrong and what sort of downside risk could arise.

OB Model Portfolio vs S&P/TSX Total Return Index

$8,000,000

Odlum Brown Model Portfolio 15.2%*

$4,000,000

S&P/TSX Total Return Index 8.4%

$2,000,000

$1,000,000

And we analyze whether clients are being compensated for this risk by way of an overly attractive price.

$500,000

$250,000

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

That’s how the Odlum BrownModel Portfolio* has significantly outperformed the S&P/TSX Composite Index since its inception in 1994. It’s also how we’ve been protecting and growing our clients’ wealth for over 90 years.

*Compound annual returns are from inception December 15, 1994 to October 15, 2016. The Odlum Brown Model Portfolio was established by the Research Department in December 1994, with a hypothetical investment of $250,000. These are gross figures before fees. Past performance is not indicative of future performance. Trades are made using the closing price on the day a change is announced.

Connect with Dan and his team today to receive a complimentary subscription to the Odlum Brown Report.

Dan Hincks, CFA | Associate Portfolio Manager Tel 604-844-5476 | Toll Free 1-888-886-3586 dhincks@odlumbrown.com | odlumbrown.com/dh

Member-Canadian Investor Protection Fund