ADAPTIVE PORTFOLIOS DESIGNED TO

THRIVE IN CHANGING ENVIRONMENTS

Butler | Philbrick | Gordillo and Associates

INVESTMENT OBJECTIVE 6% VOLATILITY TARGET

(CANADIAN DOLLAR MANDATE)
Our objective is to achieve stable portfolio growth with a targeted annualized
volatility of 6% and controlled peak-to-trough losses regardless of market
environment. The strategy employs an Adaptive Asset Allocation framework
to regularly optimize a portfolio of global asset classes through highly liquid
Exchange Traded Funds. The strategy aims to provide positive returns in most
market environments including periods of major market turmoil.

PORTFOLIO MANAGERS

Performance and risk snapshot as of April 30, 2015

Compound

YTD

1 month

3 months

6 months

1 year

3 years

Inception

Darwin

5.81%

-3.30%

-4.37%

10.78%

11.77%

----

7.52%

RETURN

VOLATILITY

MAX DRAWDOWN

SHARPE RATIO

Inception

Apr

Inception

Apr

Inception

Inception

Darwin

7.52%

5.55%

6.61%

-3.63%

-4.61%

1.14

Blended Index*

11.32%

6.65%

6.33%

-3.03%

-5.78%

1.79

S&P/TSX Comp.

10.39%

6.57%

10.58%

-1.33%

-11.71%

0.98

Inception was May 1st, 2012. Risk statistics on a daily basis. Performance expressed in CAD, net of fees
for the fund. Past performance is not an indication of future performance. Indicated returns of 1 year
or more are annualized.

Performance since inception

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Source: Butler|Philbrick|Gordillo and Associates. Data from Bloomberg

*65% MSCI ACWI (CAD) & 35% DEX Universe Bond Index
Dundee Goodman Private Wealth is a division of Dundee Securities Ltd.
Dundee Goodman Private Wealth is a trademark of Dundee Corporation, used under license.

Adam Butler, CFA, CAIA

Mike Philbrick, CIM
Rodrigo Gordillo, CIM
1 Adelaide Street East, Suite 2100
Toronto, ON
M5C 2V9
Tel.: 416 572 5474
www.bpgassociates.com

STRATEGY DETAILS
Assets under program
~$25 million
Style
Global asset allocation
Investment type
Long only
Inception date
May 1st, 2012
Currency
Canadian dollar
Management fee
2%
Institutional fee
Negotiable
Performance fee
None

CALENDAR PERFORMANCE (%)

Darwin Core

Jan

Feb

Mar

Apr

2015

10.64

-1.69

0.59

-3.30

2014

2.89

0.50

-1.27

-0.12

0.86

-0.18

2013

1.71

1.37

0.92

0.67

-0.11

-1.61

3.04

1.25

2012

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

YTD
5.81%

1.00

1.44

-2.56

0.39

0.78

0.69

-2.07

2.84

0.54

-2.18

1.84

0.54

2.57

2.07

7.72%

0.67

-0.25

5.65%

-0.45

-0.71

3.83%

Inception was May 1st, 2012. Performance expressed in CAD, net of fees. Past performance is not an indication of future performance.

APRIL 2015 ALLOCATION CHANGES

Emerging Market

Japan

U.S. Equities

ST US Treasuries

20%

15%

35%

35%

10%

20%

LT Canadian Bonds

20%

Cash

10%

4/8/2015

10%

25%

4/22/2015
1/22/2014

SIMULATED RESULTS NET OF 2% MANAGEMENT FEE (1995-2012)

$800

Darwin Core Diversified Strategy

6% Target Volatility (Canadian Dollar Mandate)

$400

Annualized return
Maximum drawdown
Annualized volatility
Positive rolling 12-month
Sharpe

9.64%
-7.13%
6.31%
100%
0.88

ASSET CLASS UNIVERSE

$200
S&P/TSX TR
Top Quartile Cad Balanced Funds
$100

STATISTICS

S&P/TSX Composite Index

DEX Long Term Bond Index
Vanguard Total U.S. Stock Index
S&P 500 Index (CAD)
Barclays 20+ Year Treasury Index
Barclays 7-10 Year Treasury Index
Dow Jones U.S. Real Estate Index
S&P Europe 350 Index
MSCI Japan Index
MSCI Emerging Markets Index
DJ Global Real Estate Sec Index
Gold
DB Liquid Commodities Index

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Important note: Darwin mandates do not seek to outperform any benchmark or index over any week, month or year. Comparisons are provided for informational purposes only.
Benchmark comparisons are only valid in the context of a full market cycle. The Darwin Core Diversified mandates are constructed to deliver stable returns in all market environments
while actively controlling for risk.
Disclaimer: This newsletter is solely the work of BPG and Associates for the private information of their clients. Although the authors are registered Investment Advisors with Dundee
Goodman Private Wealth (Dundee), a division of Dundee Securities Ltd., this is not an official publication of Dundee and the authors are not Dundee analysts. The views (including any
recommendations) expressed in this newsletter are those of the authors alone, and they have not been approved by, and are not necessarily those of, Dundee. Dundee is a member of
the Canadian Investor Protection Fund. This document is not deemed to be used as a solicitation in a jurisdiction where this Dundee representative is not registered.
General information regarding hypothetical performance charts: These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike
the results in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under- or
over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they
are designed with the benefit of hindsight. No representation is being made that any account or fund will or is likely to achieve profits or losses similar to those being shown. The results
do not include other costs of managing a portfolio aside from the 2% management fee (such as custodial fees, legal, auditing, administrative or other professional fees). The chart above
has not been reviewed or audited by an independent accountant or other independent testing firm. More detailed information regarding the manner in which the charts were calculated
is available on request. The hypothetical performance results do not reflect actual trading and may not reflect the impact that material economic and market factors may have had on
the managers decision making were it actually managing the strategy during those time periods. Any actual fund that the managers manage will invest in different economic conditions,
during periods with different volatility and in different securities than those incorporated in the hypothetical performance charts shown above. There is no representation that any fund
will perform as the hypothetical or other performance charts indicate.
General information regarding the simulation process: The systematic model used historical price data from Exchange Traded Funds (ETFs) representing the underlying asset classes
in which it trades. Where ETF data was not available in earlier years, direct market data was used to create the trading signals. Each strategy rebalances weekly and positions are
changed based on historical volatility, correlation and trend analysis. The hypothetical results shown are based on extensive models and calculations that are available for any potential
investor to review before making a decision to invest.