Opportunities in Infrastructure

1
Opportunities in Infrastructure

• Jason Gibbs, BAcc., CA, CFA
• Portfolio Manager
• January 2008

2
Agenda

• The infrastructure story
• The investment opportunity
• Dynamic Global Infrastructure Fund

3
The infrastructure storyDefining infrastructure
Essential physical assets or services that form
the foundation for economic growth and prosperity
in a community
Transportation Bridges Toll roads Ports
Railways Rapid transit links Airports
Communication Radio/TV broadcast towers
Wireless towers Cable systems
Utilities Electricity transmission Pipelines
Water distribution Waste water
collection/processing systems
Social Schools Hospitals Prisons
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The infrastructure storyIn the news
Brazil crash casts light on global safety
concerns - air infrastructure fails to keep pace
with traffic surge Wall Street Journal, July 19,
2007
Steam pipe blast highlights aging
infrastructure The Globe, July 20, 2007
The road to growth money is flowing into public
works in India, as the government opens the way
for private investment Wall Street Journal, June
11, 2007
Federal action is needed to rebuild
America Financial Times, August 23, 2007
Inquiry to probe overpass collapse Montreal
Gazette, October 1, 2006
Bridge collapse could spur infrastructure
fixes Wall Street Journal, August 3, 2007
Playing the global infrastructure
boom BusinessWeek, September 11, 2007
Port firm earmarks 800m for expansion in
China The Standard, May 8, 2007
Lack of funding putting Ontarios water at
risk The Globe, June 2, 2007
US warned of need to expand ports Financial
Times, June 11, 2007
Siemens updates GOs rail signals Toronto Star,
December 18, 2007
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The infrastructure storyProjected global
spending on infrastructure
Developing countries
Developed countries
Investments to maintain or develop infrastructure
between now and 2030 are projected at US30 to
35 trillion
Source Foresight Trends and Drivers in
Intelligent Infrastructure Systems
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The infrastructure storyAn example - Canadas
aging infrastructure
Average age of Canadas public infrastructure
72 of Canadas infrastructure is more than 40
years old
Source Statistics Canada, Canadian Society for
Civil Engineering and Scotia Capital
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The infrastructure storyFunding the growth

• Governments using public-private partnerships
  (PPPs) to help fund the growth in infrastructure

8
The investment opportunityGeneral infrastructure
characteristics
Investment in a distinct asset class
9
The investment opportunityInstitutional
participation
Global property allocations in institutions
today are around 6 ...global infrastructure
allocations are less than 1...we think many
institutions, over the longer term, will drive
toward 10 to 15 goals of infrastructure
investing, because theyre a perfect asset
group to match liabilities within the
institutions Bruce
Flatt CEO Brookfield Asset Management
Source Grants Interest Rate Observer, May 4,
2007
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The investment opportunityPension funds raising
allocations

• Ability to match revenue with liabilities for the
  long-term make infrastructure assets appealing

comprises other assets besides infrastructure
Source Annual reports and company website
11
The investment opportunityLong-term performance
(10 years)
Source PerTrac, Bloomberg and TD Newcrest as of
December 31, 2007
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The investment opportunityGlobal opportunities
SP Global Infrastructure Index
Sector weighting
Regional weighting
Source Standard Poors, August 31, 2007
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Dynamic Global Infrastructure FundInvestment
objective
Seeks to provide long-term capital growth
primarily through investment in a diversified
portfolio of infrastructure and
infrastructure-related companies from around the
globe
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Dynamic Global Infrastructure FundBalanced
approach

• Investment universe

Companies owning infrastructure assets
Companies participating in maintaining and
building infrastructure in both developed and
developing countries
INCOME
GROWTH
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Dynamic Global Infrastructure Fund Examples of
infrastructure investments
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Dynamic Global Infrastructure Fund Award-winning
management
Jason Gibbs, BAcc., CA, CFA Portfolio
Manager Industry experience 12 years
Oscar Belaiche, HBA, FICB, CFA Portfolio
Manager Industry experience 26 years
Michael Slater, B.Comm., CFA Analyst Industry
experience 16 years
Andrew Taylor, Hons. BA, MBA, CFA Portfolio
Manager Industry experience 9 years
Dave Wells Trader Industry experience 29 years
Dunstan Chung, BA Analysis Industry experience
16 years
Goodman Company Investment Counsel team
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Dynamic Global Infrastructure Fund Investment
philosophy

• Quality at a reasonable price (QUARPTM)
• Best-in-class management teams with a significant
  equity stake in the business
• Strong balance sheets
• Reasonable valuations price/cash flow, p/e,
  ev/ebitda, price/affo and discounted cash flow
• Comparable analysis attractive valuations
  relative to its peers, the market and itself
  historically

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Dynamic Global Infrastructure Fund Investment
highlights

• Diversified portfolio investing in public
  companies
• Geographic and sector flexibility to pursue the
  most attractive companies from around the globe
• Active foreign currency hedging (when costs not
  prohibitive)

Holding infrastructure directly Transportation Ut
ilities Communications Social
Maintain/develop infrastructure Engineering and
construction
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Conclusion

• The infrastructure story
• Tremendous global growth
• The investment opportunity
• Attractive asset class
• Dynamic Global Infrastructure Fund
• Investment made easy

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Important Information

• Commissions, trailing commissions, management
  fees and expenses all may be associated with
  mutual fund investments. Please read the
  prospectus before investing. The indicated rates
  of return are the historical annual compounded
  total returns including changes in units value
  and reinvestment of all distributions dividends
  and do not take into account sales, redemption,
  distribution or optional charges or income taxes
  payable by any securityholder that would have
  reduced returns. Mutual funds are not
  guaranteed, their values change frequently and
  past performance may not be repeated.
• Views expressed regarding a particular company,
  security, industry or market sector are the views
  of that individual only, and do not necessarily
  represent the views of Goodman Company,
  Investment Counsel Ltd. These views should not
  be considered as an indication of trading intent
  of the mutual fund, nor are they a recommendation
  to buy or sell, nor should they be relied upon as
  investment advice.
• This document is for not to be distributed or
  reproduced without the consent of Goodman
  Company, Investment Counsel. Dynamic Funds is a
  division of Goodman Company, Investment Counsel
  Ltd.