Dynamic Funds

Dynamic Funds, a division of Goodman & Company, Investment Counsel Ltd was established as a small investment club in Montreal in 1957, where it was a pioneer in providing professional investment advice to retail investors. Since then, it has evolved to become a fully integrated wealth management firm offering a comprehensive range of products and services, spanning every major sector, geographic region and investment discipline, managing in excess of C$30 billion* today.

As one of Canada's leading family of funds, our commitment to fostering partnerships between investors and financial advisors has been unwavering. Financial decisions are among the most important individuals will ever make. One of Dynamic's fundamental beliefs is that there are significant benefits to Canadians who seek the advice of a professional financial advisor.

*As at May 31, 2009

Investment philosophy

The award-winning, Goodman & Company value team is guided by the principles of Benjamin Graham, the father of value investing. Using a contrarian approach to investment management, the goal is to identify fundamentally sound but misunderstood Canadian companies that have been overlooked and discounted by the market. Focusing on companies and sectors that are unloved, unknown and out-of-favour, the manager looks for value opportunities among companies with:

• Undervalued assets
• Unrecognized growth potential
• Attractive long-term potential but disappointing short-term results
• Negative media coverage
• Little or no sell-side research

Investment process

The Canadian Value Portfolio is managed using a deep-value, contrarian approach to security selection to generate long-term capital appreciation from mispriced Canadian equity securities. Using a rigorous bottom-up research process, the team identifies companies with solid business fundamentals and substantial reward potential, but which are misunderstood by the general marketplace and are trading at significant discounts to their peers, the market or historical trends on a price to book, price to earnings, or price to cash flow basis.

After identifying attractive businesses through preliminary screens, an exhaustive evaluation of the industry – including competitors and suppliers – is completed to thoroughly understand a business’s environment. A valuation for the security is arrived at after combining industry findings with extensive company-specific research, including thorough financial statement analysis and detailed management assessments. Buy candidates are strong cash flow generators with little or no debt (pristine balance sheets) and the ability to initiate or increase dividends.