1

Presentation for Queen’s University Pension Plan

December 4, 2015David Vanderwood, Senior Vice President & Portfolio Manager

2

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Queen’s Pension Plan: Burgundy Canadian Equity

TSX Composite Index

Quality, Value & Time

+ 335%

+ 151%

Performance: (Inception) June 1, 2001 - October 31, 2015

3

Investment PhilosophyQuality, Value & Time

Protect and Grow Capital

1. Avoid Incurring Permanent Loss of Capital

2. Own a Portfolio of High-Quality Businesses for the Long-term

3. Be Contrarian and Opportunistic: “Be fearful when others are greedy and greedy when others are fearful” - Warren Buffett

4

Relentless Focus on Quality Businesses: Invest in businesses, not stocks

Buy and Hold: Buy quality companies and hold to compound capital long-term

Benchmark Agnostic: Building portfolios company by company – not by sectors

Risk = Permanent Loss of Capital: Not volatility to an index

Circle of Competence: Concentrated portfolios increases our chances of getting it right, or of not getting it wrong

Guiding Principles:

What We Do

5

Valuation Estimate intrinsic value using discounted cash flow (DCF) analysis

ManagerialCharacteristics

• Capable, honest management• Excellent capital allocation record• Equity ownership• Good corporate governance

BusinessCharacteristics

• Barriers to entry• Limited competition• Economic resilience• Industry leadership

Quality

FinancialCharacteristics

• Growth in free cash flow• Low capital requirements• High return on invested capital• Strong balance sheet

Buy Decision Margin of Safety

Dream Team < 30 % ≥ 30 % Burgundy Investment

What We Look ForHigh Quality Businesses Available at a Discount

6

We try to avoid:• Earnings Risk • Business Model Risk • Balance Sheet Risk• Valuation Risk

But even a Quality Value approach can’t avoid paying in Time

TimeThere Is No Free Lunch

7

Disciplined ProcessCase Study: Loblaw

Performance: March 2007 – July 31, 2015

$20

$30

$40

$50

$60

$70

2007 2008 2009 2010 2011 2012 2013 2014 2015

Intrinsic Value

Loblaw Share Price

Margin of Safety

SELL

Trim

Trim

Trim

Add Add Add

Add

8

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Queen’s Pension Plan: Burgundy Canadian Equity

TSX Composite Index

Quality, Value & Time

+ 335%

+ 151%

Performance: (Inception) June 1, 2001 - October 31, 2015