Asset Allocation Summit February 4, 5 & 6, 2009 Toronto

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Conference Agenda

Session 3:

9:00-10:00 - Discussion Panel: Institutional Investors & Private Equity
? Panel Chair: Kirk Falconer, Director of Research and Analysis, Thomson Reuters ? Jim Orlando, Managing Director, OMERS Private Equity (TBC) ? Kevin Rorwick, Senior Manager, Equity Markets and Alternative Investment Finance Group, Ontario Teachers' Pension Plan ? Dan Goguen, Vice-President, Private Markets, New Brunswick Investment Management Corporation (NBIMC) ? David Rogers, Managing Director, Caledon Capital Partners ? Jeff Pentland, Principal, TD Capital Private Equity Investors

Private equity has grown steadily in popularity in the global institutional investor community, having emerged as a distinct and substantial asset class in many of the world's largest institutional portfolios. This panel discussion will explore this trend, with a look at:

? The attraction of private equity
? Barriers to broader participation in the private equity market
? Private equity as an alternative source of returns in a fast-changing financial system
? Key issues and challenges to consider when implementing a private equity investment strategy
? The Canadian institutional investor experience
? How should smaller institutions prudently participate in private equity?



10:00-10:45 - Finding The Best Alpha Sources For Your Portable Alpha Program
Jim Knowles, Managing Director, Alternative Asset Strategies, Addenda Capital and President, James A. Knowles Inc.

Market returns over the next 2-4 year cycle are highly uncertain. Pension investors are struggling to meet the twin goals of extracting consistent excess returns from volatile markets, while limiting or reducing their "liability mismatch" risk. Alpha transport is a key strategy to meet these potentially conflicting goals. However, effective evaluation of potential alpha sources requires analysis and due diligence processes that differ sharply from those used traditionally in selecting investment service suppliers. This presentation will discuss:

? Does true alpha actually exist? Does it matter?
? The key attributes of good alpha sources
? An analytical framework specific to alpha-source due diligence
? A real-world example based on the Canadian fixed income market



10:45-11:00 NETWORKING BREAK

11:00-11:45 - Using Value at Risk (VAR) to Run the Asset Mix
Vaino V. Keelmann, Principal & Consultant, API Asset Performance Inc.

The Value at Risk (VaR) technique analyzes statistical historical price trends and volatilities in order to provide estimates of the extent of future portfolio losses. Controlling losses can improve returns and simultaneously reduce risk. This presentation will discuss the use of VaR in asset allocation, including a look at:

? Advantages of the VaR strategy
? Combining the strategy with more traditional asset allocation techniques
? Practical examples of VaR
? Does VaR work in a sub-prime crisis?
? How to put together a real Risk Budget with VaR
? Methodology for calculating VaR economically and efficiently



11:45-12:30 - Desperately Seeking Alpha: A Lively Discussion on the Search for Alpha
Harry S. Marmer, Executive Vice-President, Institutional Investment Services, Hillsdale Investment Management Inc.

Expert opinion suggests that we are in a decade of single digit capital market returns. Such an environment increases the challenge of producing superior performance adjusted for risk. Clearly, this is also not good news for pension fund health. This discussion will critically examine the dilemmas institutional investors face in searching for alpha, including such topics as:

? Where not to find alpha
? The magic formula for active management
? The new efficient frontier



12:30-1:30 Lunch