Investment Management

The Company’s owns, directly or indirectly, long-term investments in the common shares of some publicly traded Canadian companies and a managed diversified portfolio of common shares of publicly traded global companies. As of December 31, 2021 the long-term investments comprised approximately 48.6% (2020 – 48.2%) of the Company’s investment portfolio.

The long-term investments consist primarily of common shares of E-L Financial Corporation Limited (“E-L Financial”) (36.6% (2020 – 36.9%) of total investments), Algoma Central Corporation (“Algoma”) (4.4% (2020 – 4.3%) of total investments) and The Bank of Nova Scotia (6.1% (2020 - 5.3%) of total investments). E-L Financial, Algoma and the Company can be significantly influenced by the same party. Further related party information is provided in Note 12 to the financial statements and in the statement of investments.

On December 20, 2021, the Company appointed Neuberger Berman Canada ULC (“Neuberger Berman Canada”), an investment management firm headquartered in Toronto, to provide portfolio management services for a portion of its assets, replacing Burgundy Asset Management Limited.

Neuberger Berger Canada manages the global investment portfolio by investing in global equities following a quality value investment style. Neuberger Berman Canada is a business of Neuberger Berman. Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager headquartered in New York. The firm manages a range of strategies including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds on behalf of institutions, advisors and individual investors globally. With offices in 25 countries, Neuberger Berman’s diverse team has over 2,400 professionals. The firm manages US$437 billion in client assets as of September 30, 2021.

The Company faces a broad range of risks and uncertainties in managing a global equity portfolio. These risks are described in the Risk Factors section of the Company’s 2021 Annual Information Form which may be found on SEDAR at www.sedar.com.