1. Mutual Fund Portfolio Strategies Agenda Investor’s dilemma… Why diversify? Asset allocation - Why does it matter? Asset allocation - How it works? Asset allocation - Why it works? Asset allocation - What it will do for you. Why use a Financial Advisor?

2. Growth 80% Equity / 20% Fixed-Income Balanced 60% Equity / 40% Cash & Fixed-Income Moderate 40% Equity / 60% Cash & Fixed-Income Conservative 0% Equity / 100% Cash & Fixed-Income Portfolio Asset Allocation Mixes Aggressive 100% Equity / 0% Fixed Income

3. 100% T-Bills ExpectedReturn 100% Bonds 100% Equities Risk/Volatility Yes No! Risk vs Return Combinations

4. VOLATILITY VOLATILITY RETURN Higher Higher Lower Growth Balanced Moderate Conservative Historical Portfolio Risk vs Return Aggressive

5. 1. A profile Questionnaire calculates your Risk Score 3. Match to the Asset Allocation Portfolio Recommendation 2. Match your risk score to your portfolio’s Investment Objective Aggressive Growth Balanced Moderate Conservative Asset Allocation Investing Made Easy …

6. Investment Personality ? Current Net worth Financial Goals Investment Time Horizon Needs for Liquidity Safety / Risk tolerance Retirement Income Need Other Income Sources Inflation Protection Principle Protection Current Income Taxation Priorities Portfolio Review Past Performance Financial Statements Existing Investments Family Income Needs Estate Preservation Wealth Transfer

7. What will a balanced Asset Allocation do for you ? It will provide Good Long-term Performance ! Risk (Std. Deviation) Asset Mix Universe Max Frontier Diversified Frontier

8. Asset Allocation Portfolio Mixes Conservative Equity Fixed-Income Aggressive Growth Moderate Balanced Growth

9. RISK RISK RETURN Higher Higher Lower Growth Balanced Moderate Conservative Aggressive Asset Allocation Investing Easy as 1-2-3

10. Asset Class Best Funds Report Canadian equity Canadian dividend Income trusts Canadian bonds Short term bonds Global bonds US equity International equity Money market Specialty funds Sector markets AGF Franklin Templeton Elliott & page (Manulife) Fidelity AIC (buy, hold & prosper) AIM Trimark TD funds Manulife / standard life Big bank funds Phillips Hager & north Cartier partners Ethical funds / credit union

11. Correlation… Why Does It Work?

12. Understanding Your Critical Portfolio Success Factors Your existing financial situation Your priorities & financial goals Your investment timeline Your risk tolerance Optimal asset allocation Asset class investment selections Time in the market ! Not timing the market!

13. Investment Selection Success Factors Historically Successful Returns – ask why? Consistent Top Quartile Rankings – ask why? Asset Class & Volatility Expectations = Risk How does it Compare against its own index ? Best Funds Report for past 3, 5 & 10-years Front End Fees, Back End Fees, or No Load? RSP Eligible? Dollar Limits or Restrictions? Low MER or Principle Guarantees, if possible? Any Principle or Maturity Guarantees ?

14. Having your own certified financial planner … Do you own mutual funds already? Did you know that part of your MER is paid to someone? Is this “someone” giving you the service you need? Is this “someone” giving you the advice you need? Is this “someone” giving you the respect you need? Since you are already paying “someone” part of the MER why not put your funds under your own control of who this advisor should be? … Someone who deserves it !

15. Samuel J. Esaw, CFP, CLU, CHFC Certified Financial Planner Chartered Life Underwriter Chartered Financial Consultant Helping build, protect & preserve estates since 1985 Served Lawyers with the Canadian Bar Association Served Doctors with the Canadian Medical Association Now serving you with unbiased & independent advice Well Informed …Well Advised