1. Prepared for: Compliments of: IPC Investment Corporation or IPC Securities Corporation (choose one) Website: www.ipcc.ca

2. Personal & Confidential2 Portfolio Management Strategy prepared by “Investing isn’t just about making money. It’s a way of reaching our personal goals…” Peter Lynch This document has been written to provide both clarity and guidance in the investment decision-making process. Its purpose is to outline the investment process that will be applied in the management of your portfolio. Agenda Portfolio Management Strategy Background on Portfolio Construction Our Investment Management Philosophy Portfolio Composition Process About our Portfolio Management Service - Counsel Portfolio Services Inc. Investment Specialist Selection Process Ongoing Portfolio Monitoring Process Investment Specialist Replacement Process

3. Personal & Confidential3 Portfolio Management Strategy prepared by Background On Portfolio Construction 1. Your Time Horizon –Identifies how long you will remain invested before you need access to your investments. 2. Your Income Requirements –Depending on the investments selected, your portfolio may generate interest income, dividend income, or a combination of both. –Depending on your needs, you can choose to reinvest the income or cash flow that is generated, or have it paid out to you periodically. 3. Your Need for Capital Growth –The capital growth potential of your portfolio is largely determined by its equity content. –Historically, equities have outperformed all other investment alternatives. –Generally, the trade-off for investing in equities is experiencing short-term losses to participate in long-term gains. If you prefer not to invest in equities, it may mean that your portfolio’s capital growth potential is limited. –Your portfolio will be designed to fit your personal preference for growth versus risk. There are a number of important factors that determine the investment strategy that will be used in managing your portfolio:

4. Personal & Confidential4 Portfolio Management Strategy prepared by Background On Portfolio Construction 4. Your Risk Tolerance – Portfolio Volatility –Markets can experience periods of volatility, which may cause security prices to fluctuate. –Long-term investors focus on longer-term trends, not temporary fluctuations. The key is to maintain a focus on your long-term investment goals. –Your portfolio will be managed with consideration to your personal level of preference for volatility, or risk. 5. Your Liquidity Needs –Typically, as you move closer to the end of your investment time horizon, your portfolio will have more cash and cash equivalent securities that can be used for current income when required. Liquid cash equivalent investments may include treasury bills, money market funds, or high yield savings accounts which may be held as part of your overall portfolio.

5. Personal & Confidential5 Portfolio Management Strategy prepared by Background On Portfolio Construction 6. Investment Styles Value Investing - Value investment specialists : –analyze balance sheets and relative prices to determine a company’s worth. –invest in companies that cost less than their estimated worth, or those that are out of favour with the market. –can unearth ‘diamonds in the rough’, allowing your portfolio to benefit from a stock’s price appreciation in value over time. Growth Investing - Growth investment specialists: –look at variables such as return on equity, quarterly earnings momentum, earnings revisions. –focus on factors such as a good performance track record, sustainable earnings momentum, potential trend, expected earnings surprises and relative price performance. –can pick out stocks that have visible above average growth potential, allowing your portfolio to benefit from a stock’s price appreciation as the market recognizes this potential.

6. Personal & Confidential6 Portfolio Management Strategy prepared by Background On Portfolio Construction 7. Investment Style Diversification We believe that investment style diversification is an important part of portfolio construction. Investing in portfolios that have different styles of money management may: –reduce the overall volatility within your portfolio. –improve the potential for out-performance as you are not “betting” on a single style. –lower risk of your portfolio being negatively impacted by a particular style being out of favour. –allow you to benefit from any gains generated by the stock picking abilities of investment specialists using both approaches.

7. Personal & Confidential7 Portfolio Management Strategy prepared by Source: Morningstar Direct. Russell 1000 Growth Total Return, Russell 1000 Value Total Return indices to Nov. 2009 Growth Value Style Blend 50:50 Style Neutrality There will be times where one style will outperform the other. A diversified style-neutral investment strategy can reduce volatility and capture the growth potential of each investment style.

8. Personal & Confidential8 Portfolio Management Strategy prepared by Background On Portfolio Construction 8. Market Timing Predicting market changes is difficult even for the experts. Yet, many investors think they know what will happen to the markets based only on a hunch, or rumour. Timing the market requires two things: –knowing the right time to buy, and the right time to sell –If you miss either, you may miss the market’s gains Most of the market's gains occur in just a few strong, but unpredictable, trading days. To maximize the market's long-term performance, you have to be in the market during those days Source: Counsel Portfolio Services, Morningstar Direct. (Based on the S&P/TSX Composite Total Return Index) 10 Years ended August 31, 2011Annual Return Staying invested8.1% Missing the 10 best trading days1.7% Missing the 30 best trading days-5.1% Missing the 50 best trading days-9.8%

9. Personal & Confidential9 Portfolio Management Strategy prepared by The Importance Of Proper Asset Allocation Index Annual Performance: Canadian Bonds: DEX Universe Bond Total Return Index Global Equities: MSCI World Index ($Cdn) Canadian Large Cap: S&P/TSX Total Return IndexForeign Equities: MSCI EAFE Index ($Cdn) Canadian Small Cap: BMO Nesbitt Burns Cdn Small Cap IndexUS Large Cap: S&P 500 Total Return Index ($Cdn) Emerging Markets: MSCI Emerging Markets Free Index ($Cdn)US Small Cap: Russell 2000 Index ($Cdn) Source: Globe HySales December 2010 This chart has been re-produced with permission from Mackenzie Financial Corporation. Diversifying allows you the potential to participate in winning categories each year.

10. Personal & Confidential10 Portfolio Management Strategy prepared by The Importance Of Geographic And Market Sector Diversification Energy and materials represent approximately 50% of the Canadian index*.These commodities usually do well in times of global expansion but when economies retract they can also decline in value. Diversifying allows you to reduce the volatility of your overall return over time. *Source: MSCI and S&P/TSX indices, 2008

11. Personal & Confidential11 Portfolio Management Strategy prepared by The Importance Of A Balanced Approach A balanced portfolio can reduce volatility *Source: Morningstar Direct

12. Personal & Confidential12 Portfolio Management Strategy prepared by Diversification Through Asset Allocation Asset allocation is the process of apportioning investments among various asset categories. Approximately 91% of a portfolio’s volatility has been shown to be attributed to asset allocation*. Proper asset allocation can help mitigate risks and improve overall returns. * Source: Ibbotson Associates study; 1995.

13. Personal & Confidential13 Portfolio Management Strategy prepared by The Importance Of Portfolio Rebalancing Rebalancing allows us to move assets from an asset class that has outperformed to another that may be the next to outperform. By rebalancing your portfolio at regular intervals back to stated initial target weights, we can keep your portfolio aligned to your investment objectives, improving the potential to achieve your investment goals.

14. Personal & Confidential14 Portfolio Management Strategy prepared by 1 Dalbar, Inc. Quantitative Analysis of Investor Behaviour, 2008. Average annual rates of return. Index Return 4.5% Individual Investor Opportunity S&P 500 (1987-2007) 1 Average Individual Investor 1 Opportunity 11.8% Investing Is About The Discipline To Stick To A Process

15. Personal & Confidential15 Portfolio Management Strategy prepared by “To invest successfully over a lifetime does not require stratospheric IQ, unusual business insight, or inside information. What’s needed is a sound intellectual framework for decisions and the ability to keep emotions from corroding that framework.” Warren Buffett Our Investment Management Philosophy Our goal is to work with you to create an intellectual framework for making sound investment decisions utilizing our proprietary Portfolio Management System.

16. Personal & Confidential16 Portfolio Management Strategy prepared by Portfolio Composition Process Our portfolio composition process allows us to offer you investment solutions that will meet your personal investment objectives, time horizons, risk tolerance, income and liquidity requirements as well as your other specific preferences. Strategic Asset Allocation Managed Asset Allocation Concentrated Portfolios [Put Graph here]

17. Personal & Confidential17 Portfolio Management Strategy prepared by About Counsel Portfolio Services Inc. Counsel Portfolio Services Inc. ^ is a portfolio management service that our team retains to build portfolios for our clients based on the following criteria: Independent portfolio composition for our clients Specialized and diversified investment specialists No “in-house” money managers – all external – therefore objective in investment specialist selection Independent accountability of investment specialists (ability to change) Provide automatic rebalancing of your portfolio based on your portfolio criteria Help our team to simplify the administration of your portfolio: –One consolidated report –Easy on-line portfolio access –Consolidated tax reporting

18. Personal & Confidential18 Portfolio Management Strategy prepared by Investment Specialist Selection Process One of the most important factors in portfolio management is to have a defined and disciplined approach to the selection of investment specialists for each mandate in your portfolio. Counsel uses a rigorous process to select investment specialists. Using quantitative and qualitative evaluation criteria, a wide universe of potential investment specialists are screened, researched and analyzed before the ideal candidate is selected for a mandate.

19. Personal & Confidential19 Portfolio Management Strategy prepared by 151 5 Years 1996-2000 20 15 36 80 5 Years 2001-2005 Source: Morningstar. Past performance of U.S. Equity Funds. Top Quartile Managers The Importance of Research When Selecting Investment Specialists Our conclusion: Selecting an investment specialist is more than simply looking at previous performance Quartile: 1 2 3 4 An investment specialist’s performance alone is not a good indicator of their future performance

20. Personal & Confidential20 Portfolio Management Strategy prepared by Ongoing Portfolio Monitoring Process The following are the services that Counsel Portfolio Services provides our team: –Portfolio Rebalancing Back to original target allocations –Portfolio composition analysis focused on security categorization Asset size, sector/geographic concentration –Portfolio risk valuation Standard deviation, downside volatility, correlation –Study relative performance among peers and benchmarks Cost shifting versus market appreciation, stock selection, turnover rate, asset mix –Mandate Review Market capitalization, buy/sell discipline, geographic adherence –Portfolio design and construction reviews by independent third party consultants

21. Personal & Confidential21 Portfolio Management Strategy prepared by Investment Specialist Replacement Process As part of their service offering, Counsel’s Portfolio Management Team regularly monitors the performance of each investment specialist. On behalf of all investors, they will replace an investment specialist if the stated objectives are not being met. Some of the reasons why Counsel may replace an investment specialist: Philosophy & Process Organization/ People Performance Regulatory Fundamental strategy shift Mandate drift Inconsistent discipline Ownership change Product capacity Firm growth Material personnel concerns Unexpected performance results Risk exceeds portfolio guidelines Compliance matters

22. Personal & Confidential22 Portfolio Management Strategy prepared by Stay Up-to-Date On Your Investment Plan With A Quarterly Portfolio Review

23. Personal & Confidential23 Portfolio Management Strategy prepared by

24. Personal & Confidential24 Portfolio Management Strategy prepared by ^ Counsel Portfolio Services Inc. is an related company to IPC Securities Corporation and IPC Investment Corporation. All three are subsidiaries of Investment Planning Counsel Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Trademarks owned by Investment Planning Counsel Inc. and licensed to its subsidiary corporations. Investment Planning Counsel is a fully integrated Wealth Management Company. Mortgage Broker services provided by IPC Save Inc. (ON Lic.#10227). Mutual Funds available through IPC Investment Corporation and IPC Securities Corporation. Securities available through IPC Securities Corporation. Member-Canadian Investor Protection Fund. Insurance products available through IPC Estate Services Inc.