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?

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

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

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

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 …

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

What will balanced Asset Allocation do for you ? … You will get Good Long-term Performance ! Risk (Std. Deviation) Asset Mix Universe Max Frontier Diversified Frontier

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

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

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

Correlation… Why Does It Work?

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!

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 ?