Investment Consulting Process

Raymond Choo, Senior Investment Advisor

Step 1: Discovery

• To clearly understand the unique needs of our client

• Identify and prioritize goals• Save to purchase a home

• Achieve a financially secure retirement• Education funding• Provide for the well-being of aging parents• To establish a legacy for the next generation

Analyze client needs and gain an understanding of the following:

– Return requirements, income needs and tax implications– Tolerance to risk and loss of capital – Time horizon

Highest/ Lowest Rate of Return for Stocks January 1, 1935 - June 30, 2006S&P/TSX Composite Total Return

87%

55%

28%

20%14%

-39%

-22%

6%

13%

3%

-9%

9%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

An

nu

al R

ate

of

Ret

urn

Risk Diminishes With Time

Step 2: Diversification

• Diversification reduces portfolio volatility without return

• Diversify by geography, asset class and investment management style

Step 3: Investment Policy Statement

• Summary document used as foundation for client’s investment decisions

• Describes the objectives of portfolio, investment guidelines and targets appropriate asset allocation and any investment constraints

Step 4: Investment Selection

• Criteria for selection includes:– Quantitative Analysis: Focus on consistency of

returns, value added vs. benchmarks, level of diversification and adherence to investment style

– Qualitative Analysis: Focus on Investment Manager’s investment philosophy, risk management, proficiency of its people and management, process and code of ethics

• Recommend a customized portfolio that adheres to your Investment Policy Statement

– Strategic asset allocation– Multi-dimensional diversification

Step 5: Continuous Monitor & Review

• Monitor the events that shape our client’s lives and their financial goals

• Study the trends and developments that shape the global investment environment, that drive our economy and ultimately effect your portfolio’s performance

Quantitative and qualitative reviews look for signs of potential deterioration in performance– deviation from the investment mandate – consistent under performance– departure of key investment personnel from

Investment Manager– merger or acquisition

Our investment process forms a direct partnership with our clients, the lines of

communication are always open

Raymond Choo, Senior Investment Advisor

3950 14th Avenue, Suite 106Markham, ON L3R 0A9

1-877-RAY-3838

rchoo@dundeewealth.comRayChoo.com