The S.A.M. process is an inter-related process where your financial planning goals directly impact your portfolio construction. Once your financial plan is crafted, the S.A.M. process begins with the drafting of the Investment Policy Statement (IPS Process).

The continum of services in S.A.M. include the following (all services provided for portfolios of greater than $500,000):

1. Investment Policy Statement and Process

   We will initially and on an ongoing basis review your existing assets, cash flow and goals to develop an Investment Policy Statement. The IPS process includes the following:

   • Determine Your Risk Tolerance

     A key to achieving your goals is to review, if in fact, they are realistic in keeping with your ability to tolerate the risk embedded in various asset classes.

   • Establish Asset Allocation

     Development of a target asset allocation based on your risk tolerance and long-term goals.

   • Formalize Your Investment Policy Statement

     This statement captures the family's time horizon, tax situation, portfolio goals (income generation, capital appreciation or both) and target asset allocation.

2. Determine the Appropriate Portfolio

   Your portfolio investments will be custom-tailored based on the IPS statement, taking into consideration your income and/or capital generation needs.

3. Implement Portfolio Suggestions

   Investment decisions will be implemented initially and on an ongoing basis as required.

4. Analyze Your Current Position

   Based on the IPS and our investment philsophy, we will continue to monitor and make suggestions as appropriate for your portfolio.

5. Portfolio Rebalancing

   One of the key aspects of our investment philosophy is to rebalance portfolios to the pre-establised targets, as is prudent. Generally this may be done on an annual basis and/or when new money is invested in the portfolio. Empirical evidence reflects that portfolio re-balancing does have a positive long-term impact.

6. Provide Quarterly Reports & Economic Commentary (portfolio of $500,000 or greater)

   Each quarter you are provided with a report outlining your assets, original cost, adjusted cost base ownership status, and market valuation at the quarter end. Also the quarterly and annual returns are provided for each asset you own and the weighted return is provided for each asset category and on a total portfolio basis. Your asset allocation is reported in graphical form and reviewed to ensure your asset allocation targets are in line with your investment policy statement.

   You quarterly report will provide specific suggestions for the portfolio where appropriate.

7. Portfolio Discussions

   If you have any concerns or would like to discuss the current state of the portfolio, our job is to provide you with informed answers to your inquiry.

8. Annual Meeting

   On an annual basis, we will sit down to revisit your IPS and discuss your portfolio in detail.

Excluded from the S.A.M. program are major portfolio revisions/reviews or events outside the reporting framework. All financial planning and tax related services are covered under the regular Financial Planning Services Agreement. While most of our S.A.M. clients are full financial planning clients as well, we do offer this service on an investment only basis. Please inquire with our Vancouver office about this service level.

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