Investment Management Solutions

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• All recommendations follow our

“Total Return Equation”

• We use multi-manager, multi-asset class for

maximum risk-adjusted returns

• Matching clients needs with leading solutions

The Steele Group’s Investment Solutions

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Our “Total Return Equation”

Total return = Asset mix + Alpha + Market beta + Currency - Tax

Optimize

Maximize Manage

Manage/reduce Minimize

Return over the

benchmark / index

Market correlation

Systematic

Unsystematic

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• Asset Mix

• Alpha Generators (stock and sector selection)

Multi-Level Expertise

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• Risk Management

• Taxation Management

Multi-Level Expertise

Beta management, sector

monitoring and rebalancing Currency management

On-going monitoring

and due diligence

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Your own

fund-of-funds

Our target

Portfolios

Asset mix +/- ? +0.50

Alpha +0.60 +1.50

Beta management, sector

monitoring & rebalancing +0.00 +0.50

Currency management +0.00 +0.50

Corporate class / T-class +0.00 +1.00

Overall +0.60 +4.00

Our Value Proposition

Figures are shown in percentages 0.50 is 0.50%

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Managed solutions:

Guided portfolios:

Individual strategies from:

Maximum Risk-adjusted Returns

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Why a managed solution

Managed

• Continuous fund changes

• Changes happen

automatically

• Automatic rebalancing

• Able to change easily

over time

• Risk tolerance is set by

the institution

Not Managed

• Usually kept static

• Fund changes must be

approved

• Can easily become un-

balanced

• Built for one instant in

time

• Risk tolerance has to be

determined by the advisor

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• Each portfolio is designed to maximize

performance for a given risk using sophisticated

optimization methods

• Portfolio construction skills are combined with

the asset mix expertise of research firms

• Institutional portfolio management

Managed Portfolio Solution

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Portfolio Design Process

Asset Allocation Selection

Portfolio Strategy

Manager Selection

Implementation

Capital Markets Research

Review and Control

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Independent Fund Managers

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• Altrinsic Global Advisors LLC

– Connecticut

– Global Equity

– Value based investment philosophy / restructuring opportunities

• Black Creek Investment Management

– Toronto

– Global & International Equity

– Proprietary investment techniques

• Cambridge Advisors

– Boston

– US Equity

– Economic valuation philosophy / Bottom-Up approach

Independent Fund Managers

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• EPOCH Investment Partners, Inc.

– New York

– US Equity

– Accounting Measurements / Value based investment philosophy

• Harbour Advisors

– Toronto

– Canadian & Global Equity Focus

– Growth and Value based

• Picton Mahoney Asset Management

– Toronto

– Canadian, US & Global Equity

– Quantitative analysis / risk adjusted return

Independent Fund Managers

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• Signature Global Advisors

– Toronto

– Global Equity and Fixed Income Asset Allocation

– Analytical research and broad mandate

• Tetrem Capital Management

– Winnipeg

– Canadian & US Equity

– Disciplined value based

• Trident Investment Management LLC

– New York

– Alternative Investments

– Top-Down and Bottom-Up

Independent Fund Managers

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• QV Investors Inc.

– Calgary

– Canadian & US Small Cap

– Disciplined risk management techniques

Independent Fund Managers

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Portfolio Options

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• Award-winning fund of funds

• 7 portfolios & 7 managers

• 20 underlying funds

• Indirect currency hedging via underlying

managers

• Indirect tax advantages via underlying corporate

class

• Enhanced reporting

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• 7 portfolios

– Income Fund (70i 30e)

– Conservative Fund (55i 45e)

– Conservative Balanced Fund (45i 55e)

– Balanced Fund (35i 65e)

– Balanced Growth Fund (25i 75e)

– Growth Fund (20i 80e)

– Maximum Growth Fund (10i 90e)

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• Fully managed portfolios or customized allocations

• 9 portfolios & 8 managers

• 18 underlying funds

• Pure geographic allocations

• Direct currency overlay program

• Direct tax advantages via Corporate Class

• T-Class options

• Enhanced reporting

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• 9 portfolios, plus customized allocations

– 100i*

– 80i 20e

– 70i 30e

– 60i 40e

– 50i 50e

– 40i 60e

– 30i 70e

– 20i 80e

– 100e *Select Income Advantage

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• Nine professionally constructed risk-optimized portfolios

• Questionnaire designed to establish objectives and

constraints

• Recommended fund allocations

or

• Fully customizable

• List of recommended substitutes

• Choose from any available fund within asset class

• Personalized Investment Policy Statement

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• World-class investment options

• Tax efficiency

• Competitive, flexible fee structures

• Consolidated, simplified account management

• Principal, income and estate protection

– SunWise Essential Series segregated funds allow

PIM investors to combine their investments with the

income protection and estate planning benefits of an

insurance contract.

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• 9 professionally constructed optimized portfolios

– 100i*

– 80i 20e

– 70i 30e

– 60i 40e

– 50i 50e

– 40i 60e

– 30i 70e

– 20i 80e

– 100e *Select Income Advantage

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Matching Needs With leading Solutions

Accumulator Income Seeker

Multi-team,

multi-manager

•Portfolio Series

•Portfolio Select Series

•PIM Guided Portfolios

•Select Income

Advantage

Managed (“SIA”)

•PS Income

Single team,

multi-manager

•Signature Income &

Growth Fund

•Cambridge Canadian

Asset Allocation Fund

•Signature

Diversified Yield

Fund (“SDY”)

•Cambridge

Income Fund

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Minimum Investment $50 $25,000 $100,000

Number of Target Risk Funds 7 9 + 9 +

Independent Fund Companies 7 8 8

Fund Class A W O

Fee comparison Average Low Lowest

MER range 2.00 – 2.45% 1.70 – 2.20% 1.50 – 2.10%*

Corporate Class Underlying YES YES

Quarterly Report NO YES YES

Fee Deductibility on Open Accounts NO YES YES

Invoicing Available NO YES YES

Portfolio Customization NO YES YES

Decreasing Fee Scale* NO NO YES

Household Statements** NO NO YES

* Decreasing fee scale starts at $250,000 minimum account value

** Household statements available when one account is over $250,000

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• The Steele Group uses SLF Investments for our dealer

principle

• SLF Investments is responsible for regulations,

compliance and compensation

• Built-in to an MER is a management expenses

component for the fund company and a dealer service

fee (DSF)

• The Steele Group receives approximately 60% of the

DSF

• We NEVER use Back-End Load or Deferred Sales

Change (DSC) Investments

How is The Steele Group Compensated?

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Example:

• For a $25,000 investment, the 2.25% MER will

breakdown as follows:

– 1.25 % in management expense paid to the fund company

– 1.00% for the dealer service fee (DSF)

• The Steele Group is compensated 60% of the DSF,

i.e. 1.00% x 60% = 0.60% annually

– $25,000 x 2.25% = $562.50 in total annual MER

• 1.25% = $312.50 < Fund Company

• 0.40% = $100.00 < Dealer / SLF Investments

• 0.60% = $150.00 < The Steele Group

How is The Steele Group Compensated?

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Commissions, trailing commissions, management fees and expenses

all may be associated with mutual fund investments. Please read the

prospectus before investing. Unless otherwise indicated and except for

returns for periods less than one year, the indicated rates of return are

the historical annual compounded total returns including changes in

security value. All performance data assume reinvestment of all

distributions or dividends and do not take into account sales,

redemption, distribution or optional charges or income taxes payable by

any security holder that would have reduced returns. Mutual funds are

not guaranteed, their values change frequently and past performance

may not be repeated.

The Steele Group Financial & Workplace Services Inc.TM

Thank You

Investment Management Solutions

Contact Us

Tel: 1-888-824-4351

Email: servicenow@thesteelegroup.ca