Wolfgang Klein BBM, CIM, PFP, AIFP Portfolio …...Wolfgang Klein BBM, CIM, PFP, AIFP Portfolio Manager, Vice President, Senior Investment Advisor, Market Commentator 416-869-7338

Wolfgang Klein BBM, CIM, PFP, AIFPPortfolio Manager, Vice President,Senior Investment Advisor, Market Commentator

[email protected]

You want someone to give you straight forward, honest advice. You wantsomeone you can trust to help you manage your investments. You want tomake money. Maybe you’d feel all right taking some limited risks. But at theend of the day, you don’t want to lose money.

I’m here to give you the advice you are looking for. My first priority is to identify what is important to you. I start by learning who you are, how you approach money management and your goals. My approach is to view yourlife through the broadest possible lens. By asking questions and listening, I gain the understanding needed to manage your investments in ways that arevaluable and meaningful to you. It also helps me connect with your broaderagenda. Your career, your family, giving back, creating a legacy, all of theseare important to living a happier, fuller life.

It’s about you

As a licenced Portfolio Manager, I am guided by the AIF® and AIFA®

Designee Code of Ethics. I believe in trust through transparency.

AIF® and AIFA® Designee Code of Ethics

I recognize that this Code of Ethics, and its principles and obligations, are in addition to those setforth by any other Code that governs my professional and ethical conduct.

To my clients, I will:

1. Employ and provide the client information on the Prudent Practices when serving as aninvestment fiduciary and/or advising other investment fiduciaries.

2. Act with honesty and integrity and avoid conflicts of interest, real or perceived.

3. Ensure the timely and understandable disclosure of relevant information that is accurate,complete, and objective.

4. Be responsible when determining the value of my services and my form of compensation; takinginto consideration the time, skill, experience, and special circumstances involved in providing my services.

5. Know the limits of my expertise, and refer my clients to colleagues and/or other professionals inconnection with issues beyond my knowledge and skills.

6. Respect the confidentiality of information acquired in the course of my work, and not disclosesuch information to others, except when authorized or otherwise legally obligated to do so. I willnot use confidential information acquired in the course of my work for my personal advantage.

7. Not exploit any relationship or responsibility that has been entrusted to me.

To my community (whether defined by work, family, and/or friends), I will:

1. Proactively promote and be a steward of ethical behavior as a responsible partner among mypeers in the work environment and in my community.

2. Ensure that the overall promotion of my practice is implemented in the best interests of myprofession.

3. Seek, accept, and offer honest criticism of technical work; acknowledge and correct errors; andproperly credit the contributions of others.

4. Use corporate assets and resources employed or entrusted to me in a responsible manner.

5. Continue to improve my knowledge and skills, share ideas and information with colleagues, andassist them in their professional development.

Copyright © 2011 Fiduciary360, LP

Version: February 21, 2011

I have no account minimum. My primary focus ison building a strong, rapport with you. It takestime to establish professional trust and a personal relationship. I start by giving you myunwavering commitment to provide full serviceand to keeping you on the path to realizing yourdesired end result. I uphold those commitments by:

• Keeping things simple. I help you understandthe complexities of investing and providestraightforward advice that enables you to focuson relevant issues and make informed decisions.

Trust throughtransparency

As a Portfolio Manager, I manage money for people from all walks of life. From media and entertainment industry executives to lawyers, small-businessowners, lottery winners and extended client families. While each client is different, the one constant is the nature of our relationship. I strive to buildtrusting client partnerships that are completely transparent and provide assurance that you are being looked after.

• Seeking modest returns. I aim to grow moneyat a 5% to 9% annual compounded growth rate,over decades. It may seem strange, but I do nottry to make my clients rich. My clients have all themeans of becoming rich and understand thatchallenge as a goal of their own. My job is to keepclients on plan, and on track, minimizing taxesand putting aside money each year until they retire. It isn’t how much you earn, it’s how muchyou keep. We all know people who earn large andspend larger. Conversely we know modest earn-ers, who for some strange reason, always have alittle extra to save each and every month. Modestreturns allows for modest risk.

• Return of principal first, then return on principal.

• Keeping my promises. I promise to providehonest and transparent service. I also resolve tofix a mistake and to cut losses if a recommendedinvestment doesn’t go your way.

• Managing risk. There are risks to any decision.But by thoroughly analyzing risk and then actively managing it, I ensure that each invest-ment matches your goals, investment timeframeand risk tolerance. There are two types of suc-cessful clients I care for. Those who are rich and those who are becoming rich. Clients whoare already rich need only become rich once. It is not my job to make them rich again, butrather to ensure I don’t squander what theyhave worked so hard to accomplish.

• Investing intelligently. Investing is about making intelligent decisions. That may meangoing to all-cash, selling unprofitable positionsor continuing to buy and hold quality stocks.Above all, it means not getting caught up in themania of the day. It’s the second mouse that getsthe cheese.

• Aligning interests. I do more than put the interests of you first. I usually invest in the samesecurities I recommend to my clients.

• Thinking independently. I’m an independentthinker working at Canada’s largest independentinvestment dealer. Together we offer fresh insight, new perspectives and challenge conventional wisdom.

• Keeping fees low. I have a vested interest inthe health of your investment portfolio becausemy business is primarily fee-based. I do notcharge commissions. I will, however, gladly dotransactional business if requested. My goal, regardless, is to keep fees low.

• Seeing the big picture. Investing is an ideasbusiness, one that requires me to be openminded and see the big picture without losingsight of the details.

• Offering comprehensive services. From financial, estate and retirement planning to portfolio management and generational wealthtransfer, I can offer you the broadest possiblerange of services.

• Moving around the board. There’s more thanone market. And more than one way to makemoney. Stocks. Bonds. Options. Commodities.Preferred shares. Convertibles. I use all these investments in a multi-disciplined strategy whilerelying on quantitative, fundamental and techni-cal analysis to back up my recommendations.

• Being easy to reach. I believe you should beable to contact the person who manages yourmoney at all times. So I come in early and staylate. I’m also available in the evening and onweekends. Often times, you can even reach mewhen I’m on vacation.

My story: The Wolf on Bay Street

I’ve been an investor for over 30 years and worked in media for over 20 years.Today, I’ve combined my passion for investing and broadcasting into an exciting and dynamic lifestyle that captures the best of both worlds.

I’m known by the media and friends as TheWolf on Bay Street because of my continuingexposure in television, radio and in print. Likethe wolf, I can think independently and go with a strategy that I feel strongly about. I believe inoccasionally going against the grain. And I tell itas I see it.

As much as I’m passionate about investing, I care deeply about my clients. I take a personalinterest in their lives, their goals and theirdreams.

I wake up early, arrive first at the office and tendto be one of the last advisors to leave Bay Street.Why? Because I study the market to providewell-informed advice to my clients and to thepublic on television before the market opens andafter it closes. I leverage my personal knowledgeof business, the markets and my media com-mentary to best serve my clients.

My media work is an excellent research andpreparation tool for my business that keeps me sharp and on top of current and emerging investment, economic and social trends andevents. Being a media commentator forces me to read, study and think. I then encapsulate myviews in a brief, live television interview. This routine, in turn, helps me to manage yourmoney.

Like the wolf, I make it my business to look aftermy “pack.” I am committed to my family, myclients and my colleagues. I understand firsthand what it means to be a business owner, father, husband, son, provider and investor.When I review an investment idea I always askmyself: Would I buy this for myself? Would I buythis for my mother?

My team: Experienced. Knowledgeable. Diverse.

Jack Hardill, Associate Investment AdvisorJack is my long-time associate and the ultimate team player. He’s a former assistant captain ofthe Peterborough Pete’s hockey team. He won the Donnie Marsh Award as the Petes’ most dedicated player. Jack eventually traded his hockey stick to become an officer in Canada’s Reserve Force. Today, he’s a Company Commander in the Lorne Scots Regiment. Plainly, Jack’sno stranger to hard work. He’s disciplined, organized, accustomed to keeping his head up andlooking out for others. We make a solid team.

Michael W Bellamy, BComm, PFP Associate, Wealth Management ServicesMichael has progressively gained experience and knowledge in the financial industry since graduating with a BComm and minor in economics from McMaster University in 2007. He startedhis career in the financial industry at Arrow Capital Management. More recently, he joined theWealth Management Team at Canaccord Wealth Management in 2011. Michael partners withCanaccord Advisory teams to assist in successfully engaging clients in the Complete CanaccordWealth Planning Process. He uses sports and fitness to maintain a healthy active lifestyle, andalso holds a conditional black belt in Karate and Taekwondo. Michael holds the PFP designation.He is committed to ongoing education to add value in his role as Associate, Wealth ManagementServices at Canaccord Wealth Management.

I believe you are best served by a diverse team of investment professionals.Whether your plan is to maximize retirement savings, create a legacy, reduceincome taxes or solve a personal finance or estate planning problem, you haveaccess to a knowledgeable and experienced team of professionals who can develop timely, personalized financial solutions.

* Offered through Canaccord Estate Planning Services Ltd.

Canaccord Equity Research Group From broad macro viewpoints to company-specific recommendations, Canaccord’s top-rated Equity Research Group produces actionable investment advice on opportunitiesworldwide. Our independent coverage includessmall-, mid- and large-cap companies in ourareas of expertise – Mining and Metals, Energy,Technology, Life Sciences, Consumer Products,Real Estate, Infrastructure, Sustainability and Cleantech, Financials, Agriculture and Fertilizers, Media and Telecommunications,Transportation and Industrial Products, Paperand Forestry Products, Investment Trusts, Support Services, Structured Products, Aerospace and Defense, Leisure, and PrivateEquity.

We also publish sector-focused weekly updates,such as Precious Metals Weekly and Weekly Energy Outlook. And we cover breaking financial news, producing daily briefings such as the Daily Letter, Morning Coffee and Momentum Trends. Clients also enjoy access to U.S. and international research from CreditSuisse First Boston, one of the world’s premierinvestment firms.

Canaccord Advisory Go DeskThrough the Go Desk, Canaccord has developeda communications and information system for itsinvestment advisors. These are sales, serviceand communications tools that provide invest-ment advisors with timely research informationand reports, daily commentaries, market outlookcommentary, investment ideas, news, recom-mendations, company updates, sector updates,portfolio strategy comments and technical analysis.

On a daily basis, the Go Desk publishes theMorning Coffee, Momentum Trends, ResearchAlert and Daily Letter Briefs.

These investment advisor support services arean important element of Canaccord’s approachto providing its investment advisors with usefuland time-sensitive tools enabling them to servicetheir clients and meet their clients’ needs. Supplementing this material are daily researchpublications Canaccord Genuity's ResearchGroup and our U.S. research provider, Credit Suisse First Boston.

Canaccord Bond Desk Our Bond Desk trades federal, provincial, municipal and corporate bond issues, includingstructured and floating rate notes, money market securities and GICs. Our active tradingassures competitive prices and the broadest possible selection of investment alternatives.

Canaccord GenuityCanaccord Genuity, our capital markets division,provides investment banking, sales and trading,research and corporate services to our corpo-rate and institutional clients.

Our capital markets professionals are dedicatedto client service, combining the passion of an independent culture with the professionalism of experienced management. We generate actionable, idea-driven research. We structureand distribute high-impact transactions. We provide effective liquidity and high-quality execution in Canada, the United States and Europe. Operating in eight offices internation-ally, our integrated team brings unique globalperspective and focused industry expertise toour full service offerings.

Canaccord Genuity is committed to fueling the entrepreneurial economy by identifyingemerging opportunities and facilitating long-term growth. We bring businesses and investorstogether, powering the diverse engines that driveglobal innovation and success.

Canaccord Genuity Trading DeskCanaccord Genuity's Equity Sales and Tradingteam navigates complex financial environments.We have built solid client relationships with international intelligence, market savvy and sector expertise. We offer emerging and established entrepreneurs direct access to institutional investors around the world. Ourskilled professionals facilitate timely and efficient execution in high volume, large capitalization names and emerging or illiquidcompanies — managing the impact of eachtransaction. Our idea-driven research caters tothe needs of both long accounts and alternativeasset managers. From our 15 international trading desks, we are active participants on 10global exchanges and makes a market in over3,000 stocks, with expertise ranging from NASDAQ listings in the US, investment trusts inthe UK and equity execution capabilities acrossglobal markets.

• Fee-based advisory services.My business isprimarily fee-based. This allows my clients topursue their investment goals without beingconcerned with individual transaction costs.That’s why I usually recommend CompleteCanaccord Investment Counselling Program. I can execute trades and rebalance a client’sportfolio without incurring additional costs. A flat fee based on the value of the account covers it all.

• No-load mutual funds. I also offer mutualfunds, which provide basic investment solutionsfor a wide range of investors. Mutual funds offeraccess to professional money management, reduced investment risk due to diversification,liquidity and convenience, and much more.

• Insurance.* Canaccord’s insurance division offers a complete range of products and services. We can evaluate, design and implement strategies to help you achieve financial security by drawing on an unlimitedselection of insurance products.

• Estate planning.* Estate planning is essentialto organizing your financial affairs, retainingmore of your assets and leaving a lasting legacy.Our estate planning specialists will help yougrow and protect your financial assets.

• Financial planning. Financial planning helpsyou create the financial framework you need tomeet your objectives. We make this process simple yet effective by allowing you to coordi-nate all of your financial solutions through onetrusted source.

• Education planning. Planning for your children’s or grandchildren’s education may beone of the best investments you make for theirfuture. A Canaccord Registered Education Savings Plan (RESP) can make the job easier byhelping you save in a tax-sheltered environment.

*Services offered through Canaccord Estate Planning Services Ltd.

My services and products: A world of freedom and choice

As an independent, full-service investment dealer, Canaccord gives me thefreedom to match your investment needs with the most appropriate investmentalternatives available in the marketplace. Canaccord also has a full array ofproprietary products and services, any of which may be suited to your wealthmanagement strategy. But I’m under no obligation or pressure to recommendthese unless I believe that they are appropriate for your financial goals.

Complete CanaccordProfessional Portfolio Management

As a Portfolio Manager, I am dedicated to executing your specific financial strategy with investments customized to your individual needs.

Using my portfolio management experience givesyou time to focus on the other important things inyour life. Rather than concentrating on the dailydetails of managing your portfolio, you can beconfident I can oversee your investments andmake decisions on your behalf to ensure that appropriate investment opportunities can be implemented as quickly as they arise.

With Canaccord’s commitment to the highest fiduciary standards, you can be confident your investments are managed according to strict criteria and that I am held accountable to the set through your Investment Policy Statement.

Combining the role of Portfolio Manager with thatof your personal Investment Advisor gives you theassurance of knowing you have immediate accessto information and that can speak with me directly, whenever you need.

Complete Canaccord’s Private Investment Management Program is ideally suited for investors with a minimum $250,000 portfolio. It provides you a resourceful, accountable, client-focused partnership, driven to ensure your needsare not only met, but exceeded.

Canaccord Portfolio Managers: Exceptional AdvisorsComplete Canaccord’s PIM Portfolio Managershave specialized expertise ensuring that ourclients benefit from in-depth knowledge and unmatched professionalism. A designation onlyawarded to Advisors who have extensive experi-ence and specialized training, PIM advisors mustalso have a proven track record of managingclient assets, and must adhere to strict industryand firm standards.

As your Portfolio Manager, I am supported by theexpertise of Canaccord’s estate planning profes-sionals * - to provide comprehensive solutionsthat offer wealth creation opportunities whilemanaging overall risk, resulting in a Wealth Management plan tailored for you.

Today’s investors recognize the complexities ofmanaging wealth in an evolving environment,

* Offered through Canaccord Estate Planning Services Ltd.

and appreciate the peace of mind created by delegating the responsibility to a professional.No single plan fits all investors, so I work closelywith you to establish a strategy best suited tobuild and preserve your wealth.

Complete Canaccord’s Private Investment Management Program is based upon a four stepprocess:

1. Wealth AssessmentThe process begins by guiding you through a detailed confidential client questionnaire. The information provided through your answers willbe used as a starting point for developing your Investment Policy Statement. In essence, it pro-vides the basis for in-depth conversations aboutyour background and promotes discussion aboutreasonable objectives and expectations, includingyour:• Financial goals• Risk characteristics• Emotional stake in the portfolio

I will work with you to capture a true overview of your needs to provide a framework for yourworking relationship.

2. Developing a Wealth StrategyDeveloping your Investment Policy Statementgives you a complete picture of your investmentneeds and an outline for a long term strategy.

Elements of an Investment Policy Statement include:• Your Investment objectives• Your Short and long-term goals• Your Risk tolerance• Your preferred level-of-influence or the controlyou wish to have over your portfolio

I will combine your completed Wealth Assess-ment with capital markets expectations, modern portfolio theory and historical data to arrive at acustomized asset allocation that is ideal for you.

Wealth Assessment Review

1

DevelopWealthStrategy

2

ImplementWealthStrategy

3

Monitor & Review4

3. Implementing your Wealth StrategyI will recommend a carefully selected portfoliothat is aligned with your unique characteristics,such as risk tolerance, objectives, income require-ments and time horizon. Together, you and I candetermine the right portfolio to complement yourspecific needs, goals and circumstances.

4. Monitor, review and rebalance your investment portfolioOnce your portfolio structure has been determined, you can be confident that prudentdecisions concerning your portfolio will be madeon your behalf. You will receive detailed andtimely performance analysis of your portfolio inthe form of monthly transaction reports, quarterly summaries and annual tax summaries.

Each quarter I will provide you with a straight-forward, comprehensive report that includes:• Rates-of-return for each portfolio• Comparisons against appropriate benchmarksand their respective benchmarks• Consolidated Portfolio Performance Summary• Detailed report of your individual holdings• Portfolio Management Commentary

I am always available to personally review eachof these reports with you.

THE MANAGED ACCOUNT PROGRAM ADVANTAGE

Discretionary ManagementI can make timely decisions on your behalf wheninvestment opportunities arise.

Disciplined Investment ApproachThe Investment Policy Statement you preparewith me establishes the investment guidelines bywhich your wealth will be managed.

Customized ServiceYour portfolio is constructed and managed on anindividual basis, ensuring your individual circum-stances and financial objectives are always takeninto consideration.

Delegated ResponsibilityFreeing yourself from the detailed daily concernsof your investments allow you to focus on yourother priorities.

Detailed ReportingDetailed quarterly reports, monthly statementsand consistent contact with me ensures you arekept informed of your portfolio standing and performance.

Governance and OversightWith third-party portfolio supervision of yourportfolio in the Private Investment ManagementProgram, you can be confident your investmentsare managed in accordance with your goals asdetermined through the construction of your Investment Policy Statement.

WANT TO LEARN MORE?There is a peace-of-mind that comes with knowing your day to day investment decisions,monitoring and administration are taken care ofby an experienced, knowledgeable professional. If you are considering professional managementfor your investments, tailored to your specificgoals, lifestyle and risk preferences, call me andI’ll explain personally why this program may beright for you.

What I will do for you

My first priority is to identify what is important to you. I start by learning whoyou are, how you approach money management and your goals. My approachis to view your life through the broadest possible lens. By asking questions andlistening, I gain the understanding needed to manage your investments inways that are valuable and meaningful to you. It also helps me connect withyour broader agenda. Your family, your career, giving back, creating a legacy,all of those key aspects of your life which matter most to you. At the end of theday, markets aside, it’s all about you.

WOLFGANG KLEIN

PORTFOLIO CONSTRUCTION:

(1) Asset Mix

ASSET MIX

Minimum % Target % Maximum %

Cash & Equivalents 3 5 50

Fixed Income 30 65 80

Domestic Equity 0 10 30

International Equity 0 5 15

Equity Income 15 15 30

Option 0 3 5

(2) Equity/International Equity/Equity Income

INDIVIDUAL POSITION SIZE VALUES

Total Number of Securities (range): 10-15

Maximum Position Size as % of Total Holdings: 10

SECTOR/INDUSTRY WEIGHTS

Minimum # of Sectors: 4

Maximum Sector Position as % of Total Holdings: 35

CAPITALIZATION FOCUS

% of Equity Allocation in Large Caps (>$1.5 Billion CAD): 50

% of Equity Allocation in Small Caps (<$1.5 Billion CAD): 50

EQUITY STYLE CHARACTERISTICS RELATIVE TO BENCHMARK

Lower Similar Higher

P/BV �

YIELD �

Global Exposure �

(3) Fixed Income




QUALITY

Minimum quality standard for bonds (rating agency grade) B

Maximum % of Securities Below Investment Grade: 50




FIXED INCOME STYLE CHARACTERISTICS RELATIVE TO BENCHMARK


Current Yield �

Market Risk �

Duration �

PORTFOLIO MANAGER: Wolfgang KleinMANDATE: ConservativeSTYLE: Blend

ELIGIBLE SECURITIES: Investment Grade Bonds, High Yield Bonds, Convertible Debentures, Growth Stocks, Value Stocks, High YieldStocks, ETFs, F Class Funds, Options, New Issues, Large Cap Cos.,Small Cap Cos., Micro Caps, Domestic and International

My Investment MandatesTactical Alpha Conservative

PORTFOLIO TURNOVER:Similar to my current fee based programBENCHMARK(S):TSX 30%, DEX Bond Universe 70%RETURN OBJECTIVE:5% net of fees over a full market cycle.

The Tactical Alpha Conservative mandate is to achievemodest returns over market cycles. The asset mix is tiltedtowards fixed income 70% with some equity for growth25% and a cash weight of 5%. The mandate manages riskfirst and returns second with an overall focus on capitalpreservation with some capital growth. An agnostic approach in both asset allocation and security selection isthe primary driver of the investment strategy allowing themanager to identify and take advantage of emergingthemes in the global equity, fixed income and currency

markets. The Tactical Alpha Conservative mandate is suitable for assets with a shorter term time horizon, 3 to 5years. Some volatility must be acceptable for the potentialfor gains in excess of GICs or 5 year government bonds. Thefund will invest in stocks, bonds, cash, ETFs, hedge funds,mutual funds and some alternative securities. The mandateallows for a go-anywhere approach but will focus primarilyon Canada, 80%. The long term return objective of the fundis to exceed or beat inflation by 2 to 3%.

My Investment Mandates

Tactical Alpha Balanced


(1) Asset Mix

ASSET MIX







Option 0 3 5













P/BV �

YIELD �

Global Exposure �

(3) Fixed Income




QUALITY








Current Yield �

Market Risk �

Duration �

PORTFOLIO MANAGER: Wolfgang KleinMANDATE: BalancedSTYLE: Blend

ELIGIBLE SECURITIES: Investment Grade Bonds, High Yield Bonds, Growth Stocks,Value Stocks, High Yield Stocks, ETFs, F Class Funds, Options,New Issues, Large Cap Cos., Small Cap Cos., Micro Caps, Domestic and International

PORTFOLIO TURNOVER:Similar to my current fee based programBENCHMARK(S):TSX 50%, DEX Bond Universe 50%RETURN OBJECTIVE:7% net of fees over a full market cycle.

The Tactical Alpha Balanced mandate is to achieve balanced returns over market cycles. The asset mix balanced with 60% equity and 40% fixed income. Themandate manages risk first, and return second, with anoverall focus on capital preservation and capital growth.An agnostic approach in both asset allocation and security selection is the primary driver of the investmentstrategy allowing the manager to identify and take advantage of emerging themes in the global equity, fixed

income and currency markets. The Tactical Alpha Balancedmandate is suitable for assets with a medium term timehorizon, greater than 7 years. Higher volatility must be acceptable for the potential longer-term capital gains. The fund will invest in stocks, bonds, cash, ETFs, hedgefunds, mutual funds and some alternative securities. The mandate allows for a go-anywhere approach. Thelong term return objective of the fund is to exceed or beat inflation by 4 to 5%.


(1) Asset Mix

ASSET MIX







Option 0 5 10













P/BV �

YIELD �

Global Exposure �

(3) Fixed Income




QUALITY








Current Yield �

Market Risk �

Duration �

PORTFOLIO MANAGER: Wolfgang KleinMANDATE: GrowthSTYLE: Blend

ELIGIBLE SECURITIES: Investment Grade Bonds, High Yield Bonds, Growth Stocks, Value Stocks, High Yield Stocks, ETFs, F Class Funds, Options,New Issues, Large Cap Cos., Small Cap Cos., Micro Caps, Domestic and International

My Investment MandatesTactical Alpha Growth

PORTFOLIO TURNOVER:Similar to my current fee based programBENCHMARK(S):TSX 65%, S&P 500 10%, TSX Venture 5%,DEX Bond Universe 20%RETURN OBJECTIVE:9% net of fees over a full market cycle.

The Tactical Alpha Growth mandate’s objective is toachieve above average risk adjusted returns over mar-ket cycles. The asset mix is primarily equity (80%) andhigh yield fixed income (20%). The mandate managesrisk first, and returns second, with an overall focus oncapital preservation and capital growth. An agnostic approach in both asset allocation and security selectionis the primary driver of the investment strategy allowingthe manager to identify and take advantage of emerging

themes in the global equity, fixed income and currencymarkets. The Tactical Alpha Growth mandate is suitablefor assets with a longer-term horizon, greater than 10years. Higher volatility must be acceptable for the poten-tial longer term capital gains. The fund will invest instocks, bonds, cash, ETFs, hedge funds, mutual funds andsome alternative securities. The mandate allows for a go-anywhere approach. The long-term return objective of thefund is to exceed inflation by 6-7%.

BUY DISCIPLINE • A combination of technical and fundamental analysis

• Technical break out of name, either from a long base for value stock or breakout for a growth stock

• Analyst coverage of name with a favorable rating and 15-100% of potential upside

• Seeking yield is of primary importance to my approach, a key score metric

• Utilize SIA charts

• Attempt to focus on names with CG coverage

• Seeking best ideas within each sector

SELL DISCIPLINE• A combination of technical and fundamental analysis

• Either a technical break of name or idea runs ahead of itself

• Fundamental, when idea reaches or exceeds analysts target

• When analyst puts a sell rating on the name, seek an exit strategy

• When macro events lead manager to raise cash

• When better risk/reward ideas emerge

• Bond Yield to Maturity falls below 4%

• Value no longer explicit in position

• Manage losses is key tenet to my value proposition,attempt to cut losses below 20%

• When name runs ahead of itself, use strength to sell and reload trade on pullback

RISK MANAGEMENT: Seeking to manage downside risk wherever pos-sible, invest in lower beta, higher alpha ideas inan effort to manage a lower risk portfolio with alower standard deviation. Cutting losses, tradingout of names ahead of themselves, and going tocash are my key weapons of risk management.

MODIFICATIONS:When the Investment Manager believes circumstances warrant a change to any of the Guidelines, the Investment Manager may applyin writing to the Client, through their designatedrepresentative, for a change to the Guidelines.Once approved, such changes will be imple-mented immediately.

Safeguarding your investments

• My team and I have completed rigorous training programs and receive ongoing professional education to update their skills and industry knowledge.

• Canaccord is a member of Investment IndustryRegulatory Organization of Canada, a nationalself-regulatory organization that oversees all investment dealers and trading activity on debtand equity market places in Canada.

• Your investment accounts are protected underthe Canadian Investor Protection Fund (CIPF). A Fund established in 1969 by the Canadian investment industry, CIPF protects investorsfrom the loss of securities or money due to theunlikely insolvency of a CIPF member firm. Itdoes not cover losses that result from othercauses, such as the changing market or an unsuitable investment.

• Canaccord is a participating member of theCanadian Depository for Securities Limited(CDS). As Canada’s national securities deposi-tory, clearing and settlement hub, CDS supportsCanada’s equity, fixed income and money markets, holding almost $3 trillion on depositand handling over 190 million domestic securities trades annually.

To learn more about how we safeguard your investments, please ask me or Jack for additional information.

At Canaccord, the security of your investmentsis of critical importance. We are committed tothe industry’s best practices and place high expectations on our employees to understandand meet your needs. These are just a few ofthe things we do to protect you and your investments:

Canaccord Wealth ManagementPartners for your financial growth

Today, Canaccord operates in two principal segments of the securities industry: wealthmanagement and global capital markets. Together these operations offer a wide range ofcomplementary investment products, brokerageservices and investment banking services toCanaccord’s retail, institutional and corporateclients.

Canaccord has successfully developed and nurtured an entrepreneurial culture among itsemployees. I, and other experienced financialprofessionals, serve our clients in a culture freefrom the highly structured environment oftenfound at larger firms, where emphasis is placedon in-house products.

Our Wealth Management group offers a com-plete range of professional wealth management,insurance and estate planning services from 35 branch offices across Canada.

We are independently owned. I am given thefreedom to match your needs with the best localand international products available in the marketplace.

Since the establishment of a predecessor firm in 1950, Canaccord Wealth Management has grown to become one of Canada’s leading independent, full-service investment dealers. Canaccord has been driven by an unwaveringcommitment to building lasting client relationships and our growth has beenbuilt on a bedrock commitment of delivering superior performance based on independent, sound and objective advice to an expanding and diverse clientele.We achieve this by generating value for our individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services.

Canaccord is committed to building healthy,prosperous communities. Through sponsorships,targeted donations, awards and employee volun-teers, we strive to improve the neighborhoodswe share. This contribution is a reflection of ourshared values and continues Canaccord’s longtradition of reinvesting in our communities.Many of our employees provide significant personal time, money and expertise to variouscharities and organizations on the local, nationaland international stages.

As Canaccord proceeds through its sixth decade,we continue to grow and prosper by serving theneeds of our clients in a spirit of trust, partner-ship and integrity.

Through its principal subsidiaries, our parentcompany, Canaccord Financial Inc., is a leadingindependent, full-service, global financial services firm. Canaccord has offices in 12 coun-tries worldwide, including Wealth Managementoffices located in Australia, the UK , Europe and16 Wealth Management offices located acrossCanada. Canaccord Genuity, the internationalcapital markets division, operates in the U.S.,U.K., Canada and Barbados.

Canaccord Financial Inc. is publicly tradedunder the symbol CF on the TSX and the symbolCF. on the London Stock Exchange.

CF Key Metrics (C$) FY2012 Q4/12 Q1/13

Gross Revenue (millions) $604.9 $177.7 $162.5

Net Income/loss (millions) $25.2 $2.1 $(16.3)

EPS (diluted) $0.25 $0.02 $(0.20)

BV per diluted share $8.26 $8.26 $7.90

Excluding acquisition-related items³Includes CSHP contributions from March 22, 2012

Publicly listed on the TSX as CF and the LSE as CF.

• Graduated from AIM to the LSE main market in July 2012

• Approx. 25% owned by directors and senior officers¹

• Approx. 50% owned by employees

• Book value per share of $7.90

Global equity sales, trading, and research

• Make markets for over 3,000 stocks globally

• Research coverage of over 800 companies

All figures as of June 30, 2012 unless otherwise noted.(1) Of shares issued and outstanding. (2) Combined Canaccord Genuity and Collins Stewart Hawkpoint figures. Equity offerings >$1.5M. (3) Excludes restructuring and acquisition related expense items.

Operations in 12 countries and capabilities to list companies on 10 stock exchanges

Corporate finance, M&A and advisory and restructuring capabilities in nine countries

• Led or co-led 151 transactions globally during CY2011, raising C$5.6 billion for clients²

• Advised on 48 transactions with an aggregate value of C$16.5 billion in CY2011²

Wealth Management operations in five geographies

• Canada, the UK, the Channel Islands, Switzerlandand and Australia

• On and offshore client accounts

• C$26.0 billion in assets under administration and management as of June 30, 2012

GLOBAL OPERATIONSSmaller offices not shown on map.

Canaccord: A Leading Global Investment Dealer

Canaccord: Solid Capital Position

(in C$ millions, except for per share amounts) Q4/12 Q1/13 % Change

(As at March 31, 2012) (As of June 30, 2012)

Working capital $331 $399 +21%

Working capital per common share¹ $3.87 $3.91 +1%

Cash & cash equivalents $814 $644 -21%

Cash per common share¹ $9.52 $6.31 34%

Shareholders equity $992 $1,100 +11%

Book value per common share² $8.26 $7.90 -4%

1 Based on average diluted common shares. 2 Based on diluted shares.

• Dividend of $0.05

• Reviewed and approved by board each quarter

• Anticipate distributing additional special dividends of up to 50% of net profits, subject to Board approval

• Believe this dividend policy will better reward our shareholders as our business prospects improve

• Well-capitalized for increasing activity levels and growth opportunities

• Strong, liquid balance sheet

Well capitalized for growth opportunities and increased business activity

Canaccord: Diversified Sector Coverage

Over 80 research analysts provide high-quality research on over 800 companies

Research distributed globally: North America, South America, the UK, Europe, Asia and Australia

Canaccord Genuity research analysts from Canada, the US and the UK have all received awards for the quality of our coverage and investment ideas.

QUEST, a proprietary quantitative research product available to Canaccord Genuity clients, providing continually updated quantitative analysis, interactive online models andanalytical tools for over 2,900 companies across Europe,North American, Asia and Africa

Deep industry expertise of 18 key sectors

COMMITTED TO PROVIDING IN-DEPTH COVERAGE OF OUR FOCUS SECTORS

CANACCORD GENUITY: TRANSACTIONS BY SECTORFiscal 2012, % of transactions

33% Metals & Mining

17% Energy

11% Life Sciences

10% Technology

8% Diversified

7% Real Estate

14% Other

Canaccord Advisors are driven by core company values. Living up to these values is something we take great pride in.

WE PUT OUR CLIENTS FIRST.

A GOOD REPUTATION IS OUR MOST VALUED CURRENCY.

IDEAS ARE THE ENGINE OF OUR BUSINESS.

WE ARE AN ENTREPRENEURIAL, HARD-WORKING CULTURE.

WE STRIVE FOR CLIENT INTIMACY.

WE ARE DEDICATED TO CREATING EXEMPLARY SHAREHOLDER VALUE.

WE ARE COMMITTED TO EXCELLENCE IN OUR FOCUS AREAS.

OUR COMMITMENT TO OUR

VALUES.

Canaccord Wealth Management is a division of Canaccord Genuity Corp.,a Member of the Canadian Investor Protection Fund and theInvestment Industry Regulatory Organization of Canada.

MEMBER OF ALL CANADIAN STOCK EXCHANGESOFFICES IN MAJOR CENTRES ACROSS CANADA

Documents

Wolfgang Klein BBM, CIM, PFP, AIFP Portfolio …...Wolfgang Klein BBM, CIM, PFP, AIFP Portfolio Manager, Vice President, Senior Investment Advisor, Market Commentator 416-869-7338