The Wyndham Investment Process

DISCRETIONARY MANAGEMENT. PROVEN PROCESS.

The Wyndham Group’s discretionary managed portfolio program is the process that we use to invest for the majority of our clients. Within this structure, we manage money for our clients based on their unique financial goals and risk tolerances. On top of this, we work with our clients to identify and achieve their financial goals through all stages of life. Below you will find an explanation of the important elements of this offering.

• Discretionary Management
• Fee based accounts
• Asset allocation
• Fixed Income Portfolio
• Equity Portfolios
• Canadian Equity Portfolios
• US Equity Portfolios
• Specialized Portfolios
• Specific Mutual Funds
• Reports
• Financial Planning
• Estate Planning
• Insurance
• Wills
• Power of Attorney
• Annual reviews

What is Discretionary Management?

Discretionary Investment Management is a structure to manage wealth where the buy and sell decisions are made by a portfolio manager on behalf of the client. It is limited to investment advisors with the advanced “Portfolio Manager (PM)” designation. The benefits of this approach is that it removes the day to day burden of investment decisions from the client and allows the client / advisor relationship to focus on the bigger issues such as risk and asset allocation, as well as financial, estate and tax planning.

What is a Fee-based Account and how does it work?

Accounts can be divided into two types: commission and fee-based. Traditionally, investment accounts were generally commission based. In these accounts, clients are charged a commission every time they buy or sell a security.

In a fee-based account, such as a discretionary account, the client is charged a percentage fee based on the assets managed. For this fee, clients receive:

• Ongoing investment planning and management
• A full range of financial planning services such as retirement, education, estate and tax planning
• Advice and assistance with individual financial needs

1/12th of the annual fee is charged on a monthly basis based on the prior month’s asset level. Fees can be paid using funds from within or outside the account. With fee-based accounts. fees charged in non-registered accounts are tax deductible.

Please contact us for details of our fee schedule.

Asset Allocation: Why it matters for you.

The volatility and risk associated with a portfolio can be dramatically reduced by carefully constructing an appropriate asset mix of cash, fixed income investments, and equities. Allocation to different geographic sectors and industries are also considered. Through a detailed analysis, we will determine what return you require to reach your goals, along with what level of risk you are personally comfortable with. Once established, we will recommend an asset allocation that best suits your individual needs and situation.

What is the Composition of the Wyndham Fixed Income Portfolio?

The Wyndham Fixed Income Portfolio consists of a select number of actively managed mutual funds. These funds give you diversification in terms of style, geography, and sectors. From a universe of fixed income funds, we choose top quality holdings through a rigorous research process, a review of the risks and philosophy of the funds, and discussions with the various fund managers. Depending on market conditions, the Wyndham Fixed Income Portfolio may also hold preferred shares or mortgage instruments.

How are the Equity Portfolios constructed and maintained?

First and foremost, equities in our portfolios are screened through a quantitative process. Non-emotional investing is at the core of our philosophy. Financial data on all companies within a certain universe is compiled and analyzed on a daily basis. Companies are then ranked based on their current financial strength as determined by our criteria. Top companies are included in the portfolio. Companies that fall below a certain grade are removed and replaced by a higher ranking company.

On top of our quantitative screening, our US Core portfolio has a qualitative component. We study growth trends in the global economy and make our final selections based on bottom up research on the leading companies.

Canadian Equity Portfolios

In the Canadian investment space, our flagship offering is the Wyndham Core Portfolio. It is comprised of 20 highly ranked, dividend paying companies and four outperforming REITs. The portfolio emphasizes quality, safety and dividend growth – characteristics that have been the hallmark of successful Canadian stocks. Companies considered for this portfolio rank in the top 250 stocks on the TSX by market size, and are growing their earnings, cash flow and dividends on a five year basis.

US Equity Portfolios

In our experience, the selection of US based companies are best seen through a growth lens. Initially, we follow a similar screening process to that of the Canadian Equity Portfolios. From there, we select our portfolio based on the outlook of different sectors and characteristics of individual companies. Our US Core Portfolio consists of 35 best-in-class stocks with strong earnings, cash flow, and growth prospects.

Specialized Portfolios

The Wyndham Group also manages several specialized portfolios to add concentration for certain clients and to participate in advantageous market situations. These are monitored closely and applied selectively when we see a benefit for our clients.

Mutual Funds

To further diversify client accounts, select mutual funds with a similar philosophy are sometimes utilized. This provides concentration and geographic diversification. All mutual funds used are screened and monitored by the Wyndham Group on a regular basis to ensure that their risk, performance and process are consistent with our approach. Mutual funds are purchased for our clients on a no-load basis. We do not receive any compensation from mutual fund companies and, as such, our clients are charged lower institutional rate mutual fund management fees.

For smaller accounts, such as TFSA’s and some RESP’s, we will also use mutual funds to provide appropriate diversification.

What Reports Will I Receive?

Clients in the discretionary management program receive monthly statements. In addition, you will receive quarterly household portfolio reports and annual summaries. You will not receive trade confirmations such as those received in commission accounts.

Will I Have Access to Financial Planning?

Yes. Depending on your needs, we can provide you with everything from a basic retirement projection to a detailed financial and estate plan.

What Estate Planning does The Wyndham Group Provide?

• Insurance: We have access to the top insurance companies in Canada and are licensed to provide you with life, critical illness and disability insurance.
• Wills and Powers of Attorneys: We will guide you in establishing your Wills and Powers of Attorney. For basic forms, we can show you low cost alternatives, and for more complicated situations, we have worked with several lawyers with whom we can refer you to.
• Trust Services: Through Raymond James Trust Canada, we can offer our clients in-house executor, trustee and power of attorney services. For more information, please feel free to discuss with us directly.

Once I sign up, how often do we meet?

At a minimum, we recommend a comprehensive review once per year. More frequent meetings can be held depending on your preferences. Major changes in your life situation such as marriage, children, or new employment merit a full review.