1. Investment Consulting Process
Raymond Choo, Senior Investment Advisor

2. Step 1: Discovery
• To clearly understand the unique needs of our
client
• Identify and prioritize goals
• Save to purchase a home

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

5. 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

6. Risk Diminishes With Time
90% Highest/Lowest Rate of Return for Stocks
87%
January 1, 1935 - June 30, 2006
80%
S&P/TSX Composite Total Return
70%
60%
Annual Rate of Return
55%
50%
40%
30% 28%
20% 20%
14% 13%
10% 9%
3% 6%
0%
-10% -9%
-20% -22%
-30%
-40% -39%

7. Step 2: Diversification
• Diversification reduces portfolio volatility
without return
• Diversify by geography, asset class and
investment management style

9. 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

11. 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

12. • Recommend a customized portfolio that
adheres to your Investment Policy Statement
– Strategic asset allocation
– Multi-dimensional diversification

13. 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

14. 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

15. Our investment process forms a direct
partnership with our clients, the lines of
communication are always open

16. Raymond Choo, Senior Investment Advisor
3950 14th Avenue, Suite 106
Markham, ON L3R 0A9
1-877-RAY-3838
rchoo@dundeewealth.com
RayChoo.com