11/9/2009
Date Mon, 6 Jul 2009
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Gualtieri,
Rinaldo
John
Smith
37 Fredmir St.
Anytown
Dollard des Ormeaux, QC
Anystreet, Province, PC
H9A2R1, Canada
APS Investment Policy Statement
Dear Gualtieri,
Rinaldo
John Smith
Thank you for your interest in opening a Separately Managed Account with Advisor Portfolio
Services (APS). Enclosed you will find your Investment Policy Statement (IPS) that will
guide us in the management of your portfolio. This statement was developed from your
responses to the APS Client Questionnaire, and reflects your investment objectives, risk
tolerance and time horizon.
At APS, we believe the implementation of your IPS will increase the probability of meeting
your financial goals. It is also important to remember that the IPS is not a comprehensive
financial plan, but a tool to help remind you of the purpose of your investment and reduce
emotionally based decisions.
This Statement includes the following:
Purpose of the Investment Policy Statement
Investor Profile, Investment Objectives and Constraints, Risk Tolerance
Portfolio Characteristics and Recommended Asset Allocation
Investment Management Guidelines and Reporting
Client Agreement and Confirmation
Appendix A: APS Questionnaire Summary
Appendix B: Managed Account Agreement
P
A.
B.
C.
D.
E.
F.
We look forward to working with you to implement and monitor your investment policy.
Regards,
Anthony Silvestrin
Anthony
Silvestrin
Anthony
Portfolio Silvestrin
Manager
President,
Private
Senior
Vice
President,
PrivateWealth
WealthManagement
Management
AdvisorVice
Portfolio
Services
Advisor Portfolio
PortfolioServices
Services
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Prepared for: John
Gualtieri,
SmithRinaldo
Prepared By: Anthony Silvestrin
P
Senior Vice-President, Private Wealth Management
IA Advisor Portfolio Services, a division of IA Clarington Investments Inc. ("APS")
300-2200 McGill College
Montreal, QC
H3A 3P8
A. PURPOSE OF THE INVESTMENT POLICY STATEMENT
The purpose of this Investment Policy Statement is to establish a clear understanding of the
investment goals and objectives applicable to your investment profile. It is a roadmap for
your investment strategy and we will refer to it as your personal circumstances evolve.
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This Statement serves to set out a prudent and acceptable basis for the management of
your portfolio and will help all parties remain on course and avoid emotional decisions during
periods of market turbulence. During such times, your IPS should then serve as a reference
document.
This written policy will be used as the basis for all investment decisions going forward. What
follows is a summary of your goals, tolerances, and constraints based on the information you
provided on your APS Client Questionnaire. If a change occurs in any of the key factors
upon which your IPS was founded, then the policy should be reviewed to ensure that your
needs continue to be met.
P
Please review this Statement closely. It is important that it accurately reflects your investor
profile and objectives. If you feel changes are needed, they must be made before it is
signed and before we proceed with the construction of the portfolio.
Client(s) Initials
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B. INVESTOR PROFILE,INVESTMENT OBJECTIVES AND
CONSTRAINTS,RISK TOLERANCE
4|Page
INVESTOR PROFILE
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Many factors are considered in the design your investment portfolio. Your Profile gives us an
Many
factors
are
considered
design
your
investment
portfolio.
Your Your
ProfileProfile
gives gives
us an us
portfolio.
Many
factors
arelevel
considered
inthe
the
design
your
investment
indication
of the
of yourinunderstanding
and
experience
with
investing.
an
indication
of level
the level
of your
understanding
and experience
with investing.
indication
of the
of your
understanding
and experience
with investing.
You are between 41 and 50 years of age. Your net worth is $100,000 to $200,000 and your
current
of income
is 50
lessyears
than $50,000
year.
haveisa approximately
sophisticated advanced
You
arelevel
between
41 to
of age. per
Your
netYou
worth
$200,000 to
$500,000
and
currentknowledge,
level of income
is between
and $100,000
per
year.
You
(high) level
of your
investment
and you
follow the $50,000
markets occasionally
and
have
a good
feel
you have aofgood
(moderate)
level
of their
investment
knowledge,
and that you follow the
understanding
investment
principles
and
associated
risk.
markets occasionally and have a good understanding of investment principles and their
associated
Finally, yourisk
have indicated that you are not an Accredited Investor.
Finally, you have indicated that you are an Accredited Investor.
INVESTMENT OBJECTIVES AND CONSTRAINTS
In the questionnaire, you stated that the primary goal of your portfolio is to provide an equal
portfolio
is tothan
provide
an equal
Inbalance
the questionnaire,
you stated
yourYou
primary
goal
of interest, dividend
andthat
growth.
expect
to of
beyour
invested
for less
5 years,
with a
balance of interest, dividend and growth. You expect to be invested for less than 5 years,
chance
that
you
may
have
to
make
a
significant
withdrawal
before
then
as
medium
(10%
to
with the chance that you may have to make a significant withdrawal before then as medium
25%).to 25%).
(10%
With consideration to your time horizon, it is important that your portfolio's performance reflect
With
consideration
to your
timeover
horizon,
it isterm
important
that your
portfolio's
an emphasis
on growth
in value
the long
but maintains
stability
throughperformance
a well
reflects the potential for above average performance. In doing so, you accept that it will
balanced
mix
of
income
investments.
As
well,
your
expected
long
term
return
for
this
portfolio
likely experience moderate losses and volatility to achieve this objective. As well,
youris
expected
long-term
between 5%
to 8%. return for this portfolio is between 5% to 8%.
RISK TOLERANCE
P
Your return objective will only be pursued in accordance with your tolerance for risk. As
with
your tolerance
forofrisk.
Your
objective
will only
beofpursued
in accordance
therereturn
will always
be some
degree
uncertainty
concerning the
amount
and pattern
futureAs
there will always be some degree of uncertainty concerning the amount and pattern of future
investmentreturns,
returns, investors
investors must
certainty
they
areare
willing
to sacrifice
in in
investment
mustknow
knowhow
howmuch
much
certainty
they
willing
to sacrifice
exchange
for
the
potential
of
higher
returns.
exchange for the potential of higher returns.
In any given year, you would be willing to withstand 5% to 10% decline in your portfolio and
Inwould
any given
year,
you would
willing
to withstand
a 5%
to 10% decline in your portfolio,
likely do
nothing
should be
it drop
by 20%
in any given
month.
and would likely do nothing should it drop by 20% in any given month.
Given a choice of four portfolios consisting of increased degrees of volatility, you would prefer
Given
a choice
of four Portfolio
Portfolios
consistingtoofhigh
increasing
degrees ofyou
volatility,
you
would
one that
demonstrates
C (moderate
risk). Furthermore,
would be
most
prefer
the onewith
thata demonstrates
C (moderate
to high risk).
Furthermore,
youand
would
comfortable
portfolio whosePortfolio
performance
range represents
a best
return of 10%,
a
be most comfortable with a portfolio whose performance range represents a best return of
worstand
return
of -3%.
10%,
a worst
return of -3%.
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C. PORTFOLIO CHARACTERISTICS AND RECOMMENDED ASSET
ALLOCATION
PORTFOLIO CHARACTERISTICS
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A portfolio's strategic asset mix is the allocation of investments between asset classes with a
goal of balancing risk and return. The greater the allocation to equities relative to fixedincome securities, the greater the portfolio's potential capital appreciation and the higher the
portfolio's potential risk. Conversely, the greater the allocation to fixed-income securities
relative to equities, the greater the potential for a consistent income stream, and the lower
the portfolio's potential risk. Equities and fixed-income instruments can decline in value, and
even a lower-risk portfolio can lose money.
ASSET ALLOCATION
Your investment objectives, investment time horizon, risk tolerance and liquidity needs have
been considered in determining a suitable asset mix for your portfolio. This strategic asset
allocation is presented below along with the allocation of your proposed investment of
$45,000.00.
$100,000.00
Balanced Portfolio
Moderate
Portfolio
Asset
Class
Asset Class
IncomeFunds
Funds
Income
funds
Income
Canadian
equity Funds
funds
Canadian
Equity
Funds
Canadian Equity
Foreign
equity
funds
ForeignEquity
EquityFunds
Funds
Foreign
Specialty
funds
SpecialtyFunds
Funds
Specialty
Weight (%)Weight (%)
55.0025%
40 %
30.0025%
40 %
15.0025%
20 %
0.0025
%
0%
P
TARGET STRATEGIC ASSET ALLOCATION
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Allocation ($)
$0.00
$0.00
$24,750.00
$0.00
$13,500.00
$0.00
$6,750.00
$0.00
$0.00
$0.00
$0.00
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RECOMMENDED PORTFOLIO INVESTMENTS
The following table summarizes the investment products that will be used to implement your
asset allocation. Please note that the listed mandates and/or their respective weightings
may change from time to time.
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We may, for a period of time after the opening of your account, hold your funds in short-term
investments. We may also gradually invest those funds into the recommended portfolio
investments over a period that could be as long as several months. This technique of
investing the funds gradually over time is referred to as "dollar-cost averaging".
Balanced Portfolio
Moderate
Portfolio
Recommended Portfolio Investments
Mandate
Mandate
Dividend
Income
IA
Clarington
Bond8020
Fund
Hartford
GlobalNavellier
High Income
IA Clarington
US All Cap
International
Bond
Dynamic High Yield Bond
International Stock Class
iShares CDN Bond Index
Weight(%)
Allocation($)
Weight(%)
30.00 %
$13,500.00
10.00
$0.00
0
7.50 %
55.00 %
7.50 %
10.00$3,375.00
$0.00
0
$24,750.00
10.00 $0.00
0
$3,375.00
5.00 $0.00
0
Fixed Income
5.00
$0.00
0
HT Canadian Balanced Equity
Canadian Equity
8.00
$0.00
0
IA Clarington Canadian Equity
Canadian Equity
10.00 $0.00
0
PH&N Balanced
Canadian Equity
6.00
$0.00
0
IA Clarington Cdn Small Cap
Canadian Equity
8.00
$0.00
0
Dynamic Power Canadian Growth
Canadian Equity
8.00
$0.00
0
IA Clarington American
Foreign Equity
3.00
$0.00
0
IA Clarington Global Equity
Foreign Equity
2.00
$0.00
0
Dynamic Value Balanced
Foreign Equity
5.00
$0.00
0
IA Clarington Global Income
Foreign Equity
5.00
$0.00
0
SL Global Dividend Growth
Foreign Equity
5.00
$0.00
0
P
iShares CDN Real Return Bond Index
Type
Type
Type
CanadianFixed
Dividend
&
Income
Income
Fixed Income
US Equity
Global Fixed
FixedIncome
Income
International Equity
Fixed Income
$0.00
0
$0.00
0
$0.00
0
$0.00
0
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76481088B001
D. INVESTMENT MANAGEMENT GUIDELINES AND REPORTING
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Investment products are selected through a disciplined process using quantitative analysis
and the qualitative judgment of qualified investment professionals. Mandates are assessed
based on the following criteria:
*
*
*
*
*
Past performance
Historical volatility
Management style and discipline
Correlation among securities
Current market conditions
Asset class allocations may fluctuate over time due to market movements. The portfolio
allocations will be reviewed at least annually. Periodic rebalancing will occur to maintain the
desired mix over the long term. Once allocations vary by 5% from the target allocations, the
portfolio will be re-balanced.
You will receive a quarterly portfolio report from APS that includes the performance of the
portfolio during the most recent quarter, year-to-date, selected annual periods and since
inception.
P
On annual basis you will receive a year-end statement detailing performance figures and an
outline of your account fees. All applicable tax documentation will be sent separately.
Client(s) Initials
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E. CLIENT AGREEMENT AND CONFIRMATION
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It is your duty to inform APS of any changes that may affect your investment objectives or
constraints. Examples of such changes include, but are not limited to, loss of employment,
serious medical illness, or receipt of a large cash windfall.
You must also advise APS immediately if you cease to be an accredited investor or if you
move outside Canada. A failure to notify APS of these changes could cause a violation of
securities laws.
APS is responsible for monitoring your portfolio to ensure that it is appropriate for the needs
and goals described in this document. At all times when dealing with your portfolio, APS has
a duty to act in an ethical manner and place your interests above its own.
Please acknowledge your agreement that this Investment Policy Statement accurately
reflects your investment profile, your investment objectives and constraints by signing below.
A summary of your APS Client Questionnaire responses (see overleaf) should be reviewed
prior to signing as it forms the basis for this Policy.
_____________
Signature
_____________
Date
Second Client Name
_____________
Signature
_____________
Date
P
John Smith
Gualtieri,
Rinaldo
Client(s) Initials
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F. APPENDIX A: APS CLIENT QUESTIONNAIRE SUMMARY
The following
following isisaasummary
questions
and and
responses
for Gualtieri, Rinaldo
The
summaryofofthe
your
questions
responses:
Responses
✔ Open
Regular RRSP
Spousal
RRSP
RRFP/RRIF
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Investor Profile Questions
Account Type Information
RRIF
LRIF/LIF
LIRA
Individual
Family RESP
Other
RESP
Leveraged Account - complete and attach a signed
Leverage Disclosure Form
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Source of funds if Mutual funds:(Mutual
funds with an active DSC schedule)
Are you an Accredited Investor?
14.
$100,000.00
45,000.00
Between 41
5050
between
41toto
$100,000 toto
$200,000
$200,000
$500,000
Less than $50,000
between
$50,000 and $100,000
follow
the
markets
occasionally
and have
good a good
follow the markets
occasionally
andahave
understanding of investment
principles
and their
associated
understanding
of investment
principles
and
their
associated
risk
risk
good
(moderate)
sophisticated
advanced (high)
Savings
Mutual
Funds
Account
Exempt
Securities
Stocks
Mutual Funds
Others
No
Yes
I am not
an Accredited
You,
either
alone or Investor.
with a spouse, beneficially
own more than $1 million in financial assets, after
debt. Assets can include cash, savings and
investments, but not your home.
Which of the following statements best
provide
anequal
equal
balance
of interest,
dividend
and
provide an
balance
of interest,
dividend
and growth
reflects the primary goal of your investment growth
portfolio?
an emphasis
growth
in value
over performance.
the long term butIn
For my portfolio, the most important aspect the
potentialonfor
above
average
maintains
throughthat
a well
balanced
of income
of its performance is that it reflects?
doing
so,stability
you accept
it will
likely mix
experience
investmentslosses and volatility to achieve this
moderate
objective
What is the minimum length of time you will less
than5 5years
years
less than
be invested before you will need a
substantial portion of your investment (i.e.,
please consider your working and
retirement years)?
P
13.
Amount of initial investment $
What is your age?
What is your approximate Net Worth
(excluding business assets and principal
residence)?
What is your gross annual income?
Which one of the following statements
describes your investment experience
best?
How would you rate your investment
knowledge?
Source of funds (please choose all that
apply):
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15.
16.
medium(10%
(10%
to 25%)
medium
to 25%)
When you think about Risk, which word
immediately comes to mind?
opportunity
do nothing
nothing
do
5%toto10%
10%
5%
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17.
What is the chance you will need to
withdraw a substantial portion of your
investment earlier than anticipated?
If your $50,000 investment falls by $10,000
(i.e., by 20%) this month what are you likely
to do?
What is the maximum decline you can
withstand in your portfolio over one year?
What is your expected long-term return for
this portfolio?
Over the course of a 10 year period, which
portfolio suits you best?
Of the following four portfolios whose best
and worst one-year returns are shown,
which one would you choose?
18.
19.
20.
P
21.
Client(s) Initials
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between5%
5%
between
to to
8%8%
PortfolioCC(moderate
(moderate
to high
Portfolio
to high
risk) risk)
bestreturn
return
10%,
a worst
best
of of
10%,
andand
a worst
returnreturn
of -3% of -3%
F. APPENDIX B: MANAGED ACCOUNT AGREEMENT
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Between: John Smith
11 | P a g e
Gualtieri, Rinaldo
37 Fredmir St.
Dollard des Ormeaux, QC
H9A2R1, Canada
And:
P
IA Clarington Investments Inc.
300- 2200, McGill College Ave.
Montreal, Quebec H3A 3P8
The undersigned wishes to participate in the Advisor Portfolio
Service (the "Service") offered by IA Clarington Investments
Inc. ("APS"). This agreement sets out the terms and conditions
of the Service.
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1. MANDATE
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I entrust APS and its representatives with the management of the assets, securities and
other titles that I entrust or will entrust to them from time to time, and including any
distributions, dividends, income or gains from those assets, securities or titles (collectively,
the 'Assets'). The Assets will be held under the guardianship of the Custodian identified
below.
2. SEPERATELY MANAGED ACCOUNT
APS shall operate one or more separate accounts in my name (the 'Accounts') for the
management of all the Assets.
3. INVESTMENT POLICY
APS has developed jointly with me, an Investment Policy Statement ('IPS' or the 'Policy')
that is consistent with the needs, goals and constraints that I have identified on the APS
Client Questionnaire. I agree to notify APS, in writing, of any change affecting my investment
goals in order to allow them to analyse that change and to modify, if necessary, the
investment policy and the method of management of my account. I agree that not
withstanding the model portfolio identified in the Policy (the 'Portfolio'), APS may (a) hold
cash from time to time to facilitate purchases, withdrawals and settlement of securities
transactions and (b) hold securities not identified in the Portfolio from time to time or vary the
relative weightings of securities identified in the Portfolio as it deems appropriate in the
circumstances.
4. TRANSACTIONS
APS shall manage the Assets in accordance with the IPS and, to that end, is authorized to
carry out any and all transactions deemed necessary or desirable for the management of the
Assets in accordance with the Policy, including:
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a) invest or reinvest the Assets in securities, titles or other assets, including money;
b) buy, sell, exchange and deliver the Assets and use the resulting proceeds for any other
action it deems necessary to usefully execute this Agreement;
c) buy, sell or exercise rights or subscription warrants related to the Assets, exercise the
conversion and redemption privileges and sell and negotiate options;
d) vote or refrain from voting at the shareholders or security holders meetings with regard
to the Assets;
e) agree to any transaction or compromise affecting the Assets;
f) grant or refrain from granting its consent or take part or refrain from taking part in any
reorganization, recapitalization, merger or similar operation with regard to a company
whose shares or titles are managed on my behalf;
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g) If APS is permitted to purchase or sell securities of issuers related to it, it may:
i. carry out transactions with regard to such titles on my behalf;
ii. buy or sell such titles on my behalf;
iii. act as advisor with regard to such titles; and
iv. make recommendations with regard to such titles.
h) APS may buy or sell on my behalf institutional series of securities of investment funds
('Institutional Securities'). If I hold Institutional Securities, I will not pay a separate
management fee to the manager of the relevant fund in respect of those securities,
although expenses may be allocated to those securities. I understand that the
Institutional Securities will be held in an omnibus account and that if I cease to
participate in the Service, APS may switch me to another series of securities of the
same fund that is generally available to the public, or redeem those Institutional
Securities on my behalf.
i) I authorize APS to:
i. open and operate in my name one or more accounts with brokerage firms of its choice
and to issue orders for transactions to be carried out in such accounts;
ii. take any and all actions and have sign and deliver any and all documents or other
paperwork needed for or useful to the execution of this Agreement; and
iii. borrow money in my name only for a transitory period pending the settlement of the
securities sale carried out on my behalf.
j) APS may:
i. buy, sell or negotiate securities identical to the Assets or of the same category or
nature as the Assets, on its behalf or on behalf of a third party; and
ii. use for other purposes the knowledge gained in the execution of this Agreement
provided this use does not affect the management of the Assets.
5. SAFEKEEPING OF ASSETS
P
I acknowledge that the Assets are under the charge of the Custodian indicated below or of
one of its authorized agents under an agreement with it (the 'Custodian'). Because APS is
not the Custodian, I must make sure that the Custodian carries out its duties in a diligent
manner, including following the instructions received from APS.
I agree not to remove the safekeeping of the Assets from the Custodian without notifying
APS beforehand.
6. STATEMENTS
APS will maintain records of all transactions made by it in the Accounts. APS will provide me
with a statement of my account on a quarterly basis. This statement shall be sent to me by
ordinary mail to my last address known by APS. I agree to notify APS of a change to my
address.
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7. COMPLIANCE WITH LAWS
All transactions related to the Assets are subject to the by-laws, rules, regulations and
customs of the stock exchange or market over which they are carried out as well as those
which apply to the investment consultants at the time of the transaction.
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8. RESPONSIBILITY
APS shall act with care and diligence in the execution of its duties. APS cannot be held
responsible for any loss or decline of the value of the assets in the account, unless they
result from bad faith or gross negligence on its part.
9. CHARGES AND FEES
I agree to reimburse APS for any expenses and disbursements incurred in the management
of my Accounts (e.g. brokerage fees), and to pay the fees as per Schedule A of this
Agreement. The fees and disbursements shall be calculated and drawn on a monthly basis
from the Assets on my behalf. APS will also charge sales taxes (including GST and
provincial value-added taxes), where applicable.
10. TERMINATION
Either party may terminate this Agreement by giving written notice to the other party.
11. PERSONAL INFORMATION
I understand that APS is required to collect certain personal information from me in order to
provide the managed account services to me, and that it may use or disclose that
information in connection with the provision of these services, as required by law or as set
out in its privacy policy. I allow access to my personal information to the persons I have
authorized, as well as to the employees, representatives or agents of IA Clarington
Investments Inc. provided such information is needed for the exercise of their duties or for
any other authorized purpose. I have the right to examine my file and, if needed, to correct
any error in the personal information recorded in my file. If I wish to examine my file and, if
needed, correct it, I may contact my portfolio advisor or the privacy officer of IA Clarington
Investments Inc.
P
The IA Clarington privacy policy, and the particulars for its privacy officer, is available on its
website, www.iaclarington.com.
12. MISCELLANEOUS
I may not assign this Agreement. APS may assign this Agreement to an acquiror of its
private client business, on notice to me.
This Agreement binds not only the parties herein but also their successors, permitted
assigns and respective legal representatives.
Client(s) Initials
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15 | P a g e
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Any notice or other written communication to be issued as part of this Agreement shall be
deemed duly issued to IA Clarington Investments Inc. if sent to it at the address set out
above, and to the undersigned if sent to the address appearing from time to time in IA
Clarington's books. Such notices and written communications shall be deemed received on
the 3rd working day following their mailing or on the first working day following their
transmission by fax.
This Agreement is governed by the laws of the Province of Ontario. If one or other provision
of this Agreement is invalid or void under applicable laws, the other provisions of this
Agreement shall not be affected and each provision of this Agreement shall be valid and
enforceable in all the extent allowed by the law.
Where the context requires it, the singular may be interpreted as the plural, the masculine as
the feminine and vice-versa and shall include a legal person, if the context so requires.
enen
fran?ais.
parties
ontont
express?ment
requis
que
Cette convention
conventionest
estaussi
aussidisponible
disponible
francais.Les
Les
parties
expressément
requis
la pr?sente convention soit r?dig?e en anglais.
que la présente convention soit rédigée en anglais.
CUSTODIAN
Penson Financial Services Canada
360 St. Jacques West, 11th Floor
Montreal, Quebec
H2Y 1P5
IA CLARINGTON INVESTMENTS INC.
_____________
Signature
_____________
Date
John Smith
Gualtieri,
Rinaldo
_____________
Signature
_____________
Date
_____________
Signature
_____________
Date
P
Anthony Silvestrin
Senior Vice-President
Private Wealth Management
Second Client Name
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Schedule A: Fee Schedule
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This
This Schedule
Schedule isis an
an integral
integral part
part of
of the
the Agreement
Agreement signed
signed by
by the
the client(s)
client(s) and
and IA
IA
This Schedule is an integral part of the Agreement signed by Gualtieri, Rinaldo and IA
Clarington
Inc.
value
of
the
assets
under
Clarington Investments
InvestmentsInc.
Inc. Based
Based on
on the
the market
market value
valueof
ofthe
theassets
assetsunder
undermanagement
Clarington
Investments
Based
on
the
market
the
following
fee
schedule
will
apply:
management
the
following
fee
schedule
will
apply:
management the following fee schedule will apply:
Balanced Portfolio
Moderate
Portfolio
Type
Portfolio Management Fee:
Advisor Portfolio Services Fee:
Referral Fee:
Total:
Rate (%)
0.68
%
0.44%
0.55
%
0.55%
1.00
%
0.95%
-----------2.23
%
1.94%
* All fees shown are expressed as Annual Rates.
* Fees will be calculated and paid monthly in arrears at the end of each month based on
the total market value of the Assets on the last business day of the month. If an
account is closed during a month, fees for the last month are applied according to the
number of days elapsed.
FundEX Investments
Investments Inc.
Inc. ('FundEX'),
('FundEX'), aa
* The referral fee identified above will be paid to FundEX
registered mutual fund dealer. APS will provide you with discretionary portfolio
management services in accordance with this Agreement, and FundEX will continue to
oversee the entirety of your FundEX account. Your securities holdings with APS may
from time to be time be disclosed to FundEX
FundEX.
* Fees may be changed from time to time by APS on notice to you. Notice of any fee
change will be delivered as per the stated preferred method (i.e., electronic, mail). If you
object to a fee change, you may provide notice of objection and termination of the
account to APS within 60 days of the fee change; APS will then refund the amount of
any fee increase to you from the date of the increase to the date of termination.
IA CLARINGTON INVESTMENTS INC.
_____________
Signature
_____________
Date
John Smith
Gualtieri,
Rinaldo
_____________
Signature
_____________
Date
Second Client Name
_____________
Signature
_____________
Date
P
Anthony Silvestrin
Senior Vice-President
Private Wealth Management
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Schedule B: Policy Statement
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Securities laws in certain Canadian provinces require that dealers and advisers, insofar as
their activities concern their own securities or the securities of issuers who are related to or
connected with them or who are related to or connected with a third party related to them,
must comply with certain rules and regulations, in particular, in respect of the information to
be provided. Such rules and regulations require that dealers or advisers inform their clients
of their relationship or connection with securities issuers before effecting a transaction on
their behalf or advising them. It would be advisable for clients to refer to the applicable
provisions to obtain further information on these rules and regulations and their rights or to
consult a legal adviser.
Industrial Alliance Insurance and Financial Services Inc. ('IA-LIFE') is the sole shareholder of
IA Clarington Investments Inc. ('IAC'). IA-LIFE is a public company whose common shares
are listed on the Toronto Stock Exchange under the stock symbol 'IAG' and consequently IALIFE is a related securities issuer of IAC. IAC is an investment advisor and a portfolio
manager. In addition, as of November 1, 2006, IA-LIFE, the shareholder of IAC, controls the
following companies and consequently, IAC is related to these companies:
*
*
*
*
*
Industrial Alliance Pacific Insurance and Financial Services;
Investia Financial Services Inc., a group savings firm;
FundEX Investments Inc., a mutual funds dealer;
Industrial Alliance Securities Inc., a securities dealer;
Industrial Alliance Trust Inc., a trust company.
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It is IAC's policy not to give investment advice on the purchase or sale of securities of which
its mother company, Industrial Alliance Insurance and Financial Services Inc., is the issuer,
regardless of whether or not it is in the course of an investment, unless there is an express
written request from the client to effect the purchase or sale of one of these securities. It is
also IAC's policy to comply in all respects with the applicable securities laws and to make all
the required disclosures, and in this context IAC has also established a Protocol with a view
to reducing to a minimum potential conflicts of interest, which is appended hereto.
Client(s) Initials
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Schedule B: Policy Statement
18 | P a g e
Protocol to reduce to a minimum potential conflicts of interest
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The relationship that binds IAC to IA-LIFE and its affiliates makes it necessary to establish
the policies set forth below, with a view to dealing with potential conflicts of interest and
ensuring that the investment decisions are made and executed in the best interest of IAC
clients. Although the administrators and senior executives may exercise functions in more
than one of the companies related to IAC, they are operated as separate legal entities.
a) All investment decisions regarding the purchase and sale of securities making up the
client's portfolio shall be taken in the normal course of the company's activities,
without IA-LIFE or one of the entities currently associated or affiliated with IA-LIFE
intervening. IAC shall remain autonomous in respect of the decision-making and
operations regarding the management of client's funds and the choice of their
investments.
b) Investment decisions shall be made in good faith by the portfolio managers, without
such decisions being influenced by reasons other than the best interest of clients.
c) Neither IA-LIFE nor any other entity affiliated with IA-LIFE, their administrators, senior
executives, employees shall take part in or influence, directly or indirectly, the
formulation of any investment advice that IAC shall give to clients. However, some of
these affiliated companies may provide IAC, on request, with investment research
services, and from time to time, such entities may collaborate with a view to offering
products and services in the interest of IAC clients. It is however understood that in
such a case, no information on the client may be exchanged without first obtaining the
client's express written consent.
d) Subject to the applicable laws, IAC may, from time to time, purchase the securities of
related or connected issuers for its client's portfolios. IAC shall obtain its client's
consent in accordance with the consent form appended to Schedule 'C', prior to
exercising the same discretionary power on behalf of its client as that granted under
the terms of the Mandate in respect of the securities of a related issuer and, at the
time of the investment of a security (for example, as part of an initial placement of
securities, such as an initial public offering, or in respect of the resale of securities
subject to restrictions from a firm underwriter) regarding the securities of a connected
issuer. For client's residing in Ontario, Nova Scotia and Newfoundland, consent shall
be obtained once every 12 months. IAC shall also obtain the client's consent in all
other cases where the applicable laws or regulations require.
e) When IAC produces reports for the client concerning transactions effected in the
exercise of its discretionary management power, IAC shall disclose its relationship
with its related issuers in compliance with the provisions of the law.
f) IAC may, from time to time, advise its clients on the purchase and sale of mutual
funds of related issuers referred to herein, insofar as:
* IAC deems that the purchase or sale is in the best interest of its client;
* the purchase does not generate dual management fees; and
* the prior consent of the client was obtained, and for clients residing in Ontario,
Nova Scotia and Newfoundland, consent shall be obtained once every 12 months.
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19 | P a g e
Schedule B: Policy Statement
CONSENT FORM
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When an account is opened with IA Clarington Investments Inc. ('IA Clarington'), Securities
laws require that IA Clarington obtain its client's consent to exercise the same discretionary
power over their accounts as that granted under the terms of the Mandate with respect to its
related dealers or advisers and related issuers, and in some cases, with respect to its
connected issuers. For clients residing in Ontario and Nova Scotia, such consent shall be
obtained once every 12 months (please refer to the Statement of Policies).
CONSEQUENTLY:
Except for the purchase or sale of securities issued by Industrial Alliance Insurance and
Financial Services Inc., which the Client must expressly request in writing to IA Clarington to
be included in its Portfolio, the undersigned (or each of the undersigned) hereby confer(s)
upon IA Clarington the authority to exercise the same discretionary power over his (their)
account as that granted under the terms of the Mandate for:
(i) the purchase or sale of securities of related issuers of IA Refused if initialled
Clarington, such issuers being listed in the Statement of
Policies, and for the purchase or sale of securities of
connected issuers of IA Clarington, whether in the
context of an investment or not;
(ii) the purchase or sale of securities held by IA Clarington or Refused if initialled
a company in the Industrial Alliance group, the purchase
or sale of securities in an investment in which or a
company in the same group participates, or the purchase
or sale of securities issued by a company that has a
senior executive who is also a senior executive of IAC;
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(iii) the purchase or sale of mutual fund securities whose Refused if initialled
manager is IA Clarington or an affiliate and/or whose
name appears in the Statement of Policies, including
both public mutual funds and private pools, if applicable.
IA Clarington's specific powers with respect to any of the investments listed above are set
out in detail in section 4, including in particular subsections 4(g), 4(h) and 4(i) of the attached
agreement.
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20 | P a g e
To refuse your consent with respect to one of the above statements, please cross out the
statement in question and place your initials beside it.
_____________
Signature
_____________
Date
_____________
Signature
_____________
Date
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John Smith
Gualtieri,
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Second Client Name
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21 | P a g e
Schedule C: Consent to Electronic Delivery of
Documents
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I have read and understand this "Consent to Electronic Delivery of Documents" and consent
to the electronic delivery of the documents listed below that APS elects to deliver to me
electronically, all in accordance with my instructions below.
1. APS will provide the following documents electronically:
a.Account statements; b. Trade confirmations; c. Any documents requiring my attention
or signature; d. Shareholder communications (if any)
2. Documents will be delivered by email to the email address provided by me and updated
by me with no other notice of delivery.
3. Documents will be sent via electronic mail in a variety of formats including Microsoft Office
Formats, plain text format, or as an Adobe Acrobat file. You must have a computer capable
of running the software to view these documents. Adobe Acrobat Reader is available free of
charge from Adobe at www.adobe.com. In a case where the Client does not have the
capability of viewing a sent document, we will send in a suitable format or send in paper
format at our election.
4. I acknowledge that I may receive at no cost from the deliverer a paper copy of any
documents delivered electronically if I contact APS by telephone, regular mail or electronic
mail at (866) 425-5861, ext. 3884, or IA Clarington Investments Inc. - Advisor Portfolio
Services, 300-2200 McGill College, Montreal, QC, H3A 3P8, or
[email protected]. Documents will generally be available for 3 months from
date of origination.
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5. I understand that my consent may be revoked or changed, including any change in the
electronic mail address to which documents are delivered (if I have provided an electronic
mail address), at any time by notifying the deliverer of such revised or revoked consent by
telephone, regular mail or electronic mail at (866) 425-5861, ext. 3884, or IA Clarington
Investments Inc. - Advisor Portfolio Services, 300-2200 McGill College, Montreal, QC, H3A
3P8, or [email protected].
6. I understand that I will be provided with a paper copy of any documents delivered
electronically if electronic delivery fails.
22 | P a g e
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7. All reasonable precautions will be taken to protect the confidential information of all
clients.
a. Use of my identifying information by way of telephone or electronic means is at my own
risk.
b. I acknowledge and agree that the security and privacy provided by electronic means and
telephone is not complete or reliable and can be circumvented by an unauthorized person.
8. I understand that I am not required to consent to electronic delivery.
I hereby consent to the electronic delivery of documents with respect to the terms of this
Schedule:
_____________
Signature
_____________
Date
Second Client Name
_____________
Signature
_____________
Date
P
John Smith
Gualtieri,
Rinaldo