Brownstone Diversified Canadian Growth Portfolio Overview Consistent, disciplined investment process. Diversified Canadian Growth Portfolio offers investors a separately managed account consisting of high quality, multi-cap Canadian equities. Bottom-up approach which combines objective quantitative work with a deep evaluation of key stock fundamentals. Seek to provide above average long term growth in our clients’ portfolios, while at the same time explicitly controlling portfolio risk. Controlling Risk Preservation of capital is of paramount importance to our clients and is an explicit objective of the investment philosophy of Brownstone. The investment professionals at Brownstone have a long track record in understanding portfolio risk and employ methodologies to reduce risk in a portfolio. Central to our risk reduction strategy is diversification of invested holdings. Brownstone equity portfolios are broadly diversified, typically holding in excess of 35 individual stocks invested across a number of sectors. Each equity holding represents approximately 2% - 6% of the portfolio total, and is rebalanced regularly to ensure that no single equity dominates the portfolio subjecting the invested capital to excessive volatility. Investment Style Central to our research process is a bottom-up fundamental Company Analysis. This analysis includes management interviews and wide ranging research sources. A Growth at a Reasonable Price (GARP) investment style best characterizes Brownstone central investment style. Companies contained in our portfolios typically exhibit above average growth characteristics, which we believe will deliver above average long term returns to our investors. A low turnover of equities within our portfolios supports our investment style and helps minimize taxes to our clients. Despite a low turnover preference, today’s markets often demands a quick response to changing equity fundamentals. Brownstone is highly flexible and efficient, providing opportunities to capture opportunistic gains. We consider our strict sell discipline to be an important part of our investment style. Precise consideration of P/E multiples, earnings estimates, and relative price momentum guide us in considering the disposition of part or all of a stock position. Should a company incur financial or operating problems that change the original investment thesis, we liquidate our position immediately. We clearly understand the impact of diversification on a portfolio and seek to spread risk through limiting the size of a specific stock selection, as well as the invested level of commitment to any one stock market sector. Equity Fundamentals Moderate P/E Multiples - While growth stocks typically can exhibit above average price/earnings multiples, we do not invest in companies that are over-priced through speculation or have poor pricing efficiencies. Net Free Cash Flow – This metric provides firms with the capability to internally finance operations and capture opportunities that exist in their respective industries. Superior Earnings and Dividend Growth - A firm’s ability to consistently grow its earnings will provide excellent long term investment results. In addition, we look for dividend growth over time as a fundamental sign of a healthy, well-run organization. Firms that cut their dividend are typically not tolerated in our portfolios and are liquidated. Strong Balance Sheet - The firms we invest in have moderate to low debt ratios; we avoid companies that are highly leveraged on the balance sheet. High Reinvestment Rate - The combination of a superior return on equity (ROE) combined with a high reinvestment rate contributes to above average corporate growth and earnings. Companies that exhibit this powerful combination are included in our portfolios.