Frequently Asked Questions

1. What is involved in becoming a YouFirst Financial client?
   
   While the process of becoming a client requires that you review and sign several documents, it is imperative that we understand your situation and your investment parameters. During our initial meeting we discuss your risk profile and agree on the portfolio mix among the major asset categories such as short term, equity and fixed income holdings. We will often discuss particular investment concerns you may have as a result of lifestyle, employment or other factors in your investment profile that are unique. In this way investment guidelines are created from which we can manage your portfolio on a discretionary basis.
   
   
2. What happens to the securities I already own if I join YouFirst Financial?
   
   Upon becoming a client, we will analyze your holdings to determine how consistent they are with your investment goals. While we may continue to hold certain securities based on your explicit instructions or tax considerations, we will gradually replace inappropriate securities to reposition the portfolio toward the target asset mix.
   
   
3. What is an IC/PM (Investment Counsel and Portfolio Manager)?
   
   
   • An IC/PM core business is to manage client portfolios on a continuous, ongoing basis. He is independent and his only compensation is fees charged to his clients. The fees are based on the assets managed and never on the number or value of transactions.
   
   
   
   • An IC/PM is professionally trained to select only securities that are appropriate to the client's circumstances and requirement.
   
   
   
4. Why have you set up an IC/PM firm?
   
   We believe this is the best business model for serving our clients
   because of:
   • Conflict of Interest: Portfolio Managers by law must not receive commissions on any trades, but are paid fees based on the size of the portfolio.
   • Cost Effectiveness: Portfolio Managers are less expensive than most other investment service providers.
   • Customization: Portfolio Managers have the expertise and investment options to customize portfolios specifically for each individual client.
   
   
5. YouFirst Financial specializes in segregated portfolios.   How do these differ from mutual funds or pooled accounts?
   
   A segregated or separately managed account is an investment account managed by professionals where the client directly owns the securities. Because of this, separately managed accounts are more transparent than mutual funds or other pooled investment vehicles as you can see what companies you actually hold. Separate accounts also allow your portfolio manager to address your personal investment goals more specifically and they allow you to take advantage of certain tax efficiencies that are unavailable when you invest exclusively in a fund.
   
   
6. Will I be able to speak with my portfolio manager directly?
   
   Yes, unlike many of our competitors who outsource all or most of the investment process to an outside manager or mutual fund, we act both as your adviser and portfolio manager. In addition, because we personally perform the portfolio management function, we are better able to tailor your portfolio to fit your unique needs.
   
   
7. How are you compensated for managing my portfolio?
   
   We receive a management fee that is based upon a percentage of your assets under management. We do not receive trading commissions. Because our primary compensation is from investment management services, our incentive is to build your assets as that is the only way that we can grow our business. Conversely, if your asset value were to drop, we would expect a decrease in fees. This differs from transactional based management where brokers are compensated based on trade activity, not client performance. The annual fee for a typical family portfolio is 1% of assets.
   
   
8. Where will my investment account be held for safekeeping?
   
   Your account will be held in your name with a custodian. Our preferred custodian, known as PensonPrime, a division of Penson Financial Services Canada, offers you the key benefits of low trading costs, high interest on cash balances, no RRSP/RRIF administration fees and quality account servicing. It is important to note that custodial services are available from a multitude of other IDA member firms such as the TD Bank and National Bank but we have chosen PensonPrime as our preferred custodian due to the savings it brings to you, our client.
   
   
9. What is a custodian and why do I need one?
   
   A custodian is the financial institution that holds your securities which are being managed by YouFirst Financial. Penson provides the safekeeping and does much of the administrative work associated with your account so that YouFirst Financial can focus on managing the investments within your portfolio.
   
   
10. How safe are my assets at Penson Financial Services Canada?
    
    Penson Financial Services Canada (PFSC), is a member of the Investment Dealers Association of Canada (IDA). PFSC is also a member of the Canadian Investor Protection Fund (CIPF) which is an organization that ensures, within defined limits, that your cash and securities are protected. Through CIPF, each customer is provided with protection of $1 million for assets including cash, securities and some additional products. To learn more about Penson click here to view the brochure or visit www.penson.ca. To learn more about the IDA visit www.ida.ca. The CIPF details are available at www.cipf.ca .
    
    
11. Will I be able to see my account online?
    
    Yes, Penson provides an online viewing capability.
    
    
12. What if I want to leave YouFirst Financial?
    Our Investment Management Agreement with clients allows for termination at any time. There are no penalties or termination fees charged by YouFirst Financial. You may be required to pay a fee to the custodian to have your accounts transferred to your new advisory firm.