“At Cardinal Capital we don’t want Advisors to partner with us because of our exceptional returns,

we want advisors to work with us because we provide a solution that is right for their practice

and their clients.”

Timothy E. Burt, CFAPresident & C.E.O.

Discretionary Management – The Cornerstone to Building High

Value Relationships

The thing we hear most from advisors is that they want to grow their

practices, strengthen their client relationships and have peace of mind

that they are providing the best financial advice and solutions possible.

Simply put…

INCREASING assets under administration while DECREASING the number of client accounts

Results in…

Having more time to work on the aspect of client management that matters most…

building the client relationship

INCREASING assets under administration

while DECREASING the number of clients

Requires advisors to…

Acquire

Retain and

Grow

High Net Worth Clients

More and more, high net worth individuals are demanding more planning, greater access to experts, solutions customized to their specific needs – their own personal CFO! Investment advice and portfolio management top the list

of “most valued services”.

Warren Buffet

Timothy E. Burt

You may not be planning on changing anything in your financial planning

practice, but the industry has other plans for you.

The projected growth rate of the HNW marketplace is nearly 88% over the next seven years

HNW households control about $1.3 trillion of $3.2 trillion in Canada or more than half of the overall financial wealth market of $2.3 trillion

When it comes to the primary advisors to Canada’s HNW households, full service brokers currently take the lead at 37%; while 22% of households use investment counsellors; and 21% opt for financial planners.

Bederman says a big challenge is that more than half of the HNW households that use a financial planner are not satisfied.

Only 48% of these households believe their advisor is exceeding expectations, compared to a much higher satisfaction rate for brokers (56%) and 67% for investment counsellors.

“It doesn’t necessarily mean that financial planners are

out of the game, but it means that the nature of

financial planning and what particular advisors do will

have to change.”

Brugger Wealth Management Ltd.The Managed Money Continuum

Fee based programs level of investable assets/degree of customization

$0 - $24,999 AIM/Trimark Investments – (MER 2.14 – 2.90)Mackenzie Financial Corp. – MER 2.20 – 2.91)Standard Life Mutual Funds – (MER 1.97 – 2.47)Franklin Templeton – (MER 2.41 – 2.98)

DEGREE OF CUSTOMIZATION LEV

EL

OF

IN

VE

ST

AB

LE A

SS

ET

S

$25,000 - $99,999Franklin Templeton Quotential – (MER 2.07 – 2.74)SEI LifePath – (MER 2.55)AGF Harmony – (MER 2.79 – 3.05)Mackenzie Financial Symmetry – (MER 2.26 – 2.79)

$100,000 - $249,999SEI Portfolios – (MER 1.95 – 2.32)Standard Life Eclipse – (MER 2.00 – 2.50)AIM/TRIMARK Dialogue – (MER 1.97 2.61)

$250,000 - $499,999Tapestry Pooled Portfolio Management – (MER 1.93 – 2.55)Standard Life Legends – (MER – 1.55 – 2.05)SEI Pooled Portfolio – (MER – 1.82 – 2.21)

$500,000+Cardinal Capital Management – (MER 1.50)Hemisphere Capital – (MER 1.50)Bissett Private Portfolio Management – (MER – 1.50 – 1.80)Connor Clark & Lunn – (MER 1.50)

Over time, cumulative dividends offer a similar benefit to traditional fixed income investments

Assuming a $30,000 Initial Investment - RBC

The Power of Dividends

$20,314 $21,750

ASSUMPTION: No dividend re-investment

The Tale of the Numbers

Assets Under

Administration

Assets with Cardinal

1998

1999

2000

$11.519 Million $0

$0$19.998 Million

$36.688 Million $0

Assets Under

Administration

Assets with

Cardinal

2003

2005

May 2007

$46.444 Million $3.982 Million

$64.615 Million$14.145 Million

$84.688 Million $19.758 Million

The Tale of the Numbers

Number of Family Units with Over $1 Million of Investable Assets

2000

2007

0

31

Conclusion Change, or evolution, is not just an

option: it is a fact of life for all businesses

Change is all about people and it takes time

You have it within your reach to take your practise to the next level of performance

Thank You

Market Outlook

Low unemployment rate

Good job growth

Increasing personal income

Strong corporate sector

Weak housing sector bottoming out in U.S.

Bank credit still accessible

Interest rates still low for now

Stronger Than Expected Economy

Higher energy costs

Higher food costs

Increasing wage rate pressures

Higher minimum wage

Higher rental costs

Higher industrial commodity costs

Inflation Concerns Will Worsen

Hedge funds

Private equity firms

Strong corporate balance sheets

OPEC money

Cheap credit

Increasing M.& A. Activity

High Financial Liquidity

Many stocks still selling below their 1998-2000 highs

Corporate profit growth is still good

Many stocks still sell at historically low p/e’s

Low bond yields make stocks more attractive

Companies are still raising dividends and buying back stock

Increasing scarcity of high quality stocks due to takeovers

Stock Valuations Are Reasonable

Last bear market was in 2006 – bear markets occur every 4 yrs.

Next bear market in 2010 – bull market peak in 2009

Last recession was in 2001 – recessions occur every 8-9 yrs.

Next recession in 2010

Eventually steadily higher interest rates in 2008 and 2009 will cool off the global stock markets

Conclusion – stock markets will move higher in 2007 and 2008 due to a stronger than expected economy and better than expected corporate profits

Stock Market Outlook

Bond Market Outlook

Stronger than expected GDP Growth

Higher than expected CPI Rates

World central banks will gradually tighten monetary policy

Yield curve will become positive – sloped again

Bond investors will demand higher inflation risk premium and higher credit risk premium

Conclusion - rising bond yields and falling bond prices for 2007 and 2008

Canadian dollar will strengthen against the U.S. dollar towards $0.95 U.S. by end of 2007 and towards $1.00 U.S. by end of 2008

Canadian dollar will weaken against the euro

Large U.S. budget and trade deficits will eventually take its toll on the U.S dollar

The U.S. will become increasingly protectionist with Democratic Congress and likely Democratic President in 2009

Higher energy prices and commodity prices will keep the Canadian dollar strong against the U.S. dollar

Political uncertainty in Canada is becoming less of a concern to global investors

Canadian Dollar Outlook