Investor Presentation

November 2007

Loring Ward International Ltd.Company Update

2November 2007

Loring Ward International Ltd. (TSX: LW)

The following presentation has been placed on the Loring Ward company website at www.loringward.com.

Following listing of the company’s common stock on the Toronto Stock Exchange (TSX), Loring Ward International Ltd. (Loring Ward) will be holding presentations for the investing public for the purpose of informing them about Loring Ward. This presentation along with the company’s most recently released financial statements and management’s discussion and analysis will be distributed from time to time to attendees of the in-person presentations.

Information in this presentation that is not current or historical factual information may constitute forward-looking statements within the meaning of securities laws. Forward-looking statements may include those relating to the company’s objectives and strategies, as well as statements of our beliefs, plans, expectations and intentions. Implicit in this information are assumptions regarding future revenue and expenses, economic conditions, and the results of a pending lawsuit involving the Company, as well as our business strategy, expectations, intentions, and other matters. These assumptions may prove to be incorrect, and actual outcomes and results, including the future operating results and economic performance of the company, may differ materially because of many factors, including those discussed in this presentation and in our other public filings. For more information on risks and challenges faced by the company you should refer to our detailed financial statements, management's discussion and analysis, and complete risk disclosures which are available at www.sedar.com. Forward-looking statements contained in this presentation are based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking statements and should not rely upon this information as of any other date. The company disclaims any intention or obligation to update the information in this presentation or revise any other forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

The company, in the ordinary course of its business, may explore potential strategic opportunities and transactions, which may include strategic joint venture relationships, significant cash, debt or equity investments in or by the company, the acquisition or disposition of material assets or business lines, mergers, new products or services, new distribution methods and other similar strategic opportunities or transactions. The company’s policy is generally not to publicly disclose the pursuit of a potential strategic opportunity or transaction unless and until a definitive binding agreement is reached. The public announcement of such matters could potentially materially affect the price or value of the company’s securities. As a result, there can be no assurance that investors who buy or sell the company’s securities are doing so at a time when the company is not pursuing a particular strategic opportunity or transaction that, if publicly disclosed, could materially affect the price or value of the company’s securities.

3November 2007

Investor Presentation Outline

1. Investment highlights

2. Industry overview

3. Growth strategy

4. Loring Ward Advisor Services

5. Financial review

November 2007

Investment Highlights

5November 2007

Loring Ward Share Price Performance

$0

$3

$6

$9

$12

$15

Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07

Sh

are

Pri

ce

(C

$)

Price and Volume Chart

January 1, 2006 to November 12, 2007

Source: Toronto Stock Exchange www.tsx.com 11/12/07

May 2006 – Feb 4, 2007• Unlisted trading only

May 2007• Company approves Substantial Issuer Bid• Announces C$0.07 quarterly dividend

6November 2007


Record of growth

Positive industry fundamentals

Enormous market opportunity

Proven investment philosophy

Globally diversified portfolio

Strong financial condition

Experienced management team

7November 2007

Record of Growth: Loring Ward Advisor Services Assets

(US$ millions)

$100

$200

$300

$400

$500

2001 2002 2003 2004 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07

New

Ass

ets

$-

$1,200

$2,400

$3,600

$4,800

$6,000

To

tal Assets

Gross Quarterly New Assets

Net Quarterly New Assets

Total Assets

Gross Yearly New Assets

Net Yearly New Assets

8November 2007

Record of Growth: Loring Ward Advisor Services Client Accounts

-

1,200

2,400

3,600

4,800

6,000

Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07

New

Acc

ou

nts

-

5,000

10,000

15,000

20,000

25,000

To

tal # of A

ccou

nts

Gross New Accounts with Value

Net New Accounts with Value

Total Accounts with Value

9November 2007

Record of Growth: Loring Ward Advisor Services Advisors

26

12 1115

2521

16 1511

37

27

3532

0

20

40

60

80

100


New

Ad

viso

rs w

ith

Acc

ou

nts

400

480

560

640

720

800

To

tal Ad

visors w

ith A

ccou

nts

Net Quarterly New Advisors with Accounts Total Advisors with Accounts

10November 2007

Positive Industry Fundamentals – TAMP Market Growth

(US$ billions)

Source: Tiburon Strategic Advisors TAMP Research Report 1/07

$1 $4$16

$22$33

$51

$78 $78$91

$120

$170

$193

$250

1986 1994 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

2001 – 2006 CAGR: 2

6%

11November 2007

Enormous Market Opportunity

Source: CapGemini/Merrill Lynch 2006 Wealth Report. For illustrative purposes only. Loring Ward’s actual share size of U.S. Investable Personal Assets does not appear to the human eye within a pie chart.

Share of $17 Trillion in U.S. Investable Personal Assets

LWAS = $5.5 billion (9/30/07)

Estimated Share of Current Broker/Dealer Client Business

>20,000 Advisors

724 Loring Ward Advisors

Broker / Dealer Assets > $750bn

Loring Ward Advisor Services = $5.5bn

*Represented above are the 90+ Broker / Dealers with selling agreements at Loring Ward. The number of B/D advisors and assets are estimates.

*Not to scale

*

12November 2007

Proven Investment Philosophy

• Fama/French Multi-Factor Model– Invest in equities

– Overweight small company stocks

– Overweight high-book-to-market stocks

• Markowitz Modern Portfolio Theory

– Effectively diversify Fixed Income/Equity

Domestic/International

Size and Style

• Dimensional Fund Advisors LP– Enhanced indexing

– Trading advantages

– Fixed income maturity <5 years

– True to asset classes

– Flexibility in construction

– Institutional pricing

– Tax efficiency

13November 2007

Globally Diversified Portfolio

U.S. Core0.4%

U.S. Market16.6%

U.S. Large Value13.9%

International Small9.0%

Emerging Markets2.4%International Core

0.3%

REITs0.9%

International Large0.5%

International Value23.6%

U.S. Small11.2%

Fixed Income21.2%

Domestic54.7%

International45.3%

Loring Ward Client Investment Portfolios (1) Equity Domestic / International (1)

1. Assets include all SA and DFA Funds as of June 30, 2007. Source: Loring Ward, 7/07.

14November 2007

Experienced Management Team

• Loring Ward is led by a seasoned team of professionals who have collectively almost 200 years of financial services industry experience

Name Title Industry Experience

Bob Herrmann President and Chief Executive Officer 20

Bob Badolato Chief Financial Officer 20

Nicole Newlin Chief Operating Officer 7

Steve McGinnis General Counsel & Corporate Secretary 37

William Chettle Managing Director - Marketing 13

Ron Howard Director – Broker/Dealer Marketing 31

Mark Kalinowsky Western Division Director 13

Randy Hardy Eastern Division Director 9

Susan Kornegay Managing Director – Advisor Practice Consulting 23

Joni Clark Chief Investment Strategist 18

November 2007

Industry Overview

16November 2007

Substantial Growth of Fee-Based Managed Accounts

High-net-worth individualsturning to financial advisors

to manage their assets

Increasing number of high-net-worth investors

Financial advisors migrating towards fee-based model

(US$ billions)


$82 $115$117$120$180

$235

$356$452

$662

$769$800

$927

$1,081

$1,208

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

17November 2007

Increased Specialization & Increased Outsourcing

Financial Advisors

Personal Advisor & Planner

Fund Managers

Investment Management

Turnkey Asset Management Programs (TAMPs)

Portfolio Management

Back Office Administration

Business Development / Marketing

Advisor Education & Training

Client Relationships

18November 2007

TAMP Market Growth

(US$ billions)


$1 $4 $16 $22 $33$51

$78 $78 $91$120

$170$193

$250

$650

1986 1994 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2010

2006

– 2

010E

CA

GR

: 27%

19November 2007

TAMP Market Trends

TAMP market is expected to grow at a 27% compounded

annual rate

Fee-account market share increased from 11% in 2002 to

over 15% in 2006

Growth in fee-based accounts

Trend towards specialization


November 2007

Growth Strategy

21November 2007

Loring Ward is Ready for Growth and Profitability

• Capitalize on strong industry fundamentals• Continue to advance advisor experience and capabilities• Improve and expand programs and services• Improve efficiency/expand capacity, so that assets and accounts can

grow dramatically without increased operating costs• Expand marketing within Broker/Dealers• Pursue potential strategic acquisition(s)

22November 2007

4%

13%

18%

39%

35%

32%

(3%)

(10%)

0%

10%

20%

30%

40%

50%

2004 2005 2006 YTD Average SmallCaps

Average MidCaps

Average LargeCaps

Trading Comparables (LTM)

EB

ITD

A M

arg

in

Note: EBITDA included the results of the asset management businesses, run-off businesses, and corporate costs.1. Actual results for the first nine months of 2007.

2. Includes Waddel Reed, Cohen & Steers, GAM CO Investors, W.P. Stewart, US Global Investors, Diamond Hill, Westwood Holdings and Hennessy Advisors. Source: Capital IQ, 11/12/07

3. Includes Affiliated Managers, Nubeen Investments, Eaton Vance, Janus Capital, Federated Investors, and Calamos Asset Management. Source: Capital IQ, 11/12/07

4. Includes Franklin Resources, AllianceBernstein, BlackRrock, Legg Mason, T. Rowe Price, and SEI Investments. Source: Capital IQ, 11/12/07

Margin Opportunity

(2) (3) (4)

(1)

November 2007

Loring Ward Advisor Services

24November 2007

Loring Ward Advisor Services: TAMP Business Model

Client

• Client Acquisition

• Investment Advisor

• Relationship Manager

• Financial Planner

Investment Advisor

Loring Ward

SA Funds $3.1 Billion 9/30/07

Loring Ward – AdviserDimensional Fund Advisors LP

Sub-Adviser /Investment Manager

DFA Funds$2.1 Billion 6/30/07

Affiliate ofDimensional

Mutual Funds

Portfolio Management

• Investment strategy• Portfolio models• Fee-based programs• Performance reporting• Research & analytics

Adviser to SA Funds

• Investment strategy• Asset class allocation• Performance analytics• Sub-adviser oversight• Distributor services

Back Office

• Account opening• Custodian interface• Portfolio set-up / trading• Monitoring & rebalancing• Transfers / distributions• Billing & fee collection

Investment Advisor Support

• Education & training• Business development• Private label marketing• Client communications• Practice consulting

25November 2007

SecuritiesAvailable

AssetClasses

Portfolio Size

>$500,000

GlobalFixed Income

US Fixed Income

Intl ValueEquities

US Small CapEquities

Intl Small CapEquities

US ValueEquities

Emerging Markets Equities

US REITsUS Large Cap

Equities

<$500,000

DFA FundsSA FundsThe Universe of

Funds & Securities

Loring Ward Fee-Based Investment Programs

26November 2007

Program Fee Structures

Loring WardRevenue

Loring Ward Variable Expenses

Loring WardGross Margin

<$500,000 >$500,000 >$500,000Closed Program

SA FundsAverage Portfolio: 100 bps

Administrative FeeAverage Portfolio: 50 bps

Fund Reimbursement, Var Comp, IT Platform, B/D Supervisory Fees

Average Portfolio: 30 bps

Average Portfolio: 30 bps Average Portfolio: 25 bps

Management FeeAverage Portfolio: 95 bps

PortfolioSize

The above chart is an approximation of the revenue and variable expense flow of Loring Ward programs and is shown for illustrative purposes only. Refer to Loring Ward’s Financial Results at www.loringward.com for actual results.

Var Comp, IT Platform, B/D Supervisory Fees


Advisor Fees, Var Comp, IT Platform, B/D Supervisory Fees



AUM as of Sept 30, 2007(in USD millions)

$1,357 $1,026$3,131

27November 2007

Cost Overview

• Downward trend of fixed operating expenses even with growth in AUM and revenue

• Business model has significant operating leverage

LWAS (1) 2004 2005 2006

(1)

LWAS (1) 2004 2005 2006Half Year

Annualized (1)

1. Q3 2007 annualized

2. AUM is as of December 31 for the year indicated, except for LQA column, as of 9/30/07

Note: LQA figures adjusted for $0.9MM of non-recurring costs

LWAS 2004 2005 2006Half Year

Annualized (1)LWASUS$ Millions

2004 2005 2006 LQA 1

AUM2 $2,311 $3,070 $4,324 $5,459

Revenue 20.9 27.0 35.1 47.4

Variable Expense $9.6 $10.9 $13.0 $19.9

% of revenue 46% 40% 37% 42%

Fixed Operating Expenses $9.7 $12.5 $13.2 $13.5

% of revenue 46% 46% 38% 28%

Operating Margin 8% 13% 25% 30%

28November 2007

Advisors Overview

• 724 independent investment advisors spread across U.S. in 37 states• Exclusive community of proven fee-based advisors sharing same investment

philosophy • Advisors commit to grow and move assets to Loring Ward• Long-standing advisors typically have most of clients’ assets with Loring Ward

55 Registered Investment Advisors (RIAs)

724Advisors

669 Investment Advisor Representatives (IARs)

Registration through 90 Broker / Dealers

Independent Registration

29November 2007

Client Account Overview

• Offering is attractive for all levels of investor affluence• Percentage of assets in HNW / UHNW segments continuing to increase

As of 6/30/07.

Account Size % of Total # Accounts % of Total Accounts

Mass Affluent <$500,000 $2,742 50% 20,220 89%

Affluent $500,000 - 1 million $1,188 22% 1,745 7%

High Net Worth $1-5 million $1,324 24% 814 4%

Ultra High Net Worth >$5 million $205 4% 26 <1%

Total Value (US$MM)

30November 2007

Growth of Advisors

459 459 461 467 479 490 505 530 551 567 582 593630 657

692

- 2 6 12 11

11

459 461 467 479 490 505530

551 567 582 593630

657692

724

32

27

1525

21 16 1537

35

0

200

400

600

800


Nu

mb

er o

f A

dv

iso

rs

Advisors at Beginning of Period Net New Advisors

31November 2007

Increasing Average Advisor AUM at Loring Ward

$2,851

$1,887 $1,984$2,027

$2,311 $2,384$2,562

$3,070

$3,428$3,583

$3,849

$4,324

$4,710

$5,199

$5,459

-

$1,200

$2,400

$3,600

$4,800

$6,000


AU

M

$4

$5

$6

$7

$8

$9

$10

AU

M p

er Ad

viso

r

Loring Ward Advisor Services AUM at Period End AUM per Advisor

32November 2007

Dimensional Fund Advisors LP

• SA Funds are sub-advised by Dimensional• Loring Ward clients can invest in directly-managed DFA funds• Loring Ward working with Dimensional since 1992

Solid Reputation Investment Management

US$ 150 billion in assets1

1. AUM balance as of 6/30/07

Adheres to distinct discipline, with goal of providing greater consistency and predictability of results, as well as broader diversification across and within asset classes

Recognized throughout the industry for the long-term success of its enhanced indexing strategy

November 2007

Financial Review

34November 2007

Financial Highlights

• Positive operating trends– Increasing assets under management and revenue– Increasing operating income and margins (after non-recurring items)– Increasing free cash flow– Significant operating leverage – Substantial reduction in corporate costs

• Improved financial condition– No debt – $25 million cash (including escrow)– Tax loss asset of $19 million– Recurring asset-based revenue stream– Bank and market access to capital– Completed substantial issue bid of purchasing 750,000 shares of Loring Ward stock– Declared & paid a quarterly dividend of $0.07 CDN per share in each of first three quarters– Initiated a buyback program to purchase up to 10% of the public float (approximately 560,000

shares). Over 260,000 shares purchased as of October 31, 2007

• Diversification of revenue and profit– 22,805 clients through 724 advisors and 90 B/Ds– Effective global portfolio diversification

As of 9/30/07

35November 2007

Selected Quarterly Financial Data

Note: Loring Ward Financial Statements and Management, Discussion & Analysis 2005- 2007

US$ millions (except per share data) 2005 2006 2007Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307

LWAS Revenue $6.4 $6.7 $7.3 $7.8 $8.0 $8.6 $9.2 $9.4 $10.4 $11.3 $11.9 LWCM Revenue 1.3 1.2 1.3 1.3 1.4 1.4 1.4 1.2 1.0 0.9 0.9

$7.7 $7.9 $8.6 $9.1 $9.4 $10.0 $10.6 $10.6 $11.4 $12.2 $12.8

Operating Income $1.0 $1.2 $1.7 $1.9 $1.8 $2.4 $2.8 $2.9 $3.3 $3.0 $2.7 Corporate Costs 2.3 3.2 3.2 3.9 2.6 2.4 2.0 1.7 1.4 1.5 1.5 Pretax Earnings ($1.4) ($0.6) ($0.9) ($1.6) ($0.4) $1.3 $0.8 $1.4 $3.7 $1.6 $0.9

Net Income from Continuing Operations ($0.8) ($0.4) ($0.5) ($1.0) ($0.3) $0.7 $0.5 $0.8 $2.2 $1.0 $0.5 Net Income 0.1 0.5 0.7 (0.7) 0.2 1.1 0.8 (0.4) 1.6 0.9 0.4

EPS (loss) from Continuing Operations Basic (10¢) (5¢) (6¢) (12¢) (3¢) 8¢ 6¢ 9¢ 24¢ 11¢ 7¢ Diluted (9¢) (4¢) (6¢) (11¢) (3¢) 8¢ 6¢ 9¢ 24¢ 11¢ 7¢

Operating Cash Flow From Continuing Operations ($0.6) $0.6 $0.1 $1.4 $0.4 $1.5 $1.5 $2.0 $2.7 $2.2 $1.9 Cash 5.1 7.0 5.6 8.9 4.5 4.7 8.7 28.2 29.6 36.2 25.1 Debt 7.9 7.1 6.4 5.7 5.0 4.3 3.6 - - - -

36November 2007


Record of growth

Positive industry fundamentals

Enormous market opportunity

Proven investment philosophy

Globally diversified portfolio

Strong financial condition

Experienced management team

37November 2007

Challenges and Risks Affecting the Company

We believe that the risks and uncertainties identified below and those in the company’s public filings available at www.sedar.comimpose the greatest threat to our business. However, there are other risks and uncertainties that exist that may be unknown to us or, in the present opinion of our management, do not currently pose a material risk of harm to us. The risk and uncertainties facing our business, including those described below, could materially adversely affect our business, results of operations, financial condition and liquidity, as well as our reputation and prospects.

•Our revenues and earnings are affected by changes in the capital markets, as well as general economic conditions. •Our business is subject to extensive governmental regulation. •We are exposed to systems and technology risks and data security risks.•We are highly dependent upon third-party service providers in our operations and generally exposed to operational risks. •We are subject to the risks associated with concentration in a single business. •We operate in a highly competitive environment and are subject to risks related to the loss of clients. •We are subject to concentration risks related to one investment philosophy/strategy and assets primarily with one investment manager. •We are subject to risks associated with realizing our significant tax loss assets.•We are subject to risks of litigation. Given the nature of our business, we may from time to time be subject to claims or complaints from clients and there can be no assurance that such claims would not be material.

We have been named as defendants in certain legal actions in the course of our business, including an action whereby a former Business Management client is seeking damages. This claim alleges certain deficiencies and breaches of duty relating to information allegedly prepared in connection with a marital dispute. We believe we have meritorious defenses to the plaintiff’s claims and intend to defend vigorously. We believe that it is more likely than not that we will prevail in the litigation. Litigation is by its nature subject to uncertainties, and there can be no assurance that we will be successful in obtaining a dismissal of such claims, or a satisfactory settlement, or be successful on the merits. Although the amount of damages sought is unspecified, if we are not successful in dismissing the claim, it could be subject to the expense and burden of an extended trial process and an adverse result in a trial, either of which could have a material adverse effect upon us.

November 2007

Loring Ward International Ltd.Company Update

Investor Presentation

Documents

Transcript of Investor Presentation