Quarter Report portfolio management analysis

Performance Evaluation

Sample ReportConsolidated Portfolio

For the Period EndingMarch 31, 2004

Presentedby:

iNFiNi-t Wealth Management Advisers Inc.


Executive Summary Report Explanation

The Executive Summary provides an overview of the fund's performance. It shows the performance in dollars, percent, and relative to the investment policy. These are provided over different time periods including up and down markets. All rates of return are annualized if the period for which they are calculated exceeds one year.

Account Reconciliation: This section shows the performance of the account in dollars, during the most recent quarter, the calendar year, and since the inception date. The Beginning Value is the value at the start of each period. The Ending Value shows the value as of the date of the report. Net contributions are the total contributions less the total withdrawals during the period. The Investment G/L is the gain or loss resulting from the investments. It is the difference between the beginning and ending values that cannot be explained by the net contributions. Positive investment G/L figures represent a profit, and negative values represent a loss.

Investment Policy: This section defines the benchmark against which the fund is being compared. Generally, this is the most important objective for a fund to achieve. The performance of the fund relative to this measure over longer periods of time, such as market cycles, is the strongest indicator of the success or failure of the investment strategy. This objective should be reasonable, and the performance of the fund should be measured against the investment policy after adjusting for risk.

Trailing Returns: This section shows the cumulative time weighted returns over the last 1 year, 2 years, and so on up through 10 years if available, as well as since the inception date. A positive difference indicates the fund has exceeded the policy's returns. The investor would prefer that this difference be positive for all time periods; however, it is more important for it to be positive for the longer periods rather than the shorter periods.

Calendar Year Returns: This section gauges the consistency of performance over one year time periods. Each calendar year of performance represents the return from January 1st through December 31st. Watch out for a trend of declining relative performance in recent periods.

Returns In Up/Down Markets: This section shows how the fund performed in both up and down markets. The methodology is to segregate the performance for each time period into the quarters in which the market, as defined by the policy, was positive and negative. Quarters with negative policy returns are treated as down markets, and quarters with positive policy returns are treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. Up market returns are calculated for the fund and the policy based on the up quarters. Down market returns are calculated for the fund and the policy based on the down quarters. The ratio of the fund's return in up markets to the policy's is the up market capture ratio. The ratio of the fund's return in down markets to the policy's is the down market capture ratio. Ideally, the fund would have a greater up market capture ratio than down market capture ratio.


Executive Summary

Inception date is December 31, 1995All dollar values are shown in thousands.Returns for periods exceeding one year are annualized.Returns are net of fees.

Account Reconciliation

Beginning Value

Net Flows

Investment G/L

Ending Value

03/31/2004Qtr

100,915

-4,429

4,151

100,637

2004YTD

100,915

-4,429

4,151

100,637

12/31/1995Incept

56,271

-30,406

74,773

100,637

Investment Policy

Index

SM Cdn Bond Universe

S&P/TSX Composite

S&P500 ($cdn)

Europe, Australia & Far East ($cdn)

Weight

30.00

25.00

25.00

20.00

Trailing Returns through March 31, 2004

Fund

Policy

Diff

1 Yr

28.93

25.63

3.30

2 Yr

-0.08

2.60

-2.68

3 Yr

2.63

2.30

0.33

4 Yr

6.84

-0.91

7.75

5 Yr

6.48

2.69

3.79

6 Yr

6.02

3.54

2.48

7 Yr

8.21

6.13

2.08

8 Yr

9.22

7.23

1.99

9 Yr 10 Yr12/31/1995

Incept

9.09

7.19

1.90

Calendar Year Returns

Fund

Policy

Diff

03/31/2004Qtr

4.12

4.13

-0.01

2004YTD

4.12

4.13

-0.01

2003

12.08

12.76

-0.68

2002

-13.55

-9.96

-3.59

2001

7.72

-5.60

13.32

2000

21.56

1.56

20.00

1999

3.34

14.52

-11.18

1998

8.88

12.84

-3.96

1997

17.51

16.23

1.28

1996

17.37

16.48

0.89

1995

Returns in Up Markets

Fund

Policy

Ratio

3 Yr

26.8

23.5

113.9

5 Yr

24.7

20.9

118.6

8 Yr

22.0

20.9

105.4

12/31/1995Incept

21.2

20.2

105.0

Returns in Down Markets

Fund

Policy

Ratio

3 Yr

-23.6

-21.4

110.3

5 Yr

-16.0

-19.6

81.8

8 Yr

-17.6

-21.0

83.9

12/31/1995Incept

-17.6

-21.0

83.9


Asset Allocation Through March 31, 2004

All dollar values are shown in thousands.

Current Quarter

Cdn Fixed Income 27.14%$27,312

Global Equities 50.72%$51,040

Canadian Equities 21.23%$21,370

Cash & Equivalents 0.91%$915

Previous Quarter

Cdn Fixed Income 26.73%$26,974

Global Equities 49.66%$50,117

Canadian Equities 21.22%$21,411

Cash & Equivalents 2.39%$2,412


Manager Contribution

Quarterly Cumulative

Return

Quarter Ending

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

J99 S99 D99 M00 J00 S00 D00 M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04

Growth of $100 Fund vs Policy

Fund Policy

Value

Quarter Ending

$90

$100

$110

$120

$130

$140

$150

M99 J99 S99 D99 M00 J00 S00 D00 M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04


Quarterly Effect Cumulative Effect

Asset Allocation Effect

Percent Effect

Quarter Ending

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%


Security Selection Effect

Percent Effect

Quarter Ending

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%



Objective Comparison

Inception date is December 31, 1995All dollar values are shown in thousands.

Fund Policy

1st Objective-10% 2nd Objective-CPI

Value

Quarter Ending

$0

$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

M99 J99 S99 D99 M00 J00 S00 D00 M01 J01 S01 D01 M02 J02 S02 D02 M03 J03 S03 D03 M04


Fund (%) Policy (%)

Fund (%)Policy (%)Difference (%)

1 Yr28.9325.633.30

2 Yr-0.082.60

-2.68

3 Yr2.632.300.33

4 Yr6.84

-0.917.75

5 Yr6.482.693.79

6 Yr6.023.542.48

7 Yr8.216.132.08

8 Yr9.227.231.99

9 Yr 10 Yr Incept9.097.191.90

Trailing Returns through March 31, 2004

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Fund (%)Policy (%)Difference (%)

Qtr4.124.13

-0.01

YTD4.124.13

-0.01

200312.0812.76-0.68

2002-13.55-9.96-3.59

20017.72

-5.6013.32

200021.561.56

20.00

19993.34

14.52-11.18

19988.88

12.84-3.96

199717.5116.231.28

199617.3716.480.89

1995

Calendar Year Returns

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%


Fund (%) Policy (%)

Fund (%)Policy (%)Difference (%)Ratio# Up Qtrs

3 Yr 26.76 23.50 3.26

113.87 7.00

5 Yr 24.73 20.85 3.88

118.61 12.00

8 Yr 21.97 20.85 1.12

105.37 23.00

Incept 21.22 20.20 1.02

105.05 24.00

Up Market Returns

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Fund (%)Policy (%)Difference (%)Ratio# Down Qtrs

3 Yr-23.63-21.42 -2.21

110.32 5.00

5 Yr-16.01-19.57 3.56 81.81 8.00

8 Yr-17.64-21.02 3.38 83.92 9.00

Incept-17.64-21.02 3.38 83.92 9.00

Down Market Returns

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%


Return vs Risk through March 31, 2004

Policy

Annualized Return

Risk (Annualized Std Dev)

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Fund

CPI

EAFE C$

S&P 500 $C

SM Bond Univ


Risk Measures Report Explanation

The evaluation of a fund's performance should extend beyond return to encompass measures of risk. The next two pages are used to determine the level of risk to which the fund has been exposed, and whether the return has been commensurate with the risk taken. All measures are calculated for both the fund and the policy as well as the difference between the two. Up to four time periods are evaluated depending on the age of the fund.

# Of Negative Qtrs/# Of Positive Qtrs: Number of negative quarters shows the number of quarters in which the return was less than zero, and the number of positive quarters is the number of quarterly returns which were greater or equal to zero.

Batting Average: The batting average is a measure of consistency. It shows the percent of the quarters the fund has beaten the policy and the percent of the quarters the policy has beat the fund. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the policy frequently.

Worst Quarter/Best Quarter/Range: The worst quarter is the lowest quarterly return experienced during the period, a measure of downside risk. The best quarter is the highest quarterly return, and the range is the difference of the high and low, and indicates dispersion.

Standard Deviation: Standard deviation measures the total volatility of the fund, by measuring dispersion. Higher standard deviation indicates higher risk. If the quarterly or monthly returns are all the same the standard deviation will be zero. The more they vary from one another, the higher the standard deviation. Thus, it measures uncertainty, which is a measure of risk.

Alpha/Beta/R-Squared: If the policy is appropriate, then the alpha should be positive, the beta close to one, and the r-squared should be high. Beta measures risk relative to the policy. A beta of 1 suggests risk equivalent to the policy. Higher betas indicate higher relative risk. A beta of 1.2 indicates 20% more risk than the policy. The alpha measures the return adjusting for beta. The higher the alpha, the better. R-squared measures the relationship between the policy and the fund. A high r-squared means the returns of the fund can largely be explained by movements of the policy. The higher the r-squared, the more reliable the alpha and the beta. R-squared may range from 0 to 100. Beta, alpha and r-squared are derived from regression analysis using the fund and policy returns as the dependent and independent variables respectively. Roughly, one would expect the fund's performance to equal the return of the policy multiplied by the beta plus the alpha.

Sharpe Ratio/Treynor Ratio: The Sharpe and Treynor ratios are similar. The Sharpe ratio is the excess return per unit of total risk as measured by standard deviation. The Treynor ratio is the excess return per unit of market risk as measured by beta. Both of these should be compared against the corresponding value for the policy. Higher numbers are better, indicating more return for the level of risk that was experienced.


Risk Measures3 Yr# of Negative Qtrs# of Positive QtrsBatting AverageWorst QtrBest QtrRangeWorst 4 QtrsStandard DeviationBetaAnnualized AlphaR-SquaredSharpe RatioTreynor RatioTracking ErrorInformation Ratio

Fund4.008.00

58.33-11.7611.2222.98

-22.5611.26

1.030.260.74

-0.05-0.505.700.06

Policy5.007.00

41.67-8.848.33

17.17-16.21

9.391.000.001.00

-0.09-0.840.00

Diff-1.001.00

16.66-2.922.895.81

-6.351.870.030.26

-0.260.040.345.70

5 Yr# of Negative Qtrs# of Positive QtrsBatting AverageWorst QtrBest QtrRangeWorst 4 QtrsStandard DeviationBetaAnnualized AlphaR-SquaredSharpe RatioTreynor RatioTracking ErrorInformation Ratio

Fund5.00

15.0060.00

-11.7611.2222.98

-22.5612.86

0.824.270.560.203.078.730.43

Policy8.00

12.0040.00-8.8411.0619.90

-17.4611.71

1.000.001.00

-0.11-1.270.00

Diff-3.003.00

20.00-2.920.163.08

-5.101.15

-0.184.27

-0.440.314.348.73

8 Yr# of Negative Qtrs# of Positive QtrsBatting AverageWorst QtrBest QtrRangeWorst 4 QtrsStandard DeviationBetaAnnualized AlphaR-SquaredSharpe RatioTreynor RatioTracking ErrorInformation Ratio

Fund7.00

25.0056.25

-11.7611.6323.39

-22.5611.91

0.843.170.660.436.127.150.28

Policy9.00

23.0043.75-9.1014.1123.21

-17.4611.61

1.000.001.000.273.150.00

Diff-2.002.00

12.50-2.66-2.480.18

-5.100.30

-0.163.17

-0.340.162.977.15

Incept# of Negative Qtrs# of Positive QtrsBatting AverageWorst QtrBest QtrRangeWorst 4 QtrsStandard DeviationBetaAnnualized AlphaR-SquaredSharpe RatioTreynor RatioTracking ErrorInformation Ratio

Fund7.00

26.0054.55

-11.7611.6323.39

-22.5611.73

0.843.080.660.425.907.050.27

Policy9.00

24.0045.45-9.1014.1123.21

-17.4611.44

1.000.001.000.273.060.00

Diff-2.002.009.10

-2.66-2.480.18

-5.100.29

-0.163.08

-0.340.152.847.05


Since Inception

Best Fit Policy

Fund Return

Policy Return

-15%

-10%

-5%

0%

5%

10%

15%

20%

-15% -10% -5% 0% 5% 10% 15% 20%

Annualized AlphaBetaR-Squared

3.080.840.66


Quarterly Comparison Analysis (%) Report Explanation

This page compares the returns of the fund to the returns of the investment policy and to the other investment objectives quarter by quarter for the last five years. The last row shows the returns since inception.

The purpose of this page is to indicate how closely the fund has tracked its objectives, particularly the investment policy. If the quarterly difference are small, then the fund has tracked the objectives closely. Wide discrepancies suggest that the fund is being invested in a fashion which does not resemble the underlying objective. It is not likely a fund invested in stocks and/or bonds will track a fixed (e.g. 10%) rate of return, or inflation very closely. However, a fund invested in securities should be able to track an index comprised of similar securities.

This page also provides a measure of the fund's ability to meet its objectives frequently. If the fund often outperforms the objective, then the difference column will have a preponderance of positive values.

If the investment policy or the objectives have changed over time, the heading at the top of each column will only reflect the current policy and objectives, even though the quarterly returns include the alterations.


Quarterly Comparison Analysis (%)

Returns for periods exceeding one year are annualized.

Period Ending

Mar 1996Jun 1996Sep 1996Dec 1996Mar 1997Jun 1997Sep 1997Dec 1997Mar 1998Jun 1998Sep 1998Dec 1998Mar 1999Jun 1999Sep 1999Dec 1999Mar 2000Jun 2000Sep 2000Dec 2000Mar 2001Jun 2001Sep 2001Dec 2001Mar 2002Jun 2002Sep 2002Dec 2002Mar 2003Jun 2003Sep 2003Dec 2003Mar 2004Incept.

Fund

1.263.654.027.500.528.605.981.564.661.75

-8.4111.63-0.296.66

-6.023.391.365.638.544.600.511.64

-3.579.341.04

-8.78-11.76

6.30-9.4911.222.658.464.129.09

Policy

1.472.604.527.040.397.405.761.936.312.33

-9.1014.111.642.44

-0.9711.065.111.870.15

-5.28-6.78-0.09-6.458.330.44

-7.09-8.845.85

-6.547.864.257.294.137.19

Diff

-0.211.05

-0.500.460.131.200.22

-0.37-1.65-0.580.69

-2.48-1.934.22

-5.05-7.67-3.753.768.399.887.291.732.881.010.60

-1.69-2.920.45

-2.953.36

-1.601.17

-0.011.90

1stObjective-10%

2.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.412.41

10.00

Diff

-1.151.241.615.09

-1.896.193.57

-0.852.25

-0.66-10.82

9.22-2.704.25

-8.430.98

-1.053.226.132.19

-1.90-0.77-5.986.93

-1.37-11.19-14.17

3.89-11.90

8.810.246.051.71

-0.91

2ndObjective-CPI

0.750.530.220.680.300.200.200.080.500.800.180.200.180.801.980.271.170.800.610.620.431.65

-0.08-1.281.551.100.92

-0.051.99

-0.570.491.49

-0.152.26

Diff

0.513.123.806.820.228.405.781.484.160.95

-8.5911.43-0.475.86

-8.003.120.194.837.933.980.08

-0.01-3.4910.62-0.51-9.88

-12.686.35

-11.4811.792.166.974.276.83


Quarterly Comparison Analysis ($) Report Explanation

This report shows the performance, in dollars, of the fund relative to the objectives. The idea is to show a hypothetical value that reflects what the account would be worth if it had instead invested in each objective.

The column titled "Fund" shows the actual values in the fund at the end of the quarter. The amount shown for the first date is the same for each objective as that of the fund. This is the amount assumed to be invested in each objective. All other values for the objectives are based on reinvesting the preceding amount, earning the return of the objective, and adjusting for contributions or withdrawals to the fund.

A positive difference between the fund and an objective represents the additional dollars that are in the fund that would not be available if the fund had actually experienced the return of the objective. A negative difference may be thought of as the cost incurred in experiencing the actual performance instead of the objective performance.

The report will show results since the inception of the fund, or quarterly results over the last five years, whichever is less.


Quarterly Comparison Analysis ($)


Period Ending

Dec 1995Mar 1996Jun 1996Sep 1996Dec 1996Mar 1997Jun 1997Sep 1997Dec 1997Mar 1998Jun 1998Sep 1998Dec 1998Mar 1999Jun 1999Sep 1999Dec 1999Mar 2000Jun 2000Sep 2000Dec 2000Mar 2001Jun 2001Sep 2001Dec 2001Mar 2002Jun 2002Sep 2002Dec 2002Mar 2003Jun 2003Sep 2003Dec 2003Mar 2004

Fund

56,27192,10994,44597,474

102,18999,206

105,891110,095110,740112,882110,22099,898

110,071106,968111,946101,619103,240102,947108,621117,091121,142113,562112,493107,061113,893124,698111,35295,26099,07785,96995,09295,411

100,915100,637

Policy

56,27192,29093,65997,126

101,37198,248

103,667107,515108,517112,327110,28999,185

111,728110,762111,351106,562116,485120,713122,877122,289114,54099,01596,11288,52092,772

102,64392,91681,63784,21974,96680,32281,51284,92183,999

Diff

0-181786349818958

2,2232,5812,223

555-69713

-1,657-3,794

595-4,943

-13,244-17,766-14,256-5,1986,601

14,54816,38118,54021,12222,05618,43713,62314,85811,00414,77013,89815,99416,638

1stObjective-10%

56,27193,11294,33295,83795,55194,33694,76194,92096,13495,45493,10394,50595,38094,87195,04493,55193,99394,55296,73698,28499,33193,29492,63593,40492,619

104,389104,304103,566103,861102,524104,425104,720104,780102,843

Diff

0-1,003

1131,6376,6374,870

11,13015,17614,60617,42817,1175,393

14,69012,09716,9028,0689,2478,395

11,88518,80721,81120,26819,85813,65721,27520,3097,048

-8,306-4,784

-16,555-9,333-9,309-3,866-2,206

2ndObjective-CPI

56,27191,65791,11890,54988,57185,31783,63881,67980,67078,09674,11173,35772,11169,45267,90565,47763,85262,89663,31562,91961,99753,93151,92850,43046,79656,91254,95952,23950,03647,20046,34744,37242,57938,088

Diff

0451

3,3276,925

13,61813,88822,25328,41630,07034,78636,10926,54037,96037,51744,04136,14239,38840,05145,30654,17259,14459,63160,56556,63067,09767,78656,39343,02049,04138,77048,74651,03858,33662,549


Attributions of Returns Report Explanation

Performance attribution concentrates on evaluating the effect of the manager's decisions on asset allocation and security selection. This allows the investor to see whether the manager is adding value by adjusting the actual asset allocation or by picking individual securities. This information is valuable in helping determine the amount of freedom that might be given to the manager in regard to asset allocation ranges. The result of these skills are shown for multiple time periods.

The top section shows the returns for both the account and the investment policy and the results of the manager's contribution. The fund's return is thus attributed to the policy and the manager.

The bottom section divides the manager's contribution into two components: asset allocation and security selection. The asset allocation effect measures the value that was added by varying the actual asset allocation from the target allocation. This is done by assuming investments, in amounts equal to the actual asset allocation weights, were made in the policy's indices so that security selection has no effect. The difference between this return and the policy's return is the asset allocation effect. The security selection is the remainder of the manager's contribution that is not explained by asset allocation.


Attribution of ReturnsAttribution of Performance to show Manager Contribution

Policy + Manager Contribution = Fund

Current Quarter

Year to Date

3 Years

5 Years

8 Years

Incept

Policy

4.13

4.13

2.30

2.69

7.23

7.19


-0.01

-0.01

0.33

3.79

1.99

1.90

Fund

4.12

4.12

2.63

6.48

9.22

9.09

Attribution of Manager Contribution between Asset Allocation and Security Selection

Asset Allocation + Security Selection = Manager Contribution

Current Quarter

Year to Date

3 Years

5 Years

8 Years

Incept

Asset Allocation

-0.12

-0.12

-1.10

-1.05

-0.10

-0.09

Security Selection

0.11

0.11

1.43

4.84

2.09

1.99


-0.01

-0.01

0.33

3.79

1.99

1.90


Market Values and Cash Flows Report Explanation

This page summarizes the market values, flows, net gain or loss and returns for the fund for the last five years. Net flows refer to the contributions less the withdrawals from the fund. This page illustrates the change in market value through time, and suggests whether changes were due to contributions, withdrawals, or investment profits.


Market Values and Cash Flows


Period Ending

Mar 1996Jun 1996Sep 1996Dec 1996Mar 1997Jun 1997Sep 1997Dec 1997Mar 1998Jun 1998Sep 1998Dec 1998Mar 1999Jun 1999Sep 1999Dec 1999Mar 2000Jun 2000Sep 2000Dec 2000Mar 2001Jun 2001Sep 2001Dec 2001Mar 2002Jun 2002Sep 2002Dec 2002Mar 2003Jun 2003Sep 2003Dec 2003Mar 2004

Beginning Value

56,27192,10994,44597,474

102,18999,206

105,891110,095110,740112,882110,22099,898

110,071106,968111,946101,619103,240102,947108,621117,091121,142113,562112,493107,061113,893124,698111,35295,26099,07785,96995,09295,411

100,915

Net Flows

34,734-1,025

-770-2,596-3,520-1,850-2,126-1,075-2,973-4,589

-891-1,392-2,788-2,095-3,730-1,800-1,694

-76-777

-1,308-8,292-2,868-1,453-3,0038,968

-2,568-3,218-2,181-3,812

-579-2,196-2,436-4,429

InvestmentGain/Loss

1,1043,3623,7997,311

5368,5356,3311,7195,1151,927

-9,43111,565

-3157,072

-6,5973,4211,4015,7509,2475,359

7131,798

-3,9809,8361,837

-10,778-12,875

5,998-9,2959,7022,5147,9404,151

Ending Value

92,10994,44597,474

102,18999,206

105,891110,095110,740112,882110,22099,898

110,071106,968111,946101,619103,240102,947108,621117,091121,142113,562112,493107,061113,893124,698111,35295,26099,07785,96995,09295,411

100,915100,637

Return (%)

1.263.654.027.500.528.605.981.564.661.75

-8.4111.63-0.296.66

-6.023.391.365.638.544.600.511.64

-3.579.341.04

-8.78-11.76

6.30-9.4911.222.658.464.12

Documents

Quarter Report portfolio management analysis