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The value of wealth management advice

Enriched Thinking®

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What’s the price of peace of mind?The value of wealth management advice can be measured in several ways.

There’s the performance of your portfolio that your advisor helps you realize. Then there are the intangibles—from building a personal holistic wealth management plan to helping you manage and simplify your financial affairs so you can confidently take steps towards achieving financial independence.

Annual returns are a straightforward way to think about value. But how do you quantify the intangibles? What’s the cost associated with prudence? Or the time and resources your advisor takes to understand your needs and goals? Or the effort required to develop, execute and update your plan?

The best way we know to measure this intangible value is to highlight some of the services included in the fees you pay.

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Fees you pay to us Fees we receive

Operating fees:

< Fees associated with managed and fee-based programs as outlined in your fee agreement with us.

< Fees associated with the administration, transfer or termination of your account.

Transaction fees:

< Commissions associated with the purchase and/or sale of securities.

< Ongoing trailing commissions received from a fund company for the services and advice we provide to you.

< One-time commissions received from the issuer of a security purchased in your account.

Not all fees pertain to every situation and additional fees may also apply.

Understanding your fees.

Beginning in January 2017, you will start to receive an annual report for each of your accounts, which will include a snapshot of how your account has performed, along with all associated fees.

While these fees have been in place for some time, the new reports will ensure greater transparency regarding what you pay and to whom. The three categories of fees are outlined below:

Did you know?

There are two ways in which advisors are compensated for the wealth management services and advice they provide. These are reflected in different account types:

Fee-based accounts

In fee-based accounts, an advisor charges a fee based on a percentage of the value of the assets held in your portfolio— there are no additional commissions on trades.

Commission-based accounts

In this scenario, you pay a commission in relation to each trade that you make in your account.

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The value you see— and the value you may not.At ScotiaMcLeod,® we are dedicated to helping you reach your financial goals.

Our advisors bring their expertise and skills to the consideration of what you’ve accumulated. Behind every decision, is a team of specialized knowledge.

We can help you identify opportunities and develop personalized strategies in the areas of:

< Financial planning< Investment management< Insurance solutions< Estate and trust services< Private banking and credit solutions < Business and family advisory services

Together, we carefully manage your wealth through all of life’s changes—from financial counsel on managing your wealth to careful contemplation of how to transfer it to future generations.

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The value you may not.

Your advisor and the Scotia Wealth Management team of specialists work together to help you achieve your goals by offering a wide ranges of services and advice:

Financial planning

Investment management

Insurance solutions

Estate and trust services

Private banking and credit solutions

Business and family advisory

services

< Comprehensive financial planning

< Understanding your short, medium, and long term goals

< Cash flow management

< Managing risk

< Recommending tax efficient strategies

< Enhancing income

< Caring for the health of you and your family

< Will and estate planning

< Philanthropic advisory

< Trust management

< Leaving a legacy

< High level of attention and service

< Strategic and opportunistic use of credit

< Small business planning

< Business succession planning

< Family wealth planning

ScotiaMcLeod Wealth Advisors are disciplined and dedicated to client service excellence. Services include:

< Staying up to date with economic conditions and regulatory changes.< Ongoing advisor education and training.< Maintaining license requirements in all applicable provinces and disciplines.

ScotiaMcLeod enables and supports all of our advisors to help ensure clients’ best interests are being met. Services include:

< Investment, market and economic research< Providing advisor support and education< Maintaining and updating training capabilities< Developing technology, servicing and administrative platforms< Supervising regulatory requirements< Branding, marketing and communications < Client communications, such as account statements, tax documents and trade confirmations

The value you see.

In addition to the above services, your advisor may also provide a number of value-added solutions that support the maintenance and growth of your investment portfolio.

< Managinginvestments

< Diversificationand portfoliobalancing

< Risk analysis

< Market research

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®Registered trademark of The Bank of Nova Scotia, used under licence. ™Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management™ consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company (Scotiatrust®); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod®, a division of Scotia Capital Inc. Private banking services are provided by The Bank of Nova Scotia. Estate and trust services are provided by The Bank of Nova Scotia Trust Company. Portfolio management and family office services are provided by 1832 Asset Management L.P. and 1832 Asset Management U.S. Inc. Insurance services are provided by Scotia Wealth Insurance Services Inc. Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of Scotia Capital Inc. International investment advisory services are provided by Scotia Capital Inc. Financial planning and advisory services are provided by Scotia Capital Inc. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Scotia Wealth Insurance Services Inc. is the insurance subsidiary of Scotia Capital Inc., a member of the Scotiabank group of companies. When discussing life insurance products, ScotiaMcLeod advisors are acting as Life Insurance Agents (Financial Security Advisors in Quebec) representing Scotia Wealth Insurance Services Inc.

40 King Street West, 15th Floor Torotno, ON M5H 3Y2

www.managedmoneyreporter.ca

If you have questions or would like more information, please contact your ScotiaMcLeod Advisor or visit scotiawealthmanagement.com

Carl Spiess, CFP, CIM, FMA, FCSI, MBA

Portfolio ManagerDirector, Wealth Management 416.862.3150carl.spiess@scotiawealth.com

Allan McGlade, CLU, CFP, CIM

Portfolio ManagerDirector, Wealth Management416.945.4107allan.mcglade@scotiawealth.com