Financial Leadership in Uncertain Times

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Financial Leadershipin Uncertain Times
Restore Confidence, Regain Trust, Rebuild Wealth
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Agenda for Today

• The Need for Leadership
• Financial Leadership Framework
• Restore Confidence
• Regain Trust
• Rebuild Wealth
• The Road to Recovery

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The Need for Leadership
Financial Leadership

• Reduction in wealth/loss of confidence
• Uncertainty around jobs/retirement angst
• Money Markets or mattresses

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Financial Leadership
This is an economic Pearl Harbor. - Warren
Buffett
We are in the worst financial crisis since the
Great Depression. - President Barack Obama

• global recession is about to produce blood in
  the streets civil wars and toppled
  governments.
• - Niall Ferguson

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Emotional Impacts
Financial Leadership
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Equity Fund Investor vs. SP 500
Financial Leadership
20.00
10.00
0.00
-10.00
-20.00
-30.00
-40.00
-50.00
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Lack of Leadership Do It Yourself Investing
Financial Leadership

• Loss of confidence in traditional brokers
• 50 - 80 increase in number of discount brokerage
  accounts opened
• Lower fees make active trading more affordable
  exactly what should NOT be happening

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A Framework for Leadership
Financial Leadership




SUCCESS
Adopted from Ambrose 1987
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Successful Financial Leadership
Financial Leadership
RESTORE Confidence
REGAIN Trust
REBUILD Wealth
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Restoring Confidence
Restore Confidence
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3 Areas to Focus On
Restore Confidence

• Our confidence
• Confidence of the public/investors in equities
  and investments
• Motivation of your clients to move forward with
  you towards a positive vision of the future

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Advisor Confidence Index
Restore Confidence
February 2007 emergence of the subprime issue
123.88
100
66.67
133.33
33.33
166.67
Source Rydex Advisor Benchmarking
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Advisor Confidence Index
Restore Confidence
September 2008 US Fed began to cut federal funds
rate
100.25
66.67
133.33
33.33
166.67
Source Rydex Advisor Benchmarking
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Advisor Confidence Index
Restore Confidence
March 2008 Dow Jones hit lowest point since
October 2006
86.27
100
66.67
133.33
33.33
166.67
Source Rydex Advisor Benchmarking
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Advisor Confidence Index
Restore Confidence
October 2008 Emergency Economic Stabilization
Act, creation of 700 billion Troubled Assets
Relief Program
79.07
100
66.67
133.33
33.33
166.67
Source Rydex Advisor Benchmarking
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Advisor Confidence Index
Restore Confidence
January 2009 small increase, possibly due to
election
84.76
100
66.67
133.33
33.33
166.67
Source Rydex Advisor Benchmarking
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Advisor Confidence Index
Restore Confidence
April 2009 highest level since Sept 2008
93.59
100
66.67
133.33
33.33
166.67
Source Rydex Advisor Benchmarking
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Advisor Confidence Index
Restore Confidence
Source Rydex Advisor Benchmarking
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Investor Confidence
Restore Confidence
Source State Street
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Staying the course in challenging markets
Restore Confidence
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Growth of the SP 500 Composite C,August 1979
to February 2009
Restore Confidence
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Restore Confidence
30 Year Comparison of Major Indices
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Restore Confidence
30 Year Comparison of Major Indices
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Restore Confidence
Index SP 500 Composite
Total Return Idx ( Cdn) MSCI World (
Cdn) SP/TSX Total Return
Major Indices
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Restore Confidence
Past ten years worst since 30s
U.S. equities rolling 10-year compound total
returns (1895-current)
Source UBS, Tetrem Capital Management
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Restore Confidence
Investor Pessimism is Contrary to Market
Performance
Source Factset
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Advisor Confidence
Restore Confidence

• New solutions TFSA, GMWB
• Fewer competitive firms
• You do more than equities

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Successful Financial Leadership
Financial Leadership
RESTORE Confidence
REGAIN Trust
REBUILD Wealth
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Broken Trust
Regain Trust
Source TrustedAdvisor Associates 2008
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Regain Trust
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Reasons for Failed Sales
Regain Trust
Source Heiman Miller, Conceptual Selling
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The Territory of a Trusted Advisor
Regain Trust
Source The Trusted Advisor, by David H. Maister,
Charles H. Green, Robert M. Galford
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The Trust Equation
Regain Trust
Trust C R I S
Trust Credibility Reliability Intimacy
Self-Orientation
Source TrustedAdvisor Associates 2007
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Trust Realms
Regain Trust





Realm
Example
Component
Words
Credibility
I can trust what he says about
Reliability
Actions
I can trust her to
Intimacy
Emotions
I feel comfortable discussing this
Self-orientation
I can trust that he cares about
Motives
Source The Trusted Advisor, by David H. Maister,
Charles H. Green, Robert M. Galford
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Regain Trust
Trust (worthiness)
Source TrustedAdvisor Associates 2007
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Ideas to Increase Credibility
Regain Trust
Source TrustedAdvisor Associates 2007
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Ideas to Increase Reliability
Regain Trust
Source TrustedAdvisor Associates 2007
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Ideas to Increase Intimacy
Regain Trust
Source TrustedAdvisor Associates 2007
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Ideas to Decrease Self-Orientation
Regain Trust
Source TrustedAdvisor Associates 2007
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"No one cares how much you know,until they know
how much you care"
Regain Trust
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www.ci.com/PD
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BRAND Overview Presentation
Regain Trust
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www.ci.com/PD
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Successful Financial Leadership
Financial Leadership
RESTORE Confidence
REGAIN Trust
REBUILD Wealth
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Rebuild Wealth
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Process not an Event
Rebuild Wealth
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Emotional Maturity
Rebuild Wealth
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Do you have a wealth rebuilding strategy?
Rebuild Wealth
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Wealth Rebuilding Strategy
Rebuild Wealth
Worry-free Wealth Management
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A Framework for Leadership
Financial Leadership




SUCCESS
Adopted from Ambrose 1987
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Successful Financial Leadership
Financial Leadership
RESTORE Confidence
REGAIN Trust
REBUILD Wealth
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Thank you
Please email pd_at_ci.com if you have any questions
or concerns.
All charts and illustrations in this guide are
for illustrative purposes only. They are not
intended to predict or project investment
results. CI Investments and the CI Investments
design are registered trademarks of CI
Investments Inc. SunWise is a registered
trademark of Sun Life Assurance Company of
Canada.