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					Adding value
to core equity
  portfolios.



            April 2008
Terry Shaunessy and Mark Kryzan
(403) 802-3108 www.shaunessy.com
Disclaimer
DISCLAIMER: Readers are hereby advised that material contained in newsletters, email
correspondence or the web site published by Shaunessy Investment Counsel Inc. should be
used solely for informational purposes. Readers should conduct their own research and
due diligence and seek professional advice prior to making any investment decision. Shaunessy
Investment Counsel Inc. will not be held liable for any loss or damages arising directly or
indirectly as a result of a reader’s reliance on information obtained from our newsletters, our
web site or email correspondence. Our opinions and analyses are based on sources believed to
be accurate and reliable and are written in good faith, but no representation or warranty,
expressed or implied, is to be made as to their accuracy, currency or completeness. There are
dangers to acting on the information provided as investment markets alter daily and
developments may have rendered the information, analysis and opinions expressed by
Shaunessy Investment Counsel Inc. on its web site or in newsletters and emails, obsolete.

The information provided by Shaunessy Investment Counsel Inc. does not constitute a
representation or a solicitation for the purchase or sale of securities or form part of an offer to
provide investment management or advisory services

NOTE REGARDING BACK-TESTED RESULTS: On occasion Shaunessy may include back tested
and actual results and we have indicated where this occurs. These results can be easily
reproduced and are generated by Advent portfolio management software, which, in the opinion
of Advent, is deemed to be AIMR compliant. Future performance may differ from past results.


                                                                                             2
What we provide:

  A single investment approach.
  The benefits are self-evident:

• large cap focus
• it is very methodical and transparent
• provides steady market out-performance and
  compares favourably with other manager styles
• facilitates exceptional service and accuracy

                                          3
Company Profile:
• Established in 2000
• Company is independent, boutique
   – Global and domestic large cap equities and fixed
     income
   – Segregated portfolios
   – Complexity, conflicts of interest are non-issues
• Registered with securities commissions
  (including SEC)
   – Investment Counsel/ Portfolio Manager
   – Exchange Contracts License
                                                   4
Management Team
Terry Shaunessy, President, Portfolio Manager, principal trader, founder and thinker. The company is the
product of his +30 years in the business and the view that managers and clients can do better. Previous roles
includes: top-ranked bank analyst and Director of Research, Merrill Lynch (Canada); Portfolio Manager/
Partner, Gryphon Investment Counsel; Senior Executive Vice President, HSBC (Canada) and Gordon Capital.
For Terry, investing is a lot like golf: “Never mind the other players, but just to focus on beating Mr. Par.”
Mark Kryzan, Vice President, Client Services and Business Development. Mark is a marketing/ investor
relations professional with +15 years public markets experience advising junior public companies. He also has
observed how investing has changed and created challenges for traditional investors. In addition to developing
our business and services, Mark is responsible for compliance. Mark plays golf too - he can be found scouring
the bushes for balls, new clients or ideas for improving our business.
Katharine Eirich, Vice President, Administration. Ms. Eirich has been providing or managing administration
services for over 20 years. Previously she has managed large, complex operations but much prefers our small
self-directed environment. Under the guidance of the Portfolio Mananger, Katharine is also Assistant Trader.
Katharine likes to ensure that in a $20 million portfolio, every last cent is fully accounted for.
Katharine (Katie) Trafford, CFA, Director. Katie has significant institutional equity sales, investment
banking and trading experience with CS First Boston, Richardson Greenshields and RBC Dominion Securities.
Katie used to live for the next financing or block trade but now prefers to manage her own business interests,
though still at a rapid pace. In addition to her role as Director, she is a back-up portfolio manager. Katie is a
committed equestrian and brings a good deal of shrewd horse sense to our business plans and execution.
Advent Software Inc. provides the most comprehensive and advanced portfolio management tools and is
widely used by institutional managers. We bought this software at inception because it is the best tool for us
and our clients. Performance calculations are AIMR compliant and use 3rd party market price data. While the
quietest member of the management team, ADVENT never surprises us nor takes vacations.



                                                                                                          5
Diverse mandates
 Client Mandates                   Portfolio Details                     AUM
      (as of Q4/ 07)                                                   ($350 million)

Global Balanced           Global Equities, Global Fixed                $40 million
Total Return              Income, Commodities and Currency
                          ETFs since 2000
Equities: Canada,         Select diversified large cap                 $58 million
US, International         portfolios since 2004
Income Trusts             2 Diversified portfolios of +100            $200 million
                          constituents since 2005
US Preferred              Diversified investment-grade US              $40 million
Shares                    preferred share structured fund
                          launched in 2006
Other (fixed income,      ETF-based, other active allocations          $12 million
preferred shares)
 Mandates include 3 TSX-listed funds (income trusts, US preferred shares) and 2 mutual
                        funds (Canadian and global equities).



                                                                                  6
Investment Philosophy and
        Strategy.
                       Why focus on large caps?
What are the
Heavyweights?

Largest of the
large caps.
                                              Less efficient/
                                               higher risk
Top TSX stocks
account for +70%
of the Composite.         Market generated       Small Cap
                          returns: cannot                       Returns are cost
Top US stocks             afford errors                         sensitive: need to
account for ~ 50%                                               minimize costs
of S&P 500.

Heavyweights                                    Mid Cap
have a dispropor-
tionate share of
total returns.

Heavyweights are
part of every diver-
sified portfolio.
                        Most efficient
                                             Large Cap                   Least risk
Cost and risk of
picking off these
stocks is un-
warranted.
Large cap model


•   Based on mathematics and modeling
    to:
    –   create a portfolio that is a statistically
        valid sample of the target market
    –   uses a weighting scheme that will lift
        performance and manage risk
    –   transparent rules to eliminate error


                                                     9
US Heavyweight Risk Managed
Sample of holdings and weightings (Q3 2006)

 Top 50 issuers based on float market cap represents approx. 83% of S&P 100 and 50% of
 S&P 500. EW mitigates issuer risk, reversion to mean and sector rotation. Semi-annual
 rebalance. Transparent rules, minimal manager risk.
 Rank                Name                  Sector          S&P 100          US Heavy
 1         Exxon                        Energy               6.2%             -4.2%
 2         General Electric             Industrial           5.1%             -3.1%
 3         Citigroup                    Financials           3.2%             -1.2%
 4         Microsoft                    Info. Tech.          3.1%             -1.1%
 47        McDonald’s Corp.             Cons. Dis.          0.77%            +1.23%
 48        Medtronics                   Hlth. Care          0.75%            +1.25%
 49        Target Group                 Cons. Dis.          0.72%            +1.28%
 50        US Bancorp                   Financials          0.71%            +1.29%


                                                                                   10
Versatility of the model
    Portfolios                            Key rules                                Benchmark
Canadian           Largest stocks (no income trusts) by float market cap, no       TSX-60 or TSX
                   holding/ other company overlaps, EW, semi-annual                Composite
Heavyweight        rebalance. Sample: 78% of TSX Composite.

US Heavyweight     Largest stocks by float market cap, EW, semi-annual             S&P 100
                   rebalance. Sample: 85% of S&P 100, 48% of S&P 500

International      Largest ADRs/ global shares of BNY Dev. Markets 100             BNY ADR Dev.
                   Index plus stocks listed in Europe only, EW, semi-annual        Country Index &
Heavyweight        rebalance. Sample: 77% of BNY ADR Index, 38% of EAFE            MSCI EAFE

Global 100         US Heavyweight + International Heavyweight EW. Sample:          S&P Global 100
                   65% of S&P Global 100.

Income Trust       TSX-listed, minimum market cap of $200 million, current         TSX Income
                   distributions, EW, semi-annual rebalance. Sample size:          Trusts
                   +80% of asset class.

Global Utilities   US and European utilities/ multi-utilities, ADR or global       S&P Global
                   shares, market cap of +US$10 billion, EW, semi-annual           Utility Index
and Telecom        rebalance.

Global Gold        US listed gold miners with market cap of +US$500 million,       Phil. Silver and
                   EW, semi-annual rebalance                                       Gold Index

US Investment      NYSE listed, rated by S&P or Moody’s, issue size +US$200
                   million, not callable for 3 yrs., EW, semi-annual re-balance.
Grade Preferred    Sample: 10%


                                                                                           11
Performance Results.
Canadian Heavyweight
5 Year Performance (n.b. no income trusts)
   Canadian $ Total Returns                   Can.     TSX    Difference
                                             Heavy.   Comp.
   Annualized returns to December 2007
                                    3 Year   19.0%    16.9%     +2.1%
                                    5 Year   20.3%    18.3%     +2.0%
   12 Month Trailing Returns Ending
                December 31, 2007 (Actual)   12.3%    9.8%      +2.5%
                December 31, 2006 (Actual)   23.2%    17.3%     +5.9%
                December 31, 2005 (Actual)   21.8%    24.1%     -2.3%
             December 31, 2004 (Back-test)   14.1%    14.5%     -0.4%
             December 31, 2003 (Back-test)   30.9%    26.7%     +4.2%
   Risk (Std. Deviation of Annual Returns)
                                    3 Year    5.4%
                                    5 Year   14.3%
           5 Year Correlation to Benchmark   77.0%



                                                                    13
Canadian Heavyweight (C$)
Compound return against TSX Composite: +8.5%
 $300




                                                       $251.69

 $250
                                                       $238.40
                                             $224.12

                                                       $231.87
                                             $214.50

 $200                                        $211.18
                                   $181.92
                                                                 Canadian Heavyweight
                                   $180.01                       TSX Comp. TRI
                                   $180.03                       TSX 60 TRI
                         $149.36
 $150
               $130.90   $142.54
                         $145.07
               $125.21
               $126.70
        $100
 $100   $100
        $100




 $50
        2002    2003      2004      2005      2006      2007


                                                                       14
US Heavyweight
5 Year Performance
  US$ Total Returns                         US Heavy.   S&P 100   Difference
  Annualized returns to December 2007
                                   3 Year     9.6%       8.3%       +1.3%
                                   5 Year     12.7%      11.3%      +1.4%
  12 Month Trailing Returns Ending

               December 31, 2007 (Actual)     6.7%       6.1%       +0.6%
               December 31, 2006 (Actual)     20.4%      18.5%      +1.9%
               December 31, 2005 (Actual)     2.3%       -0.9%      +3.2%
            December 31, 2004 (Back-test)     4.7%       4.5%       +0.2%
            December 31, 2003 (Back-test)     32.2%       23.8      +8.4%
  Risk (Std. Deviation of Annual Returns)
                                   3 Year     7.0%
                                   5 Year     16.5%
          5 Year Correlation to Benchmark     94.8%


                                                                        15
US Heavyweight (US$)
Compound return against S&P 100: +23%
 $200




                                                                                                 $182.90      $181.90
 $180

                                                                                $173.32
                                                                                             $170.48


 $160


                                                               $149.69

                                                                                                       $148.02          US Heavyweight
                                              $142.68                       $141.60
 $140                                                                                                                   S&P 100
                                                           $138.41
                                                                                      $139.51                           S&P 500
                                          $132.20
                             $128.68
                                                    $129.37
 $120                             $123.80

                                                                     $117.73



 $100   $100          $100
               $100




 $80
               2002                    2003             2004             2005             2006             2007


                                                                                                                           16
International Heavyweight
5 Year Performance

  US$ Total Returns                         Intern’al   MSCI    Difference
                                             Heavy.     EAFE
  Annualized returns to December 2007
                                   3 Year    17.2%      16.8%     +0.4%
                                   5 Year    20.8%      21.6%     -0.8%
  12 Month Trailing Returns Ending
               December 31, 2007 (Actual)    17.4%      11.2%     +6.2%
               December 31, 2006 (Actual)    26.7%      26.3%     +0.4%
               December 31, 2005 (Actual)     8.2%      13.5%     -5.3%
            December 31, 2004 (Back-test)    13.3%      20.2%     -6.9%
            December 31, 2003 (Back-test)    41.0%      38.6%     +2.4%
  Risk (Std. Deviation of Annual Returns)
                                   3 Year     7.6%
                                   5 Year    19.1%
          5 Year Correlation to Benchmark    93.1%

                                                                      17
International Heavyweight (US$)
Compound return against MSCI EAFE: -1%
Compound return against ADR Dev. Index: +9%
  $300


                                                                                 $265.56


                                                                                      $257.11
  $250                                                               $238.82


                                                                                 $235.68
                                                                          $219


  $200                                                $189.09        $209.68

                                                                                                International Heavy
                                    $166.59                                                     MSCI EAFE
                                                           $172.85
                                                                                                ADR Dev. Index
                                            $159.75
                                                      $166.27
  $150                 $138.60
                                     $155
                             $141

                       $135.70

         $100
  $100          $100
         $100




   $50
         2002           2003         2004              2005           2006        2007



                                                                                                     18
Performance vs. Active Fund
To December 31, 2007
C$ Annualized        Shaunessy           Mercer           GlobeFund        Benchmark
Total Return          (Actual)           Median            Median              **

Canadian Equity
1 Year                 12.3%              9.7%              7.5%             9.8%
3 Year                 19.0%             17.2%              14.5%           16.9%
US Equity
1 Year                  -9.2%            -10.7%              -9.5%          -10.5%
3 Year                   2.1%             2.2%                0.5%           1.8%
International Eq.
1 Year                  -0.1%             -5.9%              -7.4%          -5.3%
3 Year                   9.4%              9.5%               7.1%          10.0%
                Note: **Benchmarks are TSX Comp., S&P 500 and MSCI EAFE.



                                                                              19
Global Balanced.
Global Balanced Portfolio
5 Year Actual Performance
  2007: $40 million AUM. Portfolio includes global equity, fixed income and other
  investments (e.g. currency, gold bullion). Only most diversified, transparent and
  liquid ETFs. No currency hedge. 40/60 default portfolio. Asset allocation based
  on moderate forecasting. Goal: capital preservation first, 8% p.a. second.
  Historically taxable portfolio has had greater US$ exposure.
  C$ Total Returns                        Registered      Taxable        Mercer
                                                                         Median
  Annualized returns to December 2007

                                 3 Year       8.1%          5.5%           8.2%

                                 5 Year      10.8%          7.9%           9.2%
  12 Month Trailing Returns Ending
                      December 31, 2007      -3.2%          -6.2%

                      December 31, 2006      10.9%          15.1%

                      December 31, 2005      17.8%          8.8%

                      December 31, 2004      10.4%          7.0%

                      December 31, 2003      19.7%          16.6%
                                                                            21
Total Portfolio Tracker:
A private client service.
Total Portfolio Tracker
• What is it?
    – A service offered by Shaunessy Investment Counsel to track the
      performance of diverse capital market investments on a consolidated
      or asset class, portfolio or manager basis.
• What are the benefits?
    – High net-worth individuals with personal holdings, family estates and
      trusts often have multiple portfolios, advisors, mutual funds and other
      investments. Without the right tools, it is difficult to get an accurate
      and timely snapshot of the performance, risk, diversification and cash
      flow of all these investments or to engage in effective investment
      management.
• How does Shaunessy do it?
    – As investment counselors we have acquired leading-edge portfolio
      management software (Advent) to track and generate accurate
      management information about our clients’ holdings.
• What is Advent?
    – Advent Software Inc. of San Francisco, CA.. is an established
      portfolio management software provider and its products are widely
      used by institutional money managers, brokers, custodians and banks.
                                                                     23
Value Added:
 Summary.
What do we offer?
Simple yet smart

                   •Quantitative, large cap/ core
Investment style   •Consistent returns, risk managed (issuer, manager)
                   •Very transparent and versatile
                   •Terry Shaunessy has +30 years in the business
Reputation         •Prior senior roles with HSBC/ Gordon Capital,
                   Gryphon Investment Counsel, Merrill Lynch (Canada)
                   •+$350 million AUM
Existing           •Large portfolios of $50.0 - $165.0 million
mandates           •Segregated portfolios
                   •Specialist manager, premium service
Other attributes   •Trading/ Custodial with TD and CIBC Mellon
                   •Advent portfolio management software