PILLARS TO YOUR PERFORMANCE AND OPERATIONS. July Ω Pillars for your Performance and Operations

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1 PILLARS TO YOUR PERFORMANCE AND OPERATIONS July 2015

2 2 Mission Statement and Core Pillars Raise standards within the investment industry, Phocion Investments will never give any insincere counsel Honesty Accountability Excellence in service

3 3 Phocion has been serving clients since 2010 Service clients in areas of performance, due diligence and compliance Independent and employee-owned A team with complete investment industry experience Three partners with over 55 years of combined experience

4 4 Management Team Ioannis Segounis, B.Eng, MBA, CFA, CIPM Founder and Managing Director Industry Experience: Performance and Research Career began: 1999 Joined team: 2010 David Rowen, CFA, FRM Managing Director Industry Experience: Investment Management and Research Career began: 1994 Joined team: 2015 Kosta Segounis, CPA, CA, CFA Managing Director Industry Experience: Compliance and Operations Due Diligence Career began: 1995 Joined team: 2015

5 5 Why Performance Matters? Window into portfolio management A stricter regulatory climate Increased demand for transparency in performance reporting Reputational risk

6 6 Performance Evaluation Services Assist clients in gaining greater insight into their performance This is achieved by: Detailed quantitative analysis into returns Benchmark evaluation Complete qualitative analysis into the strategy and the decision making process Determine the underlying causes of under / out performance

7 7 Performance Operations Consulting Assist in system selection and implementation processes: Three important steps: Guide firms to properly identify needs and requirements for system selection Provide a roadmap to proper implementation and avoid costly pitfalls Transfer of knowledge so firms become self-sufficient going forward

8 8 Performance Operations Consulting Conduct a performance operations review The steps are: Identify inefficiencies in daily performance measurement tasks Provide the controls and tools to improve the quality of returns Detailed reconciliation of historical performance Align back-office and performance operations, and introduce efficiencies

9 9 GIPS Consulting Services Ensures highest presentation standards are followed which, in turn, provides clients with an edge in growing their assets and competing worldwide Areas of focus for GIPS review: Policies and procedures GIPS Compliance GAP analysis Calculation methodology Composites construction Disclosures Presentation and reporting

10 10 Performance Training Consulting Bring your firm the tools to properly understand the message behind the numbers Customized training services on the following: Performance Measurement Benchmarks and Composites Attribution Analysis Performance Appraisal Ethical Standards

11 11 Due Diligence Process Background Checks Legal Review Source and Screening Operational Analysis Quantitative Analysis Risk Analysis Qualitative Analysis Portfolio Analysis

12 12 What are operational risks? Risk of a non-investment issue having an adverse impact on the pool of capital being managed Operational weaknesses include (but not limited to): Lack of segregation of duties Internal control weaknesses Lack of record keeping

13 13 Operational Due Diligence Services Independent and comprehensive due diligence in which an evaluation is performed on the investment manager s operating practices The process includes: The planning stage where a documentation review of the investment manager and their funds/strategies is performed On-site review of the investment manager s premises focusing on the manager s control environment and its service providers Detailed report identifying the strengths and weaknesses Periodic and annual on-going due diligence

14 14 Compliance Consulting Provide solutions to improve the manager s compliance environment in order to achieve industry best practices They include: Compliance Program Review Development and assist in maintenance of compliance policies and procedures Anti-Money Laundering program reviews Conflict of interest reviews (i.e. personal trading, external business activities, insider trading) On-site support during Regulatory Inspections On-site Chief Compliance Officer support services Education and Training

15 15 Selected Clients For confidentiality purposes we only provide descriptions of our clients They include: Schedule 1 Canadian Chartered Bank s Asset Management Business Prominent Canadian Investment Managing Firm Family Office Based in the United States UK-Based Data Provider Canadian Emerging Investment Manager

16 16 Why Phocion? We are an extension of our clients business Provide independence and objectivity Assist in distinguishing your firm Represent a flexible and highly-professional solution Keeps your firm on top of increasingly strict industry requirements

17 17 Who was Phocion? Athenian statesman from c. 402 BC c. 318 Nicknamed "The Good Courage to stand up against popular opinion Avoided corruption Loyal to the best interests of all Athenians Never mistreated anyone Never gave insincere counsel

18 18 Appendix I Biographies

19 19 Ioannis Segounis, B.Eng, MBA, CFA, CIPM Kosta Segounis, CPA, CA, CFA Ioannis knowledge and experience spans the whole spectrum of the investment performance discipline. His dedication to bringing the best of this evolving field to the investment industry led him to the founding of Phocion Investments in Ioannis previously held the position of Manager Performance Measurement and Attribution at Intact Investment Management where he was responsible for building and growing the performance functions of the firm. He was also an integral part of structuring the performance operations at CN Investment Division, Ioannis has earned the CFA and CIPM (Certificate in Investment Performance Measurement) from the CFA Institute. In addition, he has earned an MBA degree with a specialization in Investment and Portfolio Management from HEC Montreal, and a Bachelor of Engineering degree from Concordia University. Kosta s vast industry experience is most notable in the areas of compliance and risk management. Prior to joining Phocion in 2015, he held the position of Senior Advisor at National Bank of Canada where he was responsible for performing reviews of different lines of business and recommended areas for improvement. In addition he implemented and trained National Bank personnel on due diligence process of external managers both traditional and alternative. Prior to National Bank, Kosta held a senior management position in a consulting firm, where he performed due diligence on a variety of alternative managers, from emerging managers to large and sophisticated hedge fund managers following complex strategies. Further, he was also an integral part of building the compliance department at PSP Investments. Kosta is a member of the Chartered Professional Accountants of Canada and is also a CFA charter holder. He has earned a Bachelor in Commerce and obtained a Graduate Diploma in Accountancy from Concordia University.

20 20 David Rowen, CFA, FRM David s industry experience is most notable in the areas of portfolio management and equity research. Prior to joining Phocion in 2015, David managed the wealth of high net worth investors at HSBC Holdings plc. Prior to joining HSBC, David launched a small cap energy portfolio and became its Portfolio Manager at CN Investment Division. His success at managing the small cap energy portfolio led to his quick promotion to the position of United States Equity Portfolio Manager, a portfolio whose assets represented 10% of the Division s overall AUM. Further, he was an equity analyst for two institutional securities firms that were acquired by Cantor Fitzgerald and Canaccord Genuity, respectively. David is a CFA charter holder and has the FRM designation. He has earned a Bachelor in Commerce from McGill University.

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