Investment jargon can sometimes complicate the management of an investment portfolio. For your convenience we have provided a list of commonly used terms.

Asset Mix
The combination of assets in three different securities classes: stocks, bonds and short-term investments. Most portfolios will have a combination from each asset class. Emphasis on a particular class will be influenced by the investor's investment objectives, liquidity requirements, and risk tolerances.

Discretionary Investment Management
Scotia Cassels investment professionals handle all of the day-to-day investment decisions on your behalf. This relationship is based on a full understanding of your objectives, expectations for returns, liquidity needs and risk tolerances, along with your unique situation. Together, the appropriate asset mix is established, combining cash, bonds and common stock investments. The investment professional then builds your portfolio, selecting market sectors and securities. Scotia Cassels closely monitors your portfolio and reports to you on a regular basis. A balanced and disciplined approach to investing is utilized.

Diversification
Diversification is the concept of speading risk. This means investing in securities which are diverse in character, so that if the value of one or several should fall, the relative strength of the other securities can lesser the overall impact of the price fluctuation on the portfolio. For example, purchases of securities representing different geographic regions and different industries to minimize exposure to risks in common.

Investment Objectives
Investment objectives are unique to the account and determined through analyzing financial needs, objectives, and preferences. An investment professional uses investment objectives to guide the management of client assets with a focus on what will best suit personal circumstances.

Risk Tolerance
A measure of your ability to cope with fluctuations in the value of your portfolio. Typically, with a higher risk tolerance comes the potential for higher returns.