Building Financial Services Companies Philip Armstrong, CEO ...

Building Financial Services CompaniesPhilip Armstrong, CEO • AGM Presentation • August 13, 2008

Disclaimer

Canadian Financial Wealth

266% held by affluent investors (>$1 million)

Source: Investor Economics

4. trillion$

2

Competitive landscape

Established titans

Strategic Advice Capital Networks Scale Distribution Compliance Legal/Action

Continuous spirit of innovation

Banks Mutual Funds Insurance

Independent Wealth

Management companies

Hedge Funds

Alpha focused asset

managers / products

Independent Asset

Management companies

ETFs

Growth ceiling

3

Grow

Acquire Create

Strategic Advice Capital Networks Scale Distribution Compliance Legal

Jovian: Building Financial Services Companies

The Jovian Advantage

Grow

4

Track Record of Growth

Client Assets

Acquire (12)

$0.2 billion

2001

Create (8)

Grow

$5.6 billion

2004

$15

billion

2008

5

our portfolio companies

Acquired: November 2003*

Client assets:

• Retail focused investment firm with offices across Canada

• Professional private wealth management solutions

$0.15 billion

$1.8 billion

2001 June 30, 2008

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*85% owned by Jovian

• Provider of unique financial solutions for retail clients

• 85,000 clients across Canada

• Growing in Ontario

Established: 1968

Acquired: 2003*

Purchase price: $6.0 million

Client assets:

$3.5 billion

$3.9 billion

2003 June 30, 2008

8*100% owned by Jovian

• Oldest independent investment organization in Ontario

• Offices in Toronto and Vancouver

Established: 1939

Acquired: 2004*

Purchase price: $12.1 million

Client assets:

$0.7 billion

$1.8 billion

* 83% owned by Jovian

Client base: primarily HNW individuals, estates and trusts; also serve institutions, charitable foundations and pension plans

2004 June 30, 2008

9

• One of the largest private wealth advisors in Canada

• Offers financial planning and investment advice on a fee-only basis

Established: 1972

Acquired: 2003*

Purchase price: $8.8 million

Client assets:

$0.8billion

$2.3 billion

* 100% owned by Jovian

Client base: HNW individuals and institutions

2003 June 30, 2008

10

• Asset management company that creates, manages and distributes innovative, high-quality investment products

Created: 2007*

Invested capital: $20.6 million

Client assets:

$1.7 billion

$2.5 billion

Client base: individual investors and advisors

2007 June 30, 2008

11

• Provides back-office and middle-office services, as well as professional administrative services

• Third party service provided within a control environment complete with Section 5970 Report by KPMG

Established: 2001

Acquired: 2003*

Purchase price: $1 million

Supports 50+ customer products with a combined asset value of $3.7+ billion

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* 100% owned by Jovian

• One of the largest providers of Exchange Traded Funds (ETFs) in Canada with over 50% of ETF trading volume on the TSX

• 28 ETFs on the TSX

• One of the fastest-growing ETF providers in North America

Created: 2007

Invested Capital: $9.4 million*

Client assets:

$0 million

$1.75 billion

* 60% owned by Jovian (15% closed in escrow)

2007 June 30, 2008

13

Exchange Traded Funds (ETFs)

Canada

United States

World

57 funds

06 funds1

funds

1$ billion

5$ billion8

billion

7

1

,19 7$ 9709

Building Financial Services CompaniesFinancials • July 2008

Revenue

2004

150

120

90

60

30

0

2005 2006 2007 2008

$ m

illio

ns

36.4

72.9

131.8 128.4

103.9

16

Segmented Revenue

Wealth management

$xx million

Asset management

2006

$49.6

million

2007 2008

$34.9

million

$52.1

million

$78.2

million

$96.4

million

$51.6

million

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2006 2007 2008

EBITDA

Wealth management

$xx million

Asset management

$xx million

2006

$7.4 million

2007 2008

2006 2007 2008

$5.1 million

$8.0 million

$10.8

million

$18.9

million

$-4.0 million

18

2004

10

8

6

4

2

0

2005 2006 2007 2008

Client Assets

Asset Under Administration

Asset Under Management

$ bi

llion

s

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2008 Financial Highlights

•Client assets rose 6% year-over-year to $15 billion despite difficult financial markets

•Raised $25.9 million in a private placement for 32.4 million common shares

•Graduated to the Toronto Stock Exchange from the Venture Exchange

•Tailwind Financial Inc., a U.S. special purpose acquisition company, raised approximately $100 million to fund an acquisition

•Subsequent to year-end, entered into an agreement to increase our ownership of BetaPro Management Inc. to 60% (15% in escrow)

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The Jovian Advantage

Strategic Advice Capital Networks Scale Distribution Compliance Legal

Acquire Create Grow

21

Building Financial Services CompaniesPhilip Armstrong, CEO • AGM Presentation • August 13, 2008