PERFORMANCE REPORTING DISCLOSURE
You have retained BBSL to purvey personalized service (including investment execution
services) and provide appropriate advice and recommendations. Such appropriate advice and
recommendations are primarily based on your investment objectives and your stated risk
tolerance. Secondary to your investment objectives and risk tolerance, BBSL Advisors will also
assess your other personal financial circumstances which may impact how you may wish to
invest.
BBSL recognizes that primary and secondary factors affect appropriate advice and
recommendations given the reality that most individuals will have competing and conflicting
objectives and considerations. Our goal is to find what may be the best fit for a particular
situation and we believe that prioritizing investment objectives and risk tolerance is the best
method to approach that goal.
In this Handbook, BBSL has provided a complete list of services you are entitled to receive and
what you pay for such services (see section titled “Services Provided to Client Accounts and
Applicable Fees”). This complete list of services and related prices does not include any type of
guarantee or representation about performance, nor do any of the fees or commissions charged
by BBSL reflect pricing based on performance. While it is important for each client to
understand how their investments are performing, each of the services we provide to clients is
unrelated to performance, even services related to appropriate advice and recommendations.
We recommend you take time to review “Services Provided to Client Accounts and Applicable
Fees” again in that context to better understand your relationship with BBSL and our Advisors.
Ultimately, the value of our Advisors is the services they provide clients; and how well they help
you meet your investment objectives and address your risk tolerance considerations. That said,
you may ask to receive performance reports from BBSL at any time.
BBSL uses industry specific software which can provide clients with performance reporting when
requested. Such performance reporting is based on the industry customary “Time Weighted
Method”. In addition, a comparison of your account’s performance to various benchmarks is
available upon request. The use of Time Weighted performance for your account has been
used by the industry because index benchmarks are also generally Time Weighted. Using
benchmarks that are calculated on the same basis as your account performance has an apples
to apples comparison advantage. On that basis, the industry has used the Time Weighted
approach for its superior academic integrity for performance comparison purposes.
New securities rules based on the implementation of NI 31-103 require that BBSL notify our
clients of the methodology that BBSL will use to provide performance reporting and how clients
can compare their personal performance to performance benchmarks. In addition these rule
changes require BBSL provide performance reporting to clients by July 15, 2016, whether
requested or not by clients. In that context, BBSL will provide “Dollar Weighted Method”
performance reports beginning July 15, 2016 and after that date new annual performance
reports will be available as appropriate.
Integral to this new requirement, BBSL is required to change the method of your personal
performance reporting to the Dollar Weighted Method, instead of the current Time Weighted
Method being offered. While there is significant academic merit to the Dollar Weighted Method
as it shows each client their actual performance based on the dollar flows in and out of client
accounts, comparisons to performance benchmarks are problematic as benchmarks will
continue to be calculated based on the Time Weighted Method.
Consequently, upon the completion of the computer conversion project from Time Weighted to
Dollar Weighted performance reporting, you will receive Dollar Weighted performance reporting
for your account which will be benchmarked against the broad TSX Index for your Canadian
Dollar account and benchmarked against the broad S&P Index for your US Dollar account. Both
these Indexes, however, remain Time Weighted.
Warning: To the extent that you deposit and withdraw funds to your account, and should the
amount of deposits and withdraws be material, the reliability of comparing your personal
account performance to the performance of the Index may have little or no comparison value.
Warning: To the extent that your investment objectives and risk tolerance do not align with
the risk profile and investment holding profile of an index, the index may have little or no valid
comparison value with respect to risk adjusted performance compared to your account since
the index will not reflect your investment holdings and/or your risk profile.
The computer conversion project to change performance reporting for accounts at BBSL is a
project BBSL has contracted to our Carrying Broker (see Relationship Disclosure for more
information). Our Carrying Broker, National Bank Correspondent Network (“NBCN”), as
Canada’s largest Carrying Broker will execute such project on behalf of all Investment Dealers
that they service. This is a major multi-million dollar project and we are confident NBCN will
fulfill the requirements of the new rules. BBSL will endeavour to minimize the cost of this
implementation to our clients.