Select Core and Specialty Sectors Guidelines

There are three sets of guidelines to consider when selecting sectors:

1) Total Number of Sectors Guidelines

The appropriate number of core and specialty sectors depends on the investment dollar amount as shown in the chart. For example, for an investment of $20,000, we recommend you choose 3 to 4 Core sectors and 1 to 2 Specialty sectors, and no more than 5 sectors in total.

Investment $ Amount	Core/Specialty Sector Mix
Investment $ Amount	# of Core	# of Specialty	Total
$500-4,999	2	0	2
$5,000-24,999	3-4	1-2	5
$25,000-99,999	4-5	1-2	6
$100,000+	5-7	1-3	8+

2) Core Sector Selection Guidelines

By definition core investments are well diversified but there are still opportunities to either focus or diversify within each of the 4 core sub-quadrants or asset classes:

Canadian Core Income
Canadian Core Equity
Foreign Core Income
Foreign Core Equity

The guidelines are:

Select at least one sector in each Core sub-quadrant or class, more if the investor prefers. However this has to be done within the total number of sectors guidelines.
Start with the most conservative or the most preferred sector in each Core sub-quadrant, unless there are compelling reasons to choose one sector over another.