Objective and Investment Strategy: The strategy that we have selected for our portfolio is an active strategy - Buy/Sell/H called Buy and Hold. In this strategy an investor buys stocks and holds them for a particular period of time in order to fulfill an objective. As with most passive strategies, our objective is to do at least as well as the market. The key is reducing transaction costs, search costs, analysis costs and other active trading costs.

With reduced management costs we believe that this strategy will produce returns equal to alternatives requiring active management. These actively managed alternatives have high transaction costs and there are more chances of mistakes in stock selection. In addition, the added benefits of active trading are equal or less than the added costs. In a Buy and Hold strategy the stock selection process is very important and all the analysis is done at the beginning. We intend to hold the stock until the objectives or conditions for selling outlined in the abstract is met.

Another advantage of Buy and Hold strategy is tax deferral: individuals are only taxed when they sell shares. Thus, the deferred tax amount can be considered as a tax free loan that remains invested for the benefit of the tax payer. It is better to pay a dollar of tax tomorrow than it is to pay a dollar today; and tax deferral typically puts the control of when to pay the tax in the hands of the taxpayer instead of in the hands of the Canada Revenue Agency.