Remarks by David Goodman, President and CEO
at DundeeWealth Inc.'s Annual Meeting
on May 26, 2010

Thank you very much Ned and good afternoon ladies and gentlemen. Last year when I spoke at the annual meeting I decided to depart from the normal financial review conducted at these types of events and instead focus on DundeeWealth as an investment.  

I commented then that any success I had achieved as the CEO of Dynamic Funds was achieved by building the business from the perspective of the client. And that now we must build DundeeWealth from the perspective of the shareholder. I talked about transferring the client first experience that was behind the success at Dynamic to the shareholder first experience that would become the hallmark of DundeeWealth.

So how have we done?

Over the last three years we have taken our company from over $750 million of debt to today having over $400 million of cash and marketable securities and no bank debt.

Over the last year we:

• Grew EBITDA by 33%
• Grew market share by 25%
• Increased our dividend by 250%
• Grew Assets Under Management by 42%
• Grew cash on the balance sheet by 210%
• Ranked No.1 in net sales in 2009
• Won Advisors' Choice Fund Company of the Year and 14 Lipper Awards
• Surpassed Franklin Templeton in assets and today lie within striking distance of Invesco Trimark
• Launched the fastest growing fund in our history taking our Strategic Yield fund to over $1 billion in 12 months
• Ranked no. 1 in an Environics Customer Relations survey
• Increased our Assets Under Administration per advisor by over 63% to over $24 million
• Increased Dynamic’s penetration inside DundeeWealth advisors' books to over 30%
• For the first time in history every division reported positive EBITDA in Q4 - Dynamic, Retail and Capital Markets
• And our stock has gone up almost 80% and dramatically out performed our peers and the Toronto composite index.

When I took the stage a year ago our stock traded at $7.48 and could be purchased for about 1% of Assets Under Management compared to our largest competitors that traded at closer to 10%. Using that same analysis as I did a year ago we have improved from trading at 1% to 2.5% - and you get Capital Markets for free.

I cannot say we have gone unnoticed but I can say that we have not been fully recognized. We are still undervalued.

Our CFO, John Pereira will now present a brief financial overview of the organization.

2010 Annual and Special Shareholders' Meeting CFO Presentation

John has gone through the scorecard typically used to measure our year but as investors I think it’s important that we consider some of the less numeric achievements of this Company.

Recalling last year again for a moment I placed a lot of emphasis on managing change, largely through reorganization and an expense management review that we combined to enhance our profitability and therein our valuation, particularly as measured against our peers. This year, celebrating 10 years as a public company, the message is slightly different.

Make no mistake, expense management continues to preoccupy our thinking but rather than a goal to be achieved it is today an ongoing discipline, a business value that shapes every ambition we have for the future and it’s a discipline that is here to stay.

Our very recent decision to make changes to our load low fee structure is a case in point: the announced changes allow us to continue to offer an attractive, competitive fee across low load fund alternatives but in a more balanced manner that more effectively aligns the shared interests of shareholders with those of the Company and of our clients.  We still pace ahead of or with the leaders in low load.

While this kind of fine tuning will be ongoing, most of the heavy lifting, and I mean very heavy lifting, in terms of right-sizing DundeeWealth is now behind us and the opportunities that are and will continue to emerge from this very volatile market are becoming clearer to a Company focused on growth.

Through an exceptional effort on the part of a very talented and dedicated management team our business today has never been as tightly organized from a structural point of view or as well-focused from a strategic point of view – important attributes with which to view the future.

As we course through what has to be one of the most interesting periods in the modern evolution of financial markets it is impossible not to confront the parallels that exist between our Company and the market itself. Those who have followed our path through the ten years of our growth are witnesses to a unique history and to the near death experience that almost befell us as financial markets crumbled under the weight of non-bank sponsored commercial paper and the resulting confusion that sank many ships at sea.

I won’t relive that period for you except to suggest that any other time in history would have been an easier time to become Chief Executive Officer of DundeeWealth. Rapid change was the urgent imperative and we delivered, throwing the sacred cows overboard, combining back offices, reducing staff, exiting some businesses, realigning others and really focusing on our core competencies to lift us up. Frankly, and gratefully, it wasn’t all new to me.

As Chief Executive of Goodman and Company and Dynamic over most of the last decade and some of the prior decade, I can point to one or two other difficult periods that earlier proved to be significant tests of our model and our mettle. The fund family had performance problems and this proved an enormous constraint to sales.

Long timers here will recall the very thorough analysis that -- completed with others here in this room -- led to very rapid change in these divisions. Literally we started to turn things around in 30 days adding new people and incorporating new ideas all implemented by standing in the shoes of our clients. The numbers speak for themselves – well – not actually for themselves. As he did today, John spoke to them at the time and they were just as persuasive.

That effort laid the foundation that has turned Dynamic Funds into what is today: one of Canada’s premier fund managers. I am very proud of that accomplishment both personally and for the people who have been by my side throughout that process and more recently through the significant changes in business strategy that we have chosen to reshape and revitalize the new DundeeWealth.

So a word of sincere thanks to those people among them; Rohit Sehgal, Noah Blackstein, Oscar Belaiche, David Fingold and Dave Taylor; John Pereira and Dave Whyte and of course Joanne Ferstman who has been a constant advisor and close colleague throughout the last decade.  We have been fortunate to attract other talented people who have made a huge contribution through this period of transformation and I am talking here about Jean-François Thibault, Robert Pattillo, Jordy Chilcott, Amy Satov and Richard McIntyre to name just a few.

These are not the only people who have been with me through this very difficult decade and I wanted to acknowledge all of them here today. All of you are champions in my eyes and I am grateful for your support and counsel and the faith and loyalty that you inspire. Together we have made bold decisions.

Turning to the pillars of our business, a close look at the numbers will show you that the decision to stay present in the field rather than cutback sales activities like so many of our competitors did last year has paid off and allowed our wholesale team under the leadership of Jordy Chilcott to really prosper. Their share of market is up across a very competitive field.  It has been a terrific year for the sales team.

Across our retail network of advisors we continue to press for better book values and to the extent its reasonable, better penetration of our Dynamic Fund family.  I am pleased to say that under the leadership of Richard McIntyre and, buoyed by a stronger market, both of these areas are points of significant improvement year over year.

So is the kind of support we are giving to our advisors. We believe very strongly in the advice channel and that won’t change.  In fact it can’t change, especially if you accept the idea that the independence of thinking in which we believe is what makes the kind of advice we offer so valuable.  

All of us have expectations in this business and as much as we are making new demands of advisors we are trying to meet the demands for profitability we are making of ourselves at the same time. I think Richard and his team are doing a great job toward getting the retail division into a profitable position for the first time in a long time.

There was a time in the last decade our flag ship investment counseling division struggled. We made many changes in personnel and process and we started measuring our performance turnaround. After a month we noticed that 90% of our assets were in the top quartiles.  Change was that rapid. Unfortunately 30 days does not make a track record.  We use to say “we have the first 30 days completed of our 5 year turnaround”. There are more than a few partners in this room who remember that being said.

My point today is that the last several months (and indeed years) present a little déjà vu for some of us in this room.  Let’s recall a decade as we recall the last few years of turmoil. In that respect, after all the changes we have implemented I believe that we are today 10 years into one of the great turn around stories in the financial services industry. Now we can say with pride that we have the first 10 years of the next 30 behind us.

And it is the future we are focused on, I hope you understand. We see the next several years as years of careful expansion. We are at an important crossroad in our history and are poised to bring our business to the next logical point in its evolution.

Obviously diversification is central to this thinking both in any contemplation of business mix and also market reach.  Our ambitions in Europe have been tempered somewhat by circumstances there but we view these issues as being temporary with some opportunities in fact becoming more real.  Our progress in the United States is a little more tangible but here too, the economy has slowed progress.  We intend to keep our eyes on both of these platforms with a hope for appropriate expansion when the right opportunities present themselves.

Closer to home we are focused on strengthening our investment management framework both by acquiring businesses that widen our reach to market and by attracting senior managers who bring unique sector expertise to the platform.  Aurion’s position in Canada’s institutional sales market has contributed to our capacity in just this way and our plans for the future include building out into areas in which we are not fully present with the intention of increasing our client base.

In all of this we are ready and able to take on the challenges just as we are anxious to seize the opportunities.  My thanks go to all of those who have chosen to support us through the journey so far. I encourage you to sign on for the next leg - we are not yet even half way there.

Thank you.