management’s recommended and etfs - managed money...

Scotia Wealth M

anagement’s Recom

mended M

utual Funds and ETFs 2017

Scotia Wealth Management’s Recommended Mutual Funds and ETFs

Enriched Thinking®

James Gauthier, CFA 416.350.3369 [email protected]

Denise Davids, MBA 647.428.8220 [email protected]

Joel Beriault 416.863.5912 [email protected]

i

®Registered trademark of The Bank of Nova Scotia, used under licence. ™Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management™ consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company (Scotiatrust®); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod®, a division of Scotia Capital Inc. Private banking services are provided by The Bank of Nova Scotia. Estate and trust services are provided by The Bank of Nova Scotia Trust Company. Portfolio management and family office services are provided by 1832 Asset Management L.P. and 1832 Asset Management U.S. Inc. Insurance services are provided by Scotia Wealth Insurance Services Inc. Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of Scotia Capital Inc. International investment advisory services are provided by Scotia Capital Inc. Financial planning and advisory services are provided by Scotia Capital Inc. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Scotia Wealth Insurance Services Inc. is the insurance subsidiary of Scotia Capital Inc., a member of the Scotiabank group of companies. When discussing life insurance products, ScotiaMcLeod advisors are acting as Life Insurance Agents (Financial Security Advisors in Quebec) representing Scotia Wealth Insurance Services Inc.

Scotia Wealth Management 40 King Street West, 52nd Floor Toronto, ON, M5H 1H1

scotiawealthmanagement.com

Global Portfolio Advisory Group Scotia Capital Inc.

James Gauthier, CFA 416.350.3369 | [email protected]

Denise Davids, MBA 647.428.8220 | [email protected]

Joel Beriault 416.863.5912 | [email protected]

2

?©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary inthe course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.

3


4


5


Contents

Words from James Gauthier ....................................................................................................................................................................

Scotia Wealth Management’s Recommended Mutual Funds and ETFs 2017 ............................................................................

Changes to the 2017 Recommended List ............................................................................................................................................

The Mutual Fund Numbers Game .........................................................................................................................................................

Reference table 1 — The Funds by Category ......................................................................................................................................

Reference table 2 — Recommended Funds by Company ...............................................................................................................

The Recommended Funds

Canadian Balanced ............................................................................................................................................................................

Canadian Equity ..................................................................................................................................................................................

Canadian Equity Income / Dividend ..............................................................................................................................................

Canadian Small-Cap ..........................................................................................................................................................................

Canadian Fixed Income .....................................................................................................................................................................

High Yield Bond .................................................................................................................................................................................

U.S. Equity .............................................................................................................................................................................................

International Equity ............................................................................................................................................................................

Global Balanced ..................................................................................................................................................................................

Global Equity .......................................................................................................................................................................................

Appendix I – Performance Summary.....................................................................................................................................................

4

5

6

9

11

12

13

21

32

41

46

54

59

69

76

80

90

4


Dear Advisor,

2017’s Recommended List is the 15th edition of this annual publication and we are delighted to be bringing it to the Scotia Wealth Management channel for the first time. This piece represents the cornerstone of the efforts of the GPAG fund research team. Producing it is a long and tedious process, but we truly love putting in the effort and take a lot of pride in the results.

Thanks again to all of the advisors who have helped give our work traction. We really hope this report becomes an important part of your practice too. If you are only going to read one publication the GPAG research team puts out, this should be that piece.

The magnitude of the mutual fund and ETF asset bases under the Scotia umbrella, along with the strength of the relationships we’ve cultivated with manufacturers and money managers over the years mean we have peerless access to PMs, fund company executives and other key players in the investment industry. This matters because when the quality and the quantity of the information we have access to increases, the quality of the research we provide is also enhanced.

Sincerely,

James Gauthier Director, Investment Fund Research

Words from James Gauthier

5


We are pleased to present the 2017 edition of Scotia Wealth’s Recommended Fund List. While this list is being launched for the first time into the Scotia Wealth channel, it has been a regular publication for HollisWealth and its predecessor company since 2003. The list is the cornerstone of the GPAG fund research team’s efforts and its purpose is to help you cut through the ever-present clutter that can blur the vision of even the most astute market follower.

For the first time, all of the performance reporting for the mutual funds listed in the pages that follow refers to the F-class version of each product.

Selection

When it comes to selecting the list’s mutual fund constituents, quantitative and qualitative factors are both critical considerations. On the qualitative side of the equation, our preference is for funds that are overseen by managers with a well thought out investment philosophy and a clearly defined process. In addition, the quality of the professionals actually making the investment decisions is a crucial consideration. There must be enough analytical horsepower working on the fund to ensure that management can effectively stick with and execute its stated philosophy and process. We conduct rigorous and ongoing due diligence to ensure all funds that are represented on this List are performing on the highest level on all of these fronts

From a quantitative perspective, we favour funds that have displayed attractive return and risk characteristics throughout their histories relative to their direct competition.

Key factors considered for the ETFs that are on the list include cost, bid/ask spread and liquidity.

The list represents what we believe are some of the best mutual funds and ETFs in Canada, but it is not intended as the be-all and end-all of fund selection, nor is it intended to be a prediction of what we expect will be the best performing products in the short-term. Rather, we see the list as being a tool and we believe that diversified portfolio built using the funds found in these pages will be solid portfolios indeed.

The list only includes categories that we have deemed to be core, and the classifications we consider are similar to those that the CIFSC has established. We have always and will continue to cover some of the more obscure regional or sector-specific categories in our regular research publications.

The list is a very important part of our mandate, and although it is an annual publication, its constituents are monitored constantly. If there is something you need to know about any of the products on the list throughout the year, our job is to ensure you know it.

Scotia Wealth Management’sRecommended Mutual Funds and ETFs 2017

6


Mutual Fund Removals

Global Small/Mid Cap Equity Category

We have elected to discontinue formal coverage of this category. This means that Mackenzie Cundill Recovery, Templeton Global Smaller Companies and Trimark Global Smaller Companies are being removed from the Recommended List. This is a category that represents just 1% of mutual fund industry assets, and we believe our resources would be more productively deployed elsewhere.

Funds with Hard Caps

To make room for the ETFs which are now a part of this list, we are removing BMO Enterprise and Manulife Monthly High Income, both of which are hard capped. We continue to love both funds and investors in either should consider themselves lucky. There is no need to do anything if you have allocated capital to these funds; however, we wish this list to be a showcase for funds that new investors are able to purchase.

CI American Value

We have replaced CI American Value with the Epoch U.S. Large Cap Value fund available from TD. The portfolios are virtually identical, but the F-class version of the TD fund has an MER that comes in 20 basis points lower than the CI product. Note that Epoch is wholly owned by TD. There’s nothing wrong with continuing to hold the CI version; just note that a cheaper alternative exists.

NEI Special Equity

Here we have a fund that is identical to the IA Clarington Canadian Small Cap, with the minor exception that the Ethical fund may, from time to time, leave out a company or two when the ethical screen is not passed. Additionally, the F-class version of the IA fund most recently came in with an MER that was 23 basis points cheaper. Similar situation to the CI fund above – no need to make a change, but it makes sense to allocate new capital to the cheaper option

Mutual Funds Placed Under Review

Dynamic Power Canadian Growth

This is an issue of product dynamics. When Alex Lane took over this fund in 2013, his aim was to better diversify the portfolio plus smooth returns and dampen volatility. At the same time, Dynamic elected to shift 20% of the portfolio into Power American Growth. We are big fans of Power American Growth, but it can be extremely volatile and its inclusion has not assisted in Lane’s goal to dampen volatility.

We are not totally clear as to why Dynamic insists on the 20% allocation to Power American Growth, but if the firm is not comfortable giving Lane complete oversight of this portfolio, we are not comfortable recommending it. We are waiting to see whether Dynamic addresses this issue.

Changes to the 2017 Recommended List

7



Mutual Fund Additions

Epoch U.S. Large Cap Value

As noted in the Removals section, we have replaced CI American Value with the Epoch U.S. Large Cap Value fund available from TD. The portfolios are virtually identical, but the F-class version of the TD fund has an MER that comes in 20 basis points lower than the CI product.

Fidelity Small Cap America

This fund has done what few others have managed - it has been returned to the Recommended List. We removed it a number of years ago after numerous manager changes and problematic performance. Duties on the fund were then shifted to Toronto-based manager Steve MacMillan in 2011 and he immediately began to apply his portfolio management skills. This fund focuses on smaller U.S. domiciled names. 70% of the portfolio has to be smaller than the largest company in the Russell 2000. MacMillan made dramatic changes to the portfolio at the outset by focusing on quality companies with good valuations and growth potential. We will stress quality again, as the focus here is helpful in avoiding big losers. Things seem to be working, as the fund’s historical volatility has been far less than that of its benchmark. MacMillan also brought down the number of names in the portfolio (there will be about 40 stocks in the fund, on average) and annual portfolio turnover has been reduced to 20-25%. Both of these factors indicate that MacMillan has strong conviction in the names he owns. We’ve been keeping track of MacMillan’s efforts here for some time and we believe this fund is Worthy of being returned to the Recommended List fold.

Manulife Dividend Income

This offering is overseen by Toronto-based Alan Wicks and his 10-person investment team. The group has a track record of success on multiple Manulife funds, including the firm’s flagship Monthly High Income offering. Stocks are evaluated using a discounted cash flow approach, but the key to the process is determining the appropriate discount rate. This figure will be a function of risks related to the company, its industry, etc. That said, if they identify any uncertainty with respect to a company, they simply don’t invest in it. Cash can be high at times and management is not shy about investing in the U.S. While this fund does have an enviable track record, we believe it is the team backing it that makes it worthy of our Recommended List.

PIMCO Monthly Income

PIMCO, the US$1.6 trillion Newport Beach, California-based money management firm has just about all of its assets in bonds or similar vehicles, and virtually all of company’s 700 investment professionals spend most of their time focused on the space. To suggest the firm is perhaps the global subject matter expert is reasonable. The fund strives to generate a monthly income equal to about 4-4.5% annually. Half of the exposure is to higher yielding assets and the other half is in higher quality assets that are a bit more defensive. Derivatives are used liberally to provide the exposure the PMs are looking for. Duration can range from zero to eight years and it can have up to 50% in HY bonds and up to 20% in EM bonds. Additionally, at least 90% of its currency exposure must be hedged back to CAD. The fund is more conservative than a typical HY bond fund and it is not subject to big currency swings, like many global bond funds are. At this time, duration is under three years and the bulk of the exposure is to mortgage bonds and sovereign debt at this time. The fund has CIFSC classifies this as a global bond fund, but we are placing it among the two high yield bond funds on the Recommended List. Frankly speaking, this fund is quite unique and defies classification.

8



ETF Additions

For the first time, ETFs are a part of this list. 13 offerings have been added.

9


To September 30, 2006 To September 30, 2016

Best/Worst Performing Funds in Canada for the Three Years Ended 11/30/16 (Annualized)Source: Morningstar

The past three years have been good for funds focused on U.S.-listed technology and health care names. Not so much for energy and precious metals-focused names.

Largest Fund Companies in Canada ($ millions)

RBC

GAM

TD A

MCI

Inve

stm

ents

Fide

lity I

nv C

anad

aSc

otia

GAM

CIBC

AM

Inve

stor

s Gro

up In

c. BM

O F

inan

cial G

rpM

acke

nzie

Fin

.M

anul

ife In

v

66,

327

58,

260

53,

993

47,

285

46,

166

44,

876

43,

389

36,

108

17,

247

16,

518

194

,471

123

,928

113

,200

104

,916

96,

306

90,

924

78,

881

68,

129

49,

144

48,

701

Largest Funds in Canada ($ millions)

There’s clearly a bit of a conservative tilt to today’s biggest funds. And RBC’s line-up boasts five of the ten largest funds in the land.

RBC

GAM

CI I

nves

tmen

ts

Inve

stor

s Gro

up In

v.

TD

AM

CIB

C AM

Sco

tia G

AM

Mac

kenz

ie F

in.

Fid

elity

Inv C

anad

a

Man

ualif

e In

v.

RBC

Sele

ct C

ons P

fl A

RBC

Sele

ct B

al P

fl A

RBC

CdnD

ivide

nd A

RBC

Bond

Adv

Inve

stor

s Divi

dend

ATD

Can

adia

n Bo

nd -

AFi

delit

y Mon

thly

Inc A

TD C

dn C

ore

Plus

Bon

d - A

RBC

Sel V

ery C

ons P

ort A

Fide

lity C

dn B

ond

Sr A

dnediviD srotsevnI

Fide

lity C

anad

ian

AA

RBC

Bala

nced

RB

C M

onth

ly In

com

e RB

C Cd

n D

ivide

nd

TD C

anad

ian

Bond

Tr

imar

k In

com

e G

rTr

imar

k Se

lect

Gro

wth

CIBC

Mon

thly

Inco

me

CI C

dn In

vest

men

t

To November 30, 2006 To November 30, 2016

11,

991

8,8

20

8,7

23

8,5

76

8,2

14

8,1

83

7,2

46

6,5

55

6,5

45

6,4

10

22,7

21

22,1

21

17,5

38

17,0

62

16,7

15

15,5

33

13,5

29

12,7

57

11,8

42

10,8

26

The Mutual Fund Numbers Game

-20

-15

-10

-5

0

5

10

15

20

25

30

29.7 28.6 25.2 23.2 22.5 21.3 21.2 20.4 19.7 18.9

-19.6 -18.6 -18.3 -18.0 -15.8 -10.1 -9.5 -8.9 -8.8 -6.9

Dyn

amic

Prec

Met

als F

TD S

cienc

e &

Tech

FFi

delit

y Glo

bal T

ech

FEx

cel I

ndia

Ser

ies F

Redw

ood

Glo

b Sm

Cap

Cl F

Pend

er S

mal

l Cap

Opp

s F

TD U

S Lo

w V

olat

ility

Ser

F

Scot

ia P

rivat

e US

LC G

rl F

TD H

ealth

Scie

nces

- F

TD U

S M

id-C

ap G

r Cl -

F

Brom

pton

Res

ourc

e Se

ries F

Mar

ques

t Res

ourc

e Cl

ass F

Mar

ques

t Exp

lore

r FQ

wes

t Ene

rgy C

dn R

es C

l Ser

F

Fran

klin

Biss

ett E

nerg

y Cor

Cl F

Mid

dlefi

eld

Glo

Ene

rgy C

l F

Fron

t St R

es G

r and

Inc C

l F

Trim

ark

Ener

gy C

lass

Ser

ies F

Fron

t Stre

et G

row

th S

erie

s F

Fide

lity F

ront

ier E

M S

r F

Source: IFIC, Morningstar

Source: Morningstar

BM

O F

inan

cial G

rp

Inve

stor

s Divi

dend

Fide

lity C

dn A

sset

Allo

c R

BC B

alan

ced

RBC

Mon

thly

Inco

me

RBC

Cdn

Divi

dend

TD C

dn B

ond

Trim

ark

Inco

me

Gro

wth

Trim

ark

Sele

ct G

row

th

CIBC

Mon

thly

Inco

me

C.I.

Cdn

Inve

stm

ent

RBC

Sele

ct C

ons P

flRB

S Se

lect

Bal

Pfl

RBC

Cdn

Div

RBC

Bon

d In

vest

ors D

ivide

ndTD

Cdn

Bon

d

Fide

lity M

onth

ly In

com

eRB

C Se

l Ver

y Con

s Por

t

RBC

Ass

et M

gmt

CI I

nves

tmen

ts In

vest

ors G

roup

TD

AM

CIB

C AM

AIM

Trim

ark

Inv

Mac

kenz

ie F

inan

cial

Fide

lity I

nv C

anad

a

PH&

N

Dyn

amic

Mut

ual F

unds

RBC

GAM

TD A

M C

I Inv

estm

ents

Fide

lity I

nv C

anad

a S

cotia

GAM

CIBC

AM

Inve

stor

s Gro

up In

c

Mac

kenz

ie F

inan

cial

BMO

Fin

ancia

l Gro

upM

anul

ife In

vest

men

ts

Fid

elity

Cdn

Bon

d

TD C

dn C

ore

Plus

Bon

d

10


$1.32 trillion

Canadian Fund Industry Assets

(10/31/16)

33% (4.9 million)

Percentage of Canadian Households Holding Mutual Funds

31%Mutual Funds as % of Canadians’ Financial

Wealth

$17 billionTotal Economic

Footprint of Canadian

Fund Industry in 2012

$7 billionTotal Provincial

and Federal Taxes Generated by

Canadian Mutual

Funds

192,600Fund Industry-Related

Jobs in Canada

Did You Know?

Selected Market Metrics

It hasn’t been a straight line, but someone who socked money away in stocks (especially U.S. stocks), bonds, oil or gold ten years ago and held all the way through would be better off today.

1,37

8

2,12

6

S&P 500 S&P/TSX Composite

MSCI EAFE Gold (USD) WTI Crude CAD/USD Canada10 Year

Bond Yield

Sharesof BNS

12,2

74

14,7

87

1,95

8

1,66

6

$607

$1,2

77

$58.

73

$46.

67

0.89

0.75

4.03

%

1.19

%

$49.

30

$72.

09

Oct. 31, 2006

Oct. 31, 2016

Balanced funds have built a dominant position in the Canadian mutual fund business.

Equity Funds

Balanced Funds

Bond Funds

Money Market Funds

October 2006 October 2016

Market Share by Fund Category

54.1%26.5%

12.1%

7.2%

30.2%

53.8%

14.3%1.7%

Share of Global Fund Industry By Region ($USD Trillion) To June 30, 2016

By Region Assets to 6/30/16 Share

Americas $20 52.0%

Europe $14 36.0%

Asia and Pacific $5 12.0%

$39.3 100%

Globally$39.3 Trillion

Given the dominance of the U.S. market, the North American region has the biggest share of the global fund business.

Source: ICI

Source: Bloomberg

Source: IFIC

Source: IFIC

11


Canadian BalancedCI Cambridge Asset AllocationDynamic Dividend IncomeFidelity Canadian Balanced Mackenzie Income Mackenzie Ivy Canadian BalancedTD Dividend Income Trimark Income Growth

Canadian EquityBMO S&P/TSX Capped Composite ETF NEW

CI Canadian InvestmentCI Signature Select CanadianCI Synergy Canadian Corporate ClassDynamic Power Canadian Growth UNDER REVIEW

EdgePoint Canadian Portfolio Fidelity Canadian Disciplined Eq Fidelity Canadian Large Cap Franklin Bissett Canadian Equity Horizons S&P/TSX 60 ETF NEW

Canadian Equity Income / DividendBMO Canadian Dividend ETF NEW

BMO Monthly High Income II CI Signature DividendDynamic Equity Income Franklin Bissett Canadian Dividend Horizons Active Preferred Share ETF NEW

IA Clarington Strat Equity IncomeManulife Dividend Income NEW

Canadian Small-CapDynamic Small Business Fidelity Canadian Opportunities IA Clarington Canadian Small Cap Manulife Growth Opportunities

Canadian BondBMO Aggregate Bond ETF NEW

Dynamic Canadian BondFidelity Canadian Bond Horizons Active Corporate Bond ETF NEW

PH&N Total Return Bond TD Canadian Bond Vanguard Canadian Short-Term Bond ETF NEW

High-Yield BondFidelity American High Yield (Curr Neutral)Horizons Active High Yield Bond ETF NEW

Mackenzie Corporate Bond PIMCO Monthly Income NEW

U.S. EquityAGF American Growth BMO US Dividend ETF NEW

Dynamic Power American GrowthEpoch U.S. Large Cap Value NEW

Fidelity Small Cap America NEW

Franklin Mutual U.S. SharesHorizons S&P 500 ETF NEW

Mackenzie U.S. Mid Cap Growth (Unhedged)RBC O’Shaughnessy US Value

International EquityBMO International Dividend ETF NEW

BMO MSCI EAFE ETF NEW

CI Black Creek International Equity CI International Value Invesco International Growth Manulife World Investment Class

Global Balanced / Asset AllocationEdgePoint Global Growth & Income Portfolio Mackenzie Ivy Global BalancedTrimark Global Balanced

Global EquityCapital Group Global EquityCI Black Creek Global Leaders CI Synergy Global Corporate ClassDynamic Global Discovery Franklin Mutual Global DiscoveryHorizons Active Global Dividend ETF NEW

Mackenzie Ivy Foreign EquityTempleton Growth Trimark Global Endeavour

Reference Table 1: Recommended Funds by Category

12


AGFAGF American Growth

BMO BMO Aggregate Bond ETF NEW

BMO Canadian Dividend ETF NEW

BMO International Dividend ETF NEW

BMO Monthly High Income II BMO MSCI EAFE ETF NEW

BMO S&P/TSX Capped Composite ETF NEW

BMO US Dividend ETF NEW

Capital Group Capital Group Global Equity

CICI Black Creek Global Leaders CI Black Creek International Equity CI Cambridge Asset AllocationCI Canadian InvestmentCI International Value CI Signature DividendCI Signature Select CanadianCI Synergy Canadian Corporate ClassCI Synergy Global Corporate Class

Dynamic Dynamic Canadian BondDynamic Dividend IncomeDynamic Equity Income Dynamic Global Discovery Dynamic Power American GrowthDynamic Power Canadian Growth UNDER REVIEW

Dynamic Small Business

Edgepoint EdgePoint Canadian Portfolio EdgePoint Global Growth & Income Portfolio

FidelityFidelity American High Yield (Curr Neutral)Fidelity Canadian Balanced Fidelity Canadian Bond Fidelity Canadian Disciplined Eq Fidelity Canadian Large Cap Fidelity Canadian Opportunities Fidelity Small Cap America NEW

Franklin TempletonFranklin Bissett Canadian Dividend Franklin Bissett Canadian Equity Franklin Mutual Global DiscoveryFranklin Mutual U.S. SharesTempleton Growth

Horizons ETFsHorizons Active Corporate Bond ETF NEW

Horizons Active Global Dividend ETF NEW

Horizons Active High Yield Bond ETF NEW

Horizons Active Preferred Share ETF NEW

Horizons S&P 500 ETF NEW

Horizons S&P/TSX 60 ETF NEW

IA ClaringtonIA Clar. Strat Equity Inc. IA Clarington Canadian Small Cap

Invesco Invesco International Growth Trimark Global BalancedTrimark Global EndeavourTrimark Income Growth

ManulifeManulife Dividend Income NEW

Manulife Growth Opportunities Manulife World Investment Class

MackenzieMackenzie Corporate Bond Mackenzie Income Mackenzie Ivy Canadian BalancedMackenzie Ivy Foreign EquityMackenzie Ivy Global BalancedMackenzie U.S. Mid Cap Growth (Unhedged)

PIMCOPIMCO Monthly Income NEW

RBC Asset ManagementPH&N Total Return Bond RBC O’Shaughnessy US Value

TD Mutual FundsEpoch U.S. Large Cap Value NEW

TD Canadian Bond TD Dividend Income

Vanguard Vanguard Canadian Short-Term Bond ETF NEW

Reference Table 2: Recommended Funds by Company

13


Canadian BalancedBenchmark

Morningstar CAN Bal 50/50 CAD

Performance as of 11-30-2016Funds Trailing Returns Standard Deviation Statistics

1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER1 CI Cambridge Asset Alloc Corp Cl F 0.9 1.5 5.3 7.1 5.7 8.1 9.6 — 4.7 5.1 7 — 1.342 Dynamic Dividend Income Series F -0.1 -0.5 2.5 2.5 3.2 5.6 6.9 5.3 4.5 4.4 4 2 1.103 Fidelity Canadian Balanced Class F -0.5 0.0 4.2 6.4 6.7 8.1 8.9 7.0 6.2 5.4 7 8 0.914 Mackenzie Income F -0.3 -0.2 3.2 6.6 6.6 6.2 6.3 4.8 4.1 3.8 4 8 1.015 Mackenzie Ivy Canadian Balanced F 2.7 3.3 5.9 14.6 12.6 9.3 10.1 5.2 6.1 5.6 4 8 1.126 TD Dividend Income - F 1.9 4.1 8.3 16.1 13.0 7.9 9.9 5.8 6.9 6.3 1 8 0.947 Trimark Income Growth F 3.2 3.5 5.8 11.0 9.1 7.9 10.7 5.0 6.3 6.1 4 2 1.29

Morningstar CAN Bal 50/50 CAD 0.1 0.4 3.8 9.5 8.5 5.5 5.1 4.7 4.4 4.3 — — —

5 Year Risk/Returns as of 11-30-20165 Yr Return

5 Yr Standard Deviation

Fund Category

12.0

11.0

10.0

9.0

8.0

7.0

6.0

5.0

4.0

3.0

-2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

7

65

4

3

2

1

Category Description

Canadian balanced funds are generally amongst themost diversi�ed in that they have broad exposure toCanadian equity and �xed income securities and manyhave a foreign equity component as well. These productsoften pay regular distributions, or are available inversions that pay regular distributions. Equity and �xed

income allocations should be taken into account whenmaking head-to-head comparisons between balancedofferings. The Canadian balanced fund category alsoincludes a wide array of fund-of-funds. Such products,which typically target a speci�c asset mix and usuallycome with an automatic rebalancing feature, are

designed to be standalone portfolio solutions. Multipleportfolio managers also generally contribute to thecause. Fund-of-funds are intentionally excluded from theRecommended List.

©2016. Morningstar Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar, (2) Morningstar proprietary information may not be copied (save (i) as incidentally necessary in the course of viewing it on-line, and (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorized to view it on-line), adapted or distributed; and (3) Morningstar proprietary information is not warranted to be accurate, complete or timely. TM Trademark of The Bank of Nova Scotia, used under license.

14


CI Cambridge Asset Allocation Corporate Class F

Fund Stats

Portfolio As of 03-31-2016

Asset Allocation % Port

19.0Cash8.5Fixed Income

21.3Canadian Equity18.5US Equity7.4International Equity

25.2Other

Morningstar Style BoxTM

Equity Style

Value Blend GrowthLarge

Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM

edium LowTop 5 Holdings % Assets

23.7Cambridge Bond Fund3.0Walgreens Boots Alliance Inc2.5Tourmaline Oil Corp2.2PrairieSky Royalty Ltd1.8Brook�eld Infrastructure Partners LP

33.3% Portfolio in Top 5 holdings152Total Number of Portfolio Holdings

Performance As of 11-30-2016

7101316192225

Growth of $10,000Fund

Benchmark

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Calendar Year

— — -17.3 25.1 14.3 0.4 4.7 19.9 11.5 5.2 — Total Return %-14.0 23.9 10.2 -1.8 -3.4 -1.7 -0.9 -13.1 +/- Benchmark %* & * * ( & & & & Quartile

Compound Returns % Fund Bmark Quart

1 Mth 0.9 -0.6 13 Mth 1.5 -0.5 16 Mth 5.3 3.2 11 Yr 5.7 4.8 12 Yr 6.6 9.5 13 Yr 8.1 10.8 15 Yr 9.6 12.2 110 Yr — — —

Statistics 3 Year 5 Year 3 Year 5 Year

Alpha 3.92 3.97 Standard Deviation 4.68 5.12Beta 0.33 0.42 Bmrk Standard Deviation 7.89 6.63R-Squared 0.31 0.29 Upside Capture 0.57 0.69Information Ratio -0.43 -0.44 Downside Capture 0.20 0.36

Crisis Test 08-31-2008 to 02-26-2009 % Rtrn

Fund -26.6Benchmark -12.8

GPAG's Take

This offering is classi�ed as a "Tactical Balanced" fund,meaning management has a good deal of �exibility indetermining the portfolio's asset mix. Indeed, that hasbeen the case here. During its existence, the fund'sequity exposure has been as low as about 45% and ashigh as 93%. There's also no fear in holding huge

amounts of cash. We've seen the weighting there get ashigh as 45%. Industry veteran Bob Swanson heads upthe effort and his models, along with discussions withthe other investment professionals at Cambridge, helpdetermine the asset mix. Where we are in the business/economic cycle is a big driver behind the asset mix

decision. A total of 11 PMs and analysts contribute tothe security selection effort, and Swanson's input alsodrives the composition of the portfolio's equity and �xedincome sleeves.

Fund Manager Robert Swanson, B.S.Brandon Snow, B.A.

Manager Start Date Jun 2011Jun 2011

Fund Inception December 31, 2007

Total Assets as of 09-30-2016 $3,870 Mil

MER % 1.34

Trailing Yield % 0.4

Fund Code

CIG4322Benchmark

Category

Morningstar CAN Bal Glbl 60/40 CAD

Canadian Balanced

15


Dynamic Dividend Income Series F

Portfolio As of 08-31-2016Asset Allocation % Port

14.8Cash29.1Fixed Income23.4Canadian Equity29.4US Equity

3.3International Equity0.0Other


Equity Style


Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM


5.0Dynamic Aurion Total Return Bond3.2US Treasury Bond 3% 15-11-20452.1Visa Inc Class A2.1Royal Bank of Canada2.0Canadian Imperial Bank of Commerce



8101214161820


Benchmark


9.5 4.3 -20.0 20.6 11.5 8.0 5.7 12.0 7.5 4.6 — Total Return %-0.8 -3.3 -7.5 4.8 -0.6 7.7 0.9 6.8 -1.6 7.0 +/- Benchmark %( & ) * & & ( * ( & ) Quartile


1 Mth -0.1 0.1 33 Mth -0.5 0.4 46 Mth 2.5 3.8 31 Yr 3.2 8.5 42 Yr 3.7 3.4 23 Yr 5.6 5.5 25 Yr 6.9 5.1 210 Yr 5.3 4.7 1


Alpha 1.54 2.97 Standard Deviation 4.45 4.44Beta 0.69 0.71 Bmrk Standard Deviation 4.39 4.28R-Squared 0.47 0.46 Upside Capture 0.79 0.87Information Ratio 0.02 0.52 Downside Capture 0.48 0.24



HollisWealth's Take

This income-oriented fund provides investors withexposure to a basket of higher yielding equities and �xedincome securities. The common equity componentconsists of high yielding securities from a host ofsectors, and U.S. names now make up a fairly largeportion of this part of the fund. The portfolio was alsooriginally designed to provide some exposure to

preferred shares, but management doesn't see muchvalue there at this point and is keeping exposure at nextto nothing. Oscar Belaiche and his team run the equityportion of the fund while Michael McHugh oversees the�xed income component. The two managers work closelytogether to ensure the portfolio is �ring on all cylinders.The �xed income/cash portion of the fund will represent

30% to 40% of the fund most of the time, so despite itsname, this offering really is a balanced fund. Thisproduct spits out a monthly distribution that equates to ayield of roughly 4%, and note that a good chunk of thatpayout comes in the form of return of capital.

Fund Stats

Fund Manager Michael McHugh, M.A.Oscar Belaiche, B.A.

Manager Start DateJan 2003

Fund Inception January 2, 2003

Total Assets as of 12-12-2016 $673 Mil

MER % 1.10

Trailing Yield %

Fund Code

DYN254

Jan 2003 4.3

Benchmark

Category


Canadian Balanced

GPAG's Take

16


Fidelity Canadian Balanced Class F


1.9Cash45.4Fixed Income44.9Canadian Equity

7.1US Equity0.5International Equity0.1Other


Equity Style


Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM


4.1Royal Bank of Canada3.7Bank of Nova Scotia2.7Canadian Paci�c Railway Ltd2.7Restaurant Brands International Inc2.6Brook�eld Asset Management Inc Class A



7101316192225


Benchmark


11.7 9.6 -17.8 23.6 14.6 0.0 7.2 14.0 12.4 4.8 — Total Return %1.3 2.0 -5.3 7.8 2.5 -0.3 2.3 8.8 3.3 7.1 +/- Benchmark %& & ( & & * * & & & * Quartile


1 Mth -0.5 0.1 43 Mth 0.0 0.4 36 Mth 4.2 3.8 11 Yr 6.7 8.5 22 Yr 5.7 3.4 13 Yr 8.1 5.5 15 Yr 8.9 5.1 110 Yr 7.0 4.7 1





GPAG's Take

The asset allocation here will tend to be more stablethan that of Fidelity's Canadian Asset Allocation offering,and here investors get exposure to Canadian equities,Canadian investment grade bonds and high yield bonds(limited to 10% with all currency exposure hedged back

into CAD). The asset mix of the fund is overseen by a pairof asset allocation pros at the shop (but again, assetclass shifts will be limited). Darren Lekkerkerker runs theequity component of the portfolio (a third of which isforeign); Catriona Martin oversee the Canadian

investment grade �xed income component while HarleyLank, lead manager of Fidelity American High Yield runsthe high yield bond allocation.

Fund Stats

Fund Manager Geoffrey SteinDarren Lekkerkerker

Manager Start DateNov 2009

Fund Inception September 26, 2001


MER % 0.91

Trailing Yield %

Fund Code

FID626

May 2012 0.8

Benchmark

Category


Canadian Balanced

17


Mackenzie Income Fund - F


3.2Cash66.9Fixed Income14.7Canadian Equity8.2US Equity6.7International Equity0.3Other


Equity Style


Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM


4.3Canada Govt 3.5% 01-12-20453.2Prov Of Quebec 3.5% 01-12-20451.6Canada Govt 1.25% 01-12-20471.5Ontario Prov Cda 2.8% 02-06-20481.5British Columbia Prv Cda 2.8% 18-06-2048



8101214161820


Benchmark


8.5 1.1 -8.8 13.9 8.3 4.0 5.0 7.1 8.8 2.7 — Total Return %0.9 -3.2 -5.4 7.2 0.6 0.3 0.9 1.9 0.4 0.4 +/- Benchmark %& * ( * & * ( * & * & Quartile


1 Mth -0.3 -0.2 23 Mth -0.2 -0.3 16 Mth 3.2 2.1 11 Yr 6.6 4.9 12 Yr 4.6 3.6 13 Yr 6.2 5.2 15 Yr 6.3 5.0 110 Yr 4.8 4.3 1


Alpha -0.38 -0.06 Standard Deviation 4.11 3.75Beta 1.31 1.32 Bmrk Standard Deviation 3.01 2.71R-Squared 0.91 0.90 Upside Capture 1.24 1.30Information Ratio 0.66 0.90 Downside Capture 1.37 1.44



GPAG's Take

This conservative balanced fund is a long-standingmember of our Recommended List. The bond portion ofthe fund will always be at least 60% of the portfolio, andthat component is overseen by Steve Locke andMackenzie’s �xed income team, a group we are big fansof. The equity portion of the fund underwent a

management change late in 2013, as Hovig Moushian,who oversees a number of dividend-oriented strategiesat Mackenzie, was put in charge of the Canadian equityexposure. Darren McKiernan, the �rm's global dividendguru, now runs the fund's foreign equity exposure. Wewere supportive of the management changes when they

were announced, and we believe the managers runningthe show today will continue to deliver decent levels ofincome and limited amounts of volatility to investors.

Fund Stats

Fund Manager Steve Locke, M.B.A.Darren McKiernan, B.S.

Manager Start DateDec 2013

Fund Inception October 22, 2001


MER % 1.01

Trailing Yield %

Fund Code

MFC057

Jun 2010 3.2

Benchmark

Category

Morningstar CAN Bal Cdn Con CAD

Canadian Balanced

18


Mackenzie Ivy Canadian Balanced Fund - F





Equity Style


Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM


3.8Brook�eld Asset Management Inc Class A3.6Manulife Financial Corp3.2Pembina Pipeline Corp3.0Onex Corp3.0Shaw Communications Inc Class B



8101214161820


Benchmark


8.2 -2.0 -10.4 5.8 8.1 1.4 6.9 16.4 12.1 1.0 — Total Return %-5.2 -5.6 7.5 -10.5 -3.1 2.6 -0.5 2.9 1.4 -1.4 +/- Benchmark %) ) & ) ) & ( & & * & Quartile


1 Mth 2.7 0.7 13 Mth 3.3 1.4 16 Mth 5.9 4.9 21 Yr 12.6 8.2 12 Yr 7.1 5.4 13 Yr 9.3 7.6 15 Yr 10.1 8.3 110 Yr 5.2 5.2 1





GPAG's Take

Paul Musson has headed up this fund and the Ivy teamsince early 2009. Upon taking over, big focus of his wasto improve the quality of the investment team, expandthe team's breadth of coverage and improve returns,particularly for the team's Canadian funds. So far, thingshave worked out well. Stocks are chosen using acollaborative research effort, although all team membershave speci�c sector and/or geographical responsibilities.The Ivy philosophy is very simple but it stressessomething that many investors do not have the discipline

for – patience. Management is willing to devotetremendous amounts of time to understanding acompany and the team is willing to wait for a company'sstory to unfold. The �rst key to the approach involvestruly looking at the business. Meeting management is amust and growth in both top and bottom line numbers isdesired. Musson likes to see a return on capital �gurethat is expanding, or at least being maintained.Additionally, it is important for companies to have atleast 10 years of �nancial history. Valuations must be

attractive, but the team will not buy a stock simplybecause it is cheap – the business itself must be strong.Steve Lock and Mackenzie's �xed income team overseethe bond part of the portfolio. A "core-plus" approach isemployed there; meaning up to a quarter of the �xedincome exposure may be to high yield issues. A portionof the fund's foreign currency exposure is hedged backinto Canadian dollars.

Fund Stats

Fund Manager Paul Musson, B.C.Steve Locke, M.B.A.

Manager Start DateMay 2013



MER % 1.12

Trailing Yield %

Fund Code

MFC078

Jan 2009 0.5

Benchmark

Category

Morningstar CAN Bal Cdn Agg CAD

Canadian Balanced

19


TD Dividend Income - F




Equity Style


Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM


7.4The Toronto-Dominion Bank7.1Royal Bank of Canada6.4Bank of Montreal6.2Bank of Nova Scotia6.1Canadian Imperial Bank of Commerce



7101316192225


Benchmark


14.5 1.2 -28.0 32.1 10.2 2.7 10.7 13.9 12.3 -4.5 — Total Return %1.0 -2.5 -10.1 15.7 -1.0 3.9 3.3 0.4 1.6 -6.8 +/- Benchmark %& ( ) & ( & & * & ( & Quartile







GPAG's Take

Managers Doug Warwick and Mike Lough handle theequity component of this well-diversi�ed fund whileGeoff Wilson and Elaine Lindhorst take care of the bondexposure. The names in this fund are very similar to whatyou'd �nd in TD's very popular Monthly Income fund, butthis offering has a smaller allocation to �xed income.Look for a quarter of this mandate to be in bonds andcash. The portfolio will also have a sliver of its assets in

preferreds. For the common equity portion of the fund,management prefers non-cyclical names with belowaverage risk pro�les. And of course, these names have topay a dividend and the preference is for companies thatare growing their payout. Management wants companieswith modest growth potential, low levels of industrychange, sustainable cash �ow, and low capitalinvestment requirements. The bond component consists

primarily of corporate debt, including some high yield.The fund has virtually no foreign exposure becausemanagement is more comfortable staying in Canada,plus dividends from Canadian companies are more taxef�cient. The fund is pretty plain-vanilla in nature andthere's not all that much activity in the portfolio, but ithas delivered over time.

Fund Stats

Fund Manager Geoff WilsonMichael Lough, M.B.A.

Manager Start DateFeb 2000

Fund Inception November 1, 2005


MER % 0.94

Trailing Yield %

Fund Code

TDB455

Jan 2010 2.5

Benchmark

Category


Canadian Balanced

20


Trimark Income Growth F




Equity Style


Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM


5.1Brook�eld Asset Management Inc Class A3.5Onex Corp3.4Bank of Nova Scotia3.1The Toronto-Dominion Bank3.1CarMax Inc



8101214161820


Benchmark


13.4 -7.6 -15.8 18.4 7.3 -2.3 10.0 21.4 8.9 2.3 — Total Return %0.0 -11.3 2.0 2.0 -3.9 -1.2 2.6 8.0 -1.9 0.0 +/- Benchmark %& ) & ( ) * & & * & * Quartile







GPAG's Take

Lead manager Clayton Zacharias picked up responsibilityon this fund in spring 2012. Zacharias, who also overseesTrimark Canadian Endeavour, quickly moved to betteralign the equity component of Income Growth withCanadian Endeavour. There is not complete overlap,however, as Endeavour is a much smaller portfolio thanthis one and has a bit more �exibility as a result.Zacharias generally sticks with 25 to 35 names on the

equity side of the fund, and he has allocated a quarter ofthe portfolio to Invesco's Toronto-based �xed incometeam. If he feels the need to position the fund moreconservatively, he will simply increase the cashallocation in his 75% sleeve. Neither P/E nor EV/EBITDAhas ever been a primary valuation metric. He places thegreatest emphasis on discounted free cash �ow whendetermining buy/sell prices. He thinks this is a great

determinant of intrinsic value. To supplement that and toprovide other data points, Zacharias considers at P/E andEV/EBITDA multiples as secondary metrics. He isassisted by Mark Uptigrove and Alan Mannick on themandate and a junior equity analyst also contributes tothe cause.

Fund Stats

Fund Manager Jennifer Hartviksen, B.A.Clayton Zacharias, B.B.A.

Manager Start DateJun 2012

Fund Inception February 11, 2000


MER % 1.29

Trailing Yield %

Fund Code

AIM1547

Sep 2013 0.9

Benchmark

Category


Canadian Balanced

21


Canadian EquityBenchmark

S&P/TSX Composite TR


1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER1 BMO S&P/TSX Capped Composite ETF 2.2 4.1 8.8 19.0 15.4 7.1 7.4 — 8.3 8.4 4 — 0.062 CI Canadian Investment Class F 2.7 3.7 7.8 11.6 8.6 6.0 9.5 4.7 8.7 9.0 4 — 1.323 CI Signature Select Canadian Class F 4.6 6.1 10.7 12.6 9.9 8.4 10.4 5.8 8.4 8.2 4 — 1.324 CI Synergy Canadian Corporate Class F 2.0 3.0 5.7 4.4 3.3 6.1 9.2 4.4 8.2 8.1 4 — 1.325 Dynamic Power Canadian Growth Class Sr F 2.7 2.1 4.6 0.8 0.6 7.4 7.9 3.8 10.5 10.5 7 — 1.356 EdgePoint Canadian Portfolio Series F 4.3 6.7 11.4 20.9 15.7 10.0 12.7 — 8.9 8.8 5 — 1.007 Fidelity Canadian Disciplined Eq Cl F 0.9 2.7 6.8 12.6 10.8 9.0 9.6 6.1 7.2 7.5 4 — 1.158 Fidelity Canadian Large Cap Class F 1.9 2.3 4.4 10.9 10.1 9.5 14.2 — 5.8 6.7 4 — 1.149 Franklin Bissett Cdn Equity Corp Cl F 2.9 3.6 8.9 20.5 16.6 7.5 11.5 6.4 8.4 7.9 7 — 1.18

10 Horizons S&P/TSX 60 ETF 2.5 5.1 9.8 19.4 15.7 7.9 8.2 — 8.1 8.4 4 — 0.03

S&P/TSX Composite TR 2.2 4.1 8.8 19.1 15.5 7.2 7.5 4.7 8.3 8.4 — — —



Fund Category

16.0

15.0

14.0

13.0

12.0

11.0

10.0

9.0

8.0

7.0

3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0

10

9

8

7

6

5

4

3

2

1


Canadian equity funds provide investors with theopportunity to participate in the �nancial success ofCanadian businesses. The Canadian equity market hassigni�cant weightings in the resource and �nancial

services sectors, and many of the players in thosesectors are world-class companies. Many Canadianequity funds also provide material exposure to foreignsecurities, which enhance the diversi�cation bene�ts of

such products.


22


BMO S&P/TSX Capped Composite Index ETF New



97.9Canadian Equity1.7US Equity0.1International Equity0.0Other


Equity Style


Mid

Small

Market Cap %

45.2Giant

28.6Large22.3Medium

3.9Small

0.0Micro

Top 5 Holdings % Assets

6.5Royal Bank of Canada5.9The Toronto-Dominion Bank4.5Bank of Nova Scotia3.6Suncor Energy Inc3.5Canadian National Railway Co



8101214161820


Benchmark


— — — — 15.0 -10.5 7.7 17.2 9.4 -6.1 — Total Return %-2.6 -1.7 0.5 4.2 -1.2 2.3 +/- Benchmark %( ( ( ( * ( * Quartile


1 Mth 2.1 2.2 33 Mth 4.2 4.1 26 Mth 8.6 8.8 21 Yr 15.3 15.5 12 Yr 4.2 4.3 23 Yr 7.0 7.2 25 Yr 7.5 7.5 310 Yr — — —


Alpha -0.26 -0.10 Standard Deviation 8.46 8.62Beta 1.01 1.02 Bmrk Standard Deviation 8.34 8.43R-Squared 1.00 0.99 Upside Capture 1.01 1.02Information Ratio -0.32 0.00 Downside Capture 1.04 1.04

GPAG's Take

For investors seeking broad-based Canadian equityexposure, ZCN is one of the lowest cost options out

there. This ETF closely tracks the S&P/TSX Index and itstight bid/ask spreads make it easy to get in and out of.

Fund Stats

Fund Manager Not Disclosed

Manager Start Date

Fund Inception May 29, 2009


MER %

Trailing Yield %

Fund Code

ZCNMay 2009

3.0

0.06

Benchmark

Category


Canadian Equity

23


CI Canadian Investment Class F





Equity Style


Mid

Small

Market Cap %

50.6Giant

25.7Large22.5Medium1.0Small

0.2Micro


4.6Royal Bank of Canada3.8The Toronto-Dominion Bank3.4Bank of Nova Scotia2.3Manulife Financial Corp2.1Canadian National Railway Co



68

1012141618


Benchmark


15.4 2.5 -26.8 29.0 14.3 -11.7 8.2 27.2 7.8 -2.9 — Total Return %-1.9 -7.3 6.3 -6.1 -3.3 -3.0 1.0 14.2 -2.8 5.4 +/- Benchmark %* ( * * * ( * & ( ( * Quartile




Alpha -0.40 2.35 Standard Deviation 8.72 9.01Beta 0.89 0.93 Bmrk Standard Deviation 8.34 8.43R-Squared 0.73 0.76 Upside Capture 0.82 0.99Information Ratio -0.26 0.44 Downside Capture 0.81 0.78



GPAG's Take

Manager Danny Bubis of Tetrem Capital Managementlooks to buy companies with temporarily depressedpro�tability and low earnings multiples, and we wouldclassify Tetrem as being a relative value shop. Bubisbelieves it is value manager nirvana when you have asituation where both earnings and multiples are rising,although such situations are hard to come by. The beliefis that markets are reasonably ef�cient and that investorbehaviour can create opportunities. A lot of money can

be made when earnings and multiples revert fromdepressed levels back to their means. The ideageneration process involves screening the NorthAmerican stock universe for mean reversion candidates.Proprietary, multi-factor models rate candidates usingfundamental metrics. Names are screened for valuationattractiveness, earnings quality and capital discipline.Analysts then either get the green light to dig deeper, orresearch efforts on the name are terminated. Detailed

fundamental analysis is conducted on names that makeit to the next stage. Scenario analyses are run for thestocks that make it to this stage and an investmentthesis for each name is developed. Downside risk is alsoassessed. A buy-in price is established and Bubis movesin initially by building a position of at least 1% of AUM.Tetrem's investment team consists of two PMs and sixanalysts.

Fund Stats

Fund Manager Daniel Bubis, H.B.A.Alec McIsaac




MER % 1.32

Trailing Yield %

Fund Code

CIG7426

Oct 2006 0.0

Benchmark

Category


Canadian Equity

24


CI Signature Select Canadian Class F





Equity Style


Mid

Small

Market Cap %

53.8Giant


0.3Micro


4.9Bank of Nova Scotia4.3Manulife Financial Corp3.8The Toronto-Dominion Bank3.7Royal Bank of Canada2.8Suncor Energy Inc



7101316192225


Benchmark


22.3 4.2 -25.3 29.3 11.5 -7.5 9.3 20.6 12.8 -1.3 — Total Return %5.1 -5.7 7.7 -5.7 -6.1 1.2 2.2 7.6 2.2 7.0 +/- Benchmark %& * & * ( * * ( & ( * Quartile







GPAG's Take

The team behind this fund takes a bottom-up approach tostock selection; however, the top-down, macroeconomicpicture has always been a driver behind sector biases,and that part of the approach has the �nger prints of EricBushell, Signature's CIO, all over it. The team is deep,with about 30 members at this point, and Bushell hasturned the team members into sector specialists who dothe actual stock picking as his belief is that specialists

are better decision makers than generalists. He alsofeels that specialists are better equipped to have foreignnames under their coverage umbrella. Good stock pickersleave if they are not given that type of responsibility,although Bushell has the �nal say on what happens withthe fund. Bushell also shapes the fund's sectorallocations and he determines the appropriate amount ofbeta for the portfolio. Management has no problem

rapidly moving in and out of stocks in an attempt tocapitalize on opportunities and Bushell is willing to letthe cash allocation move above 20% when he sees �t.Signature represents a massive component of CI's overallbusiness, with more than $50 billion in assets undermanagement at this point.

Fund Stats

Fund Manager Eric Bushell, B.A.

Manager Start Date

Fund Inception July 17, 2000


MER %

Trailing Yield %

Fund Code

CIG718May 1998

0.0

1.32

Benchmark

Category


Canadian Equity

25


CI Synergy Canadian Corporate Class F





Equity Style


Mid

Small

Market Cap %

37.6Giant


0.8Micro


5.0Royal Bank of Canada4.8The Toronto-Dominion Bank3.5Bank of Nova Scotia2.5Canadian National Railway Co2.2Brook�eld Asset Management Inc Class A



68

1012141618


Benchmark


19.2 6.8 -33.0 27.3 14.8 -7.6 7.7 25.0 9.4 2.0 — Total Return %2.0 -3.0 0.0 -7.7 -2.8 1.1 0.5 12.0 -1.2 10.3 +/- Benchmark %& * ( ( & * ( * ( & ) Quartile




Alpha 0.61 2.98 Standard Deviation 8.17 8.12Beta 0.75 0.79 Bmrk Standard Deviation 8.34 8.43R-Squared 0.59 0.68 Upside Capture 0.70 0.87Information Ratio -0.19 0.35 Downside Capture 0.58 0.57



GPAG's Take

Lead manager Dave Picton is also head of PictonMahoney Asset Management. This subadvisory �rm,which also offers a handful of its own hedge funds,oversees CI's four Synergy funds and the company hastotal assets of $7 billion. Picton is a momentum investorand momentum to him means fundamental change forthe better. The core of the process involves a computer-driven model based on quantitative factors that searchesfor companies exhibiting four fundamental changefactors, namely: accelerating earnings or revenues,

positive estimate changes, positive earnings surprises,and strong relative price strength. Once stocks withmomentum characteristics are identi�ed, the company'steam of 30+ PMs and analysts conducts fundamentalanalysis with a focus on assets, earnings, sales,products, management and markets to predict futuretrends. A Barra risk overlay is employed to ensure thereis no over-concentration within the portfolio and atracking error of at least 5% or 6% is targeted to ensurethat the fund doesn't too closely mimic the index. Stocks

are held as long as the momentum criteria are met. Thesell discipline is the opposite of the buy discipline. If acompany's numbers come in below estimates, Pictonusually dumps it within a day. Portfolio turnover is high,averaging well over 100% per year throughout itshistory. That is not surprising given how quicklymomentum within the market can change, but it can leadto potentially hefty capital gains distributions in goodtimes.

Fund Stats

Fund Manager David Picton, B.C.

Manager Start Date



MER %

Trailing Yield %

Fund Code

CIG6403Dec 1997 1.32

0.6

Benchmark

Category


Canadian Equity

26


Dynamic Power Canadian Growth Class Sr F Under Review





Equity Style


Mid

Small

Market Cap %

28.4Giant


1.4Micro


22.1Dynamic Power American Growth Series O4.3Royal Bank of Canada3.8Canadian Imperial Bank of Commerce3.7CGI Group Inc A3.6Alphabet Inc C



7101316192225


Benchmark


23.9 27.2 -45.9 54.0 16.0 -24.8 6.6 19.2 11.4 7.1 — Total Return %6.7 17.4 -12.9 18.9 -1.6 -16.1 -0.6 6.3 0.8 15.4 +/- Benchmark %& & ) & & ) ( ( * & ) Quartile







GPAG's Take

Alex Lane was put in charge of this fund in 2013, takingover from long-time lead Rohit Sehgal. Lane has been amember of the Power team since 2000, so he was veryfamiliar with the process and the names in the fundwhen he was put in charge of the strategy. Thosefamiliar with the Power approach know it is growth-oriented. That continues for this fund with Lane at thehelm. Four individuals assist Lane on this fund, and sincetaking over, he has cleaned up the portfolio and re�nedthe process and the roles of the other team members.

We believe the fund has a more de�ned process backingit than has ever been in place, and the goal there is toshore up performance and buffer volatility. When Lanewas named lead manager of this fund, Dynamic alsoelected to shift 20% of the portfolio into NoahBlackstein's Power American Growth. While we do likePower American Growth, we've elected to put PowerCanadian Growth Under Review for reasons related toproduct Dynamics. If Dynamic was comfortable namingLane the lead manager of this fund, the �rm should be

comfortable allowing him to run 100% of the portfolio.This arrangement seems a bit strange to us, and theinclusion of Power American Growth may lead toenhanced portfolio volatility, as it did in early 2016.Reducing volatility was one of Lane's priorities when hewas handed the reins of this fund. Something isinconsistent there. Also note that this fund charges aperformance fee of 10% on returns in excess of thereturn of the S&P/TSX Composite.

Fund Stats

Fund Manager Alexander Lane

Manager Start Date

Fund Inception March 4, 2002


MER %

Trailing Yield %

Fund Code

DYN244May 2013 1.35

1.1

Benchmark

Category


Canadian Equity

27


EdgePoint Canadian Portfolio Series F





Equity Style


Mid

Small

Market Cap %

7.8Giant


9.8Micro


6.0PrairieSky Royalty Ltd5.5Canadian Energy Services & Techn Corp5.5Granite Real Estate Invest Tr of Granit4.6Restaurant Brands International Inc4.4ATS Automation Tooling Systems Inc



5101520253035


Benchmark


— — — 52.1 17.9 -6.7 10.1 27.8 10.6 -3.2 — Total Return %17.0 0.3 2.0 2.9 14.8 0.1 5.2 +/- Benchmark %& & & & & * & & Quartile






Fund 0.0Benchmark -39.0

GPAG's Take

Geoff MacDonald and Tye Bousada lead the effort onthis fund, which got its start in 2008. MacDonald focuseson Canadian ideas and Bousada spends most of his timeon foreign names, although the portfolio constructionprocess is highly collaborative and each manager knowsall of the names in the fund intimately. If both PMs lovea particular name, it gets a big weighting and it will

probably end up in all of the �rm's products. If onemanager loves a name while the other just thinks itsokay, it is given a smaller weighting. Ted Chisholmpitches in as well and his focus is on smaller capopportunities. Each stock that makes it into the fund ispurchased as though it’s the only investment in theportfolio and the PMs see themselves as business

people buying businesses. They focus on stocks thathave big margins of safety and strong barriers to entryand the preference is to own solid companies with goodmanagement teams that can grow their businessregardless of what's happening with the economicenvironment.

Fund Stats

Fund Manager Geoff MacDonaldTye Bousada




MER % 1.00

Trailing Yield %

Fund Code

EDG608

Nov 2008 0.0EDG508

Benchmark

Category


Canadian Equity

28


Fidelity Canadian Disciplined Eq Cl F





Equity Style


Mid

Small

Market Cap %

46.1Giant

28.6Large20.4Medium

4.8Small

0.2Micro


8.6Royal Bank of Canada8.5The Toronto-Dominion Bank5.4Suncor Energy Inc4.6Canadian National Railway Co4.3Enbridge Inc



7101316192225


Benchmark


16.6 14.3 -34.8 40.5 19.0 -11.2 6.5 19.0 15.6 -2.3 — Total Return %-0.6 4.5 -1.8 5.4 1.4 -2.5 -0.7 6.0 5.1 6.0 +/- Benchmark %* & ( & & ( ( * & & ( Quartile







GPAG's Take

A sector neutral approach is employed for this fund andthe objective is to add value exclusively through stockselection. Under the guidance of Andrew Marchese (whodoes not actually pick stocks for the fund), Fidelity's"Team Canada" analysts, all of whom are based inToronto or Montreal, are assigned sectors to focus onand their job is to conduct their own research andleverage the tremendous research resources at Fidelitywith the ultimate goal of uncovering best opportunities

from their sector(s). This gives each of the 10+ analystsan opportunity to actually pull the trigger on individualstocks. In addition, sector coverage duties are changedregularly and this helps enhance the perspective eachanalyst brings to the table. The fund is run with limitedamounts of foreign exposure and cash levels tend to beminimal. Critics might argue that the portfolio is nothingmore than a closet indexer, and no doubt the portfoliowill bear some resemblance to the benchmark, but to

gauge the success of this approach all one needs to do ischeck the performance stats of the fund. Over time it hasdone a good job against both the S&P/TSX Compositeand the median fund in its peer group. The sectorweights are the same as the index. The individualsecurity weightings are much different.

Fund Stats

Fund Manager Andrew Marchese

Manager Start Date



MER %

Trailing Yield %

Fund Code

FID696Mar 2009

1.0

1.15

Benchmark

Category


Canadian Equity

29


Fidelity Canadian Large Cap Class F




Equity Style


Mid

Small

Market Cap %

22.6Giant


1.8Micro


4.7The Toronto-Dominion Bank3.0CGI Group Inc A3.0Fairfax Financial Holdings Ltd3.0SNC-Lavalin Group Inc2.9Rogers Communications Inc Class B



8101214161820


Benchmark


— — — — — — 7.1 38.1 11.8 4.8 — Total Return %-0.1 25.1 1.3 13.1 +/- Benchmark %( & * & * Quartile




Alpha 6.24 10.03 Standard Deviation 5.84 6.69Beta 0.36 0.40 Bmrk Standard Deviation 8.34 8.43R-Squared 0.27 0.25 Upside Capture 0.66 0.80Information Ratio 0.32 0.86 Downside Capture 0.14 -0.07

GPAG's Take

Montreal-based manager Dan Dupont has been withFidelity since 2001 and like most PMs at the �rm, hestarted as an analyst and covered a variety of sectorsbefore being promoted to PM. He views himself as beingless GARP-y than other Fidelity managers and has afocus on preservation of capital. He doesn’t have adistinct style, but quality is a crucial characteristic thatmust exist before he’d move into a business.Understanding the potential downside for a stock is also

vital. The portfolio tends to be quite concentrated - thetop 15 names generally account for 50% to 60% of totalassets. Dupont also exercises a good amount ofdiscipline when it comes to his entry price. The price youpay is the biggest determinant of returns. His process issomewhat dif�cult to exercise in Canada given that somuch of the market is cyclically biased and cyclicalnames don’t mesh with the approach most of the time,although when these parts of the market become

depressed, he may take a position. When consideringcyclicals, he wants to own best of breed businesses.Consequently, the fund's foreign content has historicallybeen quite high. Dupont is free to build the cashallocation when he believes doing so is appropriate andthe fund has had a cash weighting as high as 20% in thepast. He is very willing to deploy the cash rapidly andhas done so in the past.

Fund Stats

Fund Manager Daniel Dupont, B.A.

Manager Start Date



MER %

Trailing Yield %

Fund Code

FID469Sep 2011

1.0

1.14

Benchmark

Category


Canadian Equity

30


Franklin Bissett Canadian Equity Corporate Class F





Equity Style


Mid

Small

Market Cap %

41.5Giant

26.8Large22.2Medium

9.1Small

0.3Micro


100.0Franklin Bissett Cdn Equity O



47

1013161922


Benchmark


12.5 1.6 -32.1 39.9 19.2 -5.8 15.2 21.5 10.3 -8.0 — Total Return %-4.8 -8.2 0.9 4.8 1.6 2.9 8.0 8.5 -0.2 0.3 +/- Benchmark %) ) * & & & & & * ( & Quartile







GPAG's Take

Lead manager Bissett CIO Garey Aitken has been at thehelm of this mandate since early 2008. Aitken joinedBissett in 1998 and he works closely with Tim Caul�eldon the portfolio. Bissett is a GARP shop and the keyfactors Aitken and Caul�eld consider when selectingstocks are ROE, dividend growth rate, consistency ofearnings growth, and the debt/equity and P/E ratios.

15% to 35% of the portfolio is in mid-cap names andBissett decided in 2005 that the best way to run this fundwas as a pure Canadian offering. As a result, there areno foreign names in the fund today. The portfoliohistorically has been run with a big underweight inmaterials because Bissett has had trouble �ndingcompanies from the space that have the ability to offer

consistent quality earnings over an entire cycle. This isnot a �ashy fund by any stretch of the imagination, butit's been a solid core Canadian equity option for yearsand we believe that will continue to be the case movingforward.

Fund Stats

Fund Manager Garey Aitken, M.B.A.Tim Caul�eld, B.C.


Fund Inception June 18, 2001


MER % 1.18

Trailing Yield %

Fund Code

TML932

Jan 2002 1.7

Benchmark

Category


Canadian Equity

31


Horizons S&P/TSX 60 Index ETF New





Equity Style


Mid

Small

Market Cap %

61.3Giant


0.0Micro


100.0TRS S&P/TSX 60 TR CAD



9101112131415


Benchmark


— — — — — -10.5 7.7 17.2 9.4 -6.1 — Total Return %-1.7 0.5 4.2 -1.2 2.3 +/- Benchmark %* * ( & ( & Quartile





GPAG's Take

HXT uses a total return swap to gain exposure to the 60largest companies in Canada. The swap enhances thetax ef�ciency of the ETF by providing investors withreturns equal to the appreciation in value the underlying

index plus dividends, only, no distributions are paid outby the ETF. The only taxable event occurs when the ETFis sold. HXT boasts the lowest MER of all Canadian-listed ETFs, and because it is swap based, investors

needn't worry about tracking error. Also, don't worryabout the cost of the swap. In this particular case, it isfree.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

HXTSep 2010

0.0

0.03

Benchmark

Category


Canadian Equity

32


Canadian Equity Income / DividendBenchmark



1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER1 BMO Canadian Dividend ETF 3.8 4.1 8.8 19.9 14.7 4.0 6.9 — 8.9 8.4 1 — 0.392 BMO Monthly High Income II F 1.1 1.7 5.4 18.0 13.8 5.0 7.9 7.8 7.8 7.2 4 — 0.763 CI Signature Dividend Class F 1.8 2.1 5.3 8.4 7.4 6.8 9.5 5.4 7.0 6.4 1 — 1.324 Dynamic Equity Income Series F 1.3 1.0 4.9 12.6 10.5 8.7 9.1 8.6 6.4 6.2 4 — 1.015 Franklin Bissett Cdn Dividend F 3.4 5.9 10.3 — — — — — — — 1 — 1.226 Horizons Active Preferred Share ETF Comm -0.5 1.8 5.9 4.9 6.3 -1.3 0.9 — 9.9 7.9 4 — 0.657 IA Clarington Strategic Equity Income F 1.4 1.5 5.1 10.0 7.9 7.2 10.4 — 6.9 6.5 4 — 0.928 Manulife Dividend Income F -0.1 -0.5 6.3 16.2 14.7 12.5 — — 6.5 — 7 — 1.20




Fund Category

12.0

10.0

8.0

6.0

4.0

2.0

0.0

-2.0

-4.0

-6.0

-8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0

7

6

4 3

21


This category includes a number of traditional dividend-focused mandates, i.e., funds with big exposure to�nancials, utilities and other areas that have historicallyoffered good dividend yields. It also includes products

that were at one time focused on income trusts. Thesemandates continue to hold REITs as well as securitiesthat were formally structured as trusts, but they alsohave the �exibility to move into traditional dividend

payers. Dividends have historically represented asigni�cant component of long term returns for equities.


33


BMO Canadian Dividend ETF New





Equity Style


Mid

Small

Market Cap %

22.4Giant

28.7Large43.1Medium

5.9Small

0.0Micro


3.3Vermilion Energy Inc3.3Capital Power Corp3.0Veresen Inc2.7Bank of Nova Scotia2.7Agrium Inc



9101112131415


Benchmark


— — — — — — 7.9 17.0 8.5 -5.4 — Total Return %0.7 4.0 -2.1 3.0 +/- Benchmark %* ) ( ) & Quartile




Alpha -2.80 0.81 Standard Deviation 9.19 8.65Beta 0.96 0.82 Bmrk Standard Deviation 8.34 8.43R-Squared 0.75 0.65 Upside Capture 0.84 0.84Information Ratio -0.72 -0.08 Downside Capture 1.08 0.75

GPAG's Take

We are fans of the methodology behind BMO's dividendmandates. Companies are selected based on yield, threeyear dividend growth rates and payout ratios. ZDV hasone of the highest yields and lowest MERs in its

category. Investors should note that ZDV has a higherweighting to energy and a lower allocation to �nancialsthan some of its competitor funds. From an overall sectorperspective, however, ZDV offers a more balanced

portfolio than its competitors.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

ZDVOct 2011

4.1

0.39

Benchmark

Category


Cdn Equity Income/Dividend

34


BMO Monthly High Income II F





Equity Style


Mid

Small

Market Cap %

32.0Giant

23.3Large43.1Medium

1.6Small

0.0Micro


5.2The Toronto-Dominion Bank4.5Bank of Nova Scotia4.2Royal Bank of Canada4.1Manulife Financial Corp4.0Pembina Pipeline Corp



7101316192225


Benchmark


2.6 7.4 -26.9 35.9 22.2 11.8 9.0 15.6 5.1 -8.6 — Total Return %-14.6 -2.5 6.1 0.8 4.6 20.5 1.8 2.6 -5.5 -0.2 +/- Benchmark %) & * & & & * ( ) ( * Quartile







GPAG's Take

This product, overseen by Kevin Hall and MicheleRobitaille of Guardian Capital, began its life as anincome trust offering in 1996. That said, there hasn'tbeen a big shift in the type of names the fund holdsmany former trusts that still offer attractive yields,although the entire universe of dividend paying Canadian

stocks is game for this fund. Each manager focuses on ahandful of the GICS sectors. The portfolio has barely anyforeign exposure, and management strives to keep thisoffering a bit different from plain vanilla dividend funds.The benchmark followed consists of 80% equity incomenames and 20% REITs. The fund continues to pay a

monthly distribution (which equates to a yield in the5-6% range), but investors should expect a good chunk ofthe payouts to come in the form of return of capital.

Fund Stats


MER %

Trailing Yield %

Fund Code

GGF732

5.6

0.76

Benchmark

Category



Fund Manager Michele RobitailleKevin Hall

Manager Start DateOct 2002


Jun 2003

35


CI Signature Dividend Class F





Equity Style


Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM


2.6Bank of Nova Scotia1.7Citigroup Inc1.7Enbridge Inc1.6Synchrony Financial1.6P�zer Inc



7101316192225


Benchmark


11.5 -4.6 -22.6 32.8 10.0 -0.3 10.4 16.2 12.3 -0.6 — Total Return %-5.1 -1.6 -2.9 21.3 1.9 0.5 -0.5 -8.4 -0.3 -13.0 +/- Benchmark %) ) * & * & & ) & ) & Quartile







GPAG's Take

Once upon a time, preferred shares were a staple of anyproduct that called itself a dividend fund. Today, thereare only a handful of products that have any exposure topreferreds at all. This is one of them. Signature'sinvestment grade corporate bond expert, John Shaw,handles the preferred component, which usually makesup about 30% of the portfolio, and the �rm's �nancial

services guru, John Hadwen, is a key contributor giventhat �nancial services companies make up a big part ofthe preferred market. The rest of the fund consists ofhigher yielding common stocks from Canada, the U.S.and elsewhere, and foreign exposure in the portfoliotends to be a signi�cant weighting. The composition ofthis fund means its volatility will tend to be low, but it

still has the ability to provide a decent stream of income.The allocation to preferreds also suggests that this fundmay suffer more than funds that invest entirely incommon equity in an environment of rising rates.

Fund Stats

Fund Manager John HadwenEric Bushell, B.A.




MER % 1.32

Trailing Yield %

Fund Code

CIG444

Oct 1999 1.9

Benchmark

Category

Morningstar CAN Bal Glbl Agg CAD


36


Dynamic Equity Income Series F



57.3Canadian Equity31.5US Equity



Equity Style


Mid

Small

Market Cap %

56.5Giant


1.1Micro


3.9TransCanada Corp3.8Bank of Nova Scotia3.8Royal Bank of Canada2.9Canadian Imperial Bank of Commerce2.7Innergex Renewable Energy Inc



7101316192225


Benchmark


1.4 8.3 -24.0 31.6 23.3 10.7 6.0 13.3 8.8 2.7 — Total Return %-15.9 -1.6 9.0 -3.4 5.7 19.5 -1.2 0.4 -1.8 11.0 +/- Benchmark %) & & * & & ) ) * & ( Quartile







GPAG's Take

This is an all-equity offering that focuses on higheryielding stocks from a host of sectors, and U.S. namesnow make up a fairly large portion of the portfolio. It isoverseen by a deep team of investment professionalsthat is led by long-time Dynamic PM Oscar Belaiche. Infact, the 19 investment professionals on the equity

income team makes it by far 1832's largest. Theobjective of this portfolio is to achieve long-term annualreturns in the mid to high single digits with much of thatconsisting of distribution income. The monthly payout forthe fund equates to an annual yield of a bit less than 5%- although a good chunk of that is return of capital at this

point. This fund now has a track record in excess of tenyears and it has been a consistent creator of wealth fordevotees.

Fund Stats

Fund Manager Jason Gibbs, B.A.Oscar Belaiche, B.A.

Manager Start DateJul 2001



MER % 1.01

Trailing Yield %

Fund Code

DYN230

Jan 2015 4.9

Benchmark

Category



37


Franklin Bissett Canadian Dividend Fund F





Equity Style


Mid

Small

Market Cap %

36.4Giant


1.2Micro


5.9Canadian Imperial Bank of Commerce5.9Royal Bank of Canada5.7The Toronto-Dominion Bank4.7Bank of Nova Scotia4.5Bank of Montreal



9101112131415


Benchmark


— — — — — — — — — — — Total Return %— +/- Benchmark %

Quartile


1 Mth 3.4 2.2 13 Mth 5.9 4.1 16 Mth 10.3 8.8 11 Yr — — —2 Yr — — —3 Yr — — —5 Yr — — —10 Yr — — —


Alpha — — Standard Deviation — —Beta — — Bmrk Standard Deviation — —R-Squared — — Upside Capture — —Information Ratio — — Downside Capture — —

GPAG's Take

Ryan Crowther and Les Stelmach lead the effort here. Allof the stocks that end up in the portfolio are pulled fromthe Bissett's research pool. A GARP philosophy isfollowed, but management focuses on stocks withdecent dividend yields and solid dividend growthcharacteristics. The target equity yield is 1.5x thebenchmark. Valuation work is driven by DCF analysis.

The cash �ow pro�les for many businesses differsigni�cantly from their earnings pro�les due toinvestment and working capital requirements. For astock to make it into the fund it must pay a dividend andits cash �ow must be enough to support the continuedpayment of dividends. Management prefers companieswith strong balance sheets, very little leverage, and

lower amounts of capital expenditures. Firms with lowcapex are able to generate higher cash �ows andtherefore are in a better position to sustain theirdividend.

Fund Stats


MER %

Trailing Yield %

Fund Code

TML1020

0.0

1.22

Benchmark

Category


Canadian Equity

Fund Manager Les Stelmach, B.A.Ryan Crowther, B.C.



Dec 2012

38


Horizons Active Preferred Share ETF Common New


0.6Cash2.0Fixed Income0.1Canadian Equity0.0US Equity0.0International Equity

97.3Other


Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %

25.8High34.2Medium

0.0Low40.0NR/NA


1.7Bank of Nova Scotia Pfd1.6Toronto Dominion Bank Pfd1.4Enbridge Pfd1.4National Bank Of Canada Pfd1.3Toronto Dominion Bank Pfd



89

1011121314


Benchmark


— — — — — — — -3.8 7.1 -10.7 — Total Return %-5.8 -5.5 -1.2 0.3 4.3 +/- Benchmark %& & & * * * Quartile


1 Mth -0.3 -0.7 23 Mth 2.0 1.5 26 Mth 6.2 5.7 31 Yr 5.9 5.6 22 Yr -4.3 -6.4 23 Yr -1.2 -2.6 25 Yr 0.9 -0.5 210 Yr — — —



GPAG's Take

This is an active ETF and we believe this sort of strategyin the preferred share arena is bene�cial for investorslooking to navigate the space given the volatility of thepref space at this time. The active nature of the

mandate allows for the sub advisor, Fiera Capital, to takeadvantage of areas of opportunity it sees in the market; i.e. credit downgrades, redemption potential, mispricing,etc. HPR has consistently outperformed the S&P/TSX

Preferred Share Index over the last several years. Wealso believe that HPR's slightly higher MER than itspassive competitors is justi�ed given its active nature.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

HPRNov 2010

4.5

0.65

Benchmark

Category

S&P/TSX Preferred Share TR

Canadian Equity

39


IA Clarington Strategic Equity Income Fund F






Equity Style


Mid

Small

Market Cap %

39.5Giant

26.8Large25.7Medium

8.1Small

0.0Micro


3.1Loblaw Companies Ltd3.0Royal Bank of Canada2.9BCE Inc2.9Waste Connections Inc2.8TransCanada Corp



8101214161820


Benchmark


— — — — — — 10.8 19.6 12.5 -1.6 — Total Return %3.6 6.7 1.9 6.8 +/- Benchmark %& & & * ) Quartile





GPAG's Take

Manager Dan Bastasic moved to IA Clarington fromMackenzie in June 2011. At that time, he was handedthe keys to this and a number of other funds. The focushere is on dividend-paying stocks. Bastasic valuescompanies on a going concern basis as well as on aliquidation basis. He suggests the approach is 80%

bottom up and 20% top down. The macro view helpsdetermine what the risk level in the portfolio looks like.When analyzing individual securities, the process beginsby looking at EBITDA, return on invested capital and freecash �ow. He digs deeper by taking a look at accountingpractices, management, competition, and capital

structure. Bastasic is a patient investor and has noproblem holding a good amount of cash whenopportunities are scare. We have been very pleased withhis efforts on this fund.

Fund Stats

Fund Manager Dan Bastasic

Manager Start Date

Fund Inception August 29, 2011


MER %

Trailing Yield %

Fund Code

CCM3503Aug 2011

1.8

0.92

Benchmark

Category



40


Manulife Dividend Income Fund Series F New





Equity Style


Mid

Small

Market Cap %

21.7Giant

36.2Large35.8Medium

5.2Small

1.1Micro


5.2Canada T-Bill 20-04-20174.3Open Text Corp3.8Brook�eld Asset Management Inc Class A3.4Restaurant Brands International Inc3.3Canadian Paci�c Railway Ltd



8101214161820


Benchmark


— — — — — — — 26.6 20.6 0.0 — Total Return %13.6 10.0 8.4 +/- Benchmark %& & & * Quartile


1 Mth -0.1 2.2 43 Mth -0.5 4.1 46 Mth 6.3 8.8 31 Yr 14.7 15.5 12 Yr 7.9 4.3 13 Yr 12.5 7.2 15 Yr — — —10 Yr — — —


Alpha 7.46 — Standard Deviation 6.46 —Beta 0.59 — Bmrk Standard Deviation 8.34 —R-Squared 0.59 — Upside Capture 0.88 —Information Ratio 1.00 — Downside Capture 0.22 —

GPAG's Take

This offering is overseen by Toronto-based Alan Wicksand his 10-person investment team. The group has atrack record of success on multiple Manulife funds,including the �rm's �agship Monthly High Incomeoffering. Stocks are evaluated using a discounted cash

�ow approach, but the key to the process is determiningthe appropriate discount rate. This �gure will be afunction of risks related to the company, its industry, etc.That said, if they identify any uncertainty with respect toa company, they simply don't invest in it. Cash can be

high at times and management is not shy about investingin the U.S. While this fund does have an enviable trackrecord, we believe it is the team backing it that makes itworthy of our Recommended List.

Fund Stats


MER %

Trailing Yield %

Fund Code

MMF4629

1.9

1.20

Benchmark

Category



Fund Manager Alan Wicks, B.A.Jonathan Popper

Manager Start DateMar 2012


Mar 2012

41


Canadian Small-CapBenchmark



1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER1 Dynamic Small Business Series F 1.6 1.0 7.1 20.3 16.1 9.1 9.0 — 7.5 6.9 8 — 1.332 Fidelity Canadian Opportunities Sr F -0.9 0.7 7.6 22.5 22.2 8.9 10.2 8.4 9.2 8.0 5 — 1.133 IA Clarington Canadian Small Cap F 3.4 3.4 7.5 19.6 15.8 7.5 16.0 9.0 8.4 8.2 2 — 1.354 Manulife Growth Opportunities F 1.7 3.2 7.2 8.5 6.4 6.2 7.4 5.3 12.2 12.1 9 — 1.29




Fund Category

18.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0

4

3

21


According to Ibbotson Associates, small cap stocks haveoutperformed large caps over the very long term. Thereare several reasons for this. First, smaller companiesoften experience a disconnect between their stock pricesand their fundamentals due to their lack of visibilitywithin the investment community. Skilled investors areable to exploit this disconnect. Second, small caps are

often thinly traded and a well-performing company cansee rapid increases in its stock price as demand grows.Finally, small cap names are not widely followed by sellside analysts, meaning shrewd investors may be able touncover outsized winners. Small cap names also cancome with higher levels of volatility, but when properlyutilized, they can enhance the return pro�le of a

portfolio. A unique bene�t of global small cap funds isthat they allows investors to get exposure to companiesthat they likley would not be able to get exposure to inany other way.


42


Dynamic Small Business Series F






Equity Style


Mid

Small

Market Cap %

0.0Giant


6.5Micro


3.6Maple Leaf Foods Inc3.5Sleep Country Canada Holdings Inc3.2Morneau Shepell Inc3.1Seven Generations Energy Ltd3.0Waste Connections Inc



8101214161820


Benchmark


— — — — — 2.6 6.6 11.1 9.8 -3.0 — Total Return %10.4 1.9 -1.1 4.1 7.0 +/- Benchmark %& ( ) * ( & Quartile





GPAG's Take

Management duties for this fund were handed off toTom Dicker and Steve Hall in early 2014. Oscar Belaicheand Jason Gibbs remain named PMs on the strategy, buttheir roles are more passive. The feeling was that Dickerand Hall would be very effective leads on the strategygiven their backgrounds. Dicker focuses on real estateideas; Hall brings expertise in the consumer space to thetable, and many ideas are sourced from other membersof the Dynamic's very deep equity income team. Perhapsmost notably, Jennifer Stevenson plays a key role in

picking the energy names that end up in the fund.Management looks for high quality companies that arerunning with great business models that are fairly simpleto understand. They want to invest in companies withlimited amounts of competition, solid levels of free cash�ow and a dividend is preferable, but not a requirement.If there is no dividend, management wants to be surethat the company in question is generating a solidamount of free cash �ow where the possibility of aneventual dividend introduction exists. The fund’s focus is

on companies with market caps of less than $10 billionand it rarely dabbles in names with sub-$100 millionmarket caps. The sweet spot market cap for the fund isthe $1 billion to $5 billion range. The fund has becomemore concentrated since Dicker and Hall took over, andthe hefty cash allocation that the fund had historicallyheld has been reduced.

Fund Stats

Fund Manager Tom DickerSteve Hall




MER % 1.33

Trailing Yield %

Fund Code

DYN1287

Jan 2014 2.1

Benchmark

Category

S&P/TSX Completion

Cdn Small Cap

43


Fidelity Canadian Opportunities Sr F





Equity Style


Mid

Small

Market Cap %

4.5Giant


19.8Micro


5.6Constellation Software Inc4.0Metro Inc3.6PrairieSky Royalty Ltd3.0Loblaw Companies Ltd2.5Rogers Communications Inc Class B



6101418222630


Benchmark


10.3 13.5 -35.8 62.5 26.4 -9.1 11.1 17.5 10.6 -7.8 — Total Return %-3.4 7.7 3.0 14.9 -3.9 -1.3 6.3 5.2 4.9 2.2 +/- Benchmark %( * & & ( * * ( & ( & Quartile







GPAG's Take

Hugo Lavallee has been the lead PM on this mandatesince September 2008 and he started as co-manager in2006. A stock by stock approach is followed, but macrothemes do play a role in the process. The fund focuseson mid-cap plays, although Lavallee has the �exibility toget involved in very small or very large opportunities. Hisbenchmark is the S&P/TSX Completion Index and thefund's average market cap is more than $2 billion, socomparisons to small cap benchmarks may be a bit

misleading. To assess valuation, he considers P/E, PE/G,EV/EBITDA and P/CF. He has a slight value bias and heeven owns a few Graham/Dodd-style value names. Riskcontrol is a very important consideration and he is notcomfortable having much more than 5% of the fund’sassets in any single name but he is comfortable makingactive sector bets. He is also comfortable aggressivelyrepositioning the portfolio accordingly when he seeschallenges or opportunities on the horizon and he is not

afraid to hold signi�cant amounts of cash. Our view isthat Lavallee has been an extremely effective portfoliomanager and his bold calls have bene�tted investors.Just note that the portfolio's high level of turnover maylead to big year end capital gains distributions duringgood times.

Fund Stats


MER % 1.13

Trailing Yield %

Fund Code

FID615

0.6

Benchmark

Category

S&P/TSX Completion

Cdn Small Cap

Fund Manager Hugo Lavallée

Manager Start Date


Dec 2006

44


IA Clarington Canadian Small Cap F





Equity Style


Mid

Small

Market Cap %

0.0Giant


2.5Micro


6.1Canadian Western Bank5.5AltaGas Ltd4.5Parkland Fuel Corp4.3Lassonde Industries Inc4.3Laurentian Bank of Canada



6101418222630


Benchmark


11.3 10.5 -32.0 31.5 15.6 -1.8 22.0 39.6 7.6 -5.3 — Total Return %-2.5 4.7 6.8 -16.1 -14.7 6.1 17.3 27.3 1.9 4.7 +/- Benchmark %( * & ) ) & & & * ( & Quartile







GPAG's TakeThe team from QV Investors that oversees this fundhunts for quality companies, all of which have to have amarket cap less than the average market cap of the BMOSmall Cap index (about $2 billion currently). A number ofthe names in the fund have grown into much biggercompanies, and management is ok with that. Theapproach can accurately be described as being GARP.

Companies with steady ROEs, low debt levels, strongmanagement and reasonable valuations are idealcandidates for the portfolio. Joe Jugovic and Ian Cookehave the �nal say in terms of what makes it into thefund. Management has a list of portfolio objectives thatit believes will lead to superior performance over time.These include maintaining: (1) overall valuation at a more

attractive level than the benchmark; (2) a portfolio withbetter growth characteristics than the benchmark, and;(3) better credit quality overall than the benchmark.Additionally, when dealing with smaller �rms, companymanagement is always a crucial consideration.

Fund Stats

Fund Manager Joe JugovicIan Cooke, B.A./B.S.




MER % 1.35

Trailing Yield %

Fund Code

CCM1450

Jan 2003 1.0

Benchmark

Category

S&P/TSX Completion

Cdn Small Cap

45


Manulife Growth Opportunities Fund Series F





Equity Style


Mid

Small

Market Cap %

0.0Giant


4.1Micro


4.0AGT Food and Ingredients Inc4.0Richelieu Hardware Ltd3.8Parex Resources Inc3.2Crew Energy Inc3.1Chemtrade Logistics Income Fund



47

1013161922


Benchmark


11.3 5.4 -39.7 59.7 31.1 -14.6 -0.4 27.5 6.8 0.2 — Total Return %-2.5 -0.4 -0.9 12.0 0.7 -6.8 -5.2 15.3 1.0 10.2 +/- Benchmark %( ( * * * ( ) * * & ) Quartile







GPAG's Take

Manager Ted Whitehead seeks companies that underpromise and over deliver, and to that end, his approachcombines a quantitative screen with fundamentalanalysis. He focuses on mid cap names, although thereare a number of smaller ideas in the portfolio. The stocksin Whitehead's universe are �rst sorted from best toworst using metrics such as P/B ratio, price momentum,earnings revisions and earnings surprises. The bias is for

growth companies. These quantitative factors are usedbecause back testing indicates that favourable numberstend to lead to value creation. The names are re-sortedby sector, basic fundamental analysis is conducted, andthe top names from each sector are scrutinized further.Ultimately, the portfolio will have representation from allsectors. To control risk, Whitehead limits sector weightsto +/-3% versus the benchmark and individual stocks

weightings remain within 2% of the benchmark. Hetypically monitors between 100 and 125 names and thereare usually about 90 stocks in the portfolio. Liquidity isan important consideration and the fund's foreign equityexposure will not exceed 10% to ensure it remains in theCanadian Focused Small Cap category.

Fund Stats


MER % 1.29

Trailing Yield %

Fund Code

MMF688

0.6

Benchmark

Category

S&P/TSX Completion

Cdn Small Cap

Fund Manager Ted Whitehead, B.C.

Manager Start Date


Nov 1998

46


Canadian Fixed IncomeBenchmark

BofAML Canada Broad Market TR CAD


1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER1 BMO Aggregate Bond ETF -2.0 -2.7 -0.1 2.0 3.2 4.4 3.4 — 4.0 3.7 — 8 0.212 Dynamic Canadian Bond Series F -0.8 -0.6 0.2 1.3 1.7 2.7 2.7 — 2.2 2.3 — 5 0.853 Fidelity Canadian Bond Sr F -2.0 -2.6 0.0 2.2 3.1 4.2 3.4 4.4 3.9 3.6 — 8 0.674 Horizons Active Corporate Bond ETF Comm -1.2 -1.1 1.6 3.9 4.4 4.1 4.3 — 3.1 3.0 — 5 0.605 PH&N Total Return Bond F -2.0 -2.6 0.1 2.7 3.7 4.6 3.8 — 4.0 3.6 — 8 0.616 TD Canadian Bond - F -2.0 -2.6 0.0 2.2 3.2 4.0 3.3 4.5 3.7 3.5 — 8 0.617 Vanguard Canadian Short-Term Bond ETF -0.5 -0.3 0.3 0.8 1.3 2.0 2.0 — 1.4 1.3 — 1 0.11

BofAML Canada Broad Market TR CAD -2.1 -2.9 -0.1 2.2 3.4 4.8 3.7 4.8 4.1 3.8 — — —



Fund Category

5.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

1.4 1.8 2.2 2.6 3.0 3.4 3.8 4.2 4.6 5.0

6

5

4

3

2

1


High quality domestic bonds generally have low levels ofcorrelation versus equities and a fund of suchinstruments can be an effective portfolio diversi�er.Given how razor thin yields are at this point, fees are animportant consideration when assessing bond funds, butour view is that talented managers do exist in this spaceand value can be added by an active manager. We often

use a simple analogy when describing the bene�t ofbonds in a portfolio. Imagine that the portfolio is a car.The engine is the equity component that drives the car,or the portfolio, forward. In the event of a crash, it paysto have some protection in the form of seatbelts, airbags,etc. Using the car analogy, the protection comes in theform of the bond component. It is important to

remember, however, that bond prices have an inverserelationship with interest rates. In a rising rateenvironment, it is possible for bond funds to go down invalue.


47


BMO Aggregate Bond Index ETF New





Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %

66.6High31.8Medium

0.0Low0.9NR/NA


21.5BMO Short Federal Bond ETF16.5BMO Long Provincial Bond ETF15.4BMO Short Corporate Bond ETF10.0BMO Mid Provincial Bond ETF

8.3BMO Short Provincial Bond ETF



9101112131415


Benchmark


— — — — — 7.0 3.7 -1.1 6.9 2.2 — Total Return %-2.6 1.5 1.2 -0.5 -1.5 +/- Benchmark %& ( ( & & * Quartile


1 Mth -2.0 -2.1 33 Mth -2.8 -3.1 36 Mth -0.1 -1.0 31 Yr 3.2 1.7 22 Yr 3.1 2.4 13 Yr 4.4 3.6 15 Yr 3.4 2.5 210 Yr — — —



GPAG's Take

BMO slashed it he management fee on ZAG in 2016making it a very appealing option for investors lookingfor exposure to the Canadian broad bond market. For a

management for of only 9bps, ZAG is now the cheapestETF of its kind. It also trades very well, generally withpenny-wide spreads.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

ZAGJan 2010

3.1

0.21

Benchmark

Category

Citi Canadian GBI CAD

Canadian Fixed Income

48


Dynamic Canadian Bond Series F





Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %

58.0High39.2Medium

0.0Low1.2NR/NA


5.1Canada Govt 4.25% 01-12-20215.1Canada Govt 0.25% 01-05-20184.4Ontario Prov Cda 2.85% 02-06-20234.4Ontario Prov Cda 3.15% 02-06-20223.3Quebec Prov Medium Term Nt Cds 2.75%

01-09-2025



9101112131415


Benchmark


— — — — — 7.8 3.7 -0.2 5.2 2.3 — Total Return %-1.8 1.5 2.1 -2.2 -1.5 +/- Benchmark %* * & ) * ) Quartile


1 Mth -0.8 -2.1 13 Mth -0.6 -3.1 16 Mth 0.2 -1.0 21 Yr 1.7 1.7 42 Yr 1.8 2.4 33 Yr 2.7 3.6 45 Yr 2.7 2.5 310 Yr — — —



GPAG's Take

Manager Michael McHugh has been at the helm of thisfund since 1998 and he has provided investors withconsistent returns while keeping volatility at low levelsrelative to this fund's peer group. The approach relies ontechnical analysis and focuses on shifts in both durationand the yield curve. McHugh believes that fundamentalanalysis leaves room for subjective errors so having anobjective tool is important. Domenic Bellissimo and Bill

Kim work closely with McHugh and the team leveragesthe efforts of 1832's newly-formed credit research group.The portfolio’s corporate bond weighting is dependentupon economic conditions and market perceptions.Government bonds are seen as being safe haven vehiclesand the primary decision is whether or not to overweightcredit. If the credit pro�le of a company is improving, itsweighting will be increased. Relative value trades are

another part of the approach and McHugh feels that theoverlapping of strategies has allowed him to uncoveropportunities on an ongoing basis. The fund has beenrunning with a low duration for some time, so returnsversus the benchmark have been challenged, but lowduration also means investors will have some protectionin a rising rate environment.

Fund Stats

Fund Manager Michael McHugh, M.A.

Manager Start Date



MER %

Trailing Yield %

Fund Code

DYN1342Nov 1998

3.1

0.85

Benchmark

Category



49


Fidelity Canadian Bond Sr F




Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %

52.7High45.6Medium0.0Low1.3NR/NA


3.2Ontario Prov Cda 4.2% 02-06-20202.8Ontario Prov Cda 2.85% 02-06-20232.5Canada Govt 5.75% 01-06-20332.2Canada Govt 5% 01-06-20371.9Ontario Prov Cda 2.6% 02-06-2025



8101214161820


Benchmark


3.6 2.7 4.7 7.1 6.7 8.8 4.0 -1.5 8.3 2.7 — Total Return %0.1 -2.3 -7.3 8.8 0.5 -0.8 1.8 0.8 0.8 -1.0 +/- Benchmark %& & & * * & * ( & & * Quartile


1 Mth -2.0 -2.1 33 Mth -2.6 -3.1 36 Mth 0.0 -1.0 31 Yr 3.1 1.7 22 Yr 2.7 2.4 13 Yr 4.2 3.6 15 Yr 3.4 2.5 110 Yr 4.4 4.1 1




Fund 1.9Benchmark 6.6

GPAG's Take

Catriona Martin and Sri Tella head up Fidelity's Canadian�xed income efforts and work closely together on thismandate. The team of credit and quant analysts backingthe two PMs is very deep as well. The talents ofFidelity’s broader �xed income team are also leveragedwherever possible and management has the bene�t ofbeing able to tap into Fidelity’s huge pool of equity

analysts when working on credit. The fund is duration-neutral for the most part and it is almost alwaysoverweighted in spread products such as corporates,provincials, etc. The logic there is that if you start outwith more yield, you don’t have to do much to win.Management does not make top down rate or curve betsand trades are made opportunistically. There are

typically 100 to 150 securities in the portfolio. Thesources of value-add for the fund as are as follow: sectorselection – 60% to 80%; security selection – 10% to30%; yield curve positioning; 0% to 10%.

Fund Stats


MER %

Trailing Yield %

Fund Code

FID633

2.6

0.67

Benchmark

Category



Fund Manager Catriona MartinSrikanth Tella

Manager Start DateApr 2015


Jul 2007

50


Horizons Active Corporate Bond ETF Common New





Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %

12.4High81.4Medium

1.9Low2.4NR/NA


2.2Bk N S Halifax FRN 18-10-20241.6Hm Tr 3.4% 10-12-20181.6Lavalin Innisfree Mcgill 6.63% 30-06-20441.5Health Montreal Cl 144A 6.721% 30-09-20491.4Cibc Cap Tr FRN 30-06-2108



9101112131415


Benchmark


— — — — — 7.0 3.7 -1.1 6.9 2.2 — Total Return %-2.6 1.5 1.2 -0.5 -1.5 +/- Benchmark %( & & ( * & Quartile





GPAG's Take

This is an actively managed ETF which is overseen byFiera Capital. To achieve the ETF’s investment objectives,the Fiera uses technical, macro-economic andfundamental credit research to select companies that,

based on growth prospects for the company and itsindustry, are believed to offer superior risk adjustedreturns. Management also has the �exibility to makecalls on duration and yield curve positioning. We believe

this �exibility justi�es the slightly higher cost this ETFhas versus its primary passive competitor, XCB.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

HABJul 2010

3.4

0.60

Benchmark

Category



51


PH&N Total Return Bond F





Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %

62.6High29.6Medium

0.7Low5.9NR/NA


5.2Ontario Prov Cda 7.6% 02-06-20274.4Canada Govt 0.75% 01-09-20213.8Canada Govt 0.5% 01-03-20222.7Ontario Prov Cda 3.5% 02-06-20432.4Ontario Prov Cda 6.2% 02-06-2031

18.5% Portfolio in Top 5 holdings1,741Total Number of Portfolio Holdings


8101214161820


Benchmark

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Calendar Year

— — 0.9 11.2 6.5 8.1 3.9 -1.0 8.6 3.1 — Total Return %-11.1 12.9 0.3 -1.4 1.7 1.3 1.1 -0.6 +/- Benchmark %

( & * * * * & & Quartile






Fund -2.2Benchmark 6.6

GPAG's Take

PH&N is one of Canada’s largest bond managers and the�rm was acquired by RBC in 2008. The company's �xedincome desk has been in existence since 1984 and morethan 30 investment professionals contribute to thecause. The primary objective at PH&N is to add valuewhile controlling risk. The Will John-led managementteam backing this fund has no trouble getting veryconservative when deemed appropriate. Management

aims to exploit differences between its economic andmarket outlook and the market’s. This is done by playingthe yield curve and through active duration calls. Oncethe market call has been established, managementconsiders the issuers it is interested in and extensiveresearch is conducted during the security selectionprocess. PH&N also has developed a proprietary risk-management system, BondLab. This helps to increase

�exibility and transparency and allows for improvedperformance attribution. This fund builds on PH&N’splain vanilla bond mandates in that it is enabled to usederivatives to implement strategies where appropriate. Itcan have up to 70% of its assets in credit, and it mayhold a bit of high yield through the PH&N High YieldBond fund. Fees on this mandate are also razor thin.

Fund Stats

Fund Manager PH&N Team

Manager Start Date



MER %

Trailing Yield %

Fund Code

RBF5340Oct 2015

2.6

0.61

Benchmark

Category



52


TD Canadian Bond - F





Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %

59.2High32.4Medium

0.0Low8.4NR/NA


3.3Canada Govt 3.5% 01-12-20453.1Canada Govt 4% 01-06-20412.8Canada Govt 5% 01-06-20372.0Ontario Prov Cda 2.9% 02-12-20461.8Ontario Prov Cda 5.6% 02-06-2035



8101214161820


Benchmark


3.0 2.2 3.0 10.4 6.7 8.9 4.0 -1.4 7.8 2.7 — Total Return %-0.5 -2.8 -9.0 12.1 0.6 -0.7 1.8 0.8 0.4 -1.0 +/- Benchmark %( * ( & * & * * * & * Quartile


1 Mth -2.0 -2.1 23 Mth -2.6 -3.1 36 Mth 0.0 -1.0 21 Yr 3.2 1.7 22 Yr 2.7 2.4 13 Yr 4.0 3.6 15 Yr 3.3 2.5 210 Yr 4.5 4.1 1




Fund 0.1Benchmark 6.6

GPAG's Take

Rob Pemberton, head of TDAM's �xed income group,oversees this mandate on a day-to-day basis, and theeffort is supported by a deep team of fundamental andquant analysts. The objective here is to achieve superiorrisk-adjusted returns with consistency and sustainabilityover the long term. The �rst step of the process is toestablish a long-term macroeconomic outlook.Management then puts its quantitative toolkit to work.

Here, risks and opportunities are measured, correlationsand volatility are evaluated and detailed risk/returnmodels are developed. Next, management ensures theproper risk management elements are in place. Once thispart of the process is completed, the securitiessometimes just fall into place. When it comes tocorporate debt, securities are typically held to maturityand issues with more than 10 years to maturity are not

purchased. Duration is never changed quickly, and anyshifts are taken care of by fund �ows. The durationposition is intended to exploit a 10-year trend. Corporatedebt has almost always been a huge overweight,typically making up 50% to 70% of assets. The allocationto credit is so high because these issues pay juicer yieldsthan government bonds.

Fund Stats

Fund Manager Rob Pemberton

Manager Start Date



MER %

Trailing Yield %

Fund Code

TDB406Dec 2013

2.7

0.61

Benchmark

Category



53


Vanguard Canadian Short-Term Bond Index ETF New





Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %



3.7Canada Govt 3.75% 01-06-20192.9Canada Govt 1.25% 01-02-20182.6Canada Govt 0.75% 01-03-20212.6Canada Govt 0.75% 01-09-20212.6Canada Govt 0.25% 01-05-2018



9101112131415


Benchmark


— — — — — — 1.7 1.1 2.4 1.8 — Total Return %0.7 0.2 -1.7 -1.8 +/- Benchmark %* & * & ( Quartile





GPAG's Take

VSB is the cheapest Canadian short term bond ETF outthere. The ETF uses an index sampling strategy thatholds over 300 bonds with about 70% of that in

government and 30% in corporates. VSB tracks theBloomberg Barclays Global Aggregate Canadian Credit1-5 Year Float Adjusted Bond Index. This ETF trades very

well so investors should have no trouble getting in andout of positions.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

VSBNov 2011

2.4

0.11

Benchmark

Category

Citi Canadian GBI 3-5 Yr CAD


54


High Yield BondBenchmark

Barclays Global High Yield TR CAD


1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER1 Fidelity American High Yield Curr Neut F -0.3 0.1 4.6 10.2 7.4 3.8 6.8 6.2 5.4 5.2 4 6 1.102 Horizons Active High Yield Bond ETF Comm 0.0 1.0 6.6 13.3 10.4 3.7 — — 6.1 — — 6 0.703 Mackenzie Corp Bond F -0.5 0.4 4.7 10.2 7.2 2.8 5.6 5.2 5.3 4.7 2 6 0.984 PIMCO Monthly Income F -0.4 0.7 3.3 6.6 5.7 5.6 9.6 — 2.8 3.9 — — 0.84

Barclays Global High Yield TR CAD -1.3 1.3 7.2 8.7 11.2 11.9 13.6 9.0 7.4 6.3 — — —



Fund Category

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

-2.0

-2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

4

3

2

1


The high yield bond universe consists of corporate debtissues that are rated BB or lower. These issues comewith a higher risk of default versus investment gradeissues, but in exchange for that higher level of risk,

investors earn a higher yield. High yield bonds typicallyhave a low correlation to both equities and investmentgrade bonds. Note that the Canadian high yield market isvery small and most funds in this category invest heavily

in the U.S. and abroad. You will �nd that most productsin the category tend to hedge a signi�cant portion oftheir foreign currency exposure.


55


Fidelity American High Yield Curr Neut F





Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %

0.0High6.7Medium

68.9Low24.2NR/NA


1.7Gmac 8% 01-11-20311.3Apx Grp 8.75% 01-12-20201.0Engy Future Intl Hldg 11.75% 01-03-20220.9Mhge Parent LLC/Fin 144A 8.5% 01-08-20190.9Ally Finl 5.75% 20-11-2025



6101418222630


Benchmark


— 0.1 -21.6 44.1 12.9 3.7 14.9 6.2 3.7 -2.7 — Total Return %12.6 -13.0 8.7 4.1 -2.0 -2.1 -8.4 -5.3 -19.3 +/- Benchmark %* ( & & ( & * * ( * Quartile


1 Mth -0.3 -1.3 23 Mth 0.1 1.3 26 Mth 4.6 7.2 21 Yr 7.4 11.2 22 Yr 3.0 12.1 23 Yr 3.8 11.9 35 Yr 6.8 13.6 110 Yr 6.2 9.0 1





GPAG's Take

Fidelity runs more high yield bond money than just aboutany other company in the world - roughly U.S. $70 billion- and its 30+ person high yield team is as deep as you'll�nd anywhere. The PM on this product is Harley Lank. Heis very much a bottom-up investor and it is crucial for himto understand the business he's looking at, its industryand its management. There are too many factors to keyin on when looking at things from the top down so hefocuses on bottom up research. Lank recognizes that

playing the high yield space is all about understanding acompany’s ability to cover its debt obligations. Heassesses the fund on a yield basis rather than on ratingbasis because ratings agencies often lag the market.He’ll be an aggressive manager from time to time but hegoes where there’s value. A key advantage for the highyield team is that it is located in Boston. That's wheremost of Fido's equity analysts and PMs are based, so anytime a company's executives come through the doors, the

high yield team is able to participate in any meeting. Inaddition, the team is able to leverage the efforts ofFidelity's equity research team. This fund invests entirelyin the debt issues of American companies and Fidelityoffers a currency neutral version of this fund. Our view isthat the currency neutral version is the ideal option formost clients.

Fund Stats

Fund Manager Harley Lank, M.B.A.

Manager Start Date


Total Assets as of 11-30-2016 $528 Mil Mil

MER %

Trailing Yield %

Fund Code

FID1655Aug 2007

5.1

1.10

Benchmark

Category


High Yield Bond

56


Horizons Active High Yield Bond ETF Common New





Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %

3.2High5.9Medium

73.0Low17.0NR/NA


2.0Sprint Nextel 6% 15-11-20221.9Hca 5.875% 15-03-20221.6Sprint 7.625% 15-02-20251.6T Mobile Usa 6.625% 01-04-20231.5Jbs Invts Gmbh 144A 7.75% 28-10-2020



8101214161820


Benchmark


— — — — — — — 4.5 4.5 0.5 — Total Return %-10.0 -4.5 -16.2 +/- Benchmark %& ( ) & Quartile


1 Mth -0.4 -1.3 13 Mth 0.2 1.3 26 Mth 5.7 7.2 11 Yr 10.7 11.2 12 Yr 2.4 12.1 23 Yr 3.2 11.9 35 Yr — — —10 Yr — — —


Alpha 0.83 — Standard Deviation 5.82 —Beta 0.17 — Bmrk Standard Deviation 7.39 —R-Squared 0.05 — Upside Capture 0.40 —Information Ratio -1.04 — Downside Capture 0.76 —

GPAG's Take

HYI is an actively managed high yield ETF. The sub-advisor, Fiera Capital, uses a combination of top-downand bottom-up analysis in order to achieve the fund's

objectives. More speci�cally, the investment team willseek to generate value where they feel they can takeadvantage of opportunities whether from their

positioning across the credit spectrum, security analysisand active duration management.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

HYIFeb 2012

5.8

0.70

Benchmark

Category


High Yield Bond

57


Mackenzie Corporate Bond Fund - F





Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %



2.8Cenovus Engy 6.75% 15-11-20391.4Brook�eld Res Pptys 144A 6.5% 15-12-20201.4Fairfax Finl Hldgs 7.375% 15-04-20181.2Fairfax Finl Hldgs 7.5% 19-08-20191.1Molson Coors Intl 3.95% 06-10-2017



6101418222630


Benchmark


9.2 0.3 -16.6 30.3 12.0 5.0 12.2 5.9 1.9 -3.7 — Total Return %-4.0 12.8 -8.1 -5.0 3.2 -0.7 -4.8 -8.7 -7.1 -20.4 +/- Benchmark %& * ( * & & * * ) ( * Quartile


1 Mth -0.5 -1.3 23 Mth 0.4 1.3 26 Mth 4.7 7.2 21 Yr 7.2 11.2 22 Yr 1.9 12.1 33 Yr 2.8 11.9 35 Yr 5.6 13.6 210 Yr 5.2 9.0 2





GPAG's Take

The Paul Scanlon-led team at Boston-based PutnamInvestments picked up the duties on this fund in early2011. Like Mackenzie, Putnam is controlled by PowerCorp. and the group behind this fund has been running asimilar product for Investors Group since 2008. Putnamruns more than U.S. $11 billion in high yield bond assets

and a team of roughly 20 investment professionalscovers the asset category for the �rm. The approach isvery process-driven and the team meets regularly todiscuss positioning. Half of the fund is in Canadianissues, the balance is in U.S. issues and all of the foreigncurrency exposure is hedged back into CAD, by policy.

The team behind this fund has a tremendous amount ofdepth, breadth, and experience - including in theCanadian market - and we believe this fund represents agood pure play option within the high yield bondcategory.

Fund Stats


MER %

Trailing Yield %

Fund Code

MFC056

4.7

0.98

Benchmark

Category


High Yield Bond

Fund Manager Paul Scanlon, M.B.A.Norman Boucher, M.B.A.



Jun 2011

58


PIMCO Monthly Income F New




Fixed Income Style

Ltd Mod ExtHigh

Medium Low

Credit Quality %

18.3High5.2Medium

30.3Low46.2NR/NA


10.7Fin Fut Us 10yr Cbt 12/20/16 21-12-20168.3Irs Aud 4.00000 03/15/13-10y Cme

15-03-20233.9Fin Fut Us 5yr Cbt 12/30/16 31-12-20163.8Canada T-Bill 26-01-20173.1Cdx Hy25 5y Ice 20-12-2020

29.7% Portfolio in Top 5 holdings1,239Total Number of Portfolio Holdings


8101214161820


Benchmark


— — — — — — 24.6 6.8 7.1 2.8 — Total Return %22.6 2.9 -2.6 -13.4 +/- Benchmark %& & * * & Quartile


1 Mth -0.4 -3.7 13 Mth 0.7 -3.8 16 Mth 3.3 -0.4 11 Yr 5.7 4.1 12 Yr 4.1 7.8 23 Yr 5.6 8.0 25 Yr 9.6 6.2 110 Yr — — —


Alpha 5.37 9.13 Standard Deviation 2.82 3.88Beta -0.08 -0.11 Bmrk Standard Deviation 8.91 7.49R-Squared 0.06 0.05 Upside Capture 0.17 0.35Information Ratio -0.25 0.38 Downside Capture -0.43 -0.83

GPAG's Take

PIMCO, the US$1.6 trillion Newport Beach, California-based money management �rm has just about all of itsassets in bonds or similar vehicles, and virtually all ofcompany's 700 investment professionals spend most oftheir time focused on the space. To suggest the �rm isperhaps the global subject matter expert is reasonable.The company offers a suite of products to Canadians,and we believe this one is the most compelling offering(it is, by far, the �rm's biggest fund as well). The fundstrives to generate a monthly income equal to about

4-4.5% annually. Half of the exposure is to higheryielding assets and the other half is in higher qualityassets that are a bit more defensive. Derivatives areused liberally to provide the exposure the PMs arelooking for. Duration can range from zero to eight years,it can have up to 50% in HY bonds and up to 20% in EMbonds. Additionally, at least 90% of its currencyexposure must be hedged back to CAD. The fund is moreconservative than a typical HY bond fund and it is notsubject to big currency swings, like many global bond

funds are. At this time, duration is under three years andthe bulk of the exposure is to mortgage bonds andsovereign debt at this time. The fund has CIFSC classi�esthis as a global bond fund, but we are placing it amongthe two high yield bond funds on the Recommended List.Frankly speaking, this fund is quite unique and de�esclassi�cation.

Fund Stats


MER %

Trailing Yield %

Fund Code

PMO205

6.0

0.84

Benchmark

Category

Barclays Global Aggregate TR CAD

High Yield Bond

Fund Manager Alfred Murata, Ph.D.Daniel Ivascyn, M.B.A.



Jan 2011

59


U.S. EquityBenchmark

S&P 500 TR (Bank of Canada) CAD


1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER1 AGF American Growth Class Series F 3.3 4.0 7.5 2.2 4.7 14.8 19.0 8.3 15.0 13.4 7 — 1.222 BMO US Dividend ETF (CAD) 4.9 6.3 14.0 19.5 23.0 22.0 — — 9.1 — 1 — 0.333 Dynamic Power American Growth Ser F -0.8 -3.0 3.3 -10.2 -9.0 9.9 13.1 9.5 19.6 17.9 8 — 1.314 Epoch US Large-Cap Value - F 4.5 4.9 9.1 3.8 4.6 14.7 19.0 6.9 12.0 10.4 4 — 1.095 Fidelity Small Cap America Sr F 2.4 -1.2 -0.1 -1.7 0.0 14.9 23.0 11.4 12.4 11.2 9 — 1.176 Franklin Mutual US Shares F 4.3 5.0 10.1 13.8 11.3 9.2 14.3 3.6 9.9 9.5 1 — 1.467 Horizons S&P 500 ETF 3.8 4.2 8.4 6.2 8.2 17.4 20.6 — 10.7 10.2 4 — 0.148 Mackenzie US Mid Cap Growth Cl F 4.5 4.8 11.7 13.0 12.5 14.1 17.9 11.9 11.8 11.0 8 — 1.339 RBC O'Shaughnessy US Value Sr F 9.3 8.6 13.8 13.5 7.0 6.3 14.3 5.0 13.6 12.6 1 — 0.94

S&P 500 TR (Bank of Canada) CAD 3.9 4.2 8.6 6.5 8.8 18.0 20.9 8.6 10.4 9.5 — — —



Fund Category

26.0

23.0

20.0

17.0

14.0

11.0

8.0

5.0

2.0

-1.0

-7.0 -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 20.0

9

8

7

6

5

4

3

2

1


Because non-Canadian equity markets are subject todifferent earnings dynamics, interest rates, �scalpolicies, regulations, demographics, market dynamics,saving rates, energy self suf�ciency, etc., they can

behave differently than the Canadian equity market,meaning they have the ability to enhance portfoliodiversi�cation. The U.S. equity market is by far theworld’s largest as measured by market cap, and many of

the worlds’ best known and most respected companiesare domiciled in the U.S.


60


AGF American Growth Class Series F





Equity Style


Mid

Small

Market Cap %

19.7Giant

50.9Large27.0Medium

2.4Small

0.0Micro


5.6Amazon.com Inc5.4Facebook Inc A4.6Alphabet Inc A4.1T-Mobile US Inc3.7Raymond James Financial Inc



6101418222630


Benchmark


12.6 3.6 -34.1 17.3 15.5 -3.4 13.5 46.8 14.3 25.1 — Total Return %-3.2 14.1 -12.2 9.2 6.1 -7.8 0.0 5.3 -9.7 4.1 +/- Benchmark %( & ) * & ( & & ) & ( Quartile




Alpha -7.77 -6.38 Standard Deviation 14.98 13.41Beta 1.34 1.28 Bmrk Standard Deviation 10.43 9.45R-Squared 0.86 0.81 Upside Capture 1.07 1.07Information Ratio -0.48 -0.30 Downside Capture 1.58 1.61



GPAG's Take

Manager Tony Genua has done a solid job of guiding thisportfolio since picking up responsibility on it in early2005. Genua is an experienced portfolio manager and hisprocess and philosophy are well de�ned. He is a growthmanager and his focus is on innovative companies but hefully recognizes that growth opportunities change fromcycle to cycle. In his opinion, companies that can deliveron innovation very often have the most compellinggrowth prospects so much of the focus is on trying toidentify such opportunities. When looking at individual

names he always wants to see improving free cash �ow,positive EPS revisions as well as above average revenueand earnings growth. He is not a momentum investor,but he does pay some attention to relative price strength.Metrics such as P/E, P/CF, etc. relative to a company’shistory, its industry, the market and its growth rate arethe key valuation elements he considers. The fundtypically holds between 30 and 50 names, with theminimum weighting for an individual holding being 1%and the maximum allocation being 7% to 8%. If an

individual sector represents less than 10% of the S&P500, the maximum overweight is ten percentage pointsabove the sector weighting. If the sector represents morethan 10% of the index, the maximum overweight is thesector weighting plus 15%. Genua also attempts tomaintain exposure to at least eight of the ten GICS at alltimes.

Fund Stats

Fund Manager Tony Genua, B.A.

Manager Start Date



MER %

Trailing Yield %

Fund Code

AGF854Jan 2005

0.0

1.22

Benchmark

Category


U.S. Equity

61


BMO US Dividend ETF (CAD) New





Equity Style


Mid

Small

Market Cap %

21.6Giant


0.0Micro


2.4Seagate Technology PLC2.1Williams Companies Inc2.0Kohl's Corp1.9Nordstrom Inc1.8Macy's Inc



8101214161820


Benchmark


— — — — — — — — 18.3 13.6 — Total Return %-5.7 -7.4 +/- Benchmark %& * & Quartile


1 Mth 4.9 3.9 23 Mth 6.4 4.2 16 Mth 14.0 8.6 11 Yr 23.0 8.8 12 Yr 19.4 14.2 13 Yr 22.0 18.0 15 Yr — — —10 Yr — — —



GPAG's Take

We are fans of the methodology behind BMO's dividendmandates. The approach not only analyzes companiesbased on their dividend growth rates, but also gradesthem on the likelihood that they will be able to sustain

dividend payouts. These screening criteria are rareamongst ZDY’s competitors, most of which followpassive indexes. ZDY has also made the RecommendedList because it has one of the lowest MERs in its

category.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

ZDYMar 2013

2.6

0.33

Benchmark

Category


U.S. Equity

62


Dynamic Power American Growth Ser F





Equity Style


Mid

Small

Market Cap %

11.8Giant


2.5Micro


6.8Amazon.com Inc6.5Abiomed Inc5.8NVIDIA Corp5.1Gigamon Inc5.0Facebook Inc A



5101520253035


Benchmark


-0.2 30.8 -43.5 14.6 40.7 6.7 1.9 50.6 12.4 28.1 — Total Return %-15.9 41.3 -21.6 6.5 31.3 2.3 -11.6 9.1 -11.6 7.2 +/- Benchmark %) & ) * & & ) & ) & ) Quartile


1 Mth -0.8 3.9 43 Mth -3.0 4.2 46 Mth 3.3 8.6 41 Yr -9.0 8.8 42 Yr 6.6 14.2 33 Yr 9.9 18.0 45 Yr 13.1 20.9 410 Yr 9.5 8.6 1





GPAG's Take

The core philosophy of manager Noah Blackstein is thatearnings growth drives stock prices, and he hasemployed the same approach since he started on thisfund in 1998. Blackstein's aim is to create a portfolio thathas all of the characteristics of the ultimate growth stockby combining the attributes of 20 to 30 individual names,and he focuses exclusively on secular growers. He is notinterested in cyclical growth names. He admits thatgrowth stocks are typically more expensive and can be

more volatile than other names, but his view is thatgrowth outperforms in the long term. The traitsBlackstein is most interested in include solid upwardearnings revisions, strong sales and earnings growth,low debt levels and positive earnings surprises, so thereclearly is an element of momentum to the approach aswell. He also conducts a secondary screen that considerscash �ows and various balance sheet metrics. If aparticular name disappoints him in any way, he might

blow out the entire position immediately. Blacksteintrades a lot and the fund has regularly racked up annualturnover in excess of 300%, but that �gure is a lot lowerthan where it was a decade ago. Blackstein doesn'tmake currency calls, but a currency-neutral version of thefund is available. Note that the fund charges aperformance fee of 10% on returns that are above andbeyond the return of the S&P 500.

Fund Stats

Fund Manager Noah Blackstein, B.S.

Manager Start Date



MER %

Trailing Yield %

Fund Code

DYN253Jul 1998

0.0

1.31

Benchmark

Category


U.S. Equity

63


Epoch U.S. Large-Cap Value Fund - F series New





Equity Style


Mid

Small

Market Cap %

43.2Giant

33.8Large23.0Medium

0.0Small

0.0Micro


3.8Apple Inc3.8Microsoft Corp3.3UnitedHealth Group Inc2.8Boeing Co2.7Seagate Technology PLC



6101418222630


Benchmark


18.3 -12.8 -20.3 5.2 8.3 0.9 13.7 41.0 22.5 15.1 — Total Return %2.6 -2.3 1.6 -2.9 -1.1 -3.5 0.2 -0.6 -1.5 -5.9 +/- Benchmark %& ( & ) ( * & * & ( ( Quartile







GPAG's TakeWe are replacing CI American Value with this fund. Theportfolios are virtually identical, but this fund has anMER that comes in 20 basis points lower than the CIproduct. Note that Epoch is wholly owned by TD. BillPriest, an industry veteran of more than 40 years, headsup the team that oversees this fund. He works closelywith David Pearl and the other members of the deepteam that contribute to the portfolio are tremendously

experienced. The key consideration in the investmentprocess is cash �ow and the thesis is that free cash �owdrives shareholder value. Management believes thatcash �ow investing is very transparent, increasescon�dence in economic value creation, helps to enhancedownside protection and reduces portfolio volatility. Theprocess begins with quantitative and qualitative screensthat work to bring the list of potential candidates for the

fund to 100 names. That’s followed up with fundamentalanalysis where factors such as management quality and�nancial strength are considered. Management isalways cognizant of a company’s shareholder yield. Debtreduction, share repurchases and dividends all provideshareholders with yield in one form or another. There aretypically between 40 and 60 names in the fund.

Fund Stats

Fund Manager Michael Welhoelter, B.A.William Priest, B.A.




MER % 1.09

Trailing Yield %

Fund Code

TDB448

May 2013 0.5

Benchmark

Category


U.S. Equity

64


Fidelity Small Cap America Sr F New





Equity Style


Mid

Small

Market Cap %

0.9Giant


6.8Micro


4.9Hanesbrands Inc4.8Maximus Inc4.7Dun & Bradstreet Corp4.7DST Systems Inc4.7Euronet Worldwide Inc



5101520253035


Benchmark


11.9 -7.5 -36.0 33.5 20.2 9.0 21.2 55.9 18.9 25.7 — Total Return %-6.1 9.0 -18.9 25.5 0.0 10.8 7.5 7.8 4.5 11.1 +/- Benchmark %* * ( & * & & & & & ) Quartile


1 Mth 2.4 11.5 43 Mth -1.2 9.7 46 Mth -0.1 18.6 41 Yr 0.0 13.2 42 Yr 12.3 17.0 23 Yr 14.9 15.3 15 Yr 23.0 20.5 110 Yr 11.4 8.6 1





GPAG's Take

This fund has done what few others have managed - ithas been returned to the Recommended List. Weremoved it a number of years ago after numerousmanager changes and problematic performance. Dutieson the fund were then shifted to Toronto-based managerSteve MacMillan in 2011 and he immediately began toapply his portfolio management skills. This fund focuseson smaller U.S. domiciled names. 70% of the portfolio

has to be smaller than the largest company in the Russell2000. MacMillan made dramatic changes to the portfolioat the outset by focusing on quality companies with goodvaluations and growth potential. We will stress qualityagain, as the focus here is helpful in avoiding big losers.Things seem to be working, as the fund's historicalvolatility has been far less than that of its benchmark.MacMillan also brought down the number of names in

the portfolio (there will be about 40 stocks in the fund,on average) and annual portfolio turnover has beenreduced to 20-25%. Both of these factors indicate thatMacMillan has strong conviction in the names he owns.We've been keeping track of MacMillan's efforts here forsome time and we believe this fund is worthy ofreturning to the Recommended List fold.

Fund Stats

Fund Manager Steve MacMillan

Manager Start Date



MER %

Trailing Yield %

Fund Code

FID661May 2011

0.0

1.17

Benchmark

Category

Russell 2000 TR CAD

U.S. Equity

65


Franklin Mutual U.S. Shares Fund F





Equity Style


Mid

Small

Market Cap %

41.2Giant


0.0Micro


3.9Microsoft Corp3.8Merck & Co Inc3.6Medtronic PLC2.7International Automotive Components Grp2.4Eli Lilly and Co



26

1014182226


Benchmark


17.7 -3.7 -44.2 24.3 8.9 -2.0 15.6 30.5 13.2 -0.7 — Total Return %2.0 6.9 -22.2 16.2 -0.4 -6.4 2.1 -11.0 -10.8 -21.6 +/- Benchmark %& * ) & ( ( & ) ) ) & Quartile







GPAG's Take

Mutual Series CEO Peter Langerman heads things uphere, and he is assisted by David Segal and DeborahTurner. The PMs are also supported by the overall teamof nearly 20 investment professionals at Mutual Series.All of the �rm's mandates are run using a deep valueapproach. The most important element of the approachinvolves selecting companies on a bottom-up, absolutevalue basis. The idea is to buy a dollar of assets for �ftycents (or less, if possible). Rather than focusing on DCF

analysis, management considers what a business personwould be willing to pay for an asset, so hard corebalance sheet analysis is key here. The bulk of thenames in the fund make it in on the basis of this prong.Risk arbitrage opportunities and distressed debt issueswill also make up small portions of the fund whenmanagement sees �t. Management is also not shy aboutholding heavy amounts of cash when bargains arescarce, and the portfolio's foreign currency exposure is

hedged back to CAD at all times. This point is importantbecause it means this fund has experiencedunderperformance relative to its unhedged peers sinceCAD began to weaken. It's too bad that the currencypositioning has impacted returns so detrimentally assecurity selection has been solid.

Fund Stats


MER %

Trailing Yield %

Fund Code

TML243

7.3

1.46

Benchmark

Category


U.S. Equity

Fund Manager Deborah Turner, B.A.Peter Langerman, B.A.

Manager Start DateFeb 2014


Feb 2014

66


Horizons S&P 500 Index ETF New





Equity Style


Mid

Small

Market Cap %

49.1Giant

36.7Large14.1Medium

0.1Small

0.0Micro


100.0TRS S&P 500 TR Hdg CAD



6101418222630


Benchmark


— — — — — -1.0 10.5 39.2 18.3 13.6 — Total Return %-5.4 -3.0 -2.3 -5.7 -7.4 +/- Benchmark %* & ( & & * Quartile





GPAGs Take

HXS uses a total return swap to gain exposure to theS&P 500 which means it has no tracking error. While theMER and swap fee make HXS more expensive than itscompetitors from a fee perspective, we believe the tax

ef�ciencies those using HXS in a non-registered accountoutweigh its costs. A big reason for this is because theuse of the swap means the fund does not paydistributions. A taxable event only occurs when the

investor sells their units and triggers a capital gain orloss. For registered accounts, we recommend iShares’Core S&P 500 ETF (XUS) which has an MER of 0.10%.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

HXSNov 2010

0.0

0.14

Benchmark

Category


U.S. Equity

67


Mackenzie US Mid Cap Growth Class - F





Equity Style


Mid

Small

Market Cap %

0.0Giant


3.6Micro


4.7Spirit Airlines Inc4.4CommVault Systems Inc4.1DexCom Inc4.0Progressive Corp3.8Bio-Techne Corp



0102030405060


Benchmark


16.0 0.7 0.5 12.4 12.9 1.5 12.9 40.0 17.3 10.0 — Total Return %-1.9 17.2 17.7 4.4 -7.3 3.3 -0.9 -8.1 2.9 -4.6 +/- Benchmark %& & & ( ) & * ( & * * Quartile







GPAG's Take

Lead manager Phil Taller has been on this fund since itsinception in 2006. Taller looks for companies that candeliver solid growth over �ve or ten years that trade atreasonable valuations. Most of the names that areconsidered are mid-caps and the preference here is forcompanies with market caps of U.S.$5 billion or less.Everyone has a different notion of what value is andbecause of this Taller doesn’t try to pin a precise dollaramount on a stock. More typically, securities are given a

price range and they are purchased when they reach thelower end of the price range. Taller also wants to investin companies with strong competitive positioning andhigh barriers to entry. Intrinsic value estimates are basedon DCF analysis. Models are constructed for companiesTaller is interested in and these models are based onvery detailed work that involves diving into annualreports with a �ne-toothed comb. Taller believes that ifyou read a company’s annual report from cover to cover,

you are ahead of 99% of your competition and the key tomaking the models most effective is to makeassumptions that are conservative. Creating the modelsis a very labour-intensive process and as a result thenumber of names that can be covered is limited. That’sokay though because this fund tends to only hold 25 to35 stocks.

Fund Stats

Fund Manager Philip Taller, B.S.

Manager Start Date



MER %

Trailing Yield %

Fund Code

MFC1802Nov 2002

0.4

1.33

Benchmark

Category

Russell 2000 TR CAD

U.S. Equity

68


RBC O'Shaughnessy US Value Sr F





Equity Style


Mid

Small

Market Cap %

11.3Giant


0.0Micro


4.7The Travelers Companies Inc4.6LyondellBasell Industries NV3.6Valero Energy Corp3.4Northrop Grumman Corp3.4Marriott International Inc Class A



26

1014182226


Benchmark

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Calendar Year

17.8 -5.3 -43.7 25.5 15.2 7.3 13.0 48.4 11.3 -8.4 — Total Return %2.1 5.3 -21.7 17.4 5.8 2.9 -0.5 6.8 -12.7 -29.3 +/- Benchmark %* & * ) & & & * & ) ) Quartile







GPAG's Take

All of RBC's O'Shaughnessy's mandates are managedusing a purely quantitative approach and the investmentthesis is that stocks with certain attributes tend tooutperform over time. For this fund, stocks with a largerthan average market cap and above average sharesoutstanding versus the Russell 1000 are considered. Inaddition, all names in the fund must have above averagecash �ows and above average sales over the previous12-months. The top 50 names, as measured by

shareholder yield (equal to dividend yield plus sharebuyback yield), are then selected for the portfolio. It'spretty cut-and-dried. All positions are equally weightedinitially and the portfolio is rebalanced in tranches 12times annually. Each month, one-twelfth of the portfoliois rebalanced while the rest of it remains the same. Thiscontinues monthly until the entire fund is rebalanced bythe end of the year. Changes can be made in betweenrebalancing periods, however, and reasons for such

action include certain corporate events or a 50% drop inshare price during the period. When a stock is soldfollowing a 50% decline it is automatically replaced withthe best security the model spits out that is not alreadyin the fund. The fund is fully invested at all times and theU.S. dollar exposure is hedged back into Canadiandollars. Note that much of the fund's recentunderperformance is attributable to the currency hedge.

Fund Stats

Fund Manager James O'Shaughnessy, B.A.

Manager Start Date



MER %

Trailing Yield %

Fund Code

RBF616Nov 1997

1.8

0.94

Benchmark

Category


U.S. Equity

69


International EquityBenchmark

MSCI EAFE GR CAD


1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER1 BMO International Dividend ETF -1.1 0.7 2.3 1.4 2.7 — — — — — 1 — 0.442 BMO MSCI EAFE ETF -1.6 -0.4 2.2 -4.2 -2.8 — — — — — 4 — 0.233 CI Black Creek International Equity F -1.4 1.5 3.4 -2.2 1.4 7.2 16.2 — 14.8 14.7 7 — 1.364 CI International Value Class F -1.1 -0.1 6.1 3.1 4.8 8.2 11.3 3.2 11.7 10.8 4 — 1.365 Invesco International Growth Class F -2.4 -3.6 -2.8 -6.4 -4.3 7.0 11.7 4.1 10.9 10.1 7 — 1.436 Manulife World Investment F -3.7 -5.2 -2.8 -4.1 -2.0 8.4 — — 11.4 — 7 — 1.24

MSCI EAFE GR CAD -1.7 -0.3 1.6 -5.0 -2.2 6.4 12.2 2.9 12.0 11.4 — — —



Fund Category

19.0

17.0

15.0

13.0

11.0

9.0

7.0

5.0

3.0

1.0

-1.0 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 17.0

5 4

3



behave differently than the Canadian equity market,meaning they have the ability to enhance portfoliodiversi�cation. Global equity offerings differ frominternational equity offerings in that the latter focus on

the EAFE region and remain out of the U.S.


70


BMO International Dividend ETF New





Equity Style


Mid

Small

Market Cap %

31.7Giant

44.3Large23.9Medium

0.0Small

0.0Micro


1.8Total SA1.8Hugo Boss AG1.8Spark New Zealand Ltd1.8Bouygues1.8EDP - Energias de Portugal SA



9101112131415


Benchmark


— — — — — — — — — 15.9 — Total Return %-3.6 +/- Benchmark %) & Quartile


1 Mth -1.0 -1.7 23 Mth 0.4 -0.3 26 Mth 1.9 1.6 21 Yr 2.0 -2.2 12 Yr 3.4 5.5 33 Yr — — —5 Yr — — —10 Yr — — —



GPAG's Take

ZDI utilizes a proprietary rules based methodologydesigned by BMO Asset Management to screeninternational equities based on their three year dividendgrowth rates, the likelihood that dividends will besustained and yield. In order to avoid over representation

to one particular sector or large overweight to a speci�ccountry, the individual sectors are capped at 35% and25% for geographic allocations. We like that this ETF hasthe �exibility to change its country allocations,something that is unique relative to its passive

competitors that stick with whatever the EAFE index tellsthem to do.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

ZDINov 2014

4.9

0.44

Benchmark

Category

MSCI EAFE GR CAD

International Equity

71


BMO MSCI EAFE Index ETF New





Equity Style


Mid

Small

Market Cap %

59.4Giant


0.0Micro


6.4iShares MSCI EAFE1.8Nestle SA1.3Roche Holding AG Dividend Right Cert.1.3Novartis AG1.2Toyota Motor Corp



9101112131415


Benchmark


— — — — — — — — — 15.9 — Total Return %-3.6 +/- Benchmark %* * Quartile


1 Mth -1.2 -1.7 23 Mth -0.3 -0.3 26 Mth 2.2 1.6 21 Yr -2.9 -2.2 32 Yr 5.3 5.5 23 Yr — — —5 Yr — — —10 Yr — — —



GPAG's Take

ZEA provides investors with reasonably priced exposureto developed markets in Europe, Australasia and the Far

East. Compared to other EAFE funds, ZEA tracks itsindex better and offers tighter bid/ask spreads. Investors

should have no problem getting in and out of this ETF.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

ZEAFeb 2014

2.9

0.23

Benchmark

Category

MSCI EAFE GR CAD


72


CI Black Creek International Equity Fund Class F





Equity Style


Mid

Small

Market Cap %

26.8Giant


1.5Micro


6.1Galaxy Entertainment Group Ltd5.3ICICI Bank Ltd ADR5.3Wienerberger AG4.9Accor SA4.6Carnival PLC



6101418222630


Benchmark


— — — 34.4 7.4 -16.2 31.9 39.9 -1.2 24.4 — Total Return %21.9 4.8 -6.7 16.6 8.3 -5.3 4.9 +/- Benchmark %& & ) & & ) & * Quartile


1 Mth -1.4 -1.7 23 Mth 1.5 -0.3 16 Mth 3.4 1.6 21 Yr 1.4 -2.2 12 Yr 8.8 5.5 13 Yr 7.2 6.4 15 Yr 16.2 12.2 110 Yr — — —





GPAG's Take

Lead PM Richard Jenkins signed up with Black Creek in2008, reuniting with former Trimark colleague Bill Kanko.While Kanko and Jenkins do bounce ideas off of oneanother, this is Jenkins’ fund and he calls the shots. Heapproaches stocks as though he is interested in buyingthe entire business and he aims to develop a proprietary

or unique viewpoint on a company that is different fromthat of other investors. The objective is to pay a pricethat will deliver meaningful returns to clients in the longterm and cash �ow analysis is a crucial tool for Jenkins.This is a high conviction fund. It will always beconcentrated, with the top ten holdings typically

accounting for about 50% of assets. Jenkins pays noattention to what's happening within the index, but thosewho have been paying attention to this fund have nodoubt been very pleased with its performance.

Fund Stats


MER %

Trailing Yield %

Fund Code

CIG11018

1.0

1.36

Benchmark

Category

MSCI EAFE GR CAD


Fund Manager Evelyn HuangRichard Jenkins, B.C.

Manager Start DateSep 2008


Sep 2013

73


CI International Value Class F





Equity Style


Mid

Small

Market Cap %

61.4Giant


0.0Micro


3.7Tokio Marine Holdings Inc3.4Chubb Ltd3.2Mitsubishi UFJ Financial Group Inc3.1Aon PLC3.1Willis Towers Watson PLC



68

1012141618


Benchmark


20.9 -10.8 -20.7 10.6 5.3 -8.5 9.5 27.3 3.2 17.6 — Total Return %-5.5 -5.4 8.1 -1.9 2.8 1.0 -5.8 -4.2 -0.9 -1.9 +/- Benchmark %( ) & ( * & ) * * * & Quartile


1 Mth -1.1 -1.7 23 Mth -0.1 -0.3 26 Mth 6.1 1.6 11 Yr 4.8 -2.2 12 Yr 9.2 5.5 13 Yr 8.2 6.4 15 Yr 11.3 12.2 110 Yr 3.2 2.9 1


Alpha 2.07 0.21 Standard Deviation 11.72 10.78Beta 0.94 0.90 Bmrk Standard Deviation 12.01 11.36R-Squared 0.92 0.90 Upside Capture 0.94 0.87Information Ratio 0.54 -0.26 Downside Capture 0.77 0.80



GPAG's Take

Manager John Hock of Altrinsic Global Advisors breaksthe investment process behind this fund into four parts.Idea generation is the �rst step. Ideas can come fromanywhere, including from quantitative screens or fromthe due diligence conducted at various levels of theindustry food chain. The second part of the process isfundamental company and industry analysis. This iswhere Hock and his team attempt to identify theeconomic drivers of the business. It is also important toassess management’s capabilities, strategy and ability to

execute. In this step an intrinsic value is also determinedfor each name and target prices are established. Thethird part of the process is portfolio construction. Sectoranalysts present their best ideas based on conviction andtargeted risk-adjusted return potential to the portfoliomanagement team. The portfolio management team thenreviews the best ideas within each industry and attemptsto construct a portfolio that offers the best combinationof attractive valuations and improving returns on capital.Geographic and industrial weightings may be 0.5 to 2

times the benchmark (MSCI EAFE) weighting, whileindividual securities may be no more than 5% of the fundand are more typically given weightings in the 1% to2.5% range. These three steps effectively cut a universeof 1,500 names down to a 60 to 100 stock portfolio. Riskmanagement is the fourth part of the investmentprocess, although this element is considered duringevery step of the investment process.

Fund Stats

Fund Manager John Hock, M.B.A.

Manager Start Date



MER %

Trailing Yield %

Fund Code

CIG452Aug 1998

1.3

1.36

Benchmark

Category

MSCI EAFE GR CAD


74


Invesco International Growth Class F





Equity Style


Mid

Small

Market Cap %

47.8Giant

30.6Large21.0Medium

0.5Small

0.0Micro


2.9DCC PLC2.6SAP SE2.6CK Hutchison Holdings Ltd2.6Taiwan Semiconductor Manufacturing2.4WH Group Ltd



7101316192225


Benchmark


33.7 -1.5 -34.4 18.9 8.5 -4.7 14.2 29.3 9.1 16.9 — Total Return %7.3 3.9 -5.6 6.4 5.9 4.9 -1.1 -2.3 5.0 -2.6 +/- Benchmark %& & ( & & & ( * & * ( Quartile


1 Mth -2.4 -1.7 33 Mth -3.6 -0.3 46 Mth -2.8 1.6 41 Yr -4.3 -2.2 32 Yr 4.0 5.5 23 Yr 7.0 6.4 15 Yr 11.7 12.2 110 Yr 4.1 2.9 1


Alpha 1.45 1.36 Standard Deviation 10.91 10.07Beta 0.85 0.83 Bmrk Standard Deviation 12.01 11.36R-Squared 0.87 0.87 Upside Capture 0.94 0.90Information Ratio 0.15 -0.13 Downside Capture 0.86 0.84



GPAG's Take

A team of 13 Austin, Texas-based money managers isthis portfolio's brain trust. The lead PM on the mandateis Clas Olsson. He ultimately decides what gets boughtand sold, but his decisions are heavily in�uenced by theother professionals on the team. The focus of theapproach is on earnings, quality and valuation, or EQV.Earnings: the belief is that earnings growth drives stockprices in the long run and that investors under-react topositive earnings news. Quality: companies that are

ef�cient allocators of capital are the best creators oflong term value and management wants to own namesthat have good track records of capital allocation.Valuation: companies with underappreciated growthprospects provide relatively attractive risk-rewardopportunities. Today you can buy good amounts ofgrowth at a decent price. Management is much quickerto sell stocks when they are fully priced, and qualitativeas well as quantitative elements are part of the valuation

assessment. The portfolio is typically made up of 75 to105 names and it may have an Emerging Marketsallocation of up to 35%, but management has run withan EM weighting in the 15%-20% range for the past �veyears or so. Small to mid-cap names also play aprominent role in the portfolio and generally make up30% to 40% of the fund.

Fund Stats


MER %

Trailing Yield %

Fund Code

AIM637

0.0

1.44

Benchmark

Category

MSCI EAFE GR CAD


Fund Manager Richard Nield, B.A.Mark Jason, B.S.

Manager Start DateAug 2011


Mar 2013

75


Manulife World Investment Fund Series F





Equity Style


Mid

Small

Market Cap %

29.2Giant

42.0Large26.3Medium

2.5Small

0.0Micro


5.0Aon PLC4.1Intertek Group PLC4.0IHS Markit Ltd A3.4Tsuruha Holdings Inc3.2Air Liquide SA



9101112131415


Benchmark


— — — — — — — — 7.6 20.3 — Total Return %3.5 0.8 +/- Benchmark %& & * Quartile


1 Mth -3.7 -1.7 43 Mth -5.2 -0.3 46 Mth -2.8 1.6 41 Yr -2.0 -2.2 22 Yr 7.5 5.5 13 Yr 8.4 6.4 15 Yr — — —10 Yr — — —



GPAG's Take

David Ragan of Mawer Investment Management has�nal say on this fund, but he works closely with companyCIO Jim Hall and a small group of analysts on thestrategy. The fund is intended to mirror the MawerInternational Equity fund. Ragan started on this fund in2007, working with Gerald Cooper-Key until hisretirement in 2010. Cooper-Key did an exceptional job ofgenerating solid risk adjusted returns during his tenure,

and Ragan has continued to carry that baton. Theinvestment approach across all Mawer mandates issimilar. The focus is on wealth creating companies,which are �rms that earn a return on capital which isgreater than their cost of capital. Excellent managementis a must and stocks must trade at a discount to intrinsicvalue if they are to be considered. A Monte Carloanalysis is used to provide a range of fair value under

thousands of different scenarios. The maximumweighting in any single industry is 20% and no morethan 6% is permitted in any individual name. There areno constraints on regional exposure - managementsimply wants to own the best names availableregardless of where they are based.

Fund Stats


MER %

Trailing Yield %

Fund Code

MMF4636

0.0

1.24

Benchmark

Category

MSCI EAFE GR CAD


Fund Manager David Ragan, B.C.Jim Hall, M.B.A.



Aug 2013

76


Global BalancedBenchmark

Morningstar CAN Bal Glbl 60/40 CAD


1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER1 EdgePoint Global Growth & Inc Port Sr F 4.7 5.2 7.6 11.5 9.5 13.2 15.7 — 8.4 8.3 5 3 0.882 Mackenzie Ivy Global Balanced F 0.2 -0.6 3.0 4.7 5.5 9.1 11.8 6.7 7.8 6.9 4 5 1.123 Trimark Global Balanced Series F -0.6 0.2 3.6 1.7 3.4 6.1 10.4 4.7 7.7 7.2 4 5 1.36

Morningstar CAN Bal Glbl 60/40 CAD -0.6 -0.5 3.2 1.1 4.8 10.8 12.2 5.8 7.9 6.6 — — —



Fund Category

17.0

16.0

15.0

14.0

13.0

12.0

11.0

10.0

9.0

8.0

6.4 6.8 7.2 7.6 8.0 8.4 8.8 9.2 9.6 10.0

3

2

1


Global balanced funds are generally amongst the mostdiversi�ed in that they have broad exposure to numerousequity and �xed income markets. These products oftenpay regular distributions, or are available in versions thatpay regular distributions. Equity and �xed incomeallocations should be taken into account when making

head-to-head comparisons between balanced offerings.The global balanced fund category also includes a widearray of fund-of-funds. Such products, which typicallytarget a speci�c asset mix and usually come with anautomatic rebalancing feature, are designed to bestandalone portfolio solutions. Multiple portfolio

managers also generally contribute to the cause. Fund-of-funds are intentionally excluded from theRecommended List.


77


EdgePoint Global Growth & Inc Port Sr F





Equity Style


Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM


3.8WESCO International Inc3.4American International Group Inc3.2Wells Fargo & Co3.2TE Connectivity Ltd3.2WABCO Holdings Inc



6101418222630


Benchmark


— — — 30.6 10.3 0.7 10.3 34.0 15.2 10.3 — Total Return %19.1 2.2 1.5 -0.6 9.5 2.7 -2.1 +/- Benchmark %& * & & & & & & Quartile







GPAG's Take

Tye Bousada and Geoff MacDonald lead the effort onthis fund, which got its start in 2008. Bousada spendsmost of his time on foreign names while MacDonaldfocuses on Canadian ideas, although the portfolioconstruction process is highly collaborative and bothmanagers know all of the names in the fund intimately.Ted Chisholm pitches in as well and his focus is onsmaller cap opportunities. The fund's bond allocation hasaveraged around the 30% level since inception, although

it can be between 25% and 60%. This component isoverseen by Frank Mullen, although Bousada andMacDonald direct what happens here and determine theportfolio's asset mix. The bond portion is investedentirely in credit and most of that is in issues with shortmaturities at this time. Additionally, up to 40% of the�xed income book can be in high yield issues. Each stockthat makes it into the fund is purchased as though it’sthe only investment in the portfolio and the PMs see

themselves as business people buying businesses. Theyfocus on stocks that have big margins of safety andstrong barriers to entry and the preference is to ownsolid companies with good management teams that cangrow their business regardless of what's happening withthe economic environment.

Fund Stats


MER %

Trailing Yield %

Fund Code

EDG680

1.1

0.88

Benchmark

Category


Global Balanced

Fund Manager Geoff MacDonaldTye Bousada



Nov 2008EDG580

78


Mackenzie Ivy Global Balanced Fund - F





Equity Style


Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM


4.1Omnicom Group Inc3.5Brook�eld Asset Management Inc Class A3.4Amcor Ltd3.4United Parcel Service Inc Class B3.1Johnson & Johnson



7101316192225


Benchmark


16.1 -3.2 -2.1 4.3 4.2 4.3 7.7 26.4 9.2 12.2 — Total Return %-0.6 -0.3 17.6 -7.1 -3.9 5.2 -3.2 1.8 -3.3 -0.1 +/- Benchmark %& ( & ) ) & ( & * & * Quartile


1 Mth 0.2 0.8 33 Mth -0.6 1.3 46 Mth 3.0 4.6 31 Yr 5.5 5.1 22 Yr 8.5 7.9 13 Yr 9.1 10.1 15 Yr 11.8 12.6 110 Yr 6.7 5.7 1





GPAG's Take

Lead manager and Ivy team head Paul Musson haseffectively guided this portfolio for more than a decade.The equity component of the fund looks virtually identicalto what's in Ivy Foreign Equity and stocks are chosenusing a collaborative research effort. Musson focuses oninternational stocks and the other team members haveindividual sector and geographical responsibilities. TheIvy philosophy is simple but it stresses something thatmany investors do not have the discipline for – patience.

Management is willing to devote huge amounts of timeto understanding a company and the team is willing towait for a company's story to unfold. The �rst key to theapproach involves truly looking at the business. Meetingmanagement is a must and growth in both top andbottom line numbers is desired. Musson likes to see areturn on capital �gure that is expanding, or at leastbeing maintained. Additionally, it is important forcompanies to have at least 10 years of �nancial history.

Valuations must be attractive, but the team will not buya stock simply because it’s cheap – the business itselfmust be strong. Steve Lock and Mackenzie's �xedincome team oversee the bond part of the portfolio. A"core-plus" approach is employed, meaning up to aquarter of the �xed income exposure may be to highyield issues.

Fund Stats


MER %

Trailing Yield %

Fund Code

MFC395

0.9

1.12

Benchmark

Category


Global Balanced

Fund Manager Paul Musson, B.C.Steve Locke, M.B.A.



May 2001

79


Trimark Global Balanced Series F





Equity Style


Mid

Small

Fixed Income Style

Ltd Mod Ext

HighM


4.3Anthem Inc3.6Cisco Systems Inc3.5Ross Stores Inc3.5Hyundai Mobis Co Ltd3.0Microsoft Corp



7101316192225


Benchmark


21.8 -7.0 -18.2 7.9 9.7 2.9 11.1 25.8 7.1 8.2 — Total Return %5.2 -4.1 1.5 -3.6 1.6 3.7 0.2 1.3 -5.4 -4.2 +/- Benchmark %& ) & ) * & & & ) & ) Quartile







GPAG's Take

Jeff Hyrich, lead manager of Trimark Global Endeavour,took over this fund in August 2009. He's worked closelywith Erin Green�eld for a number of years and Green�eldwas promoted to this fund's lead manager in 2013. Theequity portion of this fund has a lot of overlap withTrimark Global Endeavour, but this one will generallyfocus on larger names. Given how closely Green�eld and

Hyrich work together, the overlap will be high most ofthe time, but the funds are in no way tied to one another.Green�eld prefers to own strong companies with goodmanagement teams and he takes a blended value/growth approach. He aims to invest in industry leaders,and because he focuses on mid-sized names, thecompanies he deals with are often in very focused

industries. In terms of valuation metrics, the focus is ondiscounted free cash �ow, price to free cash �ow, P/E,and EV to EBIT. The �xed income portion of the fund isoverseen by Invesco's in-house bond team, and most ofthe exposure there is to be invested in domestic andforeign corporate issues.

Fund Stats


MER %

Trailing Yield %

Fund Code

AIM1777

1.0

1.36

Benchmark

Category


Global Balanced

Fund Manager Jennifer Hartviksen, B.A.Erin Green�eld, B.B.A.



Sep 2013

80


Global EquityBenchmark

MSCI World GR CAD


1 Mo 3 Mo 6 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr Eqt. Style FI Style MER1 Capital Group Global Equity-Canada F 1.2 2.9 8.1 4.6 5.8 12.7 16.8 7.3 10.8 9.7 7 — 0.932 CI Black Creek Global Leaders Class F -0.2 1.2 6.3 7.8 10.6 12.3 17.8 8.1 12.1 11.6 4 — 1.363 CI Synergy Global Corporate Class F 2.2 2.6 4.2 -2.4 -1.6 10.2 15.3 5.0 11.1 10.5 4 — 1.344 Dynamic Global Discovery Series F 0.7 0.0 6.0 0.7 6.3 13.3 13.7 6.6 11.6 9.8 7 — 1.315 Franklin Mutual Global Discovery F 2.7 4.2 7.6 7.0 4.4 5.0 11.2 5.3 10.0 9.6 1 — 1.456 Horizons Active Global Dividend ETF Comm 2.2 2.5 3.0 0.9 2.7 13.2 13.3 — 10.2 9.0 4 — 0.927 Mackenzie Ivy Foreign Equity F 0.2 -0.7 0.8 0.9 3.2 9.6 13.3 7.4 8.8 7.8 4 — 1.338 Templeton Growth Ltd F 2.4 4.9 7.9 1.6 2.1 8.5 14.5 4.5 11.7 11.1 1 — 1.359 Trimark Global Endeavour Class F 1.0 0.3 2.6 1.7 4.5 11.6 15.6 7.4 10.1 9.3 5 — 1.37

MSCI World GR CAD 1.8 2.6 6.3 2.2 4.8 12.9 16.9 6.1 10.2 9.3 — — —



Fund Category

19.0

18.0

17.0

16.0

15.0

14.0

13.0

12.0

11.0

10.0

4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0

9

8

7 6

5

4

3

2

1



behave differently than the Canadian equity market,meaning they have the ability to enhance portfoliodiversi�cation. Global equity offerings differ frominternational equity offerings in that the former have the

ability to invest in stocks from international markets aswell as the U.S.


81


Capital Group Global Equity Fund (Canada) Series F



45.7US Equity39.9International Equity

0.7Other


Equity Style


Mid

Small

Market Cap %

50.8Giant

31.7Large17.2Medium

0.2Small

0.0Micro


2.4Amazon.com Inc2.2Nintendo Co Ltd1.8Taiwan Semiconductor Manufacturing1.7Baidu Inc ADR1.7Microsoft Corp



7101316192225


Benchmark


18.6 -2.4 -27.0 17.4 9.8 -4.0 17.7 34.2 11.7 19.3 — Total Return %-1.6 4.7 -1.7 6.3 3.3 -1.3 3.8 -1.7 -3.3 -0.2 +/- Benchmark %* * * * * * & & * & * Quartile







GPAG's Take

This portfolio is backed by Los Angeles-based CapitalGroup of Companies, one of the biggest asset managerson the planet. The investment approach at Capital ismulti-manager in nature. There is no optimal number ofmanagers for a single fund, but typically three to tenprofessionals contribute ideas (three contribute to thisfund - Carl Kawaja, Dina Perry and Galen Hoskin). Eachmanager brings his or her own style to the table, and the

combination of managers leads to portfolios that are very“core” in nature. Capital refers to this as the “multipleportfolio counselor system”. The funds also contain anallocation to what’s referred to as the “researchportfolio”. In this component, analysts, all of whom areindustry specialists, do the stock picking. Here researchportfolio is a quarter of the fund and 43 analystscontribute ideas to it. This fund is the broadest mandate

of all of Capital’s Canadian offerings. It is also a uniquepool that is only available in the Canadian market. Thefund holds more than 150 names and is easily the largestof Capital's Canadian product offerings. Long terminvestors have been rewarded by this fund - it hasexcelled versus its peer group from a performancestandpoint over �ve and ten years.

Fund Stats


MER %

Trailing Yield %

Fund Code

CIF823

0.4

0.93

Benchmark

Category

MSCI World GR CAD

Global Equity

Fund Manager Dina Perry, M.A.F. Galen Hoskin



Nov 2002

82


CI Black Creek Global Leaders Fund Class F





Equity Style


Mid

Small

Market Cap %

23.7Giant


0.0Micro


4.8FTI Consulting Inc4.6Accor SA4.5Galaxy Entertainment Group Ltd4.3Capgemini SA4.1Christian Dior SE



6101418222630


Benchmark


— -8.7 -19.8 24.3 13.3 -13.8 21.3 42.7 4.4 22.1 — Total Return %-1.6 5.6 13.2 6.8 -11.2 7.3 6.8 -10.7 2.5 +/- Benchmark %( & & & ) & & ) & & Quartile







GPAG's Take

Lead manager Bill Kanko is a long-time player in theCanadian fund biz and is perhaps best known for hisefforts at Trimark. He and another former Trimarkmanager, Richard Jenkins, head up Black CreekInvestment Management and this �rm has an exclusiveretail distribution arrangement with CI. The duo runsdifferent strategies, but they regularly debate ideas andthere is a good amount of commonality across the �rm'sportfolios. Five seasoned analysts also contribute to thecause. While collaboration is encouraged at the �rm,

Kanko makes the �nal calls on this fund. When pickingstocks, Kanko endeavours to think like a business owner.He looks at opportunities as though he intends to buy100% of the company with his own money. He strives todevelop a proprietary or unique viewpoint on companieshe is considering and the aim is to pay a price that willdeliver meaningful returns to clients in the long term.This is a high conviction fund - there are generally just 20to 25 names in the portfolio - and turnover is typically inthe 25% to 30% range. What that means is that returns

will tend to be a lot different from what you'll see out ofthe MSCI World index, and we see that as being a goodthing. Kanko uses a straightforward DCF analysis whenevaluating stocks. You can plug in numbers and go, butthere are many variables at play so he prefers to comeup with a range of valuations for the companies he'sconsidering.

Fund Stats


MER %

Trailing Yield %

Fund Code

CIG11006

0.3

1.36

Benchmark

Category

MSCI World GR CAD

Global Equity

Fund Manager Bill KankoMatias Galarce



Jun 2006HIC616

83


CI Synergy Global Corporate Class F





Equity Style


Mid

Small

Market Cap %

31.9Giant


1.0Micro


2.3Apple Inc1.9Synchrony Financial1.7UnitedHealth Group Inc1.7Alphabet Inc A1.6Microsoft Corp



7101316192225


Benchmark


18.9 -3.4 -28.3 8.4 9.3 -7.5 14.1 39.3 12.4 18.1 — Total Return %-1.3 3.7 -3.0 -2.7 2.9 -4.8 0.1 3.3 -2.7 -1.4 +/- Benchmark %* * * ) * ( * & * * ) Quartile


1 Mth 2.2 1.8 13 Mth 2.6 2.6 16 Mth 4.2 6.3 21 Yr -1.6 4.8 42 Yr 7.3 10.5 23 Yr 10.2 12.9 25 Yr 15.3 16.9 110 Yr 5.0 6.1 2





GPAG's Take

Mike Kuan and Mike Kimmel have risen through theranks at Picton Mahoney Asset Management and nowhandle the day-to-day duties on this mandate. The �rm isa momentum shop, and for management, momentummeans fundamental changes for the better. Researchconducted by company CEO Dave Picton has concludedthat positive change leads to more positive change andnegative change leads to more negative change. The

core of the process involves a computer-driven modelbased on quantitative factors that searches forcompanies exhibiting four fundamental change factors,namely: accelerating earnings or revenues, positiveestimate changes, positive earnings surprises, andstrong relative price strength. Once management hasidenti�ed stocks with momentum characteristics thecompany's team of 30+ PMs and analysts conducts

fundamental analysis with a focus on assets, earnings,sales, products, management and markets to predictfuture trends. Finally, a risk control overlay is employedto ensure that there is no over concentration within thefund.

Fund Stats


MER %

Trailing Yield %

Fund Code

CIG6409

0.5

1.34

Benchmark

Category

MSCI World GR CAD

Global Equity

Fund Manager David Picton, B.C.Michael Kimmel, B.C.



Dec 2010

84


Dynamic Global Discovery Series F





Equity Style


Mid

Small

Market Cap %

25.5Giant


0.0Micro


10.2Schweiter Technologies AG8.2Frutarom Industries Ltd7.7Tamedia AG7.0In�con Holding AG6.8Keyence Corp



6101418222630


Benchmark


27.6 8.3 -29.5 25.0 17.6 -14.3 7.9 29.4 6.6 28.7 — Total Return %7.4 15.4 -4.2 14.0 11.1 -11.7 -6.1 -6.5 -8.4 9.2 +/- Benchmark %& & ( & & ) ) * ) & ( Quartile




Alpha 0.86 -0.60 Standard Deviation 11.58 9.84Beta 0.97 0.86 Bmrk Standard Deviation 10.25 9.28R-Squared 0.73 0.66 Upside Capture 0.95 0.81Information Ratio 0.06 -0.54 Downside Capture 0.85 0.80



GPAG's Take

Lead PM David Fingold is a value-oriented investor andhis view is that free cash �ow (FCF) yield, combined witha focus on balance sheet quality, is the most powerfulvaluation metric out there. He is not a quant manager,but his investment universe consists of the top 50% ofstocks in terms of balance sheet quality. He then focuseson the companies with the most attractive FCF yields. A

company with an attractive FCF yield with a rock-solidbalance sheet is always at least worth a look. Fingolddoesn't go after companies lacking in redeemingqualities simply because they are cheap. Rather, hewants to own exciting names – �rms that are best inclass and that have a moat around their business. Hebelieves this approach works, but it’s crucial for him to

have conviction and he knows that if he wavers from theapproach the results could be disastrous. Fingold makesvery active bets in this fund - take a look at it. It doesn'tlook like any index we are aware of. He is also nothesitant to run the portfolio with signi�cant amounts ofcash when deemed appropriate.

Fund Stats

Fund Manager David Fingold, B.S.

Manager Start Date

Fund Inception April 5, 2002


MER %

Trailing Yield %

Fund Code

DYN3011Sep 2004

0.0

1.31

Benchmark

Category

MSCI World GR CAD

Global Equity

85


Franklin Mutual Global Discovery F




3.1Other


Equity Style


Mid

Small

Market Cap %

43.6Giant

41.6Large14.4Medium

0.4Small

0.0Micro


2.7Microsoft Corp2.6Hightower Holding Llc, Pfd., A2.1Merck & Co Inc2.1Medtronic PLC1.8Novartis AG ADR



7101316192225


Benchmark


20.3 5.0 -25.4 15.1 8.9 -2.3 13.9 29.5 7.2 -0.3 — Total Return %0.1 12.0 -0.1 4.1 2.4 0.4 0.0 -6.4 -7.8 -19.9 +/- Benchmark %& & * ( * & * * ) ) & Quartile







GPAG's Take

This deep value offering is overseen by Peter Langerman,President, CEO, CIO and Chairman of Franklin MutualAdvisers , and Philippe Brugere-Trelat, whose �rst stintat the �rm started in 1984. Brugere-Trelat also runs theMutual European fund that is available to U.S. investors.Ideas are generated across a team of close to 20investment professionals and all PMs are also analysts.This portfolio makes smaller bets across a relativelylarge number of names in an attempt to spread risk

around. Most of the stocks in the portfolio are plain oldvalue plays where the idea is to buy a dollar of assets for�fty cents. Rather than focusing on DCF analysis, thefocus is on what a businessperson would be willing topay for an asset. From time to time, smaller parts of thefund will be in distressed debt and/or risk arbitrageopportunities. Mutual carries a big stick on Wall Streetand has partnered with big players like Carl Icahn andWilbur Ross on potential takeout opportunities. The fund

has historically had very little exposure to Asia and allcurrency exposure is hedged back into CAD. This point isimportant because it means this fund has experiencedunderperformance relative to its unhedged peers sinceCAD began to weaken. It's too bad that the currencypositioning has impacted returns so detrimentally assecurity selection has been solid.

Fund Stats


MER %

Trailing Yield %

Fund Code

TML225

2.5

1.45

Benchmark

Category

MSCI World GR CAD

Global Equity

Fund Manager Philippe Brugere-TrelatPeter Langerman, B.A.



Dec 2009

86


Horizons Active Global Dividend ETF Common New





Equity Style


Mid

Small

Market Cap %

55.9Giant


0.0Micro


3.8Illinois Tool Works Inc3.1Lockheed Martin Corp3.1Altria Group Inc2.9Apple Inc2.9JPMorgan Chase & Co



7101316192225


Benchmark


— — — — — -6.7 12.0 28.6 9.9 11.9 — Total Return %-4.1 -2.0 -7.3 -5.1 -7.7 +/- Benchmark %& ) ( & * ( Quartile




Alpha 1.30 -0.34 Standard Deviation 10.19 9.29Beta 0.90 0.82 Bmrk Standard Deviation 10.25 9.28R-Squared 0.81 0.68 Upside Capture 0.90 0.76Information Ratio 0.02 -0.62 Downside Capture 0.75 0.65

GPAG's Take

HAZ is subadvised by Guardian Capital, which leans on aproprietary model to search for what it deems to be thebest dividend stocks based on payout, sustainability and

growth. The ETF gives investors exposure to a portfolioof dividend stocks from around the world, and because itis geographically agnostic, management has the

�exibility to select the best dividend opportunities at anygiven time in any sector of the global economy.

Fund Stats


Manager Start Date



MER %

Trailing Yield %

Fund Code

HAZJul 2010

2.5

0.92

Benchmark

Category

MSCI World GR CAD

Global Equity

87


Mackenzie Ivy Foreign Equity Fund - F





Equity Style


Mid

Small

Market Cap %

48.3Giant


0.0Micro


3.9Omnicom Group Inc3.4Brook�eld Asset Management Inc Class A3.3Amcor Ltd3.3United Parcel Service Inc Class B3.0Johnson & Johnson



6101418222630


Benchmark


17.2 -3.2 -5.7 6.9 4.7 4.3 9.1 32.4 9.5 17.3 — Total Return %-3.0 3.9 19.7 -4.1 -1.8 7.0 -4.9 -3.5 -5.5 -2.2 +/- Benchmark %* * & ) ( & ( * ( * ( Quartile


1 Mth 0.2 1.8 33 Mth -0.7 2.6 46 Mth 0.8 6.3 41 Yr 3.2 4.8 22 Yr 8.9 10.5 23 Yr 9.6 12.9 25 Yr 13.3 16.9 210 Yr 7.4 6.1 1





GPAG's Take

Lead manager and Ivy team head Paul Musson has donea great job on this portfolio for more than a decade. Thefund has delivered solid returns on a relative basis whileat the same time subjecting investors to far less volatilitythan the market, and indeed, most other global equitymandates. Just don't expect it to shoot the lights outwhen market performance is excessively bullish. Stocksare chosen using a collaborative research effort. Mussonfocuses on international stocks and the other teammembers have individual sector and geographical

responsibilities. The Ivy philosophy is very simple but itstresses something that many investors do not have thediscipline for – patience. Management is willing todevote tremendous amounts of time to understanding acompany and the team is willing to wait for a company'sstory to unfold. The �rst key to the approach involvestruly looking at the business. Meeting management is amust and growth in both top and bottom line numbers isdesired. Musson likes to see a return on capital �gurethat is expanding, or at least being maintained.

Additionally, it is important for companies to have atleast 10 years of �nancial history. Valuations must beattractive, but the team will not buy a stock simplybecause it is cheap – the business itself must be strong.Currency exposure is not actively hedged, although afully currency-hedged version of this mandate isavailable.

Fund Stats


MER %

Trailing Yield %

Fund Code

MFC077

0.2

1.33

Benchmark

Category

MSCI World GR CAD

Global Equity

Fund Manager Paul Musson, B.C.Matt Moody, B.B.A.



Jan 2001

88


Templeton Growth Fund, Ltd. F




0.2Other


Equity Style


Mid

Small

Market Cap %

59.5Giant

26.1Large11.3Medium

2.5Small

0.6Micro


2.9Samsung Electronics Co Ltd2.4Microsoft Corp2.3Apple Inc2.2Comcast Corp Class A2.0Citigroup Inc



47

1013161922


Benchmark


22.4 -5.9 -29.3 12.2 3.9 -4.2 15.8 37.0 10.3 12.4 — Total Return %2.2 1.2 -3.9 1.1 -2.6 -1.5 1.8 1.1 -4.8 -7.1 +/- Benchmark %& ( ( ( ) * & & * ( ( Quartile







GPAG's Take

James Harper was appointed this fund's lead PMfollowing the departure of Lisa Myers in April 2015.Harper was the back-up manager for the fund beforetaking over. Harper sees himself as perhaps being a bitmore deep value-oriented than Myers. Although theperson in charge of this fund is important and acts as thetrigger puller, the driving force behind it is Templeton'sstable of 30 analysts. All of the company's PMs are also

analysts, including Harper. The analysts are locatedaround the globe and cover all sectors across multiplegeographies. Their responsibility is to feed ideas to thecompany's PMs, but of course, the PMs are ultimatelyresponsible for the positioning of their portfolios. Thecore of the selection process involves calculating thevalue of a business by discounting a �ve year earningsstream. Those stocks that trade at the biggest discount

relative to their prevailing share price are added toTempleton's "bargain list" and the PMs make their stockselections from that list. What's amazing about thisproduct is that in the late nineties it was the biggestfund in the country. Since then it has lost close to 90% ofits assets.

Fund Stats


MER %

Trailing Yield %

Fund Code

TML740

0.0

1.35

Benchmark

Category

MSCI World GR CAD

Global Equity

Fund Manager Norman Boersma, B.A.James Harper, M.A.



Jun 2015

89


Trimark Global Endeavour Class F





Equity Style


Mid

Small

Market Cap %

15.1Giant


7.0Micro


8.1Ross Stores Inc5.9Anthem Inc5.3Hyundai Mobis Co Ltd4.1Microsoft Corp3.8Aramex PJSC



26

1014182226


Benchmark


30.4 -14.8 -36.0 33.5 21.5 3.0 15.9 33.2 12.3 20.2 — Total Return %10.2 -7.8 -10.6 22.4 15.0 5.6 2.0 -2.7 -2.7 0.6 +/- Benchmark %& ) ) & & & & & * & * Quartile







GPAG's Take

Jeff Hyrich has been in charge of this offering sinceJanuary 2007 and he was originally named a co-managerin early 2006. Hyrich, who is assisted by Erin Green�eld,focuses on businesses with market caps of between $1billion and $15 billion and he prefers to own strongcompanies with good management teams. He takes a

blended value/growth approach and always tries jumpon good opportunities when they present themselves,but he is still a very patient investor. He aims to invest inindustry leaders, and because he focuses on mid-sizednames, the companies he deals with are often in veryfocused industries. When conducting valuation analysis

Hyrich pays little attention to any EBITDA metrics andinstead considers discounted free cash �ow, price to freecash �ow, P/E, and EV to EBIT. Hyrich typically hedgeshalf of the fund’s exposure to Emerging Marketscurrencies back into Canadian dollars.

Fund Stats


MER %

Trailing Yield %

Fund Code

AIM5507

0.0

1.41

Benchmark

Category

MSCI World GR CAD

Global Equity

Fund Manager Erin Green�eld, B.B.A.Jeff Hyrich, B.A.



Dec 2008

90


Appendix I: Performance Summary to 11/30/16

Canadian Balanced Ticker 1 Mo 3 Mo 6 Mo YTD Ret 1 yr Ret 3 yr Ret 5 Yr Ret 10 Yr Ret 3 yr SD 5 yr SD MER

CI Cambridge Asset Alloc Corp Cl F 0.9 1.5 5.3 7.1 5.7 8.1 9.6 4.7 5.1 1.33

Dynamic Dividend Income Series F -0.1 -0.5 2.5 2.5 3.2 5.6 6.9 5.3 4.5 4.4 1.10

Fidelity Canadian Balanced Series F -0.5 0.0 4.2 6.4 6.7 8.1 9.0 6.9 6.2 5.4 0.92

Mackenzie Income F -0.3 -0.2 3.2 6.6 6.6 6.2 6.3 4.8 4.1 3.8 1.01

Mackenzie Ivy Canadian Balanced F 2.7 3.3 5.9 14.6 12.6 9.3 10.1 5.2 6.1 5.6 1.12

TD Dividend Income — F 1.9 4.1 8.3 16.1 13.0 7.9 9.9 5.8 6.9 6.3 0.94

Trimark Income Growth F 3.2 3.5 5.8 11.0 9.1 7.9 10.7 5.0 6.3 6.1 1.26

Canadian Equity Ticker 1 Mo 3 Mo 6 Mo YTD Ret 1 yr Ret 3 yr Ret 5 Yr Ret 10 Yr Ret 3 yr SD 5 yr SD MER

BMO S&P/TSX Capped Composite ETF NEW ZCN 2.2 4.1 8.8 19.0 15.4 7.1 7.4 8.3 8.4 0.06

CI Canadian Investment Class F 2.7 3.7 7.8 11.6 8.6 6.0 9.5 4.7 8.7 9.0 1.33

CI Signature Select Canadian Class F 4.6 6.1 10.7 12.6 9.9 8.4 10.4 5.8 8.4 8.2 1.32

CI Synergy Canadian Corporate Class F 2.0 3.0 5.7 4.4 3.3 6.1 9.2 4.4 8.2 8.1 1.32

Dynamic Power Cdn Growth F UNDER REVIEW 2.9 2.3 4.7 0.9 0.4 7.4 8.0 2.8 10.7 10.6 1.35

EdgePoint Canadian Portfolio Series F 4.3 6.7 11.4 20.9 15.7 10.0 12.7 8.9 8.8 1.01

Fidelity Canadian Disciplined Eq Ser F 0.9 2.7 6.8 12.6 10.8 9.0 9.7 6.2 7.2 7.5 1.11

Fidelity Canadian Large Cap Class F 1.9 2.3 4.4 10.9 10.1 9.5 14.2 5.8 6.7 1.14

Franklin Bissett Cdn Equity F 2.9 3.6 9.0 20.7 16.7 7.7 11.8 6.5 8.5 8.0 1.15

Horizons S&P/TSX 60 ETF NEW HXT 2.5 5.1 9.8 19.4 15.7 7.9 8.2 8.1 8.4 0.05

Canadian Equity Income/Dividend Ticker 1 Mo 3 Mo 6 Mo YTD Ret 1 yr Ret 3 yr Ret 5 Yr Ret 10 Yr Ret 3 yr SD 5 yr SD MER

BMO Canadian Dividend ETF NEW ZDV 3.8 4.1 8.8 19.9 14.7 4.0 6.9 8.9 8.4 0.39

BMO Monthly High Income II F 1.1 1.7 5.4 18.0 13.8 5.0 7.9 7.8 7.8 7.2 0.76

CI Signature Dividend Class F 1.8 2.1 5.3 8.4 7.4 6.8 9.5 5.4 7.0 6.4 1.32

Horizons Active Preferred Share ETF NEW HPR -0.5 1.8 5.9 4.9 6.3 -1.3 0.9 10.0 7.9 0.64

Dynamic Equity Income Series F 1.3 1.0 4.9 12.6 10.5 8.7 9.1 8.6 6.4 6.2 1.01

Franklin Bissett Cdn Dividend F 3.4 5.9 10.3 1.22

IA Clarington Strategic Equity Income F 1.4 1.5 5.1 10.0 7.9 7.2 10.4 6.9 6.5 0.92

Manulife Dividend Income F NEW -0.1 -0.5 6.3 16.2 14.7 12.5 6.5 1.20

Canadian Fixed Income Ticker 1 Mo 3 Mo 6 Mo YTD Ret 1 yr Ret 3 yr Ret 5 Yr Ret 10 Yr Ret 3 yr SD 5 yr SD MER

BMO Aggregate Bond ETF NEW ZAG -2.0 -2.7 -0.1 2.0 3.2 4.4 3.4 4.0 3.7 0.23

Dynamic Canadian Bond Series F -0.8 -0.6 0.2 1.3 1.7 2.7 2.7 2.2 2.3 0.85

Fidelity Canadian Bond Sr F -2.0 -2.6 0.0 2.2 3.1 4.2 3.4 4.4 3.9 3.6 0.67

Horizons Active Corporate Bond ETF NEW HAB -1.2 -1.1 1.6 3.9 4.4 4.1 4.3 3.1 3.0 0.60

Vanguard Canadian Short-Term Bond ETF NEW VSB -0.5 -0.3 0.3 0.8 1.3 2.0 2.0 1.4 1.3 0.11

PH&N Total Return Bond F -2.0 -2.6 0.1 2.7 3.7 4.6 3.8 4.0 3.6 0.61

TD Canadian Bond — F -2.0 -2.6 0.0 2.2 3.2 4.0 3.3 4.5 3.7 3.5 0.61

Canadian Small/Mid Cap Equity Ticker 1 Mo 3 Mo 6 Mo YTD Ret 1 yr Ret 3 yr Ret 5 Yr Ret 10 Yr Ret 3 yr SD 5 yr SD MER

Dynamic Small Business Series F 1.6 1.0 7.1 20.3 16.1 9.1 9.0 7.5 6.9 1.33

Fidelity Canadian Opportunities Sr F -0.9 0.7 7.6 22.5 22.2 8.9 10.2 8.4 9.2 8.0 1.13

IA Clarington Canadian Small Cap F 3.4 3.4 7.5 19.6 15.8 7.5 16.0 9.0 8.4 8.2 1.35

Manulife Growth Opportunities F 1.7 3.2 7.2 8.5 6.4 6.2 7.4 5.3 12.2 12.1 1.25

91


US Equity Ticker 1 Mo 3 Mo 6 Mo YTD Ret 1 yr Ret 3 yr Ret 5 Yr Ret 10 Yr Ret 3 yr SD 5 yr SD MER

AGF American Growth Class Series F 3.3 4.0 7.5 2.2 4.7 14.8 19.0 8.3 15.0 13.4 1.23

BMO US Dividend ETF NEW ZDY 4.9 6.3 14.0 19.5 23.0 22.0 9.1 0.34

Dynamic Power American Growth Ser F -0.8 -3.0 3.3 -10.2 -9.0 9.9 13.1 9.5 19.6 17.9 1.31

Epoch US Large-Cap Value — F NEW 4.54 4.91 9.06 3.82 4.64 14.74 18.97 6.88 11.97 10.38 1.08

Fidelity Small Cap America Sr F NEW 2.4 -1.2 -0.1 -1.7 0.0 14.9 23.0 11.4 12.4 11.2 1.17

Franklin Mutual US Shares F 4.3 5.0 10.1 13.8 11.3 9.2 14.3 3.6 9.9 9.5 1.46

Horizons S&P 500 ETF NEW HXS 3.8 4.2 8.4 6.2 8.2 17.4 20.6 10.7 10.2 0.17

Mackenzie US Mid Cap Growth Cl F 4.5 4.8 11.7 13.0 12.5 14.1 17.9 11.9 11.8 11.0 1.33

RBC O'Shaughnessy US Value Sr F 9.3 8.6 13.8 13.5 7.0 6.3 14.3 5.0 13.6 12.6 0.94

Global Equity Ticker 1 Mo 3 Mo 6 Mo YTD Ret 1 yr Ret 3 yr Ret 5 Yr Ret 10 Yr Ret 3 yr SD 5 yr SD MER

Capital Group Global Equity-Canada F 1.2 2.9 8.1 4.6 5.8 12.7 16.8 7.3 10.8 9.7 0.92

CI Black Creek Global Leaders Class F -0.2 1.2 6.3 7.8 10.6 12.3 17.8 8.1 12.1 11.6 1.36

CI Synergy Global Corporate Class F 2.2 2.6 4.2 -2.4 -1.6 10.2 15.3 5.0 11.1 10.5 1.32

Dynamic Global Discovery Series F 0.7 0.0 6.0 0.7 6.3 13.3 13.7 6.6 11.6 9.8 1.31

Horizons Active Global Dividend ETF NEW HAZ 2.2 2.5 3.0 0.9 2.7 13.2 13.3 10.2 9.0 0.91

Franklin Mutual Global Discovery F 2.7 4.2 7.6 7.0 4.4 5.0 11.2 5.3 10.0 9.6 1.45

Mackenzie Ivy Foreign Equity F 0.2 -0.7 0.8 0.9 3.2 9.6 13.3 7.4 8.8 7.8 1.33

Templeton Growth Ltd F 2.4 4.9 7.9 1.6 2.1 8.5 14.5 4.5 11.7 11.1 1.34

Trimark Global Endeavour Class F 1.0 0.3 2.6 1.7 4.5 11.6 15.6 7.4 10.1 9.3 1.37

International Equity Ticker 1 Mo 3 Mo 6 Mo YTD Ret 1 yr Ret 3 yr Ret 5 Yr Ret 10 Yr Ret 3 yr SD 5 yr SD MER

BMO International Dividend ETF NEW ZDI -1.1 0.7 2.3 1.4 2.7 0.45

BMO MSCI EAFE ETF NEW ZEA -1.6 -0.4 2.2 -4.2 -2.8 0.23

CI Black Creek Intl Eq Corp Cl F -1.4 1.5 3.3 -2.2 1.4 7.1 16.1 14.7 14.6 1.37

CI International Value Class F -1.1 -0.1 6.1 3.1 4.8 8.2 11.3 3.2 11.7 10.8 1.35

Invesco International Growth F -2.4 -3.6 -3.0 -6.6 -4.5 6.9 11.4 11.0 10.1 1.46

Manulife World Investment F -3.7 -5.2 -2.8 -4.1 -2.0 8.4 11.4 1.24

Global Balanced Ticker 1 Mo 3 Mo 6 Mo YTD Ret 1 yr Ret 3 yr Ret 5 Yr Ret 10 Yr Ret 3 yr SD 5 yr SD MER

EdgePoint Global Growth & Inc Port Sr F 4.7 5.2 7.6 11.5 9.5 13.2 15.7 8.4 8.3 0.88

Mackenzie Ivy Global Balanced F 0.2 -0.6 3.0 4.7 5.5 9.1 11.8 6.7 7.8 6.9 1.13

Trimark Global Balanced Series F -0.6 0.2 3.6 1.7 3.4 6.1 10.4 4.7 7.7 7.2 1.31

High Yield Fixed Income Ticker 1 Mo 3 Mo 6 Mo YTD Ret 1 yr Ret 3 yr Ret 5 Yr Ret 10 Yr Ret 3 yr SD 5 yr SD MER

Fidelity American High Yield Curr Neut F -0.3 0.1 4.6 10.2 7.4 3.8 6.8 6.2 5.4 5.2 1.10

Horizons Active High Yield Bond ETF NEW HYI 0.0 1.0 6.6 13.3 10.4 3.7 6.1 0.69

Mackenzie Corp Bond F -0.5 0.4 4.7 10.2 7.2 2.8 5.6 5.2 5.3 4.7 0.99

PIMCO Monthly Income F NEW -0.4 0.7 3.3 6.6 5.7 5.6 9.6 2.8 3.9 0.83

Appendix I: Performance Summary to 11/30/16

92


93


Important Disclosures

This material does not include or constitute an investment recommendation, and is not intended to take into account the particular investment objectives, financial conditions, or needs of individual clients. Before acting on this material, you should consider whether it is suitable for your particular circumstances and talk to your investment advisor.

The author(s) of the report own(s) securities of the following companies.None.

The supervisors of the Portfolio Advisory Group own securities of the following companies.None.

Scotia Capital Inc. is what is referred to as an “integrated” investment firm since we provide a broad range of corporate finance, investment banking, institutional trading and retail client services and products. As a result we recognize that we there are inherent conflicts of interest in our business since we often represent both sides to a transaction, namely the buyer and the seller. While we have policies and procedures in place to manage these conflicts, we also disclose certain conflicts to you so that you are aware of them. The following list provides conflict disclosure of certain relationships that we have, or have had within a specified period of time, with the companies that are discussed in this report.

General Disclosures

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Opinions, estimates and projections contained in this report are our own as of the date hereof and are subject to change without notice.

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Scotia Wealth M

anagement’s Recom

mended M

utual Funds and ETFs 2017

Scotia Wealth Management’s Recommended Mutual Funds and ETFs

Enriched Thinking®

James Gauthier, CFA 416.350.3369 [email protected]

Denise Davids, MBA 647.428.8220 [email protected]

Joel Beriault 416.863.5912 [email protected]

i

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