NEWSLETTER

In other news, our Next Edge Private Debt has received a lower rating from HollisWealth’s rating committee. They have lowered the risk rating scale from High to Medium/High. This is a step in the right direction as it allows us more opportunity to allocate funds to positions that continually show low correlation with the markets and more consistent returns. Next Edge Private Debt has been a core holding since 2015, and has been providing stable and consistent returns to our portfolio for the past 3 plus years.While there is still lots of uncertainty in the markets, we continue to look for opportunities to reduce the risk of your portfolios, while providing consistent returns. We expect this volatility to continue going on to the end of the year, my prediction before year end is that the US and China will still have not signed a deal. .

OCTOBER TO DECEMBER 2019

PWM Quarterly uPdateYour Personal Portfolio Managers: Kevin Haakensen, CFA & Kevin Hegedus, CIMHollisWealth, a division of Industrial Alliance Securities Inc., PWM Private Wealth Counsel Insurance Advisors, Hollis Insurance

We have had a very eventful third quarter driving the markets. The US yield curve between the 2-year and 10-year inverted, there was a drone attack on Saudi Arabia’s energy infrastructure, and the US decided to cut interest rates with the intent to try and avert a financial crisis - the first time lowering interest rates since they started to raise them in 2016. The US Fed is expected to at

least cut rates one more time before the end of the year saying that “inflation remains subdued amid heightened concerns about the economic outlook and ongoing trade tensions with China”. Oh, and did I mention we still do not have a trade deal between the US and China. In the Second quarter of 2019 the S&P500 saw over 73.9% of the companies beat earnings estimates as well as 56.4% of those companies also beat on sales. Both the earning and revenue beats continue to slow compared to prior quarter, but it’s the revenue beats are below their historical averages. This is a concerning sign for the markets and a data point which supports the Feds rate-cut decision.In our portfolios, we continued our path of reducing equities in the third quarter as the markets were rebounding back and some stocks were hitting new highs. We decided to sell JP Morgan Chase (JPM) in all our portfolios on a day it was hitting new all-time highs. This position was added to the portfolio back in January of 2014 between $55.51 and $57.83 and ended up selling it for $120.03. The thesis around the sell was because in a falling interest rate environment, banks earning tend to underperform. With the latest run up we decided to take some profits and increase our cash allocation for the short-term. The Kensington Private Equity, which is held in all portfolios, continued to grow and in August paid out approximately 3% dividend from the sale of private equity assets funds. On a YTD at the end of August this position is up over 9% and again with a low correlation with equity markets.

Sean Meshke, CFA, Portfolio ManagerPWM Private Wealth Counsel, HollisWealth, a division of Industrial Alliance Securities Inc., Insurance Advisor, Hollis Insurance

“Those who cannot change their minds cannot change anything.” - George Bernard

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TAX SLIPS FOR 2019 As in previous years, please ensure to watch for your tax slips as they are mailed to you, both from our head office at Industrial Alliance Securities, and from the respective mutual fund companies individually. For the latter, we do not receive copies, so for any duplicates requested, we will need direction from you regarding which companies and which slips you believe you are missing! We will also, once again, be requesting that you sign a release form for any third-party requests for duplicates and information (i.e., from your accountant). In addition, there is a standard 48 hour turnaround on tax slip requests, as we do receive many of these calls during our tax season. This does not mean it will take 48 hours – but that the request will be completed within that timeframe to allow for us to do a thorough check. If you must obtain your slips immediately, please log in to your myPortfolio+ account, where you will be able to print them off at your leisure.

2019 RRSP CONTRIBUTIONSIf you have not yet made your 2019 RRSP contribution, you still have the first 60 days of 2020 to do so (until February 29, 2020). Please bear in mind, if you are sending this contribution via online banking, it can take a few days to be received by our institution and be posted to your account. As such, you will want to do so by Monday, February 24, 2020. After this date, we may request a screenshot or email confirmation from you to provide to our head office for backdating. In addition, for those who are turning 71 in 2020, your RRSPs must be dealt with by December 31st in one of three ways: fully withdrawing the funds; transferring them to an annuity; or converting the RRSP into a Registered Retirement Income Fund (RRIF). So, if you have employment income this year and you wish to make any final RRSP contributions, they will need to be completed before the end of the year.

HOuSeKeePING NOteS FrOM tHe adMINIStratIVe teaMADMINISTRATIVE REMINDERSPlease take the time to read all communications from our office, including emails and letters. It is not always possible to contact everyone quickly when an opportunity presents itself, so we are asking you to assist us in getting timely information to you. If we do not already have your email address, please call in with it to generate further contact options!

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TFSA CONTRIBUTIONSA friendly reminder that your TFSA room for 2020 has been increased to $6,000, bringing your total lifetime contribution potential to $69,500. For those of you who left us with instructions in 2019 to do your 2020 contributions, they will be done in the month of January 2020. Any income earned inside the TFSA is completely tax-free. If you are unable to make your contribution in any given year, you can make it up in a future year, but you gain the most advantage by making your TFSA contributions as soon as possible, in order to enjoy the tax-free growth of your investment. If you have made withdrawals from your TFSA in 2019, you will need to wait until 2020 to deposit those funds back into your TFSA in order to avoid any penalties for re-depositing the funds too soon. ** Please note: Available room is carried forward should you not contribute the maximum. You should always verify how much you have contributed to your TFSA before making additional contributions. This will avoid penalties from CRA for over contribution. You can do this by logging into your my CRA account online. **

10% DSC TO FE SWITCH REMINDER With back-loaded funds, where redemption fees still apply, we are able to redeem 10% per year of your DSC funds and not be charged a redemption fee. As an added service to our clients, what we do is simply flip the free units into the same fund but on a front-end (FE), zero commission basis. By doing this every year, we can minimize the amount of fees in your portfolio in the event of a redemption. This also gives you a lot more flexibility in investment options in your portfolio. There is no cost or tax consequence to doing this. **Please note: The 10% DSC to FE switches will be processed at the beginning of 2020. You will receive confirmation slips on this via mail.

CLIENT MEETINGS WITH YOUR ADVISOR It is not secret that the financial industry has seen many changes over the years, primarily focusing on ensuring our clients receive the best care possible, while ensuring that processes and fees are more transparent than ever. We uphold these standards, and do our best to maintain very accurate information about our clients on file so that we can always be in a position to provide the most appropriate advice tailored to your specific needs. In order to do this, we have to collect certain information, and update certain documents throughout the course of the years. In light of this, we ask that when booking an appointment, our valued clients make every effort to attend with all parties involved in investing. This makes it easier on everyone when it comes to collecting information and signing documents, as well as reducing follow up times when items are sent home. It also saves you from having to send back documents, and allows you to ask any questions you may have about them during the meeting.In addition, we also ask that you schedule carefully, in order to minimize the number of cancellations that filter through. We do our best to make the appointment booking process as painless and easy for you as possible by providing several dates to choose from so as to accommodate your busy schedules. Currently, we also do not charge a cancellation fee. We do have many clients to see in any given month, who could also benefit from the amount of notice we give each person for booking. Additionally, it can take an hour or more to prepare for your meeting administratively. Because of this, we ask that you give as much consideration as possible to the time that you book, so that there is no duplicated or wasted administrative preparation, and so another client could meet in the spot you have otherwise requested, should you not be able to make it. Of course, we do understand last-minute, and unforeseen circumstances that may prevent you from doing this.

“The great thing in life is efficiency. If you amount to anything in the world, your time is valuable, your energy precious. They are your success capital, and you cannot afford to heedlessly throw them away or trifle with them.” - Orison Swett Marden

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When it comes to each and every investment you have, there are three competing desires that you will find within yourself, towards that investment. If you understand this, we believe this will help you become a better investor. You will also need to understand that you will have to give up at least one of these “desires” in relation to that investment.We need to accept the fact that the best we can have is two out of three. For example, if you want growth and liquidity, you may choose an ETF or blue-chip stock, which can give you both, but if you want something safe and guaranteed, you should now consider a bank GIC. The trade-off is liquidity, due to the fact that you would need to ‘lock up’ your money in some sort of term and the growth in today’s environment is going to be quite low.When analyzing your income needs, you may realize that not all of your investments

are needed today. If this is the case, you may feel more comfortable with how you view your investment choices. If part of your retirement assets are not needed for 5-10 years from now, you may feel more comfortable investing in something that is not immediately liquid. Conversely, you may be comfortable with part of your

wealth invested in equities knowing that you will not need that money in the short-term because you

have structured your plan in a way that allows access to other less risky assets to create that

income that you need today.This is where we like to stress the

importance of having a well-defined financial plan in place. One that spells

out exactly how and when you are going to create that retirement

income, and, secondly, we believe everyone owes it to themselves

to take some time and explore how alternative

investments can possibly increase returns and reduce risk in your portfolio.

StructurING yOur POrtFOlIO: tHe INVeStMeNt trIaNGle

KEVIN HEGEDUS, CFP®, CIMExecutive Director, Private Client GroupSenior Investment AdvisorPortfolio ManagerPWM Private Wealth Counsel, HollisWealth®

Insurance Advisor, Hollis Insurance

“You aren’t going to find anybody that’s going to be successful without making a sacrifice and without perseverance.” - Lou Holtz

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LIFE AFTER HARVEST

A TRANSITION PLANNING SOLUTION FOR THE FAMILY FARM

We will walk you through how to:

• Enjoy a financially-protected retirement• Increase the value of your farm• Maintain the success of your operations• Minimize the stress of operating

a business

• Reduce your income taxes• Create a transition plan that works

for you• Preserve your family harmony

We appreciate that not every farm family is the same. That’s why our team of highly accredited advisors works with you – at every stage in life – to ensure the success of your farm and your family from one generation to the next.

HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

lifeafterharvest.com

ASSINIBOIA, SK OCTOBER 22WEYBURN, SK OCTOBER 23REGINA, SK OCTOBER 24

All workshops will begin at 7pm. Contact us for details on the venue in your area!

UPCOMING WORKSHOP DATES

306.975.9500Space is Limited - Register Today

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Here are five quick questions about insurance, for the majority of Canadians who would rather think about something else.

HOW MUCH INSURANCE COVERAGE DO I NEED? It depends. “If you have a benefit plan at work, you have to coordinate that with what your insurance needs are. You can look at it now or you can look five to 10 years in the future. At a minimum, it could be leaving no debts (covering your mortgage, for example) and providing some income to surviving loved ones.

WHAT TYPE DO I NEED? SHOULD I HAVE TERM OR WHOLE LIFE? Term insurance is cheaper. You basically buy it for a term: 10, 20, 100 years, etc. With permanent insurance, the most common types are whole life insurance and universal life insurance. If you choose to cancel whole life, you can cash out the built-up value that you’ve put in. Universal life allows you to invest that money and the investments grow tax-deferred. But the premiums for permanent insurance are more expensive.

IF I’M BUYING TERM, WHAT TERM IS APPROPRIATE FOR ME? TEN YEARS, 20 YEARS OR LIFE? If you choose a 10-year policy, which is inexpensive, it will come up for renewal when you are older and possibly less healthy. Look at a time period that suits your needs.

IF I’M BUYING TERM INSURANCE, IS IT CONVERTIBLE TO PERMANENT INSURANCE? Convertible term life insurance offers a provision where (up to a certain age) you can switch your term policy to a permanent policy without a medical exam.

WHAT IS MY ADVISER’S EXPERIENCE? You want somebody who is going to guide you through this and see how it fits into your overall planning.

QueStIONS tO aSK WHeN buyING lIFe INSuraNce

FIV

ESTEWART GILLOTT, Insurance Advisor, Hollis Insurance

To learn more about how insurance can both provide protection, and help you build assets for your retirement or estate plan call Stewart at 306-975-9500. or visit www.pwmprivatewealth.com.

“Let us sacrifice our today so that our children can have a better tomorrow.” - Abdul Kalam

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YOU ARE INVITED!As a client of PWM Private Wealth Counsel, HollisWealth®, you are invited to attend our first ever PWM PORTFOLIO FORUM – an evening designed to educate you on the unique opportunities being utilized in your portfolio that help to manage the market volatility of your hard-earned money.

We look forward to seeing you!Your PWM Private Wealth Counsel Team

Andrew McCreath, CEO, CIO - Forge First Asset Management

David Sharpe, CEO – Bridging Finance Inc.

Eamonn McConnell, Managing Director, CIO – Kensington Capital Partners

THURSDAY, OCTOBER 3, 2019Registration Starts: 6:30pmPortfolio Discussion: 7:00pmTHE GLEN AT CROSSMOUNT(10 minutes south of Stonebridge on Chief Whitecap Trail)

Kevin Hegedus and Kevin Haakensen will host an exciting panel of top thinkers in the industry. Kevin Haakensen will ask several pertinent questions relevant to Portfolio Management in today’s economy, but will also provide a relaxed setting for any questions that you may have. Our guests will include the following:

Please come and join us for an evening of relevant, fast paced discussion that will leave you with a better understanding of the unique opportunities that PWM Private Wealth Counsel spends 1,000’s of hours a year researching and selecting.Paid for in part by: Forge First Asset Management, Bridging Finance Inc., & Kensington Capital Partners

WE ENCOURAGE YOU TO BRING A GUEST, BUT BE SURE TO REGISTER EARLY AS SPOTS WILL FILL FAST!Register by calling the office at 306.975.9500 or by email to j.basset@holliswealth.com

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OUTSTANDING INTERNET PRESENCETHE B2B BANK AWARD FOR MULTI-SERVICE ADVISOR OF THE YEAR

WINNER

This information has been prepared by Kevin Hegedus and Kevin Haakensen who are Portfolio Managers for HollisWealth® and does not necessarily reflect the opinion of HollisWealth. The information contained in this newletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Insurance products provided through Hollis Insurance.

* HollisWealth does not provide any income tax preparation services and does not supervise or review any income tax returns.

Saskatoon 205-210 Wellman Crescent (306) 975-9500 or 1-800-652-7472

Prince Albert 25-11th Street East

Swift Current Unit 14-600 Chaplin Street

Don’t forget to check out our Money$ense Video Blog and Meshke’s Minute, which can both be found via www.pwmprivatewealth.com

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