Week Ending Friday, March 12, 2021 www.mackaygroup.com

1-800-561-4468MacKay Group Wealth Management. Our mission is to provide our clients superior investment advice, products and service.

Serving clients and friends at RBC Dominion Securities Inc. – a member of RBC Financial Group since 1983.

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HOW I SEE IT – by Bruce MacKay Broadening out /Fearing Fear/Canadian Bank’s Year. Last week's small correction didn’t last long - major equity markets are hitting all-time highs - markets are broadening out on the recovery- it’s not just tech.

Positives: AAII investor confidence rises again to 49% - good to show confidence. Yellen and US Treasurystimulate -$ 1.9 trillion - it may not be necessary but itsure helps. Vaccine and housing drives Canadaconfidence to 3 year high. Energy and commodityprices climb -good for Canada and Canadian dollar.Interest rates are up due to a strong economy- they stillhave room to go up more. "Fearing fear itself - weheard about mutant variants months ago and COVIDdata has improved dramatically - US cases andhospitalization are down more than 75%- nursinghome cases decline 95% and deaths down 47% fromthe peak - country is reopening. Economy is movingforward with massive $1.9 trillion stimulus package +25% growth in the M2 money supply and our forecastof 4200 for the S&P 500 in 2021 looks conservative- this should be a banner year for both economy and themarkets"( Brian Wesbury/First Trust). TLT-20 yeartreasury was 180 now 138 - momentum is slowing oncorrection - that’s why tech and growth stocksrecovered this week. COVID shut downs are theproblem and opening up is the solution - distributingthe vaccine as fast as possible is the best stimulus.Canadian banks - what a recovery since last year -expect this year to see," 1. Normalization of earningsand forward estimate revisions, 2. Reserve releasescoming could be $5 to $8 Billion, 3. Yield curvesteepens and helps margins, 4. Dividend increaseslikely, 5. Pent-up demand drive consumer spending, 6.Valuations- forward P/E 9.7 to 10.2 times offersvalue"- in other words expect good year for banks.(Rob Wessel, Hamilton). The NASDAQ has had 1310% corrections since 1980 - the average days in lengthrange from 3 to 21 days - this one was 22 days- the

one-year return afterwards is very strong 90% of the time. “Growth momentum should improve as vaccines ramp up“(RBCWM). “China aims for moderate economic growth and world domination of advanced technologies. FinTech players growing up. Spring shower of cash could fuel stock melt up. Q4 2020 data show complete V-shaped recovery in S&P 500 revenues, earnings and profit margins. Bull market continues to broaden and rotate from growth to value. (Dr. Ed Yardeni).

Negatives: RBC CEO David McKay- sees inflation prompting rate increases next year- this will create volatility at the start. Biggest yield - GDP gap since 1966 shows more room for bond pain. People ask what keeps us up at night - a new round of economic shut downs due to fears of mutant COVID strains! Fed can’t fix any problem with more money- economic problems of 2020 were not caused by the lack of money, they were caused by COVID-19 and related lock downs. Easy Fed creates long term problems. The guide post for monetary policy does not need to be updated for political reasons. Fed can’t fix virus. Go away in May if stocks melt up in April? S&P forward earnings back in record high territory.

Investment Strategy: "I don't look to jump over seven-foot bars; I look around for one-foot bars that I can step over." — Warren Buffett

Stock of the Days this week: BNTX, AAPL, ONEX, DIS, MDT

Have a great weekend. Be well. Bruce

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THIS WEEK’S NOTES & QUOTES - News and Opinions Worth Repeating

Beefed up loonie brings international buying power for Canada-heavy portfolios

Canada is an innovation laggard. We have known this for decades. Successive federal governments have launched consultations, councils, strategies, superclusters and other initiatives to find a way out of our low-innovation equilibrium. But these efforts have borne little fruit. Pinning our hopes for an innovation awakening on Ottawa has been a mistake. We need to change the conversation.

Ottawa has misconceived its role in innovation and many of us have allowed — even encouraged — that to persist. While federal governments have a long track record of articulating grand national visions for innovation, success in the global innovation economy requires more locally-driven approaches that empower a wider range of actors to experiment and develop. https://financialpost.com/technology/the-innovation-imperative-why-canada-needs-to-think-local-to-break-out-of-its-low-innovation-equilibrium Blowout jobs report signals economic resilience in Canada

Canada’s labor market roared back to life in February after authorities began lifting lockdowns, a striking sign of the nation’s economic resilience to the second wave of the pandemic.

The economy added 259,200 jobs in February, Statistics Canada reported Friday in Ottawa, well ahead of expectations for a 75,000 gain. It’s the first month of gains since November, when a new set of containment measures was implemented to curb a surge in Covid-19 cases. The unemployment rate fell to 8.2 per cent, the lowest since the beginning of the pandemic, from 9.4 per cent in January. https://www.bnnbloomberg.ca/blowout-jobs-report-signals-economic-resilience-in-canada-1.1576145

Canadian households add record mortgage debt amid low interest, high prices: StatsCan

Canadian households piled up a record amount of mortgage debt for the second quarter in a row amid low interest rates and high housing prices, Statistics Canada said Friday.

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Hot real estate markets in many regions helped propel house prices higher, pushing demand for mortgage loans to $34.9 billion in the fourth quarter of 2020 -- beating the previous high of $28.7 billion set in the third quarter, the agency said.

The growth in the value of real estate also pushed the net worth of homeowners higher, Statistics Canada said.

Residential real estate increased 3.3 per cent in value, the second consecutive quarter of strong growth, as investment in both new and existing homes remained robust, the agency said in its release.

https://www.bnnbloomberg.ca/canadian-households-add-record-mortgage-debt-amid-low-interest-high-prices-statscan-1.1576198 An NFT sold for US$69M, blasting crypto art records

On Thursday, a digital artwork less than a month old hammered for US$60.25 million at Christie’s in New York, shattering every previous record set for the medium and pushing the NFT market into the price range of blue-chip masterworks. With buyer’s premium the total comes to US$69.3 million. A spokesperson for Christie’s declined to name the buyer. Initially it had appeared Justin Sun, founder of cryptocurrency platform Tron, gave the winning bid of US$60.25 million according to information provided by a Tron representative. Later, the statement was clarified to say he was outbid at the last minute. https://www.bnnbloomberg.ca/an-nft-sold-for-us-69m-blasting-crypto-art-records-1.1575642

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CCAANNAADDIIAANN MMAARRKKEETTSS I. Canadian Fixed Income Benchmark Canada Government Bonds

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2-Yrs 5-Yrs 10-Yrs 30-Yrs

CDN Yield Curve @ March 12, 2021

MG Canadian Fixed Income Top Holdings • Government & Corporate Bonds • Convertible Debentures • High Yield Open End & Closed End Funds • Rate Reset/Fixed Floater Preferreds

• Perpetual Preferreds

II. RBC DS SPRING CDN 2021 Equity Focus List RBC CM Focus List: TELUS, Dollarama Inc., Magna International Inc., Restaurant Brands, Alimentation Couche-Tard Inc., Canadian Natural Resources, Pembina, Suncor Energy, TC Energy Corp, Bank of Montreal, Brookfield Asset Mgmt, Canadian Imperial Bank of Commerce, Element Fleet Mgmt Corp, Intact Financial Corp, National Bank, Royal Bank of Canada, TD Bank, Canadian Pacific Railway Ltd, GFL Environmental Inc., Thomson Reuters, Toromont Industries Ltd., Waste Connections Inc., WSP Global, Constellation Software Inc. CCL Industries, Nutrien Ltd, West Fraser Timer Co., Wheaton Precious Metals Corp, First Capital REIT. III. Veritas V- list: (Feb 2021) Air Canada, CGI Inc., Canadian Natural Resources Ltd., Capital Power Corp., Ceridian HCM Holdings, Cogeco Cable Inc., Dollarama, Enbridge Inc., George Weston Ltd., Granite REIT, Hydro One Ltd., Kilam Apartment REIT, Manulife Financial Corp., Linamar Corp., Maple Leaf Foods Inc., Metro Inc., Riocan REIT, SNC Lavalin Group Inc. SPDR Gld Shares, Telus Corp, TFI International Inc., TransAlta Corp.

IV. News we recommend on our CDN Holdings Market prices as of market close on March 11, 2021 NorthWest Healthcare Properties (NWH.un) A good finish; closing out 2020 ahead of forecast Ranking: Sector Perform (RBCCM). Price C$12.83 – Target C$13.00 Artis REIT (AX.un) Sell industrial, sell office, sell retail... buy REITs? Ranking: Outperform (RBCCM). Price C$10.42 – Target C$13.00 Alaris Equity Partners Income Trust (AD.un) Positive momentum continues in Q4/20; reiterating Outperform rating Ranking: Outperform (RBCCM). Price C$16.37 – Target C$20.00 SNC Lavalin Group (SNC) Repositioning for sustainable growth Ranking: Outperform (RBCCM). Price C$26.55 – Target C$33.00 Please contact our office if you would like a copy of any of the above research reports. Research Publications (available upon request) • Global Insight- 2021 Outlook • RBC Strategy CDN Focus List: SPRING 2021 • RBC CM FEW Portfolio – SPRING 2021

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IINNTTEERRNNAATTIIOONNAALL MMAARRKKEETTSS I. US Fixed Income Benchmark USA Government Bonds

0.000%

0.500%

1.000%

1.500%

2.000%

2.500%

3.000%

2-Yrs 5-Yrs 10-Yrs 30-Yrs

US Yield Curve @ March 12, 2021

MG US Fixed Income Top Holdings include • Government & Corporate Bonds • High Yield Open & Closed Funds • Rate Reset/Fixed Floater Preferreds • IShares Mortgage Plus Index (REM) Yield 8.7%

II. RBC DS US Equity Focus List Feb 2021: Alphabet, Walt Disney Company, Facebook, Amazon.com, Home Depot, McDonalds Corp, Starbucks, Constellation Brands, Costco Corporation, JP Morgan, US Bancorp, CVS Health Corp, J&J, Medtronic, Mereck & Co, Thermo, United Health Group, Honeywell, Union Specific, Xylem, Adobe, Apple, Cisco, Mastercard Inc, Microsoft, Crown Castle III. RBC DS Global Equity Focus List – SPRING 2021: Alphabet, Walt Disney Company, Telus, Amazon.com, Home Depot, Restaurant Brands, Constellation Brands, Costco, Canadian Natural Resources, Suncor, TC Energy, Brookfield Asset Management, Canadian Imperial Bank of Commerce, Intact Financial, Royal Bank, TD Bank, US Bancorp, J&J, Merck & Co. Inc, Thermo Fisher, United Health, Canadian Pacific Railway, Thomson Reuters, Toromont, Waste Connections, Apple, Constellation Software, Mastercard, Microsoft Corp, CCL Industries, Crown Castle.

IV. RBC DS ADR Focus List: China Unicorn, Vodafone, WPP Plc, Honda, Anheuser-Butsch, Diageo, Unilever, China Petroleum…, Eni S.p.A., Royal Dutch Shell, AerCap Holdings, Barclays, HSBC, ING, Prudential PLC, Westpac Banking, AstraZeneca, Fresenius, Sanofi, ABB Ltd, Accenture, Alibaba Group, NICE Ltd, SAP SE, BHP Group. VV.. NNeewwss WWee RReeccoommmmeenndd oonn oouurr IInnttll HHoollddiinnggss Market prices as of market close on March 11, 2021 General Electric (GE). Outlook Call Takeaways: Reasonable Guide + Winding Down GE Capital Ranking: Outperform (RBCCM). Price U$12.27 – Target U$15.00 Coca-Cola (KO) Expecting Mobility to Bubble Up; Upgrade to Outperform Ranking: Outperform (RBCCM). Price U$50.46 – Target U$60.00 NVIDIA Corporation (NVDA) Let’s Talk About EIP 1559 – July 2021 Keys to the Transition Ranking: Outperform (RBCCM). Price U$519.74 – Target U$610.00 Forest Products Lumber Stats: A year to remember; lumber markets closed out 2020 with strength Please contact our office if you would like a copy of any of the above research reports. Research Publications (available upon request) • Global Insight- 2021 Outlook • RBC GAM – Global Investment Outlook • RBC CM – Top 30 Global Ideas for 2021

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MMUUTTUUAALL FFUUNNDDSS CClloosseedd//OOppeenn–– TToopp HHoollddiinnggss

I. CANADIAN Canadian Fixed Income Canso Credit Income Dynamic Strategic Yield Canadian Equity Fidelity – Global Innovation/CDN Large Cap/Growth /Special Opp Mackenzie – Ivey CDN / Cundhill Middlefield – CDN Dividend Growers/REIT Plus Franklin Templeton – Bissett CDN Div/CDN Equity RBC –CDN Div/CDN Equity/ O’Shaughnnessy Dynamic – Strategic Yield EETTFFSS –– TToopp HHoollddiinnggss Canada – Fixed Income Bonds - XBB, XCB, XGB Preferred Shares – CPD, PSF.UN Canadian ETF’s Equity – iShares TSX Large Cap 60, iShares Canada Equity Income, iShares Canadian Dividend, iShares Canadian Select Dividend, iShares TSX Small Cap, iShares TSX Composite Canadian ETF Sectors – iShares TSX Financials, iShares TSX REITs, BMO Equal Weight Utilities, iShares TSX Info Tech, iShares TSX Energy, iShares TSX Materials

II. US/INTERNATIONAL US Fixed income Franklin High Yield Fidelity American High Yield US Equity Fidelity – American Eq/Small Cap American/Euro Mackenzie – US Mid-Cap Middlefield – US Div Growers / American Core Franklin Templeton - Growth RBC - NA Value Dynamic – Strategic Yield

EETTFFSS –– TToopp HHoollddiinnggss US ETF Fixed Income US Bonds – XIG, TLT US Preferred Shares - PFF US ETF Equity – S&P 500, Dow Jones Index, Nasdaq 100, S&P 500 Dividend Index, iShares Dow Jones Select Dividend Index, Vanguard Dividend Appreciation Index, iShares High Dividend Equity Fund, iShares Russell 2000 Index, S&P 500 Value Index, S&P 500 Growth Index, S&P Small Cap 600 Index US ETF Sectors – SPDR Financial Index, iShares Real Estate, iShares, SPDR Utilities Index, iShares Telecom Index, SPDR Consumer Discretion, iShares US Healthcare, IShares Nasdaq Biotech, iShares Industrials Index, NASDAQ Index, Vanguard Energy Index, DJ Basic Materials Index, iShares Homebuilders Index

III. GLOBAL GLOBAL Equity Fidelity – Global Div/Monthly Income Mackenzie – Ivey Foreign Middlefield - Health Care/Global Div Growers Franklin Templeton - Growth / Intl RBC – Global Fund / Int. Div G Dynamic – Global Value GLOBAL ETF Equity China ETF, Europe ETF, Germany ETF, India ETF, iShares Emerging Mkts, iShares International Dividend Unique ETFs Horizons Robotics & Automation, ETFMG Prime Cyber Security, Blockchain Technologies, Active AI Global Equity, Marijuana Life Sciences, Healthcare Leaders Income, Tech Achievers Growth & Income

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I

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FAVOURITE CHARTS

Dow Jones Industrial Average – 1789 to Date

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MMAACCKKAAYY GGRROOUUPP WWEEAALLTTHH MMAANNAAGGEEMMEENNTT Introduction Serving over 300 families and friends since 1981. We provide the investment solutions you need to achieve specific goals, whether investing for yourself, family, your business or your organization. Our Team Helping to provide comprehensive wealth management is an extensive team of professionals, including Portfolio Managers, Financial Planners, Estate Planning Specialists, Consultants, Tax Strategists and Research Analysts. THE MG WEALTH MANAGEMENT APPROACH 1: Learning about each other 2: Developing your personalized IP investment plan. 3: Putting your plan into action 4: Integrating complementary wealth services 5: Taking care of your lifelong needs 6: Monitoring and reporting results

Portfolio Management Highlights: 1. Learning about each other. Questionnaire on investment needs, objectives, and risk. 2. Investment Policy Statement. TThhee IIPPSS statement expresses your personal investment objectives in a document to guide the content of your portfolio, including making decisions, reporting on progress and regularly reviewing your objectives. 3. Action Plan. Detailed proposal to get us started. 4. Reviewing all our Wealth Management services including a financial plan and estate plan. 5. Taking care of lifelong needs, including creating detailed income projections. 6. Monitoring and reporting results. Ongoing portfolio analysis, reviews and prompt service. Investment Policy Statement (IPS) Portfolio Valuation Report o Asset Allocation, Income Projection, Rate of

Return, Capital Gains/Loss Tax reporting, T5 and T3 etc. (See kit) RBC CM Quarterly Strategy, MG Weekly

Newsletter, Focus List and Stock of the Day ACCOUNTS & SERVICES WE OFFER

Investment Account, Options, Equity Credit Line, Corporate, Holding Co., Charitable Foundation, Tax Free Savings Account (TFSA), Registered Education Savings Plan (RESP), Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Individual Pension Plan (IPP), DS Family Trust Acct, Registered Charity Gift of Stock Acct, Annual Tax-Assisted Flow-Through Share Program

PPOORRTTFFOOLLIIOO MMAANNAAGGEEMMEENNTT PPRROOGGRRAAMMSS

Our team manages clients’ portfolios on an individual basis. Portfolios are custom designed to meet your personal objectives. Investment disciplines used include asset allocation, geographic & sector diversification and risk management to maximize your portfolio returns. Programs include: 1. Private Investment Management - PIM our premium level of discretionary wealth management. Highlights include: Freedom, custom portfolio, segregated securities, IP statement, asset mix for life stage, model portfolio tracking, growth and income needs, risk tolerance, top & bottom up management. 2.Professional Discretionary Investment Portfolios. A+ Investment Program: is our institutional level platform with 40+ Investment Manager choices. Global money managers including Beutel Goodman, Franklin Bissett, Guardian, Jarislowsky Fraser, RBC GAM, Caldwell, Brandes, & Franklin Templeton. 3.Professional Non-Discretionary Management - Advisor our premium level of non-discretionary investment wealth management. Highlights include: Discussion on each investments, custom portfolios, IP statement, asset mix, growth & income needs, risk tolerance, top & down management. Management fees are tax deductible for non-registered accounts. 4.Traditional Transactional based accounts. Available for special situation accounts. Advantages of Annual Management Fee Program. Premium money market and bond rates mutual funds with lower management fees Hedging through use of option strategies Easier tax planning – tax loss switches Stop loss + Re-entry without extra fees

to average into and out of stock positions No transaction commission places the focus

on merits of investing instead of its cost. Fee % deceases as value increases

INVESTMENT VEHICLES WE USE: Allocation includes CDN, US, and International Fixed Income Equity Income & Growth MM, GICs Small Cap. Bonds, Converts Medium Cap. Preferreds Large Cap. High Income Balanced ETFs & Mutual Funds (open and closed)

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COMPREHENSIVE WEALTH MANAGEMENT STRATEGIES 1. Financial Planning Ted Chan – our Financial Planning Consultant provides solutions for simple or complex financial planning: • Comprehensive financial plan • Addressing all aspects of your financial affairs • Including cash and debt management • Tax and investment planning • Risk management

• Taxation of the corporation at death and more.

• Retirement and estate planning • Business succession

Withdraws from corporation tax- effectively

2. Insurance Planning Andrew Sipes – As estate planning specialists, they will focus on: • Personal and corporate insurance solutions to increase your net worth and reduce the impact of taxation. • He can also ensure your wealth is transferred to your heirs in accordance with your wishes. Insurance Strategies include: • Whole life, Term Life • Long Term Care

• Keyperson Insurance • Corporate Estate Bond

• Critical Illness • Insured Annuity

3. Wills & Estate Planning Ariel-Charles Guigui – Our Will and Estate Consultant offering information on structuring your estate in an efficient and tax-effective manner, providing you with a report outlining various estate planning issues: • To explore in further detail with your own

lawyer or accountant • Valid & Current Wills for All in Family • Use of living trusts • Planned Gifting

• Reduce the taxes and expenses of an estate • Simplify and speed the transition of assets to the

next generation • Ensure that your beneficiaries are protected. • Different types of Power of Attorney

4. Tax Planning Prashant Patel – A number of solutions that can simplify the tax planning process including; • Tax-efficient charitable giving • Family income splitting strategies • Eligible Retiring Allowance • LIRA Conversion to LIF/RLIF

• 2015 Home Buyer’s Plan Withdrawals • Consider Paying Yourself a Bonus • Sale of Private Business Shares • US Estate Tax Planning for Canadians

5. RBC Estate & Trust Services, Royal Trust Karen Snowden-Staecey – provides individuals, families and businesses with valuable estate, trust and incapacity services: • Assistance in the preservation, management and transfer of wealth between generations by providing

solutions to implement clients’ estate and trust plans • Professional and impartial expertise in delivering estate and trust services

o Strong history and legacy in managing fiduciary businesses o Professionals who have technical and practical experience o Compassion and understanding of the client’s family’s experience

6. RBC Private Banking Premier Ari Steriotis – works as a single point of contact providing banking and credit solutions for select clients of Wealth Management Canada and their families. Tailored banking & credit package to complement the best in class investment management and wealth planning. • Providing one of RBC’s most comprehensive banking packages – special rates, exclusive cross border

package, high daily access limits on cash withdrawals and direct payments, RBC Avion Visa Infinite Privilege Card with a $120 rebate off the annual fee and more.

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THE MACKAY GROUP TEAM COMMENTS

Bruce's-Portfolio Management – Strategy, Macro & Micro

Tax rates are increasing, financial solutions are evolving and RBC's suite of services has expanded

to meet our clients' needs. We'll review your investment portfolios and introduce you to our

expanded team of Wealth Management professionals and the full range of services we offer.

Andrew's -Portfolio Management & Team

Management Proper portfolio construction is the key to meeting

your financial goals. The variety of investment choices can be daunting. Let our team help simplify the approach, narrow your focus, mitigate tax, and plan for financial success throughout retirement.

Kristine's -Business Development & Team Wealth

Management Over 100 of our clients and their families have found tremendous value in having a Financial Plan, Will &

Estate Consultation and Insurance review. Hope you enjoy our new ‘Wealth Wednesday’ educational

email series. I’m also here to manage client appreciation events and charity sponsorships.

Melissa's -Portfolio Administration

Is your account information up to date - including investment objectives & risk parameters, beneficiary information, dividend reinvestment plan, monthly

payment plan and banking information?

Christopher’s - Portfolio Management & Research I will work with you and our team to manage your

accounts, provide recommendations, identify opportunities and assist with client service to ensure

all your needs are met.

Madeleine’s -Portfolio Administration & Research Have you topped up your TFSA? RSP? RESP? I will

work with you to make sure you are maximizing your portfolio. We are especially proud of our daily

‘Stock of the Day’ research.

Our Mission “To provide our clients superior investment advice, products and service at RBC Wealth management

Dominion Securities since 1981.”

Bruce MacKay, HBComm, CIM

Portfolio Manager, Investment Advisor, Vice President and Director

Andrew Slivinsky, CIM, PFP, Senior Associate Advisor Christopher Nicolaides, CIM, DMS Associate Advisor

Melissa Crawford, Associate Advisor Madeleine Howard, HBA Associate

Kristine MacKay, MBA, Associate Wealth Advisor

EEssttaattee ++ FFiinnaanncciiaall PPllaannnniinngg AAddvviissoorrss Ted Chan, Financial Planner

Ariel-Charles Guigui, Will and Estate Consultant Prashant Patel, Tax Consultant

Andrew Sipes, Estate Planning Specialist Karen Snowdon-Steacy, Senior Trust Advisor

Ari Steriotis, Premier Banking

MacKay Group Wealth Management www.mackaygroup.com

Brookfield Place 181 Bay Street, Suite 2200 Toronto Ontario, M5J 2T3 Telephone: 416-842-7120

MacKay Group & RBC Foundation

We have contributed $600,000+ over the years. Charities we support in 2021 - Trillium Health Partners, Canadian Wildlife Federation, Toronto Public Library, ABC Life Literacy, Canadian Canoe Museum, Merry-Go-Round Children’s Foundation, Ontario Track III, Camp Winston, Royal Ontario Museum, Alzheimer’s Society & Dorothy Lee Hospice.

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Disclaimer Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts and prospectus before investing. Mutual fund securities are not covered by the Canadian Deposit Insurance Corporation or by any other government insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Past performance may not be repeated. This information is not intended as nor does it constitute tax or legal advice. Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. This commentary is based on information that is believed to be accurate at the time of writing, and is subject to change. All opinions and estimates contained in this report constitute RBC Dominion Securities Inc.'s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Interest rates, market conditions and other investment factors are subject to change. Past performance may not be repeated. The information provided is intended only to illustrate certain historical returns and is not intended to reflect future values or returns. Securities or investment strategies mentioned in this newsletter may not be suitable for all investors or portfolios. The information contained in this newsletter is not intended as a recommendation directed to a particular investor or class of investors and is not intended as a recommendation in view of the particular circumstances of a specific investor, class of investors or a specific portfolio. You should not take any action with respect to any securities or investment strategy mentioned in this newsletter without first consulting your own investment advisor in order to ascertain whether the securities or investment strategy mentioned are suitable in your particular circumstances. This information is not a substitute for obtaining professional advice from your Investment Advisor. The commentary, opinions and conclusions, if any, included in this newsletter represent the personal and subjective view of the investment advisor [named above] who is not employed as an analyst and do not purport to represent the views of RBC Dominion Securities Inc. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The returns and performance information presented here does not reflect actual client portfolio or composite returns. The performance information presented in this report is based on a hypothetical model portfolio, and is intended to help illustrate the general performance of the investment strategy while removing the variability that results from implementation at a particular client level. The model portfolio reflects the actual investment recommendations (buys, sells) of the strategy as they were communicated historically; however, a number of implementation assumptions (which may include but are not limited to the timing and diligence with which the portfolio is rebalanced, the execution price for securities transactions, and any trading and account related costs, fees, or commissions) have been made when calculating the model returns that may be difficult or impossible for any investor to exactly replicate the model portfolio. For this reason, there is no expectation that the model returns will perfectly replicate the actual performance of any client following the same guided portfolio strategy. Specifically, the following assumptions have been made when calculating model portfolio returns: the portfolio is rebalanced monthly and any time a change to portfolio holdings is made; market close prices are used for all valuations; and returns are gross of all account fees and transaction costs. Insurance products are offered through RBC Wealth Management Financial Services Inc. (“RBC WMFS”), a subsidiary of RBC Dominion Securities Inc.* RBC WMFS is licensed as a financial services firm in the province of Quebec. RBC Dominion Securities Inc., RBC WMFS and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. and RBC WMFS are member companies of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence. © 2018 RBC Dominion Securities Inc. All rights reserved.