Week Ending Friday, July 3, 2020 www.mackaygroup.com 1-800-561-4468 MacKay 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.

HOW I SEE IT – by Bruce MacKay and Q4. All suggesting we are unlikely to see Holiday week/ Best Q/ Capitalized profit model. market retest its low. Trump comments on Holiday week for many- good week for equity Thursday "Great jobs report and better than markets as countries sputter to reopen - should expected - ISM up 10% - consumer confidence rises continue- best quarter for stocks in over 20 years. 12 points to all time high - job expectations high - Positives: Last week I mentioned after that week's retail sales up 18% in May and largest in history - selloff to expect an end of quarter window dressing crisis being handled - areas hardest hit being rally. When you have such a bad quarter like Q1 I managed - stock markets since election performance mentioned at the end of March to expect an equity Dow up 45%, S&P at 47%, NASDAQ up 100%" - rally in the next quarter - even energy rallied. interesting positive comments timing before July 4. Innovation drives equities - look at technology AAII investor bullish sentiment reading this week stocks - NASDAQ hitting all-time highs. Fed will 22% - very strong contrarian buy signal. keep interest rates low for a long time - stimulus working through economy - drives equity prices - Negatives: Cases have increased and re-openings more stimulus likely - Trump doesn’t want poor sputter – some states slow reopening- shakes stock performance before the fall US election. US confidence. US election coming -so much Fed action - Cares Act - $ billions for jobs and uncertainty- doubt either party will raise taxes until economic income payments - many industries mid-next year or until recovery is strong however recovering quickly - many more to recover - 80% of most likely will have to raise taxes to pay the bills. small businesses open again. Test numbers in the US David Rosenberg - "this is a V shaped stock market rise - if they tested the same numbers in March and recovery - Europe should outperform US as they April is the percentage rise still the same - doubt it. have more stimulus measures available to them" -- Hundred companies working on a vaccine like he sounded bullish. Some states and Canada too - Oxford and Pfizer - heard they could possibly have continue and impose density limits on people a vaccine as early as September and October. Even congregation-doubt back to April restrictions - virus with resurgence of new coronavirus cases don’t will be with us until it’s not -social distancing may expect shut down - but with governments involved slow the spread but can’t stop it -people and risks are definitely higher. Stats continue to improve businesses are adapting they want to be back to like TSA reports - the number of airline passengers normal - again recovery process will take years. going through checkpoints last week are up 12% from the previous week as economic activity Investment Strategy: Patience is working. continues to rebound. Expect recovery process to Dividends while we wait. “Bottoms in investing take years - don’t expect unemployment rate to be world don’t end in with 4 year lows they end with below 4% until 2023 - slow and steady is good. Even 10 or 15 year lows." Jim Rogers. with steep drop in corporate profits in Q2 with Have a great weekend. current low interest rate environment Capitalize Be well. Bruce Profit Model still says stocks are cheap - with a 25% drop in corporate profits and a 2% 10 treasury S&P Stock of the Days this week include: KMP.UN, target is 3518 - now 3100. Expect profit surge in Q3 CVS, CNQ, BIP.

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

'A ghost town': Businesses struggle to survive in 's financial district TORONTO - The swarm of Bay St. workers stepping out for a lunch break or headed to Union Station to start their weekend a few hours early can hardly be found on a recent Friday afternoon. Empty streets, hallways in which you can hear a pin drop and no crowds along the usually busy King streetcar route have become the norm in Toronto's financial district since mid-March, when the country's biggest banks and consulting companies ordered their staff to work from home during the COVID-19 pandemic. Avoidance of the district may be helping to quell the spread of the deadly virus, but the quiet has been heart-breaking for hundreds of businesses that cram the city's underground PATH system, fill up ground floors of office towers and nestle into nearby side streets. “In the downtown core, nobody's really reopened unless you're a McDonald's or Tim Hortons,” said Melissa Patterson, the owner of three Cafe Plenty locations, two of which are in the financial district and have been temporarily closed. https://www.bnnbloomberg.ca/a-ghost-town-businesses-struggle-to-survive-in-toronto-s-financial-district-1.1459979

Europe extends block on U.S. travellers over COVID-19; Canada gets green light European Union governments extended a travel ban for U.S. residents, deeming the American response to the coronavirus pandemic insufficient to allow its citizens to enter the bloc for non-essential reasons. The decree, which will be reassessed every two weeks, signals that the ban disrupting both business and leisure travel across the Atlantic won’t be lifted until U.S. authorities control the spread of the deadly virus. In the same decision, the EU will lift travel restrictions for Chinese residents as of July 1, on the condition that Beijing confirms that the same applies to EU citizens. “We appreciate the transparency and concerted efforts of our European partners and allies to combat this pandemic, and we are committed to coordinating with them as we look forward to reopening our economies and easing restrictions,” according to an emailed statement from the U.S. mission to the EU before the decision was made formal. https://www.bnnbloomberg.ca/europe-extends-block-on-u-s-travellers-over-covid-19-canada-gets-green-light- 1.1458595

In Silicon Valley, developers bet big on the return to offices From New York to San Francisco to London and beyond, the cry has gone up in crowded cities: get me out of here! But as the coronavirus reshapes urban life — and prompts businesses to rethink where they want to be — a pair of California real estate investors are pushing what might seem like an unlikely vision for the future. Their idea: turn San Jose, San Francisco’s ho-hum suburban neighbour in the heart of Silicon Valley, into a denser, more citified place. It might sound like a reach in the middle of a pandemic. But they’re betting Bay Area companies that have let employees scatter will eventually want to bring people back into offices, to the one part of the region that hasn’t been overrun by big tech. “My belief is that we’ll have tenants lining up,” said Gary Dillabough, who with his partner Jeff Arrillaga has spent more than US$300 million buying properties in the city over the past three years, from parking lots to a theater that hosts a comedy club. The coronavirus, if anything, has “actually accelerated and reinforced a lot of the convictions that we have.” Dillabough and Arrillaga have made some of the biggest bets in a pre-pandemic investment rush into San Jose. With new mass transit lines set to connect the city to other regional hubs, and Google planning a massive campus, developers have been racing to capture what they expect to be a surge of property demand. https://www.bnnbloomberg.ca/in-silicon-valley-developers-bet-big-on-the-return-to-offices-1.1456823

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Netflix hires new marketing chief, its first Black C-Suite executive Netflix Inc. named Bozoma Saint John as its new chief marketing officer, making her the first Black woman to join the online TV giant’s group of top executives. Saint John joins Netflix from entertainment and sports company Endeavor, and has previously worked at Apple Inc. and Uber Technologies Inc. She will report to Ted Sarandos, Netflix’s chief content officer. Saint John is one of the highest-profile marketing executives in the industry, and is now the senior-most Black executive at Netflix. While the streaming company has pledged money to Black-owned banks, it has also acknowledged it must do more to improve diversity and inclusion inside its own walls. The company’s workforce remains just 7% Black, and most of its senior leadership is White. https://www.bnnbloomberg.ca/netflix-hires-new-marketing-chief-its-first-black-c-suite-executive-1.1458904

Canada's Big Five banks join Facebook advertising boycott The top five banks in Canada have stopped advertising with Facebook, joining a global boycott in protest of the social media giant’s approach to hate speech on its platforms. Royal , TD Bank Group, Canadian Imperial Bank of Commerce, Bank of and Bank of Nova Scotia all said this week they will join the boycott of Facebook’s platforms for the month of July. But the impact of the banks’ boycott is unclear, since none of the five would say how much they typically spend in monthly advertising on Facebook or its subsidiary Instagram. The five banks are now part of a growing list of hundreds of companies around the world backing away from Facebook, which includes Canadian companies such as Lululemon Athletica Inc. and Herschel Supply Company, as well as major global brands such as Coca-Cola Company, Ford Motor Company and Molson Coors Beverage Company. https://business.financialpost.com/technology/canada-big-five-banks-join-facebook-advertising- boycott?video_autoplay=true

Solution to levelling the digital economy playing field may rest with Ottawa Canada's competition authority doesn't have the powers the EU and Australia do, but that may change as Ottawa looks to them for a long-term solution The federal government is studying how Australia and France are levelling the playing field between news producers and global online aggregators such as Facebook Inc. and Google LLC, but grafting one of those models onto Canada may not be a simple endeavour. Canada’s Commissioner of Competition Matthew Boswell said governments in Australia and the European Union have spent years laying significant groundwork. “The Australian government has taken various steps … to give the Australian Competition Consumer Commission, the ACCC, various powers in the last few years to deal with multiple issues in the digital and data-driven economy,” he said. https://business.financialpost.com/technology/solution-to-levelling-the-digital-economy-playing-field-may-rest-with-ottawa

Why Americans say they are, or aren't, wearing face masks As U.S. coronavirus case numbers and deaths continue to climb, face masks have become the center of a heated political debate. While most American adults said they had used a mask while in public spaces within the last month, there were differences across partisan, generational and geographic lines, according to new polling data. The U.S. Centers for Disease Control and Prevention has recommended the wearing of masks in public places. Their use has been found to help limit the spread of the coronavirus. “Please, please, please wear a face covering when you go out in public,” U.S. Surgeon General Jerome Adams said earlier this week. President Donald Trump, however, has largely resisted wearing a mask even when he stands near others. He’s still not convinced they should be required, he said in an television interview this week, but added that Americans should “do what makes you feel good.” https://www.bnnbloomberg.ca/why-americans-say-they-are-or-aren-t-wearing-face-masks-1.1460194

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CANADIAN MARKETS

I. Canadian Fixed Income Benchmark Canada Government Bonds IV. News we recommend on our CDN Holdings Market prices as of market close on July 3, 2020

Cineplex Inc. (CGX) Looking for a Lifeline as Industry Tries to Find a Footing Ranking: Sector Perform (RBC CM) Price: $7.91CAD - Target $11.00CAD

Canadian Natural Resources Limited (CNQ) Conviction Buy—Tim McKay Update Ranking: Outperform (RBC CM) MG Canadian Fixed Income Top Holdings Price: $24.06CAD - Target $30.00CAD  Government & Corporate Bonds  Convertible Debentures Brookfield Property Partners L.P. (BPY)  High Yield Open End & Closed End Funds BAM and partners to buy $1B of BPY/BPYU  Rate Reset/Fixed Floater Preferreds Ranking: Outperform (RBC CM)  Perpetual Preferreds Price: $11.39USD - Target $18.00USD

II. RBC DS SUMMER CDN 2020 Equity Focus List, and Veritas V-List RBC CM Focus List: TELUS, Dollarama Inc., Magna Please contact our office if you would like a copy of any of the above research reports. International Inc., Restaurant Brands, Alimentation

Couche-Tard Inc., Pembina, Suncor Energy, TC

Energy Corp, , Bank of Nova Research Publications (available upon request) Scotia, National Bank, , TD

Bank, Intact Financial, Brookfield Asset Mgmt,  Global Insight- 2020 Outlook Element Fleet Mgmt Corp, Canadian National  RBC Strategy CDN Focus List: SUMMER 2020 Railway, Canadian Pacific Railway Ltd, Thomson  Reuters, Toromont Industries Ltd., Waste RBC CM FEW Portfolio – SUMMER 2020 Connections Inc., Constellation Software Inc. CCL Industries, Franco-Nevada Corp, Nutrien Ltd, Wheaton Precious Metals Corp, First Capital REIT, Fortis Inc.

III. Vertias V- list: (May 2020) Canadian Utilities Ltd., Cogeoco Cable Inc., Enbridge Inc., George Weston Ltd., Granite REIT, Hyrdo One Ltd, Killiam Apartment REIT, Loblaws Ltd, Maple Leaf Foods Inc., Metro Inc., Quebecor Inc., SPDR Gold Shares, TC Energy Corp., Waste Connections Inc.

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INTERNATIONAL MARKETS

I. US Fixed Income V. News We Recommend on our Intl Holdings Benchmark USA Government Bonds Market prices as of market close on July 3, 2020

DocuSign (DOCU) Double Down(load) Ranking: Outperform Price: $190.90USD- Target $210.00USD

Citizens Financial Group, Inc. (CFG) Model Update: Updating Estimates Ranking: Outperform Price: $23.76USD- Target $29.00USD

MG US Fixed Income Top Holdings include  Government & Corporate Bonds Please contact our office if you would like a copy of any of  High Yield Open & Closed Funds the above research reports.  Rate Reset/Fixed Floater Preferreds  IShares Mortgage Plus Index (REM) Yield 8.7% Research Publications (available upon request) II. RBC DS US Equity Focus List: Berkshire Hathaway, Costco Corporation, Alphabet,  Global Insight- 2020 Outlook Amazon, CVS Health Corp, Crown Castle  RBC GAM – Global Investment Outlook International, Apple, Dupont, EOG Resources,  RBC CM – Top 30 Global Ideas for 2020 Honeywell

III. RBC DS Global Equity Focus List – SUMMER 2020: Alphabet, Walt Disney Company, Telus, Amazon.com, Restaurant Brands, Alimentation Couche-Tard, Costco, Pembina Pipeline, Suncor, TC Energy, Berkshire Hathaway, Brookfield Asset Management, Intact Financial, Royal Bank, TD Bank, US Bancorp, Danaher, J&J, Merck & Co. Inc, Thermo Fisher, United Health, Canadian Pacific Railway, Toromont, Waste Connections, Apple Inc, Mastercard, Microsoft Corp, SAP, CCL Industries, Crown Castle, Fortis.

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

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MUTUAL FUNDS Closed/Open– Top Holdings Canadian Equity – iShares TSX Large Cap 60, Canadian Fixed Income iShares Canada Equity Income, iShares Canadian Canso Credit Income Dividend, iShares Canadian Select Dividend, Dynamic Strategic Yield iShares TSX Small Cap, iShares TSX Composite Ridgewood Investment Grade Fund Canadian Sectors – iShares TSX Financials, iShares Canadian Equity TSX REITs, BMO Equal Weight Utilities, iShares Fidelity – Global Innovation/CDN Large TSX Info Tech, iShares TSX Energy, iShares TSX Cap/Growth /Special Opp Materials Mackenzie – Ivey CDN / Cundhill Middlefield – CDN Dividend Growers/REIT Plus US – Fixed Income Franklin Templeton – Bissett CDN Div/CDN Equity US Bonds – XIG, TLT, RBC –CDN Div/CDN Equity/ O’Shaughnnessy US Preferred Shares - PFF Dynamic – Strategic Yield Trimark – CDN US Equity – S&P 500, Dow Jones Index, Nasdaq 100, S&P 500 Dividend Index, iShares Dow Jones US Fixed income Select Dividend Index, Vanguard Dividend Franklin High Yield Appreciation Index, iShares High Dividend Equity Fidelity American High Yield Fund, iShares Russell 2000 Index, S&P 500 Value Index, S&P 500 Growth Index, S&P Small Cap 600 US Equity Index Fidelity – American Eq/Small Cap American/Euro Mackenzie – US Mid-Cap US Sectors – SPDR Financial Index, iShares Real Middlefield – US Div Growers / American Core Estate, iShares, SPDR Utilities Index, iShares Franklin Templeton - Growth Telecom Index, SPDR Consumer Discretion, iShares RBC - NA Value US Healthcare, IShares Nasdaq Biotech, iShares Dynamic – Strategic Yield Industrials Index, NASDAQ Index, Vanguard Trimark - Trimark /Fund Energy Index, DJ Basic Materials Index, iShares Homebuilders Index GLOBAL Equity Fidelity – Global Div/Monthly Income GLOBAL Equity Mackenzie – Ivey Foreign China ETF, Europe ETF, Germany ETF, India ETF, Middlefield - Health Care/Global Div Growers iShares Emerging Mkts, iShares International Franklin Templeton - Growth / Intl Dividend RBC – Global Fund / Int. Div G Dynamic – Global Value Unique ETFs Trimark - Global Horizons Robotics & Automation, ETFMG Prime Cyber Security, Blockchain Technologies, Active AI ETFS – Top Holdings Global Equity, Marijuana Life Sciences, Healthcare Canada – Fixed Income Leaders Income, Tech Achievers Growth & Income Bonds - XBB, XCB, XGB Preferred Shares – CPD, PSF.UN

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FAVOURITE CHARTS

Dow Jones Industrial Average – 1789 to Date

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MACKAY GROUP WEALTH MANAGEMENT Introduction Serving over 300 families and friends PORTFOLIO MANAGEMENT PROGRAMS since 1981. We provide the investment solutions you Our team manages clients’ portfolios on an need to achieve specific goals, whether investing for individual basis. Portfolios are custom designed to yourself, family, your business or your organization. meet your personal objectives. Investment Our Team Helping to provide comprehensive disciplines used include asset allocation, geographic wealth management is an extensive team of & sector diversification and risk management to professionals, including Portfolio Managers, maximize your portfolio returns. Programs include: Financial Planners, Estate Planning Specialists, 1. Private Investment Management - PIM our Consultants, Tax Strategists and Research Analysts. premium level of discretionary wealth management. THE MG WEALTH MANAGEMENT APPROACH Highlights include: Freedom, custom portfolio, 1: Learning about each other segregated securities, IP statement, asset mix for life 2: Developing your personalized IP investment plan. stage, model portfolio tracking, growth and income 3: Putting your plan into action needs, risk tolerance, top & bottom up management. 4: Integrating complementary wealth services 2.Professional Discretionary Investment Portfolios. 5: Taking care of your lifelong needs A+ Investment Program: is our institutional level

6: Monitoring and reporting results platform with 40+ Investment Manager choices. Portfolio Management Highlights: Global money managers including Beutel Goodman, 1. Learning about each other. Questionnaire on Franklin Bissett, Guardian, Jarislowsky Fraser, RBC investment needs, objectives, and risk. GAM, Caldwell, Brandes, & Franklin Templeton. 2. Investment Policy Statement. The IPS statement 3.Professional Non-Discretionary Management - expresses your personal investment objectives in a Advisor our premium level of non-discretionary document to guide the content of your portfolio, investment wealth management. Highlights include: including making decisions, reporting on progress Discussion on each investments, custom portfolios, and regularly reviewing your objectives. IP statement, asset mix, growth & income needs, 3. Action Plan. Detailed proposal to get us started. risk tolerance, top & down management. 4. Reviewing all our Wealth Management services Management fees are tax deductible for non- including a financial plan and estate plan. registered accounts. 5. Taking care of lifelong needs, including creating 4.Traditional Transactional based accounts. detailed income projections. Available for special situation accounts. 6. Monitoring and reporting results. Ongoing Advantages of Annual Management Fee Program. portfolio analysis, reviews and prompt service.  Premium money market and bond rates  Investment Policy Statement (IPS)  mutual funds with lower management fees  Portfolio Valuation Report  Hedging through use of option strategies o Asset Allocation, Income Projection, Rate of  Easier tax planning – tax loss switches Return, Capital Gains/Loss  Stop loss + Re-entry without extra fees  Tax reporting, T5 and T3 etc. (See kit) to average into and out of stock positions  RBC CM Quarterly Strategy, MG Weekly  No transaction commission places the focus Newsletter, Focus List and Stock of the Day on merits of investing instead of its cost. ACCOUNTS & SERVICES WE OFFER  Fee % deceases as value increases Investment Account, Options, Equity Credit Line, INVESTMENT VEHICLES WE USE: Corporate, Holding Co., Charitable Foundation, Tax Allocation includes CDN, US, and International Free Savings Account (TFSA), Registered Education Fixed Income Equity Income & Growth Savings Plan (RESP), Registered Retirement Savings MM, GICs Small Cap. Plan (RRSP), Registered Retirement Income Fund Bonds, Converts Medium Cap. (RRIF), Individual Pension Plan (IPP), DS Family Preferreds Large Cap. Trust Acct, Registered Charity Gift of Stock Acct, High Income Balanced Annual Tax-Assisted Flow-Through Share Program 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  Taxation of the corporation at death and  Addressing all aspects of your financial affairs more.  Including cash and debt management Also:  Tax and investment planning  Business planning  Risk management  Estate planning  Retirement and estate planning  Children’s education and inheritance  Business succession  Family trusts for disabled dependents  Withdraws from corporation tax- effectively  Retirement planning

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  Keyperson Insurance  Critical Illness  Term life  Corporate Estate Bond  Insured Annuity  Long Term Care  Insured Retirement Plan (IRP)

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  Reduce the taxes and expenses of an estate lawyer or accountant  Simplify and speed the transition of assets to the  Valid & Current Wills for All in Family next generation  Use of living trusts  Ensure that your beneficiaries are protected.  Planned Gifting  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  2015 Home Buyer’s Plan Withdrawals  Family income splitting strategies  Consider Paying Yourself a Bonus  Eligible Retiring Allowance  Sale of Private Business Shares  LIRA Conversion to LIF/RLIF  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  Financial security and peace of mind to elder Canadians who require assistance in the management of their affairs as they grow older  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

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THE MACKAY GROUP NEWS

Bruce's Comments Is it time for a Financial Review and Checkup? Our Mission Tax rates are increasing, financial solutions are “To provide our clients superior investment advice, evolving and RBC's suite of services has expanded products and service at RBC Wealth management to meet our clients' needs. We'll review your Dominion Securities since 1981.” investment portfolios and introduce you to our expanded team of Wealth Management Bruce MacKay, HBComm, CIM professionals and the full range of services we offer. Portfolio Manager, Investment Advisor,

Vice President and Director Andrew's Portfolio Managements Comments Andrew Slivinsky, CIM, PFP, Senior Associate Advisor Proper portfolio construction is the key to meeting Kristine MacKay, MBA, Associate Wealth Advisor your financial goals. The variety of investment Christopher Nicolaides, CIM, DMS Associate Advisor choices can be daunting. Let our team help simplify Melissa Crawford, Associate Advisor the approach, narrow your focus, mitigate tax, and Madeleine Howard, Associate plan for financial success throughout retirement.

Kristi's Business Development & Wealth Estate + Financial Planning Advisors Management Comments Ted Chan, Financial Planner Would you like a Financial Plan, Will & Estate Ariel-Charles Guigui, Will and Estate Consultant Consultation and Insurance review? We can also Prashant Patel, Tax Consultant provide you RBC banking, private banking Andrew Sipes, Estate Planning Specialist Karen Snowdon-Steacy, Senior Trust Advisor and mortgage lending assistance. MacKay Group Wealth Management Melissa's Administration Comments www.mackaygroup.com Is your account information up to date – including Brookfield Place investment objectives & risk parameters, beneficiary 181 , Suite 2200 information, dividend reinvestment plan, monthly Toronto , M5J 2T3 payment plan and banking information? Telephone: 416-842-7120

Christopher’s Portfolio Management Comments MacKay Group & RBC Foundation I will work with you to manage your accounts, We have contributed $550,000+ over the years. provide recommendations, identify opportunities Charities we support in 2019 - Jewish National and assist with client service to ensure all your Fund, Canadian Wildlife Federation, Canadian Civil needs are met. Liberties, Toronto Public Library Foundation, ABC Life Literacy, Canadian Canoe Museum, Erin Oak Madeleine’s Admin. and Research Comments Kids, Trillium Hospital Foundation, CAMMAC, Have you topped up your TFSA? RSP? RESP? I will Kids Cops & Computers, Ontario Track III, Camp work with you to make sure you are maximizing Winston & The Barth Foundation. your portfolio. I assist Bruce on our research too. We are especially proud of our daily stock of the day research.

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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 . 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.

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