Tradex Equity Fund Annual General Meeting

April 2019

Andrew Mitchell, MSc, CFA, Portfolio Manager

2018 Global Bear Market Short-Lived ‘Rate Pause’ Ignites Sharp Rebound to Highs (Total Return Indices)

MSCI World Index S&P/TSX Composite Index 11,500 44,000

42,000

10,500 40,000

38,000 9,500 36,000

34,000 8,500

32,000

7,500 30,000 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

S&P 500 Index MSCI Emerging Markets Index 6,000 1,300

5,500 1,200

1,100 5,000 1,000

4,500 900

4,000 800 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

Note: All indices shown are total return in Canadian dollars; Source: FactSet

3 Strong Recovery to Start 2019

Q4 2018 Q1 2019

MSCI EM Index -2.2% 7.5%

MSCI EAFE Index -7.6% 7.6%

MSCI World Index -8.5% 10.0%

S&P 500 Index -8.6% 11.3%

S&P/TSX Capped Composite Index -10.1% 13.3%

-15% -10% -5% 0% 5% 10% 15%

Source: RBC GAM, in Canadian dollars Source: RBC GAM Performance

4 Global Stocks Still Way Out In Front Since 2009 Bottom TSX Badly Underperforming Past Decade on Numerous Headwinds

Global Market Performance (C$) MSCI World Index March 2009-2019 Sector Weights March 2019

Technology 16% S&P 500 Index 17% Financials 16%

Health Care 13%

MSCI World Index 13% Industrials 11%

Discretionary 10%

MSCI EM Index 10% Staples 9%

Communications 8%

MSCI EAFE 10% Energy 6%

Materials 5%

Utilities 3% S&P/TSX Index 9% Real Estate 3%

0% 5% 10% 15% 20% 0% 5% 10% 15% 20%

Source: RBC GAM

5 Tradex Equity Fund – Comprehensive Opportunity Set Active Stock Picking Globally

Tradex’s Global Blend: March 2019 MSCI World Index Relative to S&P/TSX

160

150

140

130

Canada Global 120 62% 35% 110

100

80 Emerging Markets 3% 70

Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

Note: Canadian allocation includes 2.3% of Canadian Dollars

6 Key Themes to Our Bottom Up Thinking Focus on Companies with Strong Competitive Dynamics & Disruptors

7 Key Themes to Our Bottom Up Thinking Companies with Strong Competitive Dynamics & Disruptors (Not Disrupted)

8 Why Stock Picking Matters Tradex Long-Term Performance Advantage Positioning Statistics Tradex Equity Fund Differentiated by Off-Benchmark Positions and Number of Holdings

3500 ~3,000 Stocks 3000

2500

2000

1500 (# (# of Stocks)

1000

500 119 Stocks + 0 14 Off-Benchmark Positions Investable Universe Tradex Portfolio

Source: RBC GAM

10 Solid Long-Term Outperformance Supported by Strong Stock Picking & Foreign Equity Exposure

1 Year 3 Years 5 Years 10 Years As of March 31, 2019 (%) (%) (%) (%) Tradex Equity Fund Ltd. 8.1 10.4 7.1 10.8

S&P/TSX Composite Index 8.1 9.3 5.4 9.5

Performance vs. TSX Index 0.0 +1.1 +1.7 +1.3

Post-fee performance figures sourced from Globefund Total may not add to 100% due to rounding

11 Staying Ahead of the Competition Working to Capitalize on Our Advantages

1 Year 3 Years 5 Years 10 Years As of March 31, 2019 (%) (%) (%) (%) Tradex Equity Fund Ltd. 8.1 10.4 7.1 10.8

Peer Group Average 3.6 6.6 4.3 8.5

Performance vs. Peer Group +4.5 +3.8 +2.8 +2.3

Post-fee performance figures sourced from Globefund Total may not add to 100% due to rounding

12 Long-Term Outperformance Remains Strong #24 of 616 Funds in Morningstar Focused Universe

1 Year 3 Years 5 Years 10 Years As of March 31, 2019 (%) (%) (%) (%) Tradex Equity Fund Ltd. 8.1 10.4 7.1 10.8

Peer Group Average 3.6 6.6 4.3 8.5

Performance vs. Peer Group +4.5 +3.8 +2.8 +2.3

Post-fee performance figures sourced from Globefund Total may not add to 100% due to rounding

Tradex Quartile Ranking 1 1 1 1

Tradex Category Ranking 24/616 19/533 21/430 20/202

Source: Morningstar As of December 31, 2018

13 Tradex Equity Fund Positioning Portfolio of Global Leaders Tradex Equity Portfolio Characteristics at March 31, 2019

Top Holdings Weight (%) Country Breakdown Breakdown by Sector

Real Royal Bank of Canada 4.3 Canada Financials Utilities Estate Communications 3% Materials 2% 5% TD Bank 3.8 Canada Financials 7% Discretionary Technology 8% 6% Staples Bank of Nova Scotia 2.7 Canada Financials 8% Industrials CN Railway 2.5 Canada Industrials 12% Energy 14% Enbridge 2.4 Canada Energy

Suncor Energy 2.3 Canada Energy Health Care 7% Danaher 2.2 United States Health Care Financials 28% Roche Holdings 2.0 Switzerland Health Care

UnitedHealth Group 1.8 United States Health Care Breakdown by Region Bank of Montreal 1.8 Canada Financials

Unilever 1.8 United Kingdom Staples Canada Global 62% 35% Fortive 1.8 United States Industrials

Brookfield Asset Management 1.7 Canada Financials

TransCanada 1.6 Canada Energy

EOG Resources 1.6 United States Energy Emerging Markets 3%

Source: RBC GAM; Red: Canadian holdings; Blue: Global holdings Note: Canadian allocation includes 2.3% of Canadian Dollars

15 What Characteristics Do We Seek in our Global Leaders? Ones with Strong Competitive Dynamics & That Embrace Digital Transformation

Transportation & Logistics Health Care Digital Transformation

. CP Rail (1.4%) . UnitedHealth Care (1.8%) . Gartner (1.3%) . Nidec (1.2%) . Danaher (2.2%) . Shopify (0.6%) . Air Canada (0.4%) . Nvidia (0.5%)

Financials Workflow Management Sustainability Focused

. HDFC (1.2%) . CGI Group (0.7%) . American Water Works (1.2%) . MarketAxcess (1.0%) . Kinaxis (0.2%) . Neste (0.6%) . Silicon Valley Bank (0.9%) . Lightspeed (0.2%) . Algonquin Power (0.4%)

Note: Percentages represent weights in overall Tradex portfolio

16 Microsoft Leader in Corporate Digital Transformation – Artificial Intelligence & Cloud

Competitive Dynamics

Business Market share End-market Management model growth growth & ESG     $140 . New CEO empowered and engaged employees . Culture grounded in a growth mindset and refocused on innovation . Set a “cloud-first, mobile-first” approach $120 . Adopted an open architecture approach . Initiated position after stock hit all time high (+27% YTD) $100 . Believed market was underappreciating their Competitive Dynamics

$80 Initiated Position

$60

(Microsoft (Microsoft Share Price USD) Held Google, Intuit, TSMC, Amazon instead

$40 Satya Nadella Announced as CEO

$20

Microsoft’s Lost Decade

Mar-13 Mar-17 Mar-89 Mar-90 Mar-91 Mar-92 Mar-93 Mar-94 Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-14 Mar-15 Mar-16 Mar-18

17 Neste Leading Sustainable Energy Solutions Provider

Business Profile

. Finnish oil refining/marketing company that is successfully transitioning focus to a renewable fuels producer

. Largest global producer of renewable diesel refined from waste

. 60% of total renewable diesel production capacity in world

. Recognized as one of the most sustainable companies globally

. Enabling customers to reduce emissions with sustainable solutions Competitive Dynamics

Business model rd Ranked on Global 100 Most Sustainable Corporations list*  3

Market share Greenhouse gas emissions reduced with renewable solutions (equivalent 3MM passenger vehicles p.a.) growth 7.9Mt 

End-market 1/2 Operating profits derived from renewable products growth  Employees donated their working time to 84 different causes Management 749 & ESG Source: RBC GAM (Mt) Megatonnes of carbon dioxide *Corporate Knights 2019 Global 100 Most Sustainable Corporations list

18 Kinaxis Global Leader in Supply Chain Management Software

Business Profile Challengers Leaders

. Supply chain management and sales and operation planning software company

. Believe eliminating volatility within a supply chain is impossible, but managing it doesn’t have to be

. Trusted by top global manufacturers across multiple industries

Niche Players Visionaries

Kinaxis investor presentation, March 2019

19 What Is Fashionable That We Don’t Currently Own? Cannabis Stocks. Lots of Unknowns on Competitive Dynamics

TSX Health Care Indexed Performance Dec 31, 2017 to Mar 31, 2019 Good Company? 150 . Management teams have short track records Where to from here…? . Unproven models 140 . Edge is unclear

130 Good Stock? . Fundamentals uncertain 120 . Industry pricing outlook uncertain 110 Reasonable Valuation?

100 . Paying high multiples on bullish market growth . Commodity risks and low barriers to entry

Performance Indexed to 100toIndexed Performance 90 Implication 80 . Performance headwind

70 S&P/TSX Health Care Q4/18 Q1/19 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Performance -35.3% +49.1% S&P/TSX Health Care Attribution +56bps -50bps

Source: RBC GAM Data as at March 31, 2019

20 Conclusion 2019 So Far? Among the Best Starts In History Top S&P 500 Index Gains: January – April

22 Support for Equities Global Valuations Not Stretched

Global stock market composite S&P 500 Index Equity market indexes relative to equilibrium Normalized valuation metrics, as at April 2019 2.5 Market is expensive 100 2.0

80 1.5 1.24 1.23 1.17 1.0 0.65 0.57 Market is slightly expensive 60 0.5 0.44 40 Last Plot: -14.3% 0.0

score Market is slightly cheap -0.08

- -0.5 -0.24 Z 20 -1.0 -1.04 0 -1.5 -2.0 Market is cheap -20 % above/below fair value fair above/below % -2.5 -3.0 -40 Average Shiller P/E Market cap Tobin's Q 12-M 12-M RBC GAM Equity risk Fed model (CAPE) ÷ U.S. GDP forward P/E trailing P/E fair value premium

-60 Notes: Historical data from Jan 1956 for 12-M Trailing P/E, 12-M Forward P/E, Equity risk premium, Shiller P/E and Fed model. 1980 1985 1990 1995 2000 2005 2010 2015 2020 Historical data from Mar 1956 for market cap U.S. GDP. Historical data from Jan 1960 for RBC GAM fair value. Source: RBC GAM Source: Haver Analytics, RBC CM, RBC GAM

23 Equities Still Quite Attractive vs. Bonds Stock Risk Premium Widens

U.S. equity risk premium has gone up recently 10

% 5

2 1999 2004 2009 2014 2019 S&P 500 Index E/P ratio  Equity risk premium U.S. 7-10 year IG corporate bond yield Note: As of 4/16/2019 for E/P ratio, 4/15/2019 for bond yield. Source: ICE/BofA ML, Bloomberg, Haver Analytics, RBC GAM

24 What About Putting Everything Into Cash?

Lee Lorenz / The New Yorker Collection / The Cartoon Bank

25 Risk of Missing Out Final 12 Months on Average Account for 1/5 Bull Market Gains

26 Summary

. Bear market short-lived. Markets snapped back on attractive valuations.

. Tradex performance is overachieving versus benchmark and peers.

. Active stock picking across full global opportunity set still key to outperformance.

. Positioning in stocks capitalizing on disruptive technologies.

. Outlook – Late Cycle. Base case is equity still can outperform.

27 Thank You Disclaimer

This presentation is intended for institutional investors only.

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