Week Ending Friday, September 13, 2019 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 Negatives: Negative interest rates are not a Shift defensives/ $ 22 trillion/ Never been better. naturally occurring phenomenon but a failed Equity markets continue to improve this week – attempt by central bankers to make quantitative Dow & TSX close to all-time highs - summer easing work.( B. Wesbury). AAII investor sentiment correction behind us – will rally continue? 33% bullish reading - prefer 21% when investing. Positives: There was a shift this week from Serious auto loan delinquencies rising. Serious defensive equities to growth equites. US tax rate student loan delinquencies rising. Seasonal period cuts and anti-growth business regulation benefit of corrections approaching Citigroup says gold may economy-other countries need to follow their lead. top record - hurts confidence. Ray Dalio sees is 25% ECB turn stimulus taps back on as economy slows - chance of a session this year and in 2020. Market new stimulus package cut deposit rate charged on rotation continues. Small business confidence commercial bank deposits to all time low of -.5%. indicator dropping. Yield inversion affects ‘US Employment had a bump in the participation confidence - perhaps leading cause of a recession. rate to 63.2 - average hourly earnings increased Investment Wisdom: “The philosophy of the rich which is good for consumption - not worried about and the poor is this: the rich invest their money and inflation consequences - productivity rates have also spend what is left. The poor spend their money and been trending higher over the last year - Fed invest what is left.” Robert Kiyosaki expected to drop rates 25 basis points at September PORTFOLIO MANAGEMENT–Week’s Highlights meeting - expect pop up 10% in stock prices if we Stocks of the Day: AMZN, GOOGL, T, CIBR, MFC finally have a trade deal (Dr. J Siegel)’. Trump says New Issues: NPI, CHE.UN, CRT.UN, CJT he will consider an interim trade deal. US federal Have a great weekend. Bruce debt is $22 trillion or $65,417 for every living Close American. JP Morgan says it’s finally time to buy - Exchange 12-Sep-19 YoY MoM September 2nd - right so far. Non-financial corporate S&P/TSX 16,643.28 2.6% 0.9% assets versus liabilities in 2019 - never been better. DJIA 27,182.45 6.4% -0.6% Pre-tax corporate profits in US never been as S&P 500 3,009.57 5.9% 0.2% profitable in history. US shale boom goes global as Nasdaq 8,194.47 5.0% -0.3% US now an energy exporter not an importer. US FTSE 100 Index (UK) 7,344.67 -2.8% -3.1% DAX Index (Germany) 12,410.25 1.4% -0.2% manufacturing employment record high. US Hang Seng Index (HK) 27,087.63 0.0% -5.4% manufacturing output climbs. Household debt low Nikkei 225 (Japan) 21,759.61 -1.9% 1.0% versus assets. Consumer leverage below normal. Shanghai 180 (China) 8,665.57 20.1% 2.7% Home building recovery has more room to grow - MacKay Weekly Investment Report Contents: with house prices at fair value. US household and Page 1 - How I see It, Pages 2 & 3 - Notes and Quotes, non-profit assets a record high of $120 trillion. So far Page 4 – CDN Mkts, Page 5 – Int’l Mkts, Page 6 – Funds this year US imports from China are down 12.3% for & ETFs, same period of 2018, and imports from Vietnam are Page 7-9 – Favorite Charts, up 33.2%, up 20.2% for Taiwan, up 9.8% for South Page 10 – MacKay Group Portfolio Management Korea, up 9.7% for India, up 6.3% for Mexico – trade Page 11 – Comprehensive Wealth Management is moving not dying ( B Wesbury). Page 12 – MacKay Group News & Events

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

Apple nears record as market cap again surpasses US$1 trillion Apple Inc. shares rose for a fourth straight session on Thursday, with the iPhone maker hitting its highest level since October as investors continued to feel bullish about the company’s recent product event. Shares gained as much as 1.3 per cent on the day and have risen nearly 17 per cent off a low hit in August. The rally puts the company less than three per cent below a record close hit in October 2018. With the day’s move, Apple further expanded its market capitalization above the US$1 trillion threshold. When Apple closed in the 13-digit club on Wednesday, that was the first time it had done so this year. At current levels, Apple has a valuation of about US$1.02 trillion, putting it slightly under Microsoft Corp. (MSFT:UN), the largest publicly traded U.S. stock, with a valuation of US$1.05 trillion. https://www.bnnbloomberg.ca/apple-nears-record-as-market-cap-again-surpasses-us-1-trillion-1.1315225

Canadian household debt-to-income ratio rises in Q2 Household debt levels in continue to tick higher, according to the latest figures from Statistics Canada. Canadians owed roughly $1.74 in credit market debt in the second quarter, which includes consumer credit, mortgages and non-mortgage loans, for every dollar of household disposable income, the agency said Friday. This marks a modest uptick from the first quarter when the non-seasonally adjusted ratio sat at roughly $1.73. The Bank of Canada has repeatedly pointed to household debt as a key area of concern for the Canadian economy. "Policy-makers no doubt will find something to like in these numbers. Yet we're still a long distance from writing off household debt from the list of top vulnerabilities for Canada's economy," said Robert Hogue, a senior economist at Royal Bank. https://www.bnnbloomberg.ca/canadian-household-debt-to-income-ratio-rises-in-q2-1.1315752

Walmart is testing a fulfillment service for vendors to match Amazon Walmart Inc. (WMT:UN), looking to generate more profit from its online unit, wants to start storing and shipping products for third-party vendors for the first time, just as rival Amazon.com Inc. (AMZN:UN) has done for years. The world’s largest retailer is testing a fee-based service called “Fulfilled by Walmart,” U.S. e-commerce chief Marc Lore said at an industry conference this week. Lore didn’t provide details, but said the service would be an area where the e-commerce arm could generate revenue. It would allow Walmart to move more items from outside merchants, especially ones that generate wider margins. The move could help Walmart’s U.S. e-commerce business stem losses, which Morgan Stanley estimates may reach US$1.7 billion this year, by making transportation a source of revenue rather than just an expense. Amazon, which has operated its own “Fulfilled By Amazon” service since 2006, has found that merchants are willing to fork over fees since the e-commerce giant can often get goods to customers faster through its own distribution networks. Three out of four Amazon sellers employ fulfillment by Amazon in some capacity, according to Feedvisor, which sells advertising and pricing software used by Amazon sellers. https://www.bnnbloomberg.ca/walmart-is-testing-a-fulfillment-service-for-vendors-to-match-amazon- 1.1315338

Element AI closes financing, securing $200-million backed by the Caisse, Quebec and McKinsey Montreal artificial intelligence startup Element AI Inc. has closed its second large financing round, announcing Friday it had raised US$151.4-million ($200-million), two years after it secured more than US$100-million from a collection of global investors.

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While the financing is one of the largest for an early stage technology company in Canada this year, it comes after a challenging period for the startup, co-founded with global fanfare three years ago by one of the pioneers in the deep learning field, Université de Montréal professor Yoshua Bengio and a group of entrepreneurs led by CEO Jean-Francois Gagné. Element is developing software to help corporations in the financial services and supply chain and logistics sectors to improve their operations using AI-based tools, working with institutions including global bank HSBC and Cambridge, Ont. insurance firm Gore Mutual. Element set out at least 15 months ago on a global search to raise up to US$250-million and at one point last fall was in advanced discussions with Asian investment giant Softbank. By this summer it had scaled back its goal to a range of between US$150-million and US$250-million, sources told the Globe. In the end the deal came together with significant backing from hometown pension giant Caisse de dépôt et placement du Québec and the Quebec government of Francois Legault, which deemed the startup to be “of significant economic interest to Quebec” in a cabinet missive this summer. https://www.theglobeandmail.com/business/article-element-ai-closes-financing-securing-200-million- backed-by-the/

'The Big Short's Steve Eisman calls out Canadian Tire Corporation (CTC/A:CT) is the latest company to be publicly called out by famed short-seller Steve Eisman. Speaking to BNN Bloomberg on Thursday, the portfolio manager made famous for his billion-dollar bets in The Big Short, said Canadian Tire’s credit card business makes it susceptible to the same pressures as the Canadian banks, some of which he publicly shorted in March of this year. “The only other position I have in Canada – which I’ve never discussed – is Canadian Tire, which is one of my short positions,” Eisman, portfolio manager at New York-based Neuberger Berman, said when asked if any other Canadian companies were on his short-selling radar. "They have a fairly significant credit card portfolio, which – if I’m right about the credit in the Canadian banks – eventually those problems will show up in Canadian Tire’s credit card business." https://www.bnnbloomberg.ca/the-big-short-s-steve-eisman-calls-out-canadian-tire-1.1305511

Leafs GM Dubas issues last word on Marner contract talks before imposing ‘radio silence’ Kyle Dubas stepped to the podium and welcomed reporters to the start of training camp. The general manager of the Maple Leafs then drew a proverbial line in the sand. Dubas said he was happy take any and all questions related to the contract saga swirling around star winger Mitch Marner, but made it clear that after Thursday morning there wouldn’t be anything else publicly from the team’s front office until the situation is resolved one way or another. “Radio silence,” the second-year GM said. Talks between Marner’s camp and the Leafs – off and on since last summer – have yet to yield anything of substance. A long-term agreement, a shorter so-called “bridge deal,” and various dollar figures have been rumoured, but the two sides remain at odds as the Leafs opened camp with physicals before flying to St. John’s for their first on-ice session Friday. It’s believed the 22-year-old winger, who led Toronto with a career-high 94 points last season, wants to be paid in the same range as star centres Auston Matthews (US$11.634-million annually) and John Tavares (US$11- million). https://www.theglobeandmail.com/sports/hockey/article-leafs-gm-dubas-issues-last-word-on-marner- contract-talks-before/

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CANADIAN MARKETS III. News we recommend on our CDN Holdings I. Canadian Fixed Income Market prices as of market close on Sept 12, 2019 Benchmark Canada Government Bonds

Dollarama Inc. (DOL) Traffic cops: Q2 results solid and in-line, target to $56 (+$3) Ranking: Outperform (RBC CM) Price: $48.14CAD- Target $56.00CAD

Saputo Inc. (SAP) Slicing the cheese: Tweaking model for $600MM equity offering, target to $49 (-$1)

MG Canadian Fixed Income Top Holdings Ranking: Outperform (RBC CM) • Government & Corporate Bonds Price: $39.99CAD- Target $49.00CAD • Convertible Debentures • High Yield Open End & Closed End Funds Roots Corporation (ROOT) Looking for improved trends through H2 • Rate Reset/Fixed Floater Preferreds Ranking: Sector Perform (RBC CM) • Perpetual Preferreds Price: $2.39CAD- Target $3.50CAD II. MG Top Holdings, RBC DS Summer CDN 2019 Equity Focus List, and Veritas V-List Open Text Corporation (OTEX) MG Favs: CAP REIT, Plaza Corp, Fortis Inc, Hydro A durable platform One, BCE Inc, Canadian Tire. Ranking: Outperform (RBC CM) RBC CM Focus List: , , TD Bank, Price: $54.60CAD- Target $47.00USD Royal Bank, Bank of , , National Bank, Brookfield Asset Management, Intact Please contact our office if you would like a copy of any of Financial, Onex Corp, Brookfield Property Partners, the above research reports. Restaurant Brands, Couche-Tard, CP Rail, CN Rail, Toromont, Waste Connections, Finning Stock of the Day Picks this Week: , Canadian Natural Prepared by Bruce Resources, Suncor, Pembina, TransCanada, AMZN- Amazon Veritas V-List: Canadian Natural Resources, GOOGL- Google Ltd, Canadian Utilities, T - AT&T Inc. Cogeco Cable, , Enerplus Corp, George CIBR- First Trust Nasdaq Cybersecurity ETF Weston Ltd, Granite REIT, Killam Apartment REIT, MFC- Financial Corporation Kinder Morgan Canada Ltd, Manulife Financial

Corp, maple Leaf Foods Inc, Metro Inc … Research Publications (available upon request) RBC Canadian Focus List Performance • RBC Strategy CDN Focus List: Summer ‘19 • RBC CM FEW Portfolio – Summer 2019 • RBC CDN Sm Cap Conviction List – Q2/19

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INTERNATIONAL MARKETS III. News We Recommend on our Intl Holdings I. US Fixed Income Market prices as of market close on Sept 12, 2019 Benchmark USA Government Bonds Oracle Corporation (ORCL) Back to Q1 Reality Ranking: Sector Perform (RBC CM) Price: $53.89USD- Target $57.00USD

Alibaba Group Holding Limited (BABA) Top 10 Questions for Investor Day Ranking: Outperform (RBC CM) Price: $178.28USD- Target $210.00USD

Ford Motor Company (F)

Credit downgraded by Moody's MG US Fixed Income Top Holdings include Ranking: Sector Perform (RBC CM) • Government & Corporate Bonds Price: $9.41USD- Target $10.50USD • High Yield Open & Closed Funds • Rate Reset/Fixed Floater Preferreds Tesla, Inc. (TSLA) • IShares Mortgage Plus Index (REM) Yield 8.7% Gigafactory tour and meeting takeaways Ranking: Underperform (RBC CM) II. MG Favs, RBC DS Summer 2019 US Equity List Price: $245.87USD- Target $190.00USD RBC DS Summer ‘19 Global Equity Focus List MG Favs: Berkshire Hathaway, Bank of America, Visa, Home Depot, and Apple. Please contact our office if you would like a copy of any of RBC DS US Equity Focus List: Berkshire the above research reports. Hathaway, Costco Corporation, Alphabet, Amazon, CVS Health Corp, Crown Castle International, Research Publications (available upon request) Apple, Dupont, EOG Resources, Honeywell • RBC GAM – Global Investment Outlook RBC DS Global Equity Focus List: Alphabet, Telus, • RBC CM – Top 30 Global Ideas for 2019 Amazon.com, Restaurant Brands, Alimentation Couche-Tard, Costco, Canadian Natural Resources, , Suncor, TC Energy, Berkshire Hathaway, Brookfield Asset Management, Intact Financial, JP Morgan, Royal Bank, TD Bank, US Bancorp, Danaher, J&J, Thermo Fisher, United Health, 3M Co, CP Rail, Raytheon, Toromont, Waste Connections, Mastercard, Microsoft, SAP, DWDP, Crown Castle. 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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Canadian Equity – iShares TSX Large Cap 60, MUTUAL FUNDS Closed/Open– Top Holdings iShares Canada Equity Income, iShares Canadian Canadian Fixed Income Dividend, iShares Canadian Select Dividend, Canso Credit Income iShares TSX Small Cap, iShares TSX Composite Dynamic Strategic Yield Ridgewood Investment Grade Fund Canadian Sectors – iShares TSX Financials, iShares TSX REITs, BMO Equal Weight Utilities, iShares Canadian Equity TSX Info Tech, iShares TSX Energy, iShares TSX Fidelity – Global Innovation/CDN Large Materials Cap/Growth /Special Opp Mackenzie – Ivey CDN / Cundhill US – Fixed Income Middlefield – CDN Dividend Growers/REIT Plus US Bonds – XIG, TLT, Franklin Templeton – Bissett CDN Div/CDN Equity US Preferred Shares - PFF RBC –CDN Div/CDN Equity/ O’Shaughnnessy Dynamic – Strategic Yield US Equity – S&P 500, Dow Jones Index, Nasdaq Trimark – CDN 100, S&P 500 Dividend Index, iShares Dow Jones Select Dividend Index, Vanguard Dividend US Fixed income Appreciation Index, iShares High Dividend Equity Franklin High Yield Fund, iShares Russell 2000 Index, S&P 500 Value Fidelity American High Yield Index, S&P 500 Growth Index, S&P Small Cap 600 Index US Equity Fidelity – American Eq/Small Cap American/Euro US Sectors – SPDR Financial Index, iShares Real Mackenzie – US Mid-Cap Estate, iShares, SPDR Utilities Index, iShares Middlefield – US Div Growers / American Core Telecom Index, SPDR Consumer Discretion, iShares Franklin Templeton - Growth US Healthcare, IShares Nasdaq Biotech, iShares RBC - NA Value Industrials Index, NASDAQ Index, Vanguard Dynamic – Strategic Yield Energy Index, DJ Basic Materials Index, iShares Trimark - Trimark /Fund Homebuilders Index

GLOBAL Equity GLOBAL Equity Fidelity – Global Div/Monthly Income China ETF, Europe ETF, Germany ETF, India ETF, Mackenzie – Ivey Foreign iShares Emerging Mkts, iShares International Middlefield - Health Care/Global Div Growers Dividend Franklin Templeton - Growth / Intl RBC – Global Fund / Int. Div G Unique ETFs Dynamic – Global Value Horizons Robotics & Automation, ETFMG Prime Trimark - Global Cyber Security, Blockchain Technologies, Active AI Global Equity, Marijuana Life Sciences, Healthcare ETFS – Top Holdings Leaders Income, Tech Achievers Growth & Income, Canada – Fixed Income Just ETF US Large Cap ETF Bonds - XBB, XCB, XGB ROBO/HBLK/VGT/MIND/HA/HHL/HTA/JUST Preferred Shares – CPD, PSF.UN

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Unchanged and in a range. The indexes continue to trade within ranges that have held for the past month, and the early indications for today are for a pullback from the high end of the range once again. Interestingly, the major indexes are also around the same levels they were at a year ago, which highlights the ongoing consolidation and generally sideways period after a very strong market in 2016 and 2017. These sideways periods are normal within a much longer-term uptrend, and allow time for earnings valuation measures to catch up to the higher prices after a strong year or two of price gains. We think the heavy amount of bearish sentiment that is a result of the concerns generated by the current economic and world news is reflected in the market as well, as today’s market level is set by all that is known and expected by investors.

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FAVOURITE CHARTS

Dow Jones Industrial Average – 1789 to Date

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MACKAY GROUP WEALTH MANAGEMENT Our team manages clients’ portfolios on an Introduction Serving over 300 families and friends individual basis. Portfolios are custom designed to since 1981. We provide the investment solutions you meet your personal objectives. Investment need to achieve specific goals, whether investing for disciplines used include asset allocation, geographic yourself, family, your business or your organization. & sector diversification and risk management to Our Team Helping to provide comprehensive maximize your portfolio returns. Programs include: wealth management is an extensive team of 1. Private Investment Management - PIM our professionals, including Portfolio Managers, premium level of discretionary wealth management. Financial Planners, Estate Planning Specialists, Highlights include: Freedom, custom portfolio, Consultants, Tax Strategists and Research Analysts. segregated securities, IP statement, asset mix for life THE MG WEALTH MANAGEMENT APPROACH stage, model portfolio tracking, growth and income 1: Learning about each other needs, risk tolerance, top & bottom up management. 2: Developing your personalized IP investment plan. 2.Professional Discretionary Investment Portfolios. 3: Putting your plan into action A+ Investment Program: is our institutional level 4: Integrating complementary wealth services platform with 40+ Investment Manager choices. 5: Taking care of your lifelong needs Global money managers including Beutel Goodman, 6: Monitoring and reporting results Franklin Bissett, Guardian, Jarislowsky Fraser, RBC Portfolio Management Highlights: GAM, Caldwell, Brandes, & Franklin Templeton. 1. Learning about each other. Questionnaire on 3.Professional Non-Discretionary Management - investment needs, objectives, and risk. Advisor our premium level of non-discretionary 2. Investment Policy Statement. The IPS statement investment wealth management. Highlights include: expresses your personal investment objectives in a Discussion on each investments, custom portfolios, document to guide the content of your portfolio, IP statement, asset mix, growth & income needs, including making decisions, reporting on progress risk tolerance, top & down management. and regularly reviewing your objectives. Management fees are tax deductible for non- 3. Action Plan. Detailed proposal to get us started. registered accounts. 4. Reviewing all our Wealth Management services 4.Traditional Transactional based accounts. including a financial plan and estate plan. Available for special situation accounts. 5. Taking care of lifelong needs, including creating Advantages of Annual Management Fee Program. detailed income projections.  Premium money market and bond rates 6. Monitoring and reporting results. Ongoing  mutual funds with lower management fees portfolio analysis, reviews and prompt service.  Hedging through use of option strategies  Investment Policy Statement (IPS)  Easier tax planning – tax loss switches  Portfolio Valuation Report  Stop loss + Re-entry without extra fees o Asset Allocation, Income Projection, Rate of to average into and out of stock positions Return, Capital Gains/Loss  No transaction commission places the focus  Tax reporting, T5 and T3 etc. (See kit) on merits of investing instead of its cost.  RBC CM Quarterly Strategy, MG Weekly  Fee % deceases as value increases Newsletter, Focus List and Stock of the Day INVESTMENT VEHICLES WE USE: ACCOUNTS & SERVICES WE OFFER Allocation includes CDN, US, and International Investment Account, Options, Equity Credit Line, Fixed Income Equity Income & Growth Corporate, Holding Co., Charitable Foundation, Tax MM, GICs Small Cap. Free Savings Account (TFSA), Registered Education Bonds, Converts Medium Cap. Savings Plan (RESP), Registered Retirement Savings Preferreds Large Cap. Plan (RRSP), Registered Retirement Income Fund High Income Balanced (RRIF), Individual Pension Plan (IPP), DS Family ETFs & Mutual Funds (open and closed), Trust Acct, Registered Charity Gift of Stock Acct, Option Strategies, Tax assisted investments Annual Tax-Assisted Flow-Through Share Program PORTFOLIO MANAGEMENT PROGRAMS

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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 Compassion and understanding of the client’s family’s experience o

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THE MACKAY GROUP NEWS Our Mission Bruce's Comments “To provide our clients superior investment advice, Is it time for a Financial Checkup? products and service at RBC Wealth management Tax rates are increasing, financial solutions are Dominion Securities since 1981.” evolving and RBC's suite of services has expanded to meet our clients' needs. We'll review your Bruce MacKay, BA, HBComm, CIM investment portfolios and introduce you to our Portfolio Manager, Investment Advisor, expanded team of Wealth Management Vice President and Director professionals and the full range of services we offer. Andrew Slivinsky, CIM, PFP, Senior Associate Advisor Harry Sale, CIM, PFP Associate Wealth Advisor Andrew's Portfolio Managements Comments Ryan MacKay, BA, Associate Advisor We continually monitor your investments. Our Kristi MacKay, MBA, Associate Wealth Advisor objective is your objective - to maximize your Melissa Crawford, BA, Associate Advisor returns given your risk parameters. We have a wide Madeleine Howard, Associate range of investment choices available for you. Just look at our MG weekly Focus List. Estate + Financial Planning Advisors Ted Chan, Financial Planner Harry's Discretionary Managements Comments Ariel-Charles Guigui, Will and Estate Consultant I help the team manage Discretionary Investment Prashant Patel, Tax Consultant accounts. Glad to talk to you about the advantages Andrew Sipes, Estate Planning Specialist of this portfolio management program. Also, will be Karen Snowdon-Steacy, Senior Trust Advisor managing clients TFSA's to maximize returns. MacKay Group Wealth Management www.mackaygroup.com Ryan’s Research and PM Comments Brookfield Place I focus on research, MG Weekly & Daily Stock of the 181 Bay Street, Suite 2200 Day. For over 5 years, we have sent these well Toronto , M5J 2T3 researched reports. I can also provide target & rank Telephone: 416-842-7120 analysis on your investments. MacKay Group & RBC Foundation Kristi's Wealth Management Comments We have contributed $500,000+ over the years. Would you like a Financial Plan, Will & Estate Charities we support in 2018 - Jewish National Consultation and Insurance review? We can also Fund, Canadian Wildlife Federation, Canadian Civil provide you RBC banking, private banking Liberties, Toronto Public Library Foundation, ABC and mortgage lending assistance. Life Literacy, Canadian Canoe Museum, Erin Oak Kids, Trillium Hospital Foundation, CAMMAC, Melissa's Administration Comments Kids Cops & Computers, Ontario Track III, Camp Is your account information up to date – including Winston & The Barth Foundation. investment objectives & risk parameters, beneficiary information, dividend reinvestment plan, monthly payment plan and banking information?

Madeleine’s Comments I am a recent graduate of the Ivey Business School with a degree in Honors Business Administration. I am pleased to join The MacKay Group and I look forward to working with you and assisting you with your personal finances.

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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 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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