Week Ending Friday, October 23, 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 real GDP growth 33.4% annual rate (consumption, Grant Conference/Infrastructure+/ More growth. business investment, homebuilding, government, Equity markets drifting lower this week- is it the trade, inventories) - without shut down US economy calm before the storm - the election storm - media would have grown 2.5% versus a year ago - without sure think so. Morgan Stanley says buy stocks if full reopening economy will likely take until 2023 to there is an election plunge (Bloomberg). get back to where it would have been otherwise - we look forward for more growth in the quarters ahead Positives: AAII investor sentiment this week - but nothing anywhere close to this pace.” bullish up to 35.75% - bearish down to 33% - while not a good buy indicator definitely a good positive sentiment reading. Negatives: Jim Chanos of KYNIKOS Associates Bruce Flatt (CEO Brookfield Asset Management) comments from the Grants Conference include - presented at Grants Conference Tuesday - THIS TIME IT IS DIFFERENT - reoccurring theme‘s highlights include - "$75 trillion of private from bubbles past include- 1. Disruptive narratives/ institutional money to be invested - look for all technologies. 2. State sponsorship/ involvement .3. infrastructure assets to move to private hands - Larger than life pied pipers 4. Financial innovation. instead of capital crowding returns the investable When the ducks quack feed them - US IPO and universe is growing - governments can tax or sell SPAC $ raised at all-time highs. SPAC s are blank infrastructure - those with liquidity great check IPOs and have raised $54B in 2020 year to opportunities emerge in a recession - great assets in date and exceeds the combined $ raised from 2008- weak hands like properties will recapitalize through 2019. acquisitions - publicly listed securities globally are "If you bought every company that lost money in trading at fraction of long-term value and are great 2019 that had a market cap of $1B (approx. 261) long-value purchases - strong will get stronger you’d be up to 65% so far this year "Joel Greenblatt. while traffic is down customers are excited to be back in our stores and their intent to purchase is Collective Wisdom Quotes from E = Mac2. high (CEO Foot Locker) - long leased office cash If you don’t know where you are going you will end flows are the same today as pre-Covid - low interest up someplace else. Yogi Berra. rates = higher office valuations ( free cash flow to owners is higher + Cap rates are lower = values are Be well. Bruce higher) - Data infrastructure is very large , 100 year upgrade opportunity ($5 trillion opportunity) - rates Stock of the Days this week include: CAE, UNH, are low and look to stay that way - investment pools BAM.A, NFLX, ENB. of $100 trillion are looking for yield - investable universe expands as government deficits grow" Brian Wesbury (First Trust) Monday -. "There is nothing normal about 2020 recession - US GDP drops at 31.4% annual rate in Q2 - biggest drop since the 1930s - now a V-shaped recovery - expect 3Q

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

Feds 'exploring all options' as airlines grapple with COVID-19 Industry Minister Navdeep Bains said the federal government is "exploring all options" for ’s airlines as the industry attempts to navigate a historic collapse in air travel due to the COVID-19 pandemic. "What the airline industry is facing is something they never could have imagined. The border restrictions and the lack of travel have significantly had a negative impact on the balance sheets of the airline industry," Bains told reporters Thursday. "We recognize that as we go forward we need to explore all possible options. I don’t want to prejudge the outcome, but I would say we are exploring all options." Bains did acknowledge the government is working with the airlines on "next steps on how to support them and the workers and their communities" but didn't specify whether it would demand equity stakes or board seats from companies that tap any industry-specific financial aid packages. Airline requests for financial assistance from have thus far failed to materialize in funding while the United States and some European countries have offered carriers billions in financial aid, with strings attached including partial government ownership and emissions reduction commitments. https://www.bnnbloomberg.ca/feds-exploring-all-options-as-airlines-grapple-with-covid-19-1.1511383

CN Rail won't 'chop, chop, chop' to drive efficiency: CEO Canadian National Railway Co.’s top executive said he isn't prepared to further slash costs to keep the railway's operating ratio low while risking the company's long-term future. "There has to be a balance between how hard this whole pandemic is on our people and also our financial performance. We can't do everything related to cost, which is 'chop, chop, chop,'" said Jean-Jacques Ruest, CN's chief executive officer, in an interview with BNN Bloomberg on Wednesday. "We have to look to 2021 and our long-term future and what we need in terms of talent and technology to get ready for 2021, and 2025 and 2030."

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Ruest's comments come amid early signs that the company is seeing improvement in the Canadian economy and that conditions will continue to improve toward the end of the year. “Broadly speaking we're cautiously optimistic about 2021, but right now there's good momentum that 2021 should be better than 2020,” Ruest said. https://www.bnnbloomberg.ca/cn-rail-won-t-chop-chop-chop-to-drive-efficiency-ceo-1.1511280

10 years on: How Netflix in Canada has evolved a decade later Netflix Inc. has officially reached the 10-year mark in Canada. The streaming service made its Canadian debut on Sept. 22, 2010. “It's just such a good value, I think a lot of people will subscribe," Netflix co-CEO and co-founder Reed Hastings told CTV News in a television interview during the company’s 2010 launch event in Toronto. Indeed, Netflix has built an army of Canadian users. The company signed up one million subscribers within 10 months of its launch. By the end of 2019, it had nearly seven million subscribers in Canada — that’s almost one fifth of the total population. “In the 10 years since Canadians first welcomed Netflix into their homes, we've been thrilled to share so many great stories with our members and to bring some great Canadian entertainment to the world,” Netflix co-CEO Ted Sarandos told BNN Bloomberg in an email. https://www.bnnbloomberg.ca/10-years-on-how-netflix-in-canada-has-evolved-a-decade-later-1.1497551

EU shutting the door to Canadians is a wake-up call to ramp up our COVID-19 efforts What a difference a few months make. Over the summer, Canadians were riding high on the notion they had flattened the curve. In comparison, COVID-19 infections in the neighbouring United States had spiked to new highs. Then the fall arrived, and coronavirus case numbers in Canada started to surge. In response, the European Union removed Canadians from its list of approved travellers on Thursday. Also, U.S. President Donald Trump made a point of noting Canada's COVID-19 "flare-ups" in a recent speech https://www.cbc.ca/news/business/canada-covid-19-cases-surge-eu-travel-u-s-trump-1.5761649

Poloz 'not really' worried about Canada's housing markets Former Bank of Canada governor Stephen Poloz says he’s “not really” concerned about Canada’s housing markets right now even as sales and prices heat up in the largest cities. Poloz made the comment in a conversation with BNN Bloomberg’s Amanda Lang Tuesday at the Bloomberg Canadian Fixed Income Conference, pointing to a “K-shaped” economic recovery that’s taking place amid the COVID-19 pandemic. “The top part of the K has recovered well. Basically, that pertains to around 95 per cent or a little more of the economy,” Poloz said. “The bottom part, where the damage is the greatest, it’s about five per cent or less of the economy,” he added, pointing to industries such as retail, hospitality, and the airline sector that have suffered the most. Poloz said while there’s a possibility of long-term unemployment in those sectors, the other 95 per cent — that is, the upper-half of the K — will determine how the economy will behave. “And with interest rates at generational lows, you are bound to see a certain amount of heat in the housing market,” Poloz said. “We have months of pent-up demand coming through there, and of course we’re seeing the results of that combined with low interest rates now.” https://www.bnnbloomberg.ca/poloz-not-really-worried-about-canada-s-housing-markets-1.1507619

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CANADIAN MARKETS

I. Canadian Fixed Income IV. News we recommend on our CDN Holdings Benchmark Canada Government Bonds Market prices as of market close on Oct 23, 2020

Corus Entertainment Inc. (CJR) Oversold with Meaningful Upside in a Return to Sustainable Growth Scenario Ranking: Outperform (RBCCM). Price C$3.38 – TargetC$5.00

Canadian National Railway (CNR) Company Q3 below expectations – looking for operating leverage to improve Ranking: Outperform (RBCCM). Price C$137.36 - Target C$144.00.

MG Canadian Fixed Income Top Holdings KP Tissue Inc. (KPT)  Government & Corporate Bonds It's been a good run; moving to Sector Perform  Convertible Debentures Ranking: Sector Perform Price C$12.60- Target C$14.00  High Yield Open End & Closed End Funds

 Rate Reset/Fixed Floater Preferreds Please contact our office if you would like a copy of any of  Perpetual Preferreds the above research reports.

II. RBC DS FALL CDN 2020 Equity Focus List RBC CM Focus List: TELUS, Dollarama Inc., Magna Research Publications (available upon request) International Inc., Restaurant Brands, Alimentation Couche-Tard Inc., Pembina, Suncor Energy, TC  Global Insight- 2020 Outlook Energy Corp, Bank of Montreal, Brookfield Asset  RBC Strategy CDN Focus List: FALL 2020 Mgmt, Canadian Imperial Bank of Commerce,  RBC CM FEW Portfolio – FALL 2020 Element Fleet Mgmt Corp, Intact Financial Corp, National Bank, , TD Bank, Canadian National Railway, Canadian Pacific Railway Ltd, Thomson Reuters, Toromont Industries Ltd., Waste Connections Inc., Constellation Software Inc. CCL Industries, Franco- Nevada Corp, Nutrien Ltd, Wheaton Precious Metals Corp, First Capital REIT, Fortis Inc.

III. Veritas V- list: (October 2020) Air Canada, CGI Inc., Canadian Natural Resources Ltd., Capital Power Corp., Cogeco Cable Inc., Enbridge Inc., George Weston Ltd., Granite REIT, Hydro One Ltd., Kilam Apartment REIT, Financial Corp., Maple Leaf Foods Inc., Metro Inc., Rogers Communication Inc., SPDR Gold Shares, TC Energy Corp., TFI International Inc., TransAlta Corp.

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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 Oct 23, 2020

Allogene Therapeutics, Inc. (ALLO) CART 2.0 Is Here: Simple Logistics, Impressive POC And Valuation Still Reasonable - Initiate At OP Ranking: Speculative Risk Price U$35.34 - Target U$55.00.

Snap Inc. V? (SNAP) Nah, Checkmark! Ranking: Outperform Price U$38.97- Target U$45.00

MG US Fixed Income Top Holdings include Paycom Software Inc. (PAYC)  Government & Corporate Bonds Getting Set for Good News  High Yield Open & Closed Funds Ranking: Outperform  Rate Reset/Fixed Floater Preferreds Price U$377.33- Target U$450.00  IShares Mortgage Plus Index (REM) Yield 8.7%

II. RBC DS US Equity Focus List: Please contact our office if you would like a copy of any of Berkshire Hathaway, Costco Corporation, Alphabet, the above research reports. Amazon, CVS Health Corp, Crown Castle International, Apple, Dupont, EOG Resources, Honeywell Research Publications (available upon request)

III. RBC DS Global Equity Focus List – FALL 2020:  Global Insight- 2020 Outlook Alphabet, Walt Disney Company, Telus,  RBC GAM – Global Investment Outlook Amazon.com, Restaurant Brands, Alimentation  RBC CM – Top 30 Global Ideas for 2020 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, Thomson Reuters.

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 Fixed Income Canadian Equity – iShares TSX Large Cap 60, Canso Credit Income iShares Canada Equity Income, iShares Canadian Dynamic Strategic Yield Dividend, iShares Canadian Select Dividend, iShares TSX Small Cap, iShares TSX Composite Canadian Equity Fidelity – Global Innovation/CDN Large Canadian Sectors – iShares TSX Financials, iShares Cap/Growth /Special Opp TSX REITs, BMO Equal Weight Utilities, iShares Mackenzie – Ivey CDN / Cundhill TSX Info Tech, iShares TSX Energy, iShares TSX Middlefield – CDN Dividend Growers/REIT Plus Materials Franklin Templeton – Bissett CDN Div/CDN Equity RBC –CDN Div/CDN Equity/ O’Shaughnnessy US – Fixed Income Dynamic – Strategic Yield US Bonds – XIG, TLT, US Preferred Shares - PFF US Fixed income Franklin High Yield US Equity – S&P 500, Dow Jones Index, Nasdaq Fidelity American High Yield 100, S&P 500 Dividend Index, iShares Dow Jones Select Dividend Index, Vanguard Dividend US Equity Appreciation Index, iShares High Dividend Equity Fidelity – American Eq/Small Cap American/Euro Fund, iShares Russell 2000 Index, S&P 500 Value Mackenzie – US Mid-Cap Index, S&P 500 Growth Index, S&P Small Cap 600 Middlefield – US Div Growers / American Core Index Franklin Templeton - Growth RBC - NA Value US Sectors – SPDR Financial Index, iShares Real Dynamic – Strategic Yield Estate, iShares, SPDR Utilities Index, iShares Telecom Index, SPDR Consumer Discretion, iShares GLOBAL Equity US Healthcare, IShares Nasdaq Biotech, iShares Fidelity – Global Div/Monthly Income Industrials Index, NASDAQ Index, Vanguard Mackenzie – Ivey Foreign Energy Index, DJ Basic Materials Index, iShares Middlefield - Health Care/Global Div Growers Homebuilders Index Franklin Templeton - Growth / Intl RBC – Global Fund / Int. Div G GLOBAL Equity Dynamic – Global Value China ETF, Europe ETF, Germany ETF, India ETF, iShares Emerging Mkts, iShares International ETFS – Top Holdings Dividend Canada – Fixed Income Bonds - XBB, XCB, XGB Unique ETFs Preferred Shares – CPD, PSF.UN 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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MACKAY GROUP WEALTH MANAGEMENT PORTFOLIO MANAGEMENT PROGRAMS Introduction Serving over 300 families and friends Our team manages clients’ portfolios on an since 1981. We provide the investment solutions you individual basis. Portfolios are custom designed to need to achieve specific goals, whether investing for meet your personal objectives. Investment yourself, family, your business or your organization. disciplines used include asset allocation, geographic Our Team Helping to provide comprehensive & sector diversification and risk management to wealth management is an extensive team of maximize your portfolio returns. Programs include: professionals, including Portfolio Managers, 1. Private Investment Management - PIM our Financial Planners, Estate Planning Specialists, premium level of discretionary wealth management. Consultants, Tax Strategists and Research Analysts. Highlights include: Freedom, custom portfolio, THE MG WEALTH MANAGEMENT APPROACH segregated securities, IP statement, asset mix for life 1: Learning about each other stage, model portfolio tracking, growth and income 2: Developing your personalized IP investment plan. needs, risk tolerance, top & bottom up management. 3: Putting your plan into action 2.Professional Discretionary Investment Portfolios. 4: Integrating complementary wealth services A+ Investment Program: is our institutional level 5: Taking care of your lifelong needs platform with 40+ Investment Manager choices.

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

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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 Bay Street, 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 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.

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