Week Ending Friday, September 25, 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 full economic recovery still years away - likely late Worst is yet support /Long slog / Middle of V 2023 to have unemployment of 4%.”(B. Wesbury) V- shaped recovery continues - we’re in the middle of it When you have such a strong equity rally from a - expect 5 to 10% growth in Q4 - we have strong major correction it pauses + pulls back - base momentum - stimulus takes a year to fully appear - building - for sales and earnings to catch up. will start to appear in Q4 and Q1 - expect good news on vaccine and therapeutics - long bond yields Positives: AAII investor’s bullish sentiment reading to rise as yields are too low in relation to Feds this week 24.89% - bearish reading climbs- good inflation targets - good for financials , cyclicals, contrarian reading. End of quarter window dressing small caps and emerging markets. (Jim Paulson) - portfolio managers repositioning – selling the losers and adding to the winners. CDN PM laid out Negatives: “Worst is yet to come” thinking (the wall plans to rebuild the country’s economy according to of worry)- for the past 3 weeks equities have faltered the OEDC - ‘s fiscal response to the as a renewed sense of concerns has undermined the pandemic was one of the strongest among advanced general positive narrative around equities - Europe economies as a share of GDP. M&A activity having more lockdowns - FDA sets a higher continues - even Berkshire Hathaway keeps threshold for approval of COVID-19 vaccine investing- $600m into E.W. Scripps. “Latest pullback dimming hopes of now - back to school and flu could be pricing in “worst is yet to come”" - 62% season adding to fear of mass of new wave of deaths retracement since June brings S&P 500 to 3224.50 - - 2020 election cannot look beyond 11/3 as the next important support level - US Covid-19 trends are 40 days is all that matters. Markets overbought - we very good, daily cases, deaths, hospitalizations - US move from strong August to weak September. schools and colleges are 21 day into school year and Canada stats - only 29% of Canada small business a mere 0.075% of US students are infected are back to full sales (Bloomberg). First presidential (shockingly low) - we see markets able to rally post- debate - September 29 - will add fuel to the fire. election day with either a Trump or Biden outcome but less so if it is contested. “(T Lee/ Fundstrat). Investment Philosophy: “Although it’s easy to J&J - one dose vaccine entered phase 3 of testing. forget sometimes, a share is not a lottery ticket… its On equity front - Dividend increases are starting to part ownership of a business.” – Peter Lynch outpace cuts. It’s about housing - US housing boom continues - even new home construction in Canada Be well. Bruce hits its highest since 2007. “Long slog recovery based on economic reports looks like Q3 will be Stock of the Days this week include: CPX, QQQ, mother of all economic rebounds - industrial FTS, NKE, FID5982 production and retail sales expected to be up 37.6% at 60.1% annual rates - total private sector hours worked would expand 25.6% annual rate - housing starts up a 218% annual rate - real US GDP at 32% annual - fastest for any quarter since World War II -

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

Don’t overthink it: Markets trend higher regardless of which party in White House Growth of a hypothetical $10,000 investment in the S&P 500

Source: Morningstar, S&P, Capital Group. The start date is March 4, 1933, and the end date is June 30, 2020. Dates of party control are based on inauguration dates. Values are based on total returns in USD. Shown on a logarithmic scale

Feds pledge $440M to international vaccine push; ink AstraZeneca deal

Canada will spend $440 million to join an international program which is trying ensure COVID-19 vaccines aren't just hoarded by rich countries, Prime Minister Justin Trudeau said Friday. But Canada is spending more than twice that to gain private access to millions of doses of some of the most promising vaccines in development. That includes a sixth deal announced Friday with AstraZeneca for up to 20 million doses of its vaccine candidate, which is in the third and final phase of clinical trials. The federal government has committed more than $1 billion to buying vaccines for Canada, much of which is not refundable even if the vaccines are never approved. Trudeau also unveiled Canada's financial commitment for the COVID-19 Vaccine Global Access Facility, known as COVAX. Canada is among 64 high-income countries that have committed to joining COVAX. https://www.bnnbloomberg.ca/feds-pledge-440m-to-international-vaccine-push-ink-astrazeneca-deal- 1.1499468

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Montreal payment provider Nuvei soars in TSX trading debut

The next Canadian tech darling may very well be Nuvei Corp. after the Montreal-based payment processor's stock climbed more than 50 per cent in its first hour of trading on the Stock Exchange on Thursday. The company, which helps to facilitate online and in-person transactions between merchants and payment services, listed its stock on the TSX at around US$26 a share prior to Thursday's market open following strong demand it received during an initial marketing campaign that aimed to raise about US$700 million. https://www.bnnbloomberg.ca/montreal-payment-provider-nuvei-soars-in-tsx-trading-debut-1.1495475

House prices will fall even if worst-case scenario averted: CMHC

Canada Mortgage and Housing Corporation President and CEO Evan Siddall is warning the domestic housing market isn’t out of the woods just yet. In an interview with BNN Bloomberg’s Amanda Lang broadcast Thursday, Siddall said that while the most bearish case for home prices doesn’t seem likely to come to pass, he still sees a price decline by just shy of 10 per cent due to the economic shocks of the COVID-19 pandemic. “The number of people on income support, the number of people on mortgage deferral, means that at some point, probably early next year through the middle part of next year, there will probably be a negative adjustment in house prices,” he said. “In general, we think high single-digit [percentage] negative adjustment is what we can expect in most markets.” https://www.bnnbloomberg.ca/house-prices-will-fall-even-if-worst-case-scenario-averted-cmhc-1.1498968

U.S. files opposition to TikTok's request to halt Trump ban The U.S. filed sealed papers opposing TikTok’s request to halt a Trump administration ban on the video- sharing app that’s scheduled to go into effect this weekend. ByteDance Ltd., TikTok’s owner, has sought a temporary block on the ban even as it pursues administration approvals for the sale of a stake in the video-sharing app to Oracle Corp. and Walmart Inc. ByteDance wants the court to weigh its request ahead of the prohibition, which takes effect just before midnight on Sunday. President Donald Trump has told the company it can either sell its American TikTok business or get out of U.S. app stores. On Friday, the judge granted the Justice Department’s request to file its opposition under seal. He had given the U.S. until 2:30 p.m. to delay the ban or fight TikTok’s request. https://www.bnnbloomberg.ca/u-s-files-opposition-to-tiktok-s-request-to-halt-trump-ban-1.1499524

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CANADIAN MARKETS

I. Canadian Fixed Income Benchmark Canada Government Bonds IV. News we recommend on our CDN Holdings CDN Yield Curve @ Sept 25, 2020 Market prices as of market close on Sept 25, 2020

Brookfield Asset Management (BAM.a) 1.700% 2020 Investor Day: Reinforcing our views. Ranking: Outperform (RBCCM). 1.200% Price C$43.36 - Target C$53.60.

0.700% Aritzia inc (ATZ) Constructive long term view ahead of Q2 results 0.200% Ranking Outperform (RBCCM) 2-Yrs 5-Yrs 10-Yrs 30-Yrs Price C$17.87 - Target C$24.00

MG Canadian Fixed Income Top Holdings Fortis (FTS)  Government & Corporate Bonds The Rock is cooking ESG-friendly growth  Convertible Debentures Ranking Outperform (RBCCM)  High Yield Open End & Closed End Funds Price C$53.78 - Target C$60.00.  Rate Reset/Fixed Floater Preferreds  Perpetual Preferreds Ltd (IPL). UK, Ireland, Netherlands and Germany eliminated

Ranking Sector Perform (RBCCM) II. RBC DS SUMMER CDN 2020 Equity Focus List Price C$13.10 - Target C$15.00. RBC CM Focus List: , Inc., Inc., Restaurant Brands, Alimentation Please contact our office if you would like a copy of any of Couche-Tard Inc., Pembina, , TC the above research reports. Energy Corp, , Bank of Nova Scotia, National Bank, , TD Bank, Intact Financial, Brookfield Asset Mgmt, Research Publications (available upon request) Element Fleet Mgmt Corp, Canadian National Railway, Ltd, Thomson  Global Insight- 2020 Outlook Reuters, Toromont Industries Ltd., Waste  RBC Strategy CDN Focus List: FALL 2020 Connections Inc., Constellation Software Inc. CCL  RBC CM FEW Portfolio – FALL 2020 Industries, Franco-Nevada Corp, Ltd,

Wheaton Precious Metals Corp, First Capital REIT, Close Fortis Inc. Exchange 24-Sep-20 YoY MoM

III. Vertias V- list: (May 2020) S&P/TSX 15,912.26 1.4% -8.3% Canadian Utilities Ltd., Cogeoco Cable Inc., DJIA 26,815.44 5.4% -7.3% Inc., George Weston Ltd., Granite REIT, S&P 500 3,246.59 18.2% -1.1% Hyrdo One Ltd, Killiam Apartment REIT, Loblaws Nasdaq 10,672.27 43.7% 15.4% Ltd, Maple Leaf Foods Inc., Metro Inc., Quebecor FTSE 100 Index (UK) 5,822.78 -19.1% -23.6% Inc., SPDR Gold Shares, TC Energy Corp., Waste DAX Index (Germany) 12,606.57 13.7% -6.3% Connections Inc. Hang Seng Index (HK) 23,311.07 -18.0% -19.3% Shanghai 180 (China) 9,486.02 24.9% 5.6%

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INTERNATIONAL MARKETS

I. US Fixed Income Benchmark USA Government Bonds V.. News We Recommend on our Inttll Holldiings Market prices as of market close on Sept 25, 2020 US Yield Curve @ Sept 25, 2020 1.600% Costco Wholesale (COST) 1.400% Should benefit from “value positioning”; remain 1.200% buyers 1.000% Ranking Outperform (RBCCM) 0.800% Price U$343 - Target U$412.00. 0.600% 0.400% MasterCard (MA) 0.200% Key takeaways from recent management meetings 0.000% Ranking Outperform (RBCCM) 2-Yrs 5-Yrs 10-Yrs 30-Yrs Price U$333 - Target U$372. MG US Fixed Income Top Holdings include  Government & Corporate Bonds Tesla (TSLA)  High Yield Open & Closed Funds Key thoughts on battery day  Rate Reset/Fixed Floater Preferreds Ranking Underperform (RBCCM)  IShares Mortgage Plus Index (REM) Yield 8.7% Price U$405 - Target U$290.

II. RBC DS US Equity Focus List: American Tower (AMT) Berkshire Hathaway, Costco Corporation, Alphabet, AMT announces MLA with T-Mobile Amazon, CVS Health Corp, Crown Castle Ranking Outperform (RBCCM) International, Apple, Dupont, EOG Resources, Price U$240 - Target U$275. Honeywell Please contact our office if you would like a copy of any of III. RBC DS Global Equity Focus List – SUMMER the above research reports. 2020: Alphabet, Walt Disney Company, Telus, Amazon.com, Restaurant Brands, Alimentation Couche-Tard, Costco, , Suncor, TC Research Publications (available upon request) Energy, Berkshire Hathaway, Brookfield Asset Management, Intact Financial, Royal Bank, TD  Global Insight- 2020 Outlook Bank, US Bancorp, Danaher, J&J, Merck & Co. Inc,  RBC GAM – Global Investment Outlook Thermo Fisher, United Health, Canadian Pacific  RBC CM – Top 30 Global Ideas for 2020 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 Cllosed//Open– Top Holldiings Canadian Fixed Income Canso Credit Income Canadian Equity – iShares TSX Large Cap 60, Dynamic Strategic Yield iShares Canada Equity Income, iShares Canadian Dividend, iShares Canadian Select Dividend, Canadian Equity iShares TSX Small Cap, iShares TSX Composite Fidelity – Global Innovation/CDN Large Cap/Growth /Special Opp Canadian Sectors – iShares TSX Financials, iShares Mackenzie – Ivey CDN / Cundhill TSX REITs, BMO Equal Weight Utilities, iShares Middlefield – CDN Dividend Growers/REIT Plus TSX Info Tech, iShares TSX Energy, iShares TSX Franklin Templeton – Bissett CDN Div/CDN Equity Materials RBC –CDN Div/CDN Equity/ O’Shaughnnessy Dynamic – Strategic Yield US – Fixed Income US Bonds – XIG, TLT, US Fixed income US Preferred Shares - PFF Franklin High Yield Fidelity American High Yield US Equity – S&P 500, Dow Jones Index, Nasdaq 100, S&P 500 Dividend Index, iShares Dow Jones US Equity Select Dividend Index, Vanguard Dividend Fidelity – American Eq/Small Cap American/Euro Appreciation Index, iShares High Dividend Equity Mackenzie – US Mid-Cap Fund, iShares Russell 2000 Index, S&P 500 Value Middlefield – US Div Growers / American Core Index, S&P 500 Growth Index, S&P Small Cap 600 Franklin Templeton - Growth Index RBC - NA Value Dynamic – Strategic Yield US Sectors – SPDR Financial Index, iShares Real Estate, iShares, SPDR Utilities Index, iShares GLOBAL Equity Telecom Index, SPDR Consumer Discretion, iShares Fidelity – Global Div/Monthly Income US Healthcare, IShares Nasdaq Biotech, iShares Mackenzie – Ivey Foreign Industrials Index, NASDAQ Index, Vanguard Middlefield - Health Care/Global Div Growers Energy Index, DJ Basic Materials Index, iShares Franklin Templeton - Growth / Intl Homebuilders Index RBC – Global Fund / Int. Div G Dynamic – Global Value GLOBAL Equity China ETF, Europe ETF, Germany ETF, India ETF, ETFS – Top Holldiings iShares Emerging Mkts, iShares International Canada – Fixed Income Dividend Bonds - XBB, XCB, XGB Preferred Shares – CPD, PSF.UN Unique ETFs Horizons Robotics & Automation, ETFMG Prime Cyber Security, Blockchain Technologies, Active AI Global Equity, Marijuana Life Sciences, Healthcare Leaders Income, Tech Achievers Growth & Income

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I ne e d

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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 IIPS 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 Esttatte + Fiinanciiall Pllanniing Adviisors 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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