CIBC PRIVATE WEALTH MANAGEMENT CIBC WOODWOOD GUNDY GUNDY THE THEMEYER MEYER SMALL SMALL FINANCIAL FINANCIAL GROUP GROUP

THIS ISSUE Powerful Statements – A Message from Winston P.1 Economic Outlook P.2 Tax Tips for 2020 P.4 Investment Market Overview & Outlook P.4 For Income Investors P.5 For Growth Investors P.7 Conclusion P.8 Appendix: 2019 Model Portfolio Reviews P.9

Derek Small INVESTORS OUTLOOK 2020 CFA, FMA, FCSI Investment Advisor, Portfolio Manager Winston’s Message - From One Client to Another 905 631-3568 [email protected] The most common and predictable question I’ve been asked lately is, “So what are you going to do now that you’re retired?” I look forward to spending more time with my family, especially my wife, Karen. (Though she may have other Michael Haier thoughts on this plan). Physical activity, hobbies, completing long overdue Associate Investment projects, and community involvement are also up there on my list. Advisor 905 631-3571 [email protected] Surprise! One thing I’m not going to do in retirement is manage my own portfolio.

Our team’s primary mantra, Purposeful Investing, was built around our understanding of the three D’s. Dysfunction, Disease, and Disruption. At any Heidi Schuhmacher point in time, most of us are suffering from at least one of them. They are more Financial Associate impactful to our financial futures than virtually any macro-economic or stock 905 631-3569 market scenario. Yet, we are generally reluctant to discuss them. Every action [email protected] we take on behalf of a client must relate to the achievement of their long-term objectives. Beating stock market indices is not a priority. We want to achieve your financial objectives while insulating you as best possible from the inevitable challenges surrounding the dysfunction, diseases, or disruptions that may enter into your life. Ratinder Mundi Ratinder Mundi th Client Associate Client Associate As we enter the 11 year of the current bull market, one might be tempted to 905 631-3570 905 631-3570 adopt the mindset that financial planning is easy. Indeed, I wish for everyone a [email protected] [email protected] lifetime of buoyant markets, perfect personal relationships, infinite good health, and predictability in all you do. But should any of these factors in your life decline, the value of a properly structured portfolio will become apparent.

To properly oversee one’s wealth is a fulltime job, whether or not one has the intellectual capacity. Sure, I’ll keep an eye on markets, and will take an Our Partner occasional foray into some opportunities that catch my eye. But for the serious Manjit Dhir, money, I’ll leave it to another ‘D’, namely Derek and the team to take the reins. CFP, CHS Now that I’m a client, I need to know that my portfolio will provide for my Our Partner: Estate Planning Specialist retirement and my estate; not just during the good times, but in tough times, be

905 897-4652 they personal or environmental. I need my wealth to withstand the inevitable [email protected] interference of any or all of the three unwelcome D’s.

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Economic Outlook economy and the consumer. For the business world, we must recognize that the shift from a manufacturing Let’s preface our outlook for 2020 by reflecting on focus to more of a service focused business mix, as well 2019. It is hard to believe that many of the issues as the ever-increasing digital economy, has allowed global markets were concerned about last year are still business development to be less capital intensive than in the headlines today. The US and China are still in the past. This phenomenon coupled with more negotiating a trade deal. Brexit still hasn’t happened. moderate growth than in past expansionary cycles has Trump’s impeachment still might happen. The Leaf’s reduced the need for significant output expansion and still aren’t going to win the Stanley Cup! capital investment. With less investment in capital, there is simply less impact of a change in the cost of What clearly changed over the past twelve months was debt. In fact, share buybacks are the capital the direction of global interest rates. We closed out expenditure du jour these days, not investing in new 2018 with one last rate hike from the US Federal plants and equipment. Reserve , moving the target Fed Funds rate to 2.50%. At the time, the broad consensus was for Of bigger importance to our view is consumer several more rate hikes in 2019. As it turned out, the consumption patterns in ultra-low interest rate Federal Reserve capitulated in the face of a global economies. Japan, and now much of Europe, have stock market sell off that saw the S&P 500 retreat interest rates at or near zero percent. Classic theories nearly 20.00% from peak to trough amid fears that of monetary policy would have predicted a significant advance in consumption, as consumers substituted rates had already risen too far against a global consumption today for the limited benefit of saving for economy that had lost momentum. Beginning in June, a the future. But what we are actually seeing instead is total of three ¼ point cuts were implemented in 2019. the foresight of the consumer that permanently lower interest rates can reduce your total wealth and So where do interest rates go from here? consumption over your lifetime. Per the chart below, Japan and Germany’s savings rate has increased, the With so many strategists predicting rates will fall exact opposite of what was intended. If the further, we are taking the contrarian view with a experiment of zero interest rates proves to be a forecast that rates in the US will stay flat if not move failure, we see no reason for Canada and the US to higher in the next year. Canada may have one more follow suit! rate cut in the cards before we adopt a stable policy as well. Part of this forecast lies with what we believe is the incredibly accommodating policy central have already adopted. Near as we could tell, the global economy wasn’t sliding into the abyss at the end of 2018. Granted, there was plenty of uncertainty, much created by Donald Trump and his aggressive posturing on many global issues, the trade war with China in particular. But despite the noise, the global economy plodded along in 2019, with expectations of similar growth projected for 2020.

Our view of stable to rising interest rates lies with how little benefit we see lower rates having on both the Canadian economy to grow by 1.40% in 2020.

The US Economy will grow by 2.00%

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In terms of economic growth, CIBC’s team of economists see Canada’s economic growth tepid at best. We won’t disagree with this forecast, but have a little concern that the growth numbers may come in lower than their 1.40% growth target. Whether we ultimately find ourselves in a mild recession or not is dependent on both the health of our housing market, as well as Canada’s success in exporting our products and services to our global trading partners.

The housing market, especially in major urban centers, continues to be a driver of economic expansion and job creation. We hope Canadian housing continues to see modest price appreciation, which in our opinion is the best case for supporting employment in the sector while giving first time homebuyers a chance to participate.

More important than the ebb and flow of Canada’s What does this mean for our Loonie? housing market is the ebb and flow of our goods around the world. The sum of events that we’ve seen over the As for our projections on currency, the direction of the past few years has done little in our view to advance Loonie will be driven by whether we see an interest our standing in the world on trade. Everywhere we rate cut in early 2020 by the Bank of Canada, and to turn it feels as though our larger trading partners are what degree oil prices move. Our base case is for the seeking concessions or putting up further roadblocks to Canadian dollar to fall by 2 cents to $0.74 US. Slower trade with us. As a country, our own division on how to global growth will see our currency fall further, with produce and export our resources hasn’t helped above forecast growth holding our dollar steady to matters either. mildly higher. Let us remind everyone that as an export focused nation, it is always beneficial to have a Turning to the US and the rest of the world, we have to lower currency, as it allows us to sell our goods at a expect similar growth patterns as we’ve seen for the lower cost around the world. Canada can use all the past few years. The US continues to maintain a tight help it can get to keep our economic growth showing a labour market amidst a mixed bag of economic positive trend. The US dollar is and will remain the indicators. The consumer appears strong and the risk of reserve currency of the world for quite some time. recession appears less than here in Canada. We’ll call for the US to track close to 2% growth, especially if We therefore expect a generally strong US dollar Trump starts to focus more and more on getting re- against most major currencies, despite Trump’s elected next fall. Globally, we will look for China and ongoing tweets decrying its value. Don’t be surprised India to be the two main drivers of growth, with both however to see more and more global trade using economies needing to do well for global economic China’s native currency, the renminbi, that may reduce growth to remain solid in our estimation. the greenbacks status in the years to come.

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TFSA Contributions: RRSP Contribution Limits:

As of January 2020, the maximum cumulative Your RRSP deduction and contribution limit is 18% of contributions to a TFSA for Canadian residents 29 or your earned income from the previous year, to a older during the year, is $69,500. Younger maximum as set out by the government each year. Canadians with a valid SIN can contribute for each Unused contributions are carried forward each year, year they were 18 or older using the following so if you did not maximize your RRSPs in the past, guideline: you can add the unused amount to this year’s limit.

2019 to 2020: $6.000 per year 2019: $26,500 2016 to 2018: $5,500 per year 2020: $27,230 2015: $10,000 2013 to 2014: $5,500 per year 2009 to 2012: $5,000 per year

BusinessRRSP Contribution Owners Limits Market Outlook & Investment Opportunities Your RRSP deduction and contribution limit is 18% of for 2020 Majoryour changesearned incometo the taxation from the of previous passive year,income to ina privatemaximum corporations as set out were by the passed government into law eachin 2018. year. A Unused contributions are carried forward each year, With 2019 drawing to a close, we don’t know of any Corporate Estate Preservation strategy is an excellent so if you did not maximize your RRSPs in the past, forecaster that successfully predicted the heights toolyou for can many add businessthe unused owners amount to utilize to this as year’s a cost limit.- global markets achieved this year. As much as poor effective way of preserving capital and enhancing the stock market performance in the back half of 2018 led value2019: of $26,500 their estate. By moving some of the business’ many investors to fear the worst, we are concerned existing2020: $27,230corporate assets to fund a life insurance that the strong market recovery and docile finish to policy, business owners can take advantage of the tax 2019 has made investors overly complacent today. advantaged growth within an exempt life insurance What we thankfully have not seen as much is the type policy to minimize taxes and increase the size of their of speculative froth that fueled the valuation bubbles estate today and into the future. in digital currencies in 2017 and cannabis stocks in 2018. How it works: A corporation purchases an exempt life insurance policy on the life of the business owner. Cash Despite the stock performance this year, the market value is created as the corporation deposits amounts does not appear overpriced at current levels, with into the life insurance policy, the cash value less policy prevailing Price to Earnings (P/E) ratios well within the charges accumulate on a tax-deferred basis that may normal range. What gives us pause however is how increase the death benefit payable under the insurance corporate profits will continue to grow if the global policy. By moving funds into a life insurance policy economy fails to demonstrate stronger than the from other taxable investments, the amount of tax forecasted slow pace of expansion. At some point, payable by the corporation is reduced. Life insurance squeezing a few extra pennies of profit out of the same proceeds are received tax-free by the corporation and dollar of revenue becomes impossible, and more dollars generate a credit to the corporation’s capital dividend are required to increase profits to investors. An account from which the corporation can distribute tax- escalating stock market in the absence of earnings free capital dividends to your heirs or favourite charity. growth will quickly become overvalued in our view.

By taking advantage of the Corporate Estate With corporate profit growth projected to be modest in Preservation strategy, business owners can transition 2020, it is hard to see global stock markets advancing assets from tax-exposed to tax-sheltered and significantly next year. Much will depend on the ultimately tax-free assets. degree of clarity we get on global trade. Should trade Tax free death benefit ensures immediate access to issues remain unsettled, we see little ability for funds for heirs, to fund tax liabilities or other estate corporate profits to expand, seeing instead no other planning objectives. course of action but for corporations to react defensively to potentially increased trade barriers. This may mean a lower benefit of the world’s “free INVESTORS OUTLOOK 2020 | 4

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trade” philosophy, with a greater need to invest in comprise the TSX have less and less exposure to the business models that better match production to Canadian economy with every passing day. This is a consumption in localized regions. good thing, as many of our largest corporations have expanded into bigger markets around the globe to grow We forecast the S&P 500 will advance 4% to 3300, earnings for shareholders. With a general decline of while the TSX increases 6% to 18000. foreign ownership in Canadian business, spurred mostly by the decline and mismanagement of our energy Believe it or not, we actually expect the Canadian sector, we have seen the prevailing valuation of our stock market to outperform the US market next year. stock market fail to keep pace with our southern This may seem at odds with our call on the slower pace neighbour. We are betting this valuation gap narrows of economic growth we expect. The fact is, the at some point, with the TSX getting a boost when it success or failure of the industries and companies that does.

As we look for specific investment opportunities in Ideas for Income Investing 2020, our strategy remains on many levels the same. Though we almost never find attraction in high growth Last year’s Income ideas saw some positions benefit stocks that trade at lofty valuations, we feel even less from the decline in interest rates, while others inclined of late to participate in this space in the performed negatively as a result. On a net basis, we market. Instead, we are biased more towards witnessed an average return of 7.64%. For our list of investments in businesses that offer a track record of income ideas this year, we highlight ideas that should positive cash flow and an ability to return those be considered complements to a core of very safe earnings to investors in dividends, share buybacks, or income holdings that include GICs and good quality new projects with predictable and measurable bonds. If an investor is looking for absolute safety investment returns. We won’t be entirely defensive today, we will point to a 1-year GIC, or any term of GIC with our portfolios and will make a few strategic for that matter, that offers investors roughly 2.25%. wagers on investments where long-term opportunity is discounted enough in today’s share price to warrant Bonds and Diversified Fixed Income Options some exposure. Ongoing use of the covered call The first on our list of income ideas are two convertible strategy we employ is also key to generating decent debentures. The first is a carry over from last year via returns in 2020. the Chemtrade Logistics 2024 issue. The second is an issue from Innergex Renewable Power, a Canadian clean power producer. Both options allow for upside

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participation in the company via the option to convert We think the damage is done and have been quite the debentures into common shares. pleased to see the sector hold up well during year-end tax loss selling pressure. We ourselves are guilty of We’ve also included two globally diversified holdings using the sector to offset capital gains from other for investors to consider. The first is the Manulife investments but have been switching to other Global Unconstrained Bond fund. Manulife ranks among alternatives within the preferred share market, and the best fixed income managers in the world, managing therefore are not removing capital from the sector. the fixed income market 24 hours a day across three We believe other investors needing losses have been continents. The fund we’ve highlighted gives doing the same, as evidenced by the recent positive Manulife’s investment team tremendous breadth to trends of prices in the sector. Further evidence of source the most attractive fixed income opportunities value lies in this being one of the longest periods in for clients, managing both the aspects of the fixed history where there have been no new preferred shares income market as well as the currency markets to issued in Canada. There have been no new issues of generate returns. The Sunlife Excel High Income Fund preferred shares in over 6 months, suggesting the yields looks to invest in the bonds of emerging market prevailing in the market today are too high for countries, seeking the higher yields available in these corporations to justify raising capital in this manner. parts of the world. Almost all of the bonds the fund invests in are pegged to the US dollar, eliminating risk Dividend Paying Equities of currency swings that can at times be quite volatile in emerging market economies. If one already has a core of safe investments established in a portfolio, we fully endorse the addition Preferred Shares of some strong dividend paying stocks to the mix to generate attractive levels of income, with upside We are again this year advocating preferred shares for potential as well. We’ve highlighted shares of our attractive tax efficient income. This sector has lagged parent company CIBC, as well as H&R Real Estate Trust the market this year and value remains in our view. as attractive holdings to suit a primarily income The primary cause of the weak performance was the focused objective. Both companies have very strong complete 180 degree turn on the direction of interest balance sheets and stable business models that in the rates. With the bulk of the preferred share market case of CIBC supports a 5.75% dividend, while H&R pays exposed to changes in interest rates, the falling yield over 6.50% annually. curve was sufficient to unnerve investors who’d already felt some pain in 2018, enough to see a further selloff in the sector this year.

2020 Income Focused Recommendations

Price Maturity Yield / Yield to Dec 13th 2019 Date Maturity Comments Bonds / Convertible Debs / Mutual Funds Chemtrade Logistics $88.55 May 2024 7.75% Convertible Debenture Innergex Renewable Energy $102.00 Oct 2026 4.31% Convertible Debenture Manulife Global Unconstrained Bond Fund $11.23 N/A 4.45% Fixed Income Mutual Fund Sun Life Excel High Income Fund $5.25 N/A 5.71% Fixed Income Mutual Fund

Preferred Shares Canoe EIT Income Fund $25.61 Mar 2025 4.28% Fixed Term Fairfax Financial Holdings Rate Reset $18.80 Mar 2022 6.21% Renewable at GOC 5Yr Plus 3.51% Pembina Pipeline Class A Reset $16.80 Dec 2023 7.03% Renewable at GOC 5 Yr Plus 2.47% TD Bank Series 24 Reset $24.64 Jul 2024 5.22% Renewable at GOC 5 Yr Plus 3.56%

High Dividend Equity CIBC $109.43 5.24% H&R Real Estate Investment Trust $20.73 6.63%

Average Portfolio Yield 5.68%

Source: Thomson Reuters. Average Portfolio Yield = 5.68%

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For Growth Investing wholesale steel pricing varying greatly depending on global supply and demand. Graftech has removed With the strong performance of global markets in 2019, much of their exposure to pricing via long-term we are pleased to report our growth picks for last year contracts. The companies strong cash flow will allow participated in the rally. On average, our portfolio of them to continue to return capital to shareholders, growth names returned 28.02%, exceeding both the either in dividends or share buy backs. NFI Group return of the TSX and the S&P500 over the same time (formerly New Flyer Industries) returns to list this year, period. Our more conservative covered call model having been the worst performer from 2019’s list. As returned 18.80% last year, which is also competitive one of North America’s largest transit bus makers, with the indices. we’ve seen what we recognize as a transitory period of softness in new order bookings as municipalities Given our modest outlook for global growth next year, grapple with hopes to grow electrified transit solutions. we are proposing a greater slant towards value NFI is a leader in battery powered buses and we have investing this year. This year, we are shopping in the discount bin with many of the names on our list. In no long-term concerns about their ability to capture fact, there are several stocks on the list that actually their fair share of the marketplace. At approx. $26.00 performed poorly in 2019. a share and providing a 6.50% dividend, we see great value in the stock here. For healthcare exposure, we like healthcare supply chain provider McKesson, seeing its history of modest With a challenging 2019, led by a slow start to the and predicable growth as attractive at current growing season in North America, shares of Nutrien, valuations. A strong balance that gives plenty of room one of the world’s largest fertilizer companies, have for share buybacks and increased dividends is also been as soggy as the spring planting season was. With appealing. For exposure to digital payments we’ve the shares down 15.00% from highs reached earlier in highlighted shares of PayPal. The company is 2019, we see good long-term value at current levels, forecasted to grow revenue by 17.00% next year, with also finding the 3.80% dividend appealing. We’ll tuck in inroads into China and other markets being the key another commodity name here via oil producer growth drivers. PayPal doesn’t trade cheaply per se, Crescent Point Energy. Virtually all mid-tier energy but we do find it more attractive than the likes of Visa companies in Canada are trading at record low and MasterCard, whose valuations are much higher. valuations. We could have added any number of energy names to the list that we believe are cheap. For exposure to cloud-based computing, we like shares We chose Crescent Point perhaps as a more contentious of CyrusOne, an operator of 45 data centers in three name that was particularly unloved by many for some countries. Considered a real estate investment trust, past mis-steps by the now departed ex-CEO. With new we enjoy the 3.25% dividend, seeing both the dividend leadership firmly entrenched and a much stronger and the share price growing over time as the balance sheet given recent asset sales, we believe this company’s expansion plans continue. We also see holding should outperform the sector given the OpenText’s stock price as attractive. As a Canadian valuation gap to its peers that exists at this point. company, we believe it hasn’t quite caught the eyes of tech investors who often look south of the border for Aecon Group, one of Canada’s largest infrastructure technology names. With many software companies construction companies, makes the list for its solid trading at much higher valuations than Open Text, we construction back log and appealing valuation. We see see an opportunity for an upside in valuation, in investors benefiting from double gains in the share addition to growth from a recent acquisition that will price, while benefiting from a 3.30% dividend. On a see its exposure to cyber security significantly slightly differing theme, adding Fairfax India Holdings increasing. Corporation to the mix provides exposure to the growing economy of India. Fairfax India owns and For our industrial picks, we have highlighted shares of invests in various industries within India that are the Graftech and NFI Group. Graftech manufactures large staples of any economy. Their portfolio currently graphite cylinders used as a clean burning fuel for the consists of interests in freight or port facilities, steel industry. Steel is always a volatile market, with

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airports, banks, insurance companies, and chemical companies.

Source: Thomson Reuters Please note, not all securities are suitable for all investors. CIBC World Markets Inc. does not have an official opinion on all securities mentioned, and comments and opinions expressed are solely those of Winston Meyer and Derek Small. We may own stocks mentioned as recommendations, and our cost of these securities may be more or less than the price at which they are now being recommended. Common share investing should only be considered by individuals willing to assume an increased level of risk exposure. No investment in any stock is recommended without a personal consultation prior to purchase. Additional disclaimers are included at the conclusion of this document.

Conclusion With the passing of the torch from Winston’s leadership now to Derek’s, we are grateful to all of you for Global stock markets are starting 2020 on a high. With extending your faith to our team as we pursue the a global economy seeming to be coasting along despite ongoing satisfaction of your financial goals. On behalf worrisome headlines, we remain confident in of our team and our families, we wish you the very best generating positive returns for investors next year. for 2020.

Derek Small CFA, FMA, FCSI Investment Advisor Portfolio Manager

Personal Message from Winston

“As I enter retirement, I am beset by a great mix of emotion. I am excited by the freedom inherent in retirement. That said, after 33 years of sharing in the evolution in the lives of my clients, I find the personal connection far more difficult to sever than the professional one. Thank you, each and every one of you, for your trusting companionship over so many years. I hope we stay in touch.”

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APPENDIX: 2019 Top Ten Income and Growth Focus Portfolio Reviews

2019 Income Focused Recommendations

Maturity Cost Div/Dist Price Change % Gain/ Total Gain Date Dec 14 2018 Yield Dec 13th 2019 in Price (Loss) (Loss) Bonds / Convertible Debs American Hotel 5.0% June 30 2022 June 2022 $86.00 5.81% $99.65 $13.65 15.87% 21.69% Brookfield Office Prop 4.115% Oct 19 2021 Oct 2021 $100.35 4.10% $103.10 $2.75 2.28% 6.38% Chemtrade Logistics 4.75% May 31 2024 May 2024 $77.81 6.10% $87.40 $9.59 12.32% 18.43% CIBC GIC December 14 2020 Dec 2020 $100.00 3.15% $100.00 $0.00 0.00% 3.15%

Preferred Shares AltaGas Pref G Mar 2022 $16.20 7.33% $16.78 $0.58 3.58% 10.91% Brookfield Renewable Partners Pref C Mar 2024 $18.79 5.85% $17.29 -$1.50 -7.98% -2.13% National Bank Pref E Perpetual $19.92 5.77% $17.99 -$1.93 -9.69% -3.92% Partner Value Split Pref D Feb 2023* 24.89 4.52% $25.46 $0.57 2.30% 6.82% Power Financial Pref K None $21.33 5.80% $23.33 $2.00 9.38% 15.18%

Exchange Traded Funds Horizon Active Preferred ETF N/A 8.43 4.47% $8.04 -4.62% -0.150%

Overall Performance 5.29% 2.34% 7.64%

Total 2019 Income Focused Portfolio Return = 7.64% 2019 FTSE TMX Canada Universal Bond Index Return = 8.24%

2019 Growth Focused Recommendations Covered Call Overlay Price % Gain Dividend Total Call Strategy Issuer Cost Dec 13 2019 (Loss) Yield Gain/Loss Premium (%) Return

AltaGas Pref G 16.2 $16.78 3.58% 7.35% 10.93% 0.0% 13.58% American Hotel Inc Prop 6.41 $6.85 6.87% 12.97% 19.84% 0.0% 21.71% Blackstone Group 29.61 53.63 ($U) 8.11% 8.17% 16.28% 5.9% 32.06% Walt Disney Cp 112 146.38 ($U) 30.70% 1.57% 32.27% 6.0% 18.54% India MSCI ETF 32.3 35.2 ($U) 8.98% 0.97% 9.95% 2.5% 11.45% Chemtrade Logistics 10.3 $10.50 1.94% 11.65% 13.59% 0.0% 18.25% Micron Technologies 34.2 51.2 ($U) 49.71% 0.00% 49.71% 14.9% 35.70% Emerging Mkt MSCI ETF 39.85 44.42 ($U) 11.47% 2.47% 13.94% 3.5% 16.78% New Flyer Industries 35.06 $26.02 -25.78% 4.28% -21.50% 3.3% -15.21% Cenovus Energy 10.26 $12.76 24.37% 1.95% 26.32% 12.2% 35.13%

Overall Performance 22.82% 5.20% 28.02% 4.83% 18.80%

Total 2018 Growth Focused Portfolio Return = 28.02% Total 2019 Growth Focused Covered Call Portfolio Return = 18.80% 2019 TSX Composite Total Return = 20.24%, S&P500 Currency Adjusted Total Return = 20.10%

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Disclaimers

CIBC Private Wealth Management consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc.

“CIBC Private Wealth Management” is a registered trademark of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change. CIBC and CIBC World Markets Inc., their affiliates, directors, officers and employees may buy, sell, or hold a position in securities of a company mentioned herein, its affiliates or subsidiaries, and may also perform financial advisory services, or other services for, or have lending or other credit relationships with the same. CIBC World Markets Inc. and its representatives will receive sales commissions and/or a spread between bid and ask prices if you purchase, sell or hold the securities referred to above. © CIBC World Markets Inc. 2018.

Derek Small is an Investment Advisor with CIBC Wood Gundy in Burlington. He and his clients may own securities mentioned in this column. The views of Derek Small do not necessarily reflect those of CIBC World Markets Inc.

Clients are advised to seek advice regarding their particular circumstances from their personal tax and legal advisors. Yields/rates are as of December 13th, 2019 and are subject to availability and change without notification. Minimum investment amounts may apply.

These calculations and projections are for demonstration purposes only. They are based on a number of assumptions and consequently actual results may differ, possibly to a material degree.

This report is not an official record. The information contained in this report is to assist you in managing your investment portfolio recordkeeping and cannot be guaranteed as accurate for income tax purposes. In the event of a discrepancy between this report and your client statement or tax slips, the client statement or tax slip should be considered the official record of your account(s). Please consult your tax advisor for further information. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. Some positions may be held at other institutions not covered by the Canadian Investor Protection Fund (CIPF). Refer to your official statements to determine which positions are eligible for CIPF protection or held in segregation. Calculations/projections are based on a number of assumptions; actual results may differ. Yields/rates are as of the date of this report unless otherwise noted. Benchmark totals on performance reports do not include dividend values unless the benchmark is a Total Return Index, denoted with a reference to 'TR' or 'Total Return'. CIBC Wood Gundy is a division of CIBC World Markets Inc., a subsidiary of CIBC.

Options involve risk and are not suitable for all investors. Investors should be aware of tax considerations, margin requirements, commissions and other transaction costs, as they may significantly affect the economic consequences of any option transaction strategy and should be reviewed carefully with your Investment Advisor and personal tax advisor before the strategy is undertaken.

There are ongoing fees and expenses associated with owning shares of an Exchange-Traded Fund (ETF). An ETF must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in these documents. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed. Their values change frequently and past performance may not be repeated.

CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Chemtrade Logistics Income Fund in the next 3 months.

CIBC World Markets Corp., CIBC World Markets Inc., and their affiliates, in the aggregate, beneficially own 1% or more of a class of equity securities issued by Chemtrade Logistics Income Fund.

CIBC World Markets Inc. is connected to Chemtrade Logistics Income Fund because CIBC World Markets Inc. is acting as underwriter for this company and it or one of its affiliates is part of a lending syndicate that has made credit facilities available to Chemtrade Logistics Income Fund

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CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Innergex Renewable Energy Inc. in the next 3 months.

CIBC World Markets Inc. is connected to Innergex Renewable Energy Inc. because CIBC World Markets Inc. is acting as underwriter for Innergex Renewable Energy Inc. and it or one of its affiliates is part of a lending syndicate that has made credit facilities available to this company.

CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Crescent Point Energy Corp. in the next 3 months.

Crescent Point Energy Corp. is a client for which a CIBC World Markets company has performed investment banking services in the past 12 months.

CIBC World Markets Inc. has managed or co-managed a public offering of securities for Aecon Group Inc. in the past 12 months.

CIBC World Markets Inc. has received compensation for investment banking services from Aecon Group Inc. in the past 12 months.

CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Aecon Group Inc. in the next 3 months.

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