Advisory Board Presentation Fall 2015 December 7, 2015 All figures - - PowerPoint PPT Presentation

All figures shown in $CAD millions except share price or otherwise noted

Advisory Board Presentation Fall 2015

December 7, 2015

Agenda

• Fund Overview
• Macro Analysis
• Historical Performance
• Investment Decisions
• Learning and Growth
• Appendices

2

Fund Overview

4

Fall 2015 SAF Investment Fund Team

Team Picture

Spring 2012 Inception Spring 2014 New Analyst Program . Fall 2014 Faculty Discussions & Assigned Marks Spring 2015 Quarterly EPS Estimates Fall 2013 Course Credit & Enter into U.S.

L-R (Back): Mary Kate Gleason, Lena Ji, Evelyn Huang, Yushu Yang, Balakumar Thevakumar, Jack Zhou, Rocken Wong, Bojan Joncevski L-R (Middle): Annie Shi, Joy Yang, Ameer Dharamshi, Cherrie Shi, John Youn, Kam Dhaliwal, Michael Kam, Sami Ahmed, Faizan Suddiqui L-R (Front): Jiacheng Fan, Judy Dong, Katherine Chan, Sanjukta Sengupta, Sean Bak, Arthur Pok Chan, Sean Zheng, Harsh Shah, Salman Ahmed, Michael Blake

Fall 2015 Portfolio Analytics & New Screen

Team Structure

Senior PMs Bojan Joncevski (CEO), Michael Blake (CIO) Faculty Andrew Ecclestone (Financial & Materials), Craig Geoffrey (Energy, Utilities & Healthcare), Frank Hayes (TMT), Ranjini Jha (Consumer & Industrials) Energy

PM: Rocken Wong Senior Analysts: Michael Kam Junior Analyst: Ameer Dharamshi

TMT

PM: Sean Zheng Senior Analysts: Faizan Siddiqui, Jiacheng Fan, Sanjukta Sengupta Junior Analyst: Balakumar, Thevakumar

Consumers

PM: Harsh Shah Senior Analysts: John Youn Junior Analyst: Jack Zhou

Healthcare

PM: Sean Zheng Senior Analysts: Katherine Chan, Evelyn Huang Junior Analyst: Lena Ji

Industrials

PM: Sean Bak Senior Analyst: Sami Ahmed Junior Analysts: Mary Kate Gleason, Annie Shi

Materials

PM: Oliver Chan Senior Analysts: Judy Dong, Salman Ahmed Junior Analyst: Joy Yang

Financials

PM: Arthur Pok Chan Senior Analyst: Yushu Yang Junior Analyst: Cherrie Shi

Utilities

PM: Rocken Wong Senior Analysts: n.a. Junior Analysts: n.a.

Portfolio Analytics

Senior Analysts: Kam Dhaliwal

5

Overview

1 Weight will change according to the portfolio allocation for the period

Purpose Objective “To provide students with an investment management experience in an institutional setting. Specifically, it will provide students hands-on-training in equity valuation and portfolio management with guidance from industry experts and with supervision by finance faculty.” “To generate long-term growth of the Fund’s assets. The Fund will invest in a broadly diversified portfolio of Canadian and U.S. equities that may provide capital gains and / or income.” Benchmark 70% S&P/TSX Total Return Index and 30% S&P 500 Total Return Index1

6

Investment Philosophy

Restrictions Constraints Asset Class Canadian & U.S. Equities Market Capitalization Above $300 mm Debt Rating Greater than B Cash & Equiv Weight 0-15% Total Securities 10-25 Sector Weight Maximum 25% Stock Weight Maximum 10% U.S. Weight Maximum Proposed: no restriction Ownership of Shares Less than 5% of average daily trading volume

• ver 10-day

period

7

Investment Process

*New to the Fall 2015 term

1

• Break down industries and further divide into sectors or sub-sectors

2

• Faculty led screen for Canadian and US companies that have been Levered

Free Cash Flow positive since 2008 and a market capitalization greater than 300 CADmm*

3

• Remove any stocks within the universe that do not meet the Fund’s

restrictions

4

• Select and apply relevant industry metrics for each stock & rank all stocks to

select the top four

5

• Select one stock from the top four and conduct detailed research to

determine the recommendation (“Buy”, “Sell”, or “Hold”)

8

Selling Discipline

• We will review our holdings if…

Fundamental Price Movement Material change in the business or in the industry Exceed 25% capital gain from the time of purchase

• r

Exceed 15% capital loss from the time of purchase

• r

Exceed 25% decline in price from the highest price attained since initial purchase Valuation Reached 12-month target price

9

Macroeconomic Overview & Outlook

Canada Macroeconomic Overview

10 Yr. Unemployment Rate 10 yr. Housing Index (Calgary vs. GTA)

• New Liberal government led by Justin Trudeau
• Weak CAD hasn’t shown a strong benefit to Canadian economy
• Weak GDP growth projections putting pressure to lower interest rates
• Overall mixed outlook on Canada

Source: Stats Canada and Canadian Real Estate Association Date Extracted: December 4, 2015

11 75 100 125 150 175 Dec-06 Jul-08 Mar-10 Nov-11 Jun-13 Feb-15 Total Canada Calgary GTA 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Dec-06 Jul-08 Mar-10 Nov-11 Jun-13 Feb-15

Recent Themes

U.S. Macroeconomic Overview

10 Yr. Unemployment Rate 10 Yr. Housing Starts in thousand units 10 Yr. Inflation Rate 10 Yr. Consumer Confidence Index

• Leading indicators suggest U.S. Economy gaining traction
• Overall bullish outlook on the U.S.

Source: Federal Reserve Bank of St. Louis Economic Research, Date Extracted: December 4, 2015

12

500 1,000 1,500 2,000 Dec-06 Jul-08 Mar-10 Nov-11 Jun-13 Feb-15 0.0% 4.0% 8.0% 12.0% Dec-06 Jul-08 Mar-10 Nov-11 Jun-13 Feb-15 (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% Dec-06 Jul-08 Mar-10 Nov-11 Jun-13 Feb-15 96 98 100 102 Dec-06 Jul-08 Mar-10 Nov-11 Jun-13 Feb-15

Macroeconomic Outlook by Theme / Sector

Interest Rates: Mixed Energy Outlook: UW Materials Outlook: UW Key Theme / Sector

• Canada:
• Stability or reduction in
• vernight rate
• No expected increase in

long-term rates

• U.S.:
• Expected Fed Funds

Rate hike

• No significant expected

increase in long-term rates

• No change in oil prices

expected in the short- intermediate term

• Upward pressure from decline

in capex, pressure on high- cost producers

• Downward pressure from

global growth expectations, OPEC politics, prospects of alternative oil extraction & alternative fuel sources, sanguineness about geopolitical risk

• Bearish outlook on base

metals due to concerns over softening Chinese growth / demand

• No upside expected from

Gold due to resiliency of USD

Macroeconomic Outlook by Theme / Sector (cont’d)

Consumer Staples: Mixed Consumer Disc.: Mixed Technology: Mixed Key Theme / Sector

• Canada (OW):
• Defensive sector, better potential for
• utperformance during periods of slow

growth

• U.S. (OW):
• Opposite of Canada
• Canada (UW):
• High personal debt, housing bubble

fears, province differences

• U.S. (OW):
• Improvement in labour market,

household debt low

• Too small in Canada
• No signs of overvaluation

14

Telecom: UW

• Source of upside not evident:
• Oligopoly benefits already in place
• Uncertain regulatory environment
• Saturation risk of high speed internet /

smartphone services

Macroeconomic Outlook by Theme / Sector (cont’d)

Healthcare: OW Industrials: Mixed Financials: Mixed Key Theme / Sector

• Too small in Canada
• Drug innovation, growing middle class globally,

consolidation in the industry

• Obamacare controversies, public scrutiny of

high drug prices

• Too broad to determine overall weighting

(related to all sectors)

• Interest rate outlook supports movement to

equities (benefits asset managers)

• Housing bubble concerns, energy pricing

decline and flat net interest margins may pose concerns for some Canadian financials 15

Utilities: Mixed

• Reaching historical valuation peaks (no issue

given interest rate outlook)

• Heavy regulation limits upside / downside from

an operations perspective

Spring 2015

16

Portfolio Weights (End of Term)

* Will be underweight once Goldcorp is sold in January

Fall 2015

• 20%
• 10%

0% 10% Financials Telecom Consumer Disc. Energy Consumer Staples Utilities Technology Health Care Materials Industrials

• 20%
• 10%

0% 10% Financials Telecom Consumer Disc. Energy Consumer Staples Utilities Technology Health Care Materials Industrials Target: Mixed

• r Neutral

Target: Underweight Target: Overweight

*

Target weight achieved Target weight not achieved yet

Historical Performance

18

Portfolio Returns Including Cash

Note: all figures in C$ unless otherwise specified.

Net Asset Value Including Cash Total Returns

Fund NAV NAV Return Benchmark Relative Return Fiscal Year '13 10.33 18.64% 20.79%

• 2.15%

Fiscal Year '14 12.26 3.75% 9.55%

• 5.79%

Winter '15 12.72 7.89% 5.32% 2.57% Spring '15 11.56

• 9.12%
• 4.43%
• 4.69%

Fall ’15 11.70 1.21% 0.80% 0.42% Since Inception 11.70 17.00% 39.30%

• 22.30%

11.70 13.93 9.00 10.00 11.00 12.00 13.00 14.00 15.00 Jul-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Fund NAV Benchmark

19

Portfolio Returns Excluding Cash

Note: all figures in C$ unless otherwise specified.

Net Asset Value Excluding Cash Total Returns

Fund NAV NAV Return Benchmark Relative Return Fiscal Year '13 12.26 24.69% 20.79% 3.90% Fiscal Year '14 12.72 4.20% 9.55%

• 5.34%

Winter '15 13.63 9.21% 5.32% 3.90% Spring '15 12.13

• 11.01%
• 4.43%
• 6.58%

Fall ’15 12.30 1.40% 0.80% 0.61% Since Inception 12.30 23.00% 39.30%

• 16.30%

12.30 13.93 9.00 10.00 11.00 12.00 13.00 14.00 15.00 Jul-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Fund NAV - excl cash Benchmark

20

Portfolio Characteristics

1 Monthly 5% VaR

All returns are listed on a monthly basis

Including Cash Excluding Cash Average Portfolio Return 0.42% 0.56% Portfolio Standard Deviation 2.15% 2.99% Average Benchmark Return 0.86% 0.86% Benchmark Standard Deviation 2.24% 2.24% Portfolio Beta 0.69 1.05 Portfolio Alpha (0.21%) (0.33%) Sharpe Ratio 0.14 0.15 Value-at-Risk1 ($7,204.43) ($10,037.99) Historical

21

Sector and Security Returns (Fall 2015)

Security Returns Sector Returns

• 40%
• 20%

0% 20% 40% WNR VSI URI SUPN SU SPR SHLM SAFM RRX PSI NA MIC LUV GWR G FM D-U CPX CCA CALM BNS BDI ATVI

• 80% -60% -40% -20%

0% 20% 40% Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Telecommunications Services Utilities SIF S&P TSX S&P 500

Spring 2015

Excess Performance (6.54%) Security Selection* (6.94%) Sector Allocation 0.40%

• 0.5%

0.0% 0.5% 1.0% Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Telecommunications Services Utilities

22

Attribution Analysis

* Including currency attribution

Fall 2015

Excess Performance 0.61% Security Selection* 0.28% Sector Allocation 0.33%

• 2.0% -1.0% 0.0% 1.0% 2.0% 3.0%

Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Telecommunications Services Utilities

Spring 20151

23

Attribution Analysis

1. Attribution from May 1, 2015 – Aug 31 2015 2. Attribution from Sep 1, 2015 – Nov 30 2015

Fall 20152

• 3.0%
• 1.5%

0.0% 1.5% Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Telecommunications Services Utilities Currency Selection Allocation Total Attribution

• 2.0%

0.0% 2.0% 4.0% Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Telecommunications Services Utilities Currency Selection Allocation Total Attribution

Ticker Name Beta % Value SNCR Synchronoss Technologies 1.22 6.7% $ 13,481.54 MAS Masco Corp 0.93 6.6% $ 13,332.21 BNS Bank Of Nova Scotia 0.96 5.6% $ 11,375.30 ESRX Express Scripts Holding Co 0.84 5.3% $ 10,677.50 SHLM Schulman (A.) Inc 1.29 5.2% $ 10,487.16 URI United Rentals Inc 1.68 5.0% $ 10,205.28 CCA Cogeco Cable Inc 0.63 4.9% $ 9,867.00 SUPN Supernus Pharmaceuticals 0.61 4.8% $ 9,798.19 SU Suncor Energy Inc 1.33 4.7% $ 9,560.20 SAFM Sanderson Farms Inc 1.03 4.7% $ 9,462.08 MSCC Microsemi Corp 1.28 4.6% $ 9,379.02 NA National Bank Of Canada 1.03 4.5% $ 9,133.28 WNR Western Refining Inc 1.30 4.4% $ 8,912.38 RRX Raging River Exploration Inc 1.65 4.3% $ 8,700.00 G Goldcorp Inc 0.53 4.1% $ 8,368.70 GS Gluskin Sheff + Associates 1.31 3.9% $ 7,986.24 LUV Southwest Airlines Co 0.96 3.1% $ 6,362.06 CPX Capital Power Corp 0.84 3.0% $ 6,002.50 MIC Genworth MI Canada Inc 0.92 2.9% $ 5,962.00 GWR Genesee & Wyoming Inc 1.35 2.7% $ 5,432.19 CALM Cal-Maine Foods Inc 1.10 2.7% $ 5,379.97 SPR Spirit Aerosystems Hold-Cl A 1.07 2.4% $ 4,902.45 FM First Quantum Minerals Ltd 2.26 2.2% $ 4,509.00 D-UN Dream Office Real Estate Inv 0.63 1.6% $ 3,245.40 Market Value $ 202,521.66 Cash $ 8,136.85 Portfolio Value

$ 210,658.51

24

Current Holdings by Value (Dec 3, 2015)

• 75%
• 50%
• 25%

0% 25% 50% Capital Returns Dividend Returns

Ticker Name Inception Date Target Price Price Total Return VaR BNS Bank Of Nova Scotia 1-Mar-13 $65.96 $59.32 (1.85%) CALM Cal-Maine Foods Inc 1-Jul-15 US$65.11 US$49.02 (2.36%) CCA Cogeco Cable Inc 1-Dec-13 $77.00 $64.31 (2.44%) CPX Capital Power Corp 1-Dec-12 $18.24 $16.79 (2.39%) D-U Dream Office Real Estate Inv 1-Dec-13 $24.84 $17.84 (2.00%) ESRX Express Scripts Holding Co 1-Dec-15 US$90.11 US$86.57 (0.00%) FM First Quantum Minerals Ltd 1-Dec-14 $8.08 $4.95 (8.37%) G Goldcorp Inc 1-Dec-12 $14.22 $16.86 (5.21%) GS Gluskin Sheff + Associates 1-Dec-15 $25.47 $21.22 (0.00%) GWR Genesee & Wyoming Inc 1-Jul-15 US$73.00 US$60.84 (2.47%) LUV Southwest Airlines Co 1-Jul-15 US$46.00 US$49.22 (1.18%) MAS Masco Corp 1-Dec-15 US$35.91 US$30.02 (0.00%) MIC Genworth Mi Canada Inc 1-Apr-15 $37.00 $29.28 (2.68%) MSCC Microsemi Corp 1-Dec-15 US$42.10 US$37.35 (0.00%) NA National Bank Of Canada 1-Aug-12 $49.00 $43.30 (2.33%) RRX Raging River Exploration Inc 1-Jul-14 $9.55 $8.60 (4.17%) SAFM Sanderson Farms Inc 1-Jul-14 US$76.00 US$75.98 (3.25%) SHLM

• A. Schulman Inc

1-Jul-15 US$40.80 US$33.28 (1.72%) SNCR Synchronoss Technologies Inc 1-Dec-15 US$55.02 US$40.02 (0.00%) SPR Spirit Aerosystems 1-Jul-15 US$61.00 US$52.14 (1.67%) SU Suncor Energy Inc 1-Mar-13 $43.63 $36.02 (2.71%) SUPN Supernus Pharmaceuticals Inc 1-Jul-15 US$17.62 US$14.70 (5.24%) URI United Rentals Inc 1-Apr-15 US$88.00 US$74.52 (3.34%) WNR Western Refining Inc 1-Jul-15 US$53.49 US$43.64 (2.23%)

25

Returns Breakdown

1 Monthly 5% VaR

Canada 42% United States 58%

26

Portfolio Breakdown (Post Trades, Dec 3, 2015)

Large Cap 42% Small Cap 34% Mid Cap 24% Consumer Disc. 5% Consumer Staples 7% Energy 13% Financials 19% Health Care 10% Industrials 20% Information Technology… Materials 12% Utilities 3%

0% 10% 20% 30% 40% 50% Consumer Staples Consumer Discr. Energy Financials Health Care Industrials Technology Materials Telecom Utilities SIF Portfolio S&P TSX S&P 500

27

Correlation Analysis

BNS CALM CCA CPX D-U ESRX FM G GS GWR LUV MAS MIC MSCCNA RRX SAFM SHLM SNCR SPR SU SUPN URI WNR BNS 1 0.107 0.127 0.273 0.167 0.023 0.481 -0.095 0.287 0.359 0.01 0.178 0.621 -0.005 0.696 0.055 -0.036 0.343 0.233 0.058 0.215 -0.128 0.352 0.266 CALM 0.107 1 -0.092 0.112 -0.149 -0.005 -0.16 -0.181 -0.113 -0.107 0.012 0.206 0.114 0.14 0.069 -0.103 0.206 -0.036 0.01 0.133 -0.153 0.026 -0.048 0.065 CCA 0.127 -0.092 1 0.213 0.079 0.073 0.115 0.131 0.149 -0.018 0.082 0.132 0.272 0.007 0.052 0.006 0.296 0.042 0.142 0.105 -0.004 -0.142 0.266 -0.052 CPX 0.273 0.112 0.213 1 0.363 0.021 0.233 0.101 0.112 0.008 0.238 0.114 0.256 -0.114 0.327 0.011 0.055 0.023 0.034 0.001 0.13 0.096 0.176 0.074 D-U 0.167 -0.149 0.079 0.363 1 0.105 0.294 0.194 0.05 0.115 -0.012 0.005 0.184 -0.029 0.136 -0.041 -0.166 -0.048 0.099 0.043 0.254 0.099 0.127 0.139 ESRX 0.023 -0.005 0.073 0.021 0.105 1 0.284 0.059 0.103 0.237 0.287 0.551 0.185 0.404 0.059 -0.098 -0.044 0.332 0.33 0.394 0.282 0.455 0.363 0.334 FM 0.481 -0.16 0.115 0.233 0.294 0.284 1 0.095 0.294 0.518 -0.041 0.205 0.467 0.094 0.416 0.279 -0.205 0.432 0.167 0.001 0.467 0.097 0.493 0.181 G

• 0.095 -0.181 0.131 0.101 0.194 0.059 0.095

1 0.063 0.146 0.12 0.033 -0.023 0.074 -0.209 0.139 0.089 0.013 0.074 -0.013 0.187 0.17 0.07 -0.072 GS 0.287 -0.113 0.149 0.112 0.05 0.103 0.294 0.063 1 0.325 0.159 -0.024 0.393 0.067 0.289 0.458 0.086 0.208 0.073 0.185 0.215 -0.076 0.245 0.173 GWR 0.359 -0.107 -0.018 0.008 0.115 0.237 0.518 0.146 0.325 1 0.241 0.323 0.241 0.257 0.317 0.271 -0.022 0.586 0.348 -0.001 0.302 0.182 0.444 0.232 LUV 0.01 0.012 0.082 0.238 -0.012 0.287 -0.041 0.12 0.159 0.241 1 0.428 0.06 0.163 -0.023 -0.111 0.199 0.248 0.022 0.353 0.021 0.023 0.19 0.068 MAS 0.178 0.206 0.132 0.114 0.005 0.551 0.205 0.033 -0.024 0.323 0.428 1 0.238 0.298 0.153 -0.115 0.176 0.394 0.345 0.31 0.271 0.214 0.448 0.36 MIC 0.621 0.114 0.272 0.256 0.184 0.185 0.467 -0.023 0.393 0.241 0.06 0.238 1 0.048 0.547 0.064 -0.047 0.203 0.229 0.039 0.367 -0.256 0.423 0.137 MSCC -0.005 0.14 0.007 -0.114 -0.029 0.404 0.094 0.074 0.067 0.257 0.163 0.298 0.048 1 -0.042 0.398 0.158 0.539 0.269 0.366 0.288 0.149 0.335 0.145 NA 0.696 0.069 0.052 0.327 0.136 0.059 0.416 -0.209 0.289 0.317 -0.023 0.153 0.547 -0.042 1 0.068 -0.13 0.313 0.246 -0.028 0.262 -0.153 0.342 0.361 RRX 0.055 -0.103 0.006 0.011 -0.041 -0.098 0.279 0.139 0.458 0.271 -0.111 -0.115 0.064 0.398 0.068 1 -0.078 0.324 0.152 -0.016 0.462 -0.025 0.36 -0.034 SAFM -0.036 0.206 0.296 0.055 -0.166 -0.044 -0.205 0.089 0.086 -0.022 0.199 0.176 -0.047 0.158 -0.13 -0.078 1 0.137 -0.04 0.28 -0.271 -0.234 0.266 -0.042 SHLM 0.343 -0.036 0.042 0.023 -0.048 0.332 0.432 0.013 0.208 0.586 0.248 0.394 0.203 0.539 0.313 0.324 0.137 1 0.313 0.166 0.233 0.115 0.537 0.351 SNCR 0.233 0.01 0.142 0.034 0.099 0.33 0.167 0.074 0.073 0.348 0.022 0.345 0.229 0.269 0.246 0.152 -0.04 0.313 1 0.216 0.286 0.161 0.371 0.239 SPR 0.058 0.133 0.105 0.001 0.043 0.394 0.001 -0.013 0.185 -0.001 0.353 0.31 0.039 0.366 -0.028 -0.016 0.28 0.166 0.216 1 0.055 0.177 0.249 0.269 SU 0.215 -0.153 -0.004 0.13 0.254 0.282 0.467 0.187 0.215 0.302 0.021 0.271 0.367 0.288 0.262 0.462 -0.271 0.233 0.286 0.055 1 0.139 0.433 0.315 SUPN -0.128 0.026 -0.142 0.096 0.099 0.455 0.097 0.17 -0.076 0.182 0.023 0.214 -0.256 0.149 -0.153 -0.025 -0.234 0.115 0.161 0.177 0.139 1 -0.075 0.066 URI 0.352 -0.048 0.266 0.176 0.127 0.363 0.493 0.07 0.245 0.444 0.19 0.448 0.423 0.335 0.342 0.36 0.266 0.537 0.371 0.249 0.433 -0.075 1 0.236 WNR 0.266 0.065 -0.052 0.074 0.139 0.334 0.181 -0.072 0.173 0.232 0.068 0.36 0.137 0.145 0.361 -0.034 -0.042 0.351 0.239 0.269 0.315 0.066 0.236 1

Investment Decisions

Buy: Microsemi Corporation (NASDAQ:MSCC)

• Growing end-market user base
• Competitive Positioning
• Industry Trends

Drivers Risks

• Outperforming silicon-based products
• Correlation to overall health of the economy
• Target areas for growth are saturated

Leading designer, manufacturer and marketer of high-performing analog and mixed-signal semiconductor solutions

Company Overview Share Performance Investment Considerations

Base $42.10 Bull $54.80 Bear $31.90

• 75%
• 45%
• 15%

15% 45% 75% 2005 2007 2009 2011 2013 2015 Microsemi Corporation S&P 500 Index S&P 500 Semiconductors Index Group

5% VaR: $1.50 Expected Shortfall: $2.10 Standard Dev: 2.6% Actual Q.EPS: $0.27 Forecasted EPS: FQ1: $0.31, FQ2: $0.32 $10 $20 $30 $40 $50 $60 $70 $80 Comps- EV/REV Comps- EV/LTM EBITDA DCF- Exit Multiple DCF- Gordon Growth 15% 36% 26% 23% Aerospace Communications Defense & Security Industrial

Valuation

Market Statistics Revenue by Segment

Share Price ($USD) $36.13 Market Cap ($MM) $3,456 Net Debt ($MM) $730 P/E 40.0x EV/EBITDA 14.2x PEG 0.7x Dividend Yield 0.0% Debt Rating BB Beta (5Y) 1.40

47% 29% 10% 14%

Plumbing Products Decorative Architectural Products Other Specialty Products Cabinets and Related Products

Buy: Masco Corporation (NYSE:MAS)

Monthly VaR (5%) (-18.7%) Expected Shortfall (-6.7%)

• Strong U.S. housing market outlook
• Growth in repair and remodeling spending
• Leading brand portfolio

Drivers Risks

• Slower than expected housing recovery
• Challenging cabinetry business
• Cautious consumer spending environment

Manufacturer of Home Improvement/Building Products Market Statistics Revenue by Segment

Company Overview Valuation 5 Year Share Performance Investment Considerations

Base $35.91 Bull $41.70 Bear $30.39

$0 $10 $20 $30 $40 $50 $60 $70 EV UFCF NTM EV UFCF LTM EV EBTIDA NTM EV EBITDA LTM PE NTM PE LTM DCF Terminal Growth DCF Exit Multiple

• 50%

10% 70% 130% 190% 250% Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 S&P 500 Building Products MAS

Share Price $ 30.42 Market Cap ($M) $10,235 Net Debt ($M) $1,890 P/E 26.0x EV/EBITDA 11.2x P/B NM PEG 1.4x Dividend Yield 1.27% Debt Rating BBB Beta 1.31

EPS Q1 Q2 Q3 Q4 2015 $0.20A $0.38A $0.33A $0.24E 2016 $0.28E

1

Buy: Synchronoss Technologies (NASDAQGS:SNCR)

Monthly VaR (5%) (5.30%) Quarterly EPS: Q1 Q2 Q3 Q4 Buy: Market Price Expected Shortfall (8.08%) 2015 A 0.25 0.36 0.23 0.49E 2016 E 0.46E 0.49E 0.56E 0.67E

• Well positioned in industry with a strong outlook
• Scalable business model can adapt to industry trends
• New enterprise initiative – Goldman Sachs JV (Catalyst)
• Strong financials with minimal debt on balance sheet

Drivers Risks

• Cash flow volatility
• AT&T & Verizon account for 73% of revenues
• Prone to cyber attacks due to handling personal info
• Consolidation in the telecommunications industry

Leader in cloud solutions and software based activation

Market Statistics Revenue by Segment

Company Overview Valuation 5 Year Share Performance Investment Considerations

Base $55.02 Bull $78.81 Bear $36.86

$0 $20 $40 $60 $80 $100 52 Week high / Low Comp EV/EBITDA LTM Comp P/E LTM Comp EV/EBITDA NTM Comp P/E NTM DCF Exit Multiple DCF Perpetuity Growth

Domestic 89% Foreign 11%

Share Price ($US) 39.52 $ 52 Week High 52.45 $ 52 Week Low 27.86 $ Market Cap ($M) 1,744 $ Net Debt ($M) 33 $ P / E 34.0x EV / EBITDA 11.3x P / B 2.8x PEG 0.7x Debt / Equity 14% Debt Rating NR Beta (10-Year) 1.39

(100.0%)

• - %

100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

S&P 500 NASDAQGS:SNCR S&P500 Software & Services Index

$50 $60 $70 $80 $90 $100 $110 $120 $130 Consensus Comps (NTM EV/EBITDA) Comps (LTM EV/EBITDA) DCF (Perpetuity) DCF (Exit Multiple) 52 Week Range Network 57% Home Delivery & Specialty 43%

• 50%

0% 50% 100% 150% 200% 2010 2011 2012 2013 2014 ^SPX ^HCX ESRX

Buy: Express Scripts Holding Company (NASDAQGS:ESRX)

Daily VaR (5%) (2.88%) Quarterly EPS: Q1 Q2 Q3 Q4 Expected Shortfall (4.59%) 2015 0.60 0.88 0.97 0.94e 2016 0.98e

• Strong market outlook, increasing demand for healthcare
• Dominant market position, economies of scale
• Aligning customer values with company strategy
• Further potential upside from recent price drop

Drivers Risks

• Loss of purchasing power from supplier consolidation or

loss in significant customer

• Volatile prices of drugs could impact margins

Largest pure-play pharmacy benefit management company in the US

Market Statistics Revenue by Segment

Company Overview Valuation 5 Year Share Performance Investment Considerations

Base $90.11 Bull $106.83 Bear $83.63

Share Price ($USD) $85.48 Market Cap ($M) $57,808 Net Debt ($M) $15,249 P/E 27.2x EV/EBITDA 10.6x EV/Revenue 0.7x Dividend Yield

• Debt Rating

BBB+ Beta 1.15

Buy: Gluskin Sheff + Associates (TSX:GS)

Monthly VaR 95% (16.7%) Quarterly EPS: 2015Q4A: $0.39 2016Q1A: $0.23 Expected Shortfall (5%) (25.4%) 2016Q2E: $0.52 2016Q3E: $0.23

• Unique Position in Growing Niche Market
• Proven Track Record of AuM Growth
• Attractive Valuation with 19% Upside

Drivers Risks

• Outflows of AuM from Portfolio Manager Turnover
• Uncertainty in Valuation due to Performance Fee
• Unpredictability in Investment Performance of AuM

Canadian Asset Manager Serving HNWI Market Statistics Asset by Class

Company Overview Valuation Historical Performance Investment Considerations

Base $25.47 $25.47 Bull $28.89 $32.17 Bear $22.24 $22.62

• 80%
• 30%

20% 70% 2007 2008 2009 2010 2011 2012 2013 2014 2015 TSX:GS S&P/TSX Financials S&P/TSX

Cases Op. AuM

$- $10 $20 $30 $40 $50 DCF - Exit Multiple DCF - Terminal Growth Comps - EV/EBITDA Comps - P/E Comps - EV/AUM Current: $21.45 Target: $25.47

Share Price $21.45 Market Cap $641.75 Net Debt

• $30.3

EV / EBITDA 7.6x P / E 13.0x D / E

• Dividend Yield

4.3% Beta 0.91

Sell: Activision Blizzard (NASDAQ:ATVI)

• Q3 2015 Earnings Update –

Overall than better expected

• earnings. Net revenues up

31% over Q3 2014.

• King Digital Acquisition –

Announced acquisition of King Digital for $5.9B ($3.6B Cash, $2.3B Debt). Allows ATVI to increase their portfolio of interactive entertainment franchises. Stock Rec. Portfolio Rec. Updated Intrinsic Value Buy Sell $36.00

Market Statistics Recent Events Sell Rationale Return Profile Performance since Purchase Valuation

Quarterly EPS: Q1 Q2 Q3 Q4 2014 A 0.40 0.28 (0.03) 0.49 2015 E 0.53 0.29 0.17 0.13e

Share Price (US$) $37.66 Market Cap ($M) $28,861 Debt ($M) $4,078 Debt Rating BB+ P / NTM E 25.4x EV / LTM EBITDA 16.9x EV / NTM EBITDA 15.5x P / B 3.4x PEG 0.4x ROE 14.6% Dividend Yield 0.6% Beta 0.96 Purchase Date 07/27/15 Purchase Price (US$) $26.04 Current Price (US$) $37.66 Shares Owned 250 Market Value $9,415 Return - Purchase 44.6% Return - TTM 79.2% Return - YTD 86.9% 5% VaR (2.8%) 10% VaR (2.2%) Investment Thesis

• Valuation pro forma King

Digital acquisition suggests a lower intrinsic value

• Trading at the height of

historic multiples Investment Risks

• King Digital Integration
• Litigation from Worlds Inc.

$5.00 $20.00 $35.00 $50.00 Historical TEV / LTM Revenue Historical TEV / LTM EBITDA DCF - Exit Multiple DCF - Perpetuity Growth (25%) 50% 125% 200% 275% Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 ATVI U.S. Information Technology S&P 500

Sell: Vitamin Shoppe (NYSE:VSI)

• Judicial actions regarding

unlawful ads related to dietary supplements

• Better than expected poor Q3:

Cut sales guidance (5-7% to 5%); flat in online sales; SSS growth only 0.1%; ineffective promos hurt margins

• Recent news regarding GNC

ripples onto VSI Stock Rec. Portfolio Rec. Updated Intrinsic Value Sell Sell $27.00

Market Statistics Recent Events Sell Rationale Return Profile Performance since Purchase Valuation

Quarterly EPS: Q1 Q2 Q3 Q4 2014 A 0.68 0.56 0.40 0.63 2015 E 0.63a 0.34a 0.28a 0.49e

Investment Thesis

• Increasing health conscious

shoppers

• Ageing US population

Investment Risks

• Increasing regulation
• Slow online growth
• Low barriers to entry

$29.49 $27

$0 $20 $40 $60

50% DCF - Exit Multiple 20% Historical EV / EBITDA 20% Historical P / E 10% Comps NTM EV / EBITDA

• 50%
• 30%
• 10%

10% 30% 50% Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15

Vitamin Shoppe S&P 500 Consumer Discretionary Index Share Price ($US) $29.49 Market Cap ($MM) $897.5 P/LTM E 14.3x P/NTM E 13.8x EV/LTM EBITDA 6.4x EV/NTM EBITDA 6.3x P/B 1.6x ROE 10.2% Dividend Yield 0.0% Debt/LTM EBITDA 0.1x Beta (10 Yr) 0.63 Purchase Date 7/30/2014 Purchase Price ($US) $44.62 Current Price $29.49 Shares Owned 170 Market Value $5,013.3 Return - Inception

• 33.9%

Return - TTM

• 37.9%

Return - YTD

• 37.5%

5% VaR

• 13.30%

10% VaR

• 11.10%

Sell: Black Diamond Group (TSX:BDI)

2

Source: Capital IQ As at Nov 30, 2015

Market Statistics Recent Events 1 Year Performance Sell Rationale Return Profile Valuation +59%

• Q3 2015 Earnings (Nov 6):
• Revenues: (30%) YoY
• EBITDA: (44%) YoY
• Utilization rate: ~55%
• Business reorganization

planned for 2016

• Monthly dividend cut from

$0.08 to $0.05

• Preliminary capex for 2016

set at $25 million

• Signing of SAGD contracts
• Currently trading at

historical lows based on EV / EBITDA and P / BV

• Future outlook for LNG

projects remains uncertain

• 2016 expected to be a

difficult year with recovery beginning 2017 Share Price (C$) $6.94 Market Cap ($MM) $285 EV ($MM) $473 Beta 1.08 Debt Rating n/a P / LTM E 18.6x P / NTM E 45.4x EV / LTM EBITDA 4.9x EV / NTM EBITDA 6.4x P / B 0.8x D / E 65% ROE 4.3% Purchase Date 18-Apr-13 Purchase Price $19.59 Current Price $6.94 Shares Owned 460 Market Value $3,192 Return – Inception (57.2%) Return – YTD (46.6%) Dividend Yield 8.6% VaR (5%) (20.1%) VaR (10%) (16.2%) Previous Target Price Updated Target Price $16.00 $11.00

EPS Q1 Q2 Q3 Q4 2015 $0.19A $0.06A $0.02A -$0.02E 2016 $0.11E (80%) (40%) 0% 40% Nov-14 Feb-15 May-15 Aug-15 Nov-15 BDI S&P/TSX Industrials Index (7%) (62%)

$0 $10 $20 $30 $40 DCF Analysis: NTM EV / Revenue: NTM EV / EBITDA: P / BV Current Stock Price Target Price

Sell: Pason Systems (TSX:PSI)

3

Source: Capital IQ As at Nov 30, 2015

1 Year Performance Valuation +2% Market Statistics Recent Events Sell Rationale Return Profile

Share Price (C$) $20.62 Market Cap ($MM) $1,727 EV ($MM) $1,529 Beta 1.21 Debt Rating n/a P / LTM E 32.3x P / NTM E 62.5x EV / LTM EBITDA 9.9x EV / NTM EBITDA 15.1x P / B 3.5x D / E n/a ROE 7.2% Purchase Date 04-Dec-14 Purchase Price $25.57 Current Price $20.62 Shares Owned 350 Market Value $7,217 Return – Inception (17.4%) Return – YTD (6.0%) Dividend Yield 3.3% VaR (5%) (19.7%) VaR (10%) (15.8%)

• Management expects

headwinds into 2016 with recovery beginning in 2017

• North American rig counts

continue to decline with US production expected to fall in 2016 Previous Target Price Updated Target Price $25.00 $21.00

EPS Q1 Q2 Q3 Q4 2015 $0.18A -$0.12A $0.03A $0.03E 2016 $0.02E

• Q3 2015 Earnings (Nov 4):
• Revenues: (49%) YoY
• EBITDA: (69%) YoY
• Dominant market shares

continue across all segments

• $27 Million asset

impairment recorded

• Natural gas prices face

downward pressure from El Nino

(40%) (20%) 0% 20% Nov-14 Feb-15 May-15 Aug-15 Nov-15 PSI S&P/TSX Industrials Index (7%) (21%)

$0 $5 $10 $15 $20 $25 $30 DCF Exit Multiple DCF Terminal Growth NTM EV / Revenue NTM EV / EBITDA Current Stock Price Target Price

Learning and Growth

Initiatives

Annual Report Report to Industry Mentors Advisory Board Presentation Networking Session with Industry Mentors Communication to Stakeholders

42

Investment Boot Camp Guest and Faculty Speakers Weekly Meetings with Faculty Presen- tation Recordings EPS Estimates

Initiatives / Professional Development

Top-down Approach Beginning

• f the Year

Team Social

Lessons Learned

Kam Dhaliwal, Portfolio Analyst

Entering this new role with the fund has taught me to take a more high level view of the portfolio and assess the systematic risk of the fund instead of focusing on a single

• stock. It is important to assess a stocks

impact on the portfolio as a whole before making any buy or sell decision.

“ ”

Being on the Student Investment Fund has taught me the importance of finding differences between the market’s outlook versus my own, because these differences

• ften create an opportunity to invest.

“ ”

Katherine Chan, Senior Analyst Harsh Shah, Junior Portfolio Manager

Taking on more senior roles with the Fund, I’ve learnt to start thinking from a portfolio management perspective, which is a unique and valuable experience. SIF has also pushed me to think critically and develop skills that have allowed me to excel in the workplace.

“ ”

Through the Student-Run Investment Fund, I have learned that any sector’s performance is strongly dependent on the economic cycle currently present. As a result, reviewing the micro and macro indicators are very important when analyzing a specific stock.

“ ”

Jack Zhou, Junior Analyst

40

Sample Co-op Placements

Analyst, Investment Banking Analyst, Investment Banking Analyst, Investment Banking Analyst, Private Equity Analyst, Public Markets Analyst, Investment Banking Analyst, Private Equity Analyst, Structured Products Associate, Equity Research Analyst, Alternative Assets Analyst, Private Equity Analyst, Investment Banking 41

Sample Full-Time Placements

Louis Hong Assistant Trader (2015) 42 Krishna Murali IB Analyst (2015) Bojan Joncevski IB Analyst (2016) Michael Blake Transfer Pricing Analyst (2016) Sean Bak IB Analyst (2016) Oliver Chan IB Analyst (2016) Sean Zheng IB Analyst (2016) Courtland Livesley- James IB Analyst (2015) Camille Tan Analyst (2015) Harsh Shah IB Analyst (2016) Rocken Wong Advisory Analyst (2016) David Chan Loan Syndications Analyst (2016) Faizan Siddqiui IB Analyst (2016) Arthur Chan IB Analyst (2016) Haotian Qin IB Analyst (2015)

Industry Mentors

Lu Jiang Niall Glynn Pawel Rajszel David Middleton Dorena Tu Mike Williams Jin Li Nader Ahmed Ian Gutwinski Derek Chu Aly Hadibhai Kevin Huynh Ray Wan David Lee Simon Kwan Michael Liu Nick Gill Jonathan Sue Howard Leung 43 Jacky Lam

Asia Research & Capital Management, Hong Kong

Industry Mentors

Milenko Sikljovan Anqi Wang Frank Hayes Faculty 44 Michael Wang

Partners

Craig Geoffrey Ranjini Jha Andrew Ecclestone

John Gort (Chair) Jeffrey Stacey Thomas Scott Dennis Huber Aazar Zafar Dan Lavric Alan Douglas

Lynn Graham

Faculty Advisory Board Student Relations

45

Appendix I – Stock Pitches Throughout the Term

Hold – Worthington Industries (NYSE:WOR)

Monthly VaR (5%) ($5.23) Quarterly EPS: Q1 Q2 Q3 Q4 Expected Shortfall ($6.22) 2016 A 0.15 0.51e 0.49e 0.50e 2017 E 0.53e 0.66e

• Growth in key end markets
• Improving margins
• Integration of acquisitions and joint ventures

Drivers Risks

• Impact of TPP
• Volatility in steel prices
• Failure to integrate acquisitions

Leading diversified metals manufacturing company Market Statistics Revenue by Segment

Company Overview Valuation 5 Year Share Performance Investment Considerations

Base $31.90 Bull $43.00 Bear $20.80

63% 30% 6% 1% Steel Processing Pressure Cylinders Engineered Cabs Other Share Price ($US) $30.64 Market Cap ($M) $1,968 Net Debt ($M) $585 P/E 31.7x EV/EBITDA 8.2x P/B 2.6x PEG nmf Dividend Yield 2.48% Debt Rating BBB Beta 1.56

• 80%
• 40%

0% 40% 80% 120% 160% 200% Sep-2010 Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 S&P 500 WOR Steel Index

Hold – Quest Diagnostics Inc. (NYSE:DGX)

Monthly VaR (5%) (9.44%) Quarterly EPS: Q1 Q2 Q3 Q4 Expected Shortfall (12.39%) 2015 A 0.48 0.89 2.44 1.00e 2016 E 1.00e

• CMS incentives encourage the shifting of lab

volumes to lower cost testers such as Quest

• Proactive investments made in healthcare IT

Drivers Risks

• Uncertainty in reimbursement environment
• Physician consolidation by hospitals
• Trend towards point-of-care testing

Leading Diagnostics Services Provider in the U.S. Market Statistics Revenue by Segment

Company Overview Valuation 5 Year Share Performance Investment Considerations

Base $73.26 Bull $83.26 Bear $63.38

92% 8% Diagnostics Information Services Diagnostic Solutions

• 50%

0% 50% 100% 150% Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 DGX Healthcare S&P 500

Share Price ($US) $68.32 Market Cap ($M) $9,857 Net Debt ($M) $3,608 P / E 14.0x EV / EBITDA 8.9x P / B 2.2x PEG 1.4x Dividend Yield 2.2% Debt Rating BBB+ Beta 0.68

$40.00 $60.00 $80.00 $100.00 $120.00 $140.00 P/E Comps EV/EBITDA Comps P/E LTM EV/EBITDA LTM DCF Perpetuity DCF Exit Multiple

Hold – Dana Holding Corporation (NYSE: DAN)

Monthly VaR (5%) (26.56%) Quarterly EPS: Q1 Q2 Q3 Q4E Expected Shortfall (15.22%) 2015 A 0.32 0.39 0.33 0.19 2016 E 0.36E

• Increasing consumer confidence and real GDP
• Diversified geography and customer base
• Highly technical products

Drivers Risks

• Sluggish market outlook for light vehicles
• Rising input costs
• Stronger $USD currency vs. World

Market Statistics Revenue by Segment

Company Overview Valuation 5 Year Share Performance Investment Considerations

Base $15.86 Bull $18.20 Bear $11.72

50 100 150 200 250 5 10 15 20 25 30 2010 2011 2013 2014 2015

Auto Parts & Equipment Index ($USD) NYSE: DAN Share price ($USD)

NYSE:DAN S&P 500 Auto Parts & Equipment

Global provider of high technology driveline, sealing, and thermal management products

Share Price ($USD) 16.19 $ Market Cap ($mm) 2,473.90 $ EV ($mm) 3,206.90 $ P/E 7.37 EV/EBITDA 4.33 P/B 3.3x PEG 0.60x Dividend Yield 1.50% Debt Rating BB+ Beta 1.9

Light Vehicle Commercial Vehicle Off-Highway Power Technologies

Hold – UGI Corporation (NYSE: UGI)

Monthly VaR (5%) (-6.73%) Quarterly EPS: Q1 Q2 Q3 Q4 BUY: $39.81 2015 A 0.57 0.76 1.06 0.96 2016 E 0.72e 1.21e

• History of consistent dividend payout
• Successful history of acquisitions
• Strategic expansion initiatives

Drivers Risks

• Operations within a declining industry
• Heavy dependence on company integration
• Government regulations

Utilities provider – primarily through propane & LPG Market Statistics Revenue by Segment

Company Overview Valuation 5 Year Share Performance Investment Considerations

Base $39.81 Bull $44.56 Bear $32.76

• 40%
• 20%

0% 20% 40% 60% 80% 100% 120% 140% 160% 180% S&P500 Utilities Return UGI Stock Return

Share Price (C$) $34.77 Market Cap ($M) $6,007.5 Net Debt ($M) $3,779.60 P / E 22.4x EV / LTM EBITDA 8.8x EV/REVENUE 1.6x ROE 11% Dividend Yield 2.6% Beta 0.78

20 40 60 80 100 ev/revenue ev/ebitda p/e p/bv DCF - Terminal DCF - Multiple

Amerigas Propane Gas Utility Midstream & Marketing - Energy Services

Limit Buy ($49.82) – Albemarle Corp. (NYSE: ALB)

Monthly VaR (-15.28) (-18.83) Quarterly EPS: Q1 Q2 Q3 Q4 Expected Shortfall (-18.30%) 2015 0.40A 0.46A 0.58A 1.13E 2016 1.15E 1.16E

• Dominance in lithium market where strong growth

is expected

• Cost synergies from Rockwood merger

Drivers Risks

• Exposure to cyclical industries
• Lithium market and ability to maintain market

position Largest Lithium Producer Globally Market Statistics Revenue by Segment

Company Overview Valuation 10 Year Share Performance Investment Considerations

Base $57.06 Bull $88.77 Bear $30.05

• 100%

0% 100% 200% 300% 400% 2005 2007 2009 2011 2013 Albemarle S&P 500 Chemicals S&P 500 50% 23% 27%

Performance Chemicals Refining Solutions Chemetall Surface Treatment

$- $20.00 $40.00 $60.00 $80.00 $100.00 52 Week Trading Range Comparables Analysis (20%) DCF - EBITDA Exit Multiple (40%) DCF - Perpetuity Growth (40%)

Hold – Fiserv Inc. (NASDAQ:FISV)

Daily VaR (5%) (2.34%) Quarterly EPS: Q1 Q2 Q3 Q4 Expected Shortfall (3.64%) 2015 A 0.74 0.54 0.94 1.00e 2016 E 0.87e 0.90e

• Strong margin & operational efficiency
• Growing electronic payments adoption
• Experienced management

Drivers Risks

• Customer consolidation
• Contract renewal
• Economic downturn

Global Financial Service Technology Provider Market Statistics Revenue by Segment

Company Overview Valuation 5 Year Share Performance Investment Considerations

Base $98.73 Bull $104.32 Bear $76.23

54% 46% Payments Financial

$25 $50 $75 $100 $125 $150 $175 DCF - Exit Multiple DCF - Perpetual Growth Comparative Analysis Current Price 12 Month Target Price

• 50%

0% 50% 100% 150% 200% 250% 300% Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 FISV Data Processing & Outsourcing Services S&P 500

Share Price ($US) $96.24 Market Cap ($M) $21,995 Net Debt ($M) $3,926 P/E 33.1x EV/EBITDA 15.8x P/B 7.7x PEG 2.0x Dividend Yield

• Debt Rating

BBB Beta 0.99

Appendix II – Current Holdings

Cogeco Cable (TSX:CCA)

Stock Rec. Portfolio Rec. Updated Intrinsic Value Buy Hold $77.00

Market Statistics Recent Events Investment Outlook Return Profile Performance since Purchase Valuation

Quarterly EPS: Q1 Q2 Q3 Q4 2015 A 1.15 1.18 1.30 1.58 2016 E 1.21e 1.25e

Share Price (C$) $64.90 Market Cap ($M) $3,193 Debt ($M) $3,280 Debt Rating BB+ P / NTM E 11.5x EV / LTM EBITDA 6.8x EV / NTM EBITDA 6.3x P / B 1.8x PEG 0.6x ROE 15.8% Dividend Yield 2.4% Beta 0.55 Purchase Date Various Purchase Price (C$) $53.02 Current Price (C$) $66.96 Shares Owned 150 Market Value $9,747 Return - Purchase 22.4% Return - TTM (0.1%) Return - YTD (9.4%) 5% VaR (5.1%) 10% VaR (4.0%) $40.00 $60.00 $80.00 $100.00 Comparables Historical TEV / LTM EBITDA DCF - Exit Multiple DCF - Perpetuity Growth

• Q3 2015 Earnings Update –

Overall than better expected

• earnings. Both net revenues

and adjusted EBITDA

• increased. Quarterly dividend

has also been raised to $0.39 per share.

• Completion of MetroCast

Acquisition – Scale U.S.

• presence. Expected to bring

US$45 mm in annual revenues. Investment Thesis

• Continued execution on
• riginal investment thesis of

inorganic growth

• Growth in new segments

(U.S. and Data services) Investment Risks

• Integration of acquisitions
• Leverage

(25%) 0% 25% 50% 75% 100% Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 CCA CAD Telecommunications Services TSX

Supernus Pharmaceuticals (NASDAQ:SUPN)

• M&A Rumours – Rumoured

to have placed a bid for Xenoport and its only commercialized product, Horizant

• Strong Q3 Results – Q3

earnings and revenues exceed estimates. Total prescriptions increased 78% yoy Stock Rec. Portfolio Rec. Updated Intrinsic Value Buy Hold $17.62

Market Statistics Recent Events Investment Outlook Return Profile Performance since Purchase Valuation

Quarterly EPS: Q1 Q2 Q3 Q4 2014 A (0.38) 0.08 0.39 0.10 2015 E 0.02 0.03 0.08 0.10e

Share Price (C$) $16.16 Market Cap ($M) $866 Debt ($M) $8 Debt Rating NR P / NTM E 34.5x EV / LTM EBITDA 45.1x EV / NTM EBITDA 22.8x P / B 7.2x PEG nmf ROE 13.1% Dividend Yield

• Beta

0.95 Purchase Date 07/27/15 Purchase Price (C$) $20.03 Current Price (C$) $16.16 Shares Owned 450 Market Value $7,430 Return - Purchase (19.3%) Return - TTM 484.1% Return - YTD 94.7% 5% VaR (8.8%) 10% VaR (6.8%) $5.00 $10.00 $15.00 $20.00 DCF - Exit Multiple DCF - Perpetuity Growth Investment Thesis

• Continued progress with

SPN-810 and SPN-812 in regards to FDA approval process Investment Risks

• Delays in approval process

(25%) 75% 175% 275% 375% May-12 May-13 May-14 May-15 SUPN U.S. Healthcare S&P 500

Sanderson Farms (NASDAQ:SAFM)

• Avian flu continues to weight
• n exports
• Weaker chicken prices

expected through 2016

• Short interest reduced to 35%
• CEO Joe Sanderson against

curbing use of antibiotics on poultry proposed by US CDC Stock Rec. Portfolio Rec. Updated Intrinsic Value Hold Hold $76.00

Market Statistics Recent Events Investment Outlook Return Profile Performance since Purchase Valuation

Quarterly EPS: Q1 Q2 Q3 Q4 2014 A 1.25 2.21 3.30 3.93 2015 E 2.87a 3.13a 2.25a 2.34e

Investment Thesis

• Healthy eating trends
• Declining Corn and Soy

prices Investment Risks

• Avian flu and FX impacting

exports

• Big-bird deboning margins

lower

$69.20 $76.00 40 60 80 100 120 140

80% DCF - Exit Multiple 5% Historical (EV/EBITDA) 5% Historical (P/E) 5% Comps (P/E) 5% Comps (EV/EBITDA)

• 40%
• 25%
• 10%

5% 20% Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Sanderson Farms S&P 500 Consumer Staples Index Share Price ($US) $69.20 Market Cap ($MM) $1,650.5 P/LTM E 6.1x P/NTM E 12.9x EV/LTM EBITDA 2.9x EV/NTM EBITDA 5.7x P/B 1.6x ROE 30.6% Dividend Yield 1.9% Debt/LTM EBITDA 0.0x Beta (10 Yr) 0.72 Purchase Date 7/30/2014 Purchase Price ($US) $93.68 Current Price $69.20 Shares Owned 100 Market Value $6,920.0 Return - Inception

• 26.1%

Return - TTM

• 20.6%

Return - YTD

• 16.7%

5% VaR

• 16.20%

10% VaR

• 11.40%

Cal-Maine (NASDAQ: CALM)

• CALM has seen a rise in short
• interest. Total short interest is

at ~29%

• Due to Avian Influenza (AI)
• utbreak in the Midwestern

US, the national flock has been reduced by 13%

• Outbreak has boosted egg

prices, and are expected to remain high

• Expansion projects underway

in Florida, Kansas, Kentucky and Texas Stock Rec. Portfolio Rec. Updated Intrinsic Value Hold Hold $65.11

Market Statistics Recent Events Investment Outlook Return Profile Performance since Purchase Valuation

Quarterly EPS: Q1 Q2 Q3 Q4 2015 A 0.57 0.76 1.06 0.96 2015 E 2.67a 3.01e 3.15e 2.32e

Investment Thesis

• Demand for protein-rich foods
• Shift towards cage-free eggs

(Cal-Maine largest in this space) Investment Risks

• Avian Influenza
• Cost of Feed
• 30.00 60.00 90.00 120.00

DCF Perpetuity DCF Exit Multiple EV/Revenues NTM EV/EBITDA NTM P/E NTM LTM EV/EBITDA LTM P/E $54.42 $65.11

• 10%

0% 10% 20% 30% 27-Aug-15 16-Sep-15 06-Oct-15 26-Oct-15 15-Nov-15

Cal-Maine Foods S&P 500 Consumer Staples Index

Share Price ($US) $54.42 Market Cap ($MM) $2,714.4 P/LTM E 10.3x P/NTM E 5.1x EV/LTM EBITDA 5.2x EV/NTM EBITDA 2.9x P/B 3.4x ROE 39.3% Dividend Yield 2.0% Debt/LTM EBITDA 0.1x Beta (10 Yr) 0.78 Purchase Date 8/27/2015 Purchase Price ($US) $46.68 Current Price $54.42 Shares Owned 80 Market Value $4,353.6 Return - Inception 16.6% Return - TTM N/A Return - YTD 40.8% 5% VaR

• 9.96%

10% VaR

• 7.06%

Spirit AeroSystems (NYSE:SPR)

4

Source: Capital IQ As at Nov 30, 2015

1 Year Performance Valuation +16% Market Statistics Recent Events Recommendation Return Profile

Share Price (US$) $52.45 Market Cap ($MM) $7,153 EV ($MM) $7,251 Beta 1.35 Debt Rating BB P / LTM E 14.5x P / NTM E 12.8x EV / LTM EBITDA 7.0x EV / NTM EBITDA 6.7x P / B 3.2x D / E 16% ROE 26.9% Purchase Date 27-Jul-15 Purchase Price $53.10 Current Price $52.45 Shares Owned 70 Market Value $3,672 Return – Inception (1.2%) Return – YTD 23.0% Dividend Yield n/a VaR (5%) (17.5%) VaR (10%) (14.1%)

• Strong backlogs as a result
• f increased Boeing and

Airbus production

• Industry trends point to

ramp up of key models

• Aftermarket segment offers

additional source of growth Previous Target Price Updated Target Price $75.00 $61.00

EPS Q1 Q2 Q3 Q4 2015 $0.94A $0.94A $0.71A $0.95E 2016 $1.04E

• Q3 2015 Earnings (Oct 27):
• Fuselage Systems

Revenues: 2% YoY

• Revenues: (6%) YoY
• Ongoing negotiations with

Boeing, current contract period until Dec 31, 2015

• Resolution of client /

supplier issues

• Decrease in allowance for

deferred taxes

(20%) 0% 20% 40% Nov-14 Feb-15 May-15 Aug-15 Nov-15 SPR S&P 500 Industrials Index (1%) 22%

$20 $40 $60 $80 $100 $120 DCF Exit Multiple DCF Terminal Growth NTM P / E NTM EV / EBITDA Current Stock Price Target Price

59

Southwest Airlines (NYSE:LUV)

• Oct 22nd – Q3 result

announced:

• Higher EPS than expected;

$0.94

• Unit revenue decrease

0.4% per unit vs. 8.2% decline in total unit cost

• Increased 30% since last

coverage in July

• Free Cash Flow of $583 M,

bring YTD FCF to $1.6 B

• SWAPA rejected tentative

agreement, back to negotiation

EPS Q1 Q2 Q3 Q4 2015 $0.65A $0.96A $0.86A $0.91E 2016 $0.82E

Source: Capital IQ As at Nov 30, 2015

Recommendation Return Profile Valuation

Previous Target Price Updated Target Price $46.00 $46.00

• Has met its target price
• Significant impacts on
• perating and profit margins

are expected to continue from decrease in oil prices

• Still realizing the affect of the

AirTran Merger – 80 B717 have been delivered to Delta pursuant to a lease/sublease agreement, with remaining 8 undergoing conversion

Share Price (US$) $45.88 Market Cap ($MM) $29,838 EV ($MM) $29,464 Beta 0.80 Debt Rating BBB P / LTM E 16.6x P / NTM E 11.3x EV / LTM EBITDA 6.3x EV / NTM EBITDA 5.2x P / B 4.3x D / E 9% ROE 25.5% Purchase Date 27-Jul-15 Purchase Price $34.76 Current Price $45.88 Shares Owned 100 Market Value $4,588 Return – Inception 32.3% Return – YTD 7.5% Dividend Yield 0.7% VaR (5%) (16.2%) VaR (10%) (13.0%)

1 Year Performance Market Statistics Recent Events

(25%) 0% 25% 50% Nov-14 Feb-15 May-15 Aug-15 Nov-15 LUV S&P 500 Industrials Index (1%) 10%

$0.00 $40.00 $80.00 $120.00 NTM EV / EBITDAR NTM P / E DCF Current Price Target Price

United Rentals (NYSE:URI)

• Q3 Results
• EBITDA margin was

50.3%, an all time quarterly record due to delivered cost efficiencies

• Utilization rate

decreased 1.5% YoY

• Relocation of $170MM

fleet from oil and gas markets

• Investment Thesis
• Growth in NA Rental

Industry and improving customer base

• Improving US construction

and industrial markets

• Investment Risks
• US Highway Trust Fund
• Surface Transportation

Reauthorization and Reform (STRR) Act

6

EPS Q1 Q2 Q3 Q4 2015 $1.19A $0.89A $2.28A $2.31E 2016 $1.44E

Source: Capital IQ As at Nov 30, 2015

Market Statistics Recent Events 1 Year Performance Recommendation Return Profile Valuation +12%

Previous Target Price Updated Target Price $95.00 $88.00 Share Price (US$) $78.67 Market Cap ($MM) $7,303 EV ($MM) $15,647 Beta 2.28 Debt Rating BB- P / LTM E 11.4x P / NTM E 9.1x EV / LTM EBITDA 8.6x EV / NTM EBITDA 5.4x P / B 4.9x D / E 117% ROE 36.9% Purchase Date 09-Apr-15 Purchase Price $93.89 Current Price $78.67 Shares Owned 100 Market Value $7,867 Return – Inception (16.2%) Return – YTD (24.1%) Dividend Yield n/a VaR (5%) (26.1%) VaR (10%) (21.1%)

(80%) (40%) 0% 40% Nov-14 Feb-15 May-15 Aug-15 Nov-15 URI S&P 500 Industrials Index (1%) (31%)

$30 $60 $90 $120 $150 $180 NTM EV/EBITDA NTM P/E DCF Current Price Target Price

Genesee & Wyoming (NYSE:GWR)

• Q3 Results
• EPS for the quarter was

$1.09 beating EPS expectations of $1.00

• Carloads increased

49.2% YoY, primarily from acquired

• perations
• Declining carload

volume on a same- railroad basis

• Investment Thesis
• Growth-by-acquisition

strategy

• Strong FCF resulting in

M&A and Buy Back Opportunities

• Investment Risks
• Deteriorating relationships

with Class I rails and implications from CP’s proposed acquisition of Norfolk

7

EPS Q1 Q2 Q3 Q4 2015 $0.43A $0.94A $1.12A $0.92E 2016 $0.81E

Source: Capital IQ As at Nov 30, 2015

Market Statistics Recent Events 1 Year Performance Recommendation Return Profile Valuation +5%

Previous Target Price Updated Target Price $83.00 $73.00 Share Price (US$) $69.27 Market Cap ($MM) $3,996 EV ($MM) $6,273 Beta 1.58 Debt Rating BB P / LTM E 17.9x P / NTM E 16.9x EV / LTM EBITDA 10.5x EV / NTM EBITDA 9.8x P / B 1.5x D / E 58% ROE 9.6% Purchase Date 27-Jul-15 Purchase Price $67.00 Current Price $69.27 Shares Owned 60 Market Value $4,156 Return – Inception 3.4% Return – YTD (22.3%) Dividend Yield n/a VaR (5%) (17.4%) VaR (10%) (14.0%)

(80%) (40%) 0% 40% Nov-14 Feb-15 May-15 Aug-15 Nov-15 GWR S&P 500 Industrials Index 1% (26%)

$30 $50 $70 $90 $110 DCF Current Price Target Price

Suncor Energy (TSX:SU)

Quarterly EPS: Q1 Q2 Q3 Q4 2015 (0.24) 0.50 (0.26) 0.17e 2016 0.26e

Rec.: Hold Target Price: $43.63 Upside: 19.2% Re: 12.8% Investment Catalysts

• Integration allows capture of

price differentials

• High reserve base

Investment Risks

• High cost of in-situ projects
• Upside dependent on

growth projects

Return Profile

Share Price (C$) $36.90 Market Cap ($MM) $53,344 EV ($MM) $62,895 P / LTM E 38.17x P / NTM E 33.07x EV / LTM EBITDA 7.19x EV / NTM EBITDA 8.02x P / B 1.31x ROE 0.2% Dividend Yield 3.1% D / E 0.18 5-Year Beta 1.58 Purchase Date 03/27/13 Purchase Price (C$) $31.46 Current Price (C$) $36.90 Shares Owned 260 Market Value $9,594 Return - Purchase 25.06% Return - TTM 21.85% Return - YTD 22.76% 5% VaR (15.73%) 10% VaR (12.78%)

• Suncor’s appeal to the

Alberta Securities Commission resulted in the delay on the final decision date on the takeover bid by

• ne month from December

4th to January 4th

• COS deal does not involve

cash and management has hinted at additional acquisition activity with the $5B idle cash balance

Market Statistics Performance Since Purchase Recent Events Investment Outlook Valuation $0 $20 $40 $60 $80

EV/EBITDA LTM EV/EBITDA NTM EV/2P Reserves NAV (60%) (40%) (20%) 0% 20% 40% 60% SU TSX TSX - Energy WTI

Raging River Exploration (TSX:RRX)

Rec.: Hold Target Price: $9.55 Upside: 12.8% Re: 14.0% Investment Catalysts

• Low cash operating costs
• Organic growth potential
• Strong management team

Investment Risks

• Valuation dependent on

continued acquisition and development of reserves

Return Profile

Share Price (C$) $8.65 Market Cap ($MM) $1,738.47 EV ($MM) $1,796.84 P / LTM E 28.22x P / NTM E 38.53x EV / LTM EBITDA 8.92x EV / NTM EBITDA NA P / B 2.77x ROE 8.8% Dividend Yield 0.0% D / E .03 5-Year Beta 1.85 Purchase Date 07/31/14 Purchase Price (C$) $8.10 Current Price (C$) $8.65 Shares Owned 1,000 Market Value $8,650 Return - Purchase 6.79% Return - TTM 16.42% Return - YTD 45.87% 5% VaR (19.6%) 10% VaR (17.6%)

• Looking to acquire 13 more

sections of undeveloped land in the Dodsland Operating Area

• Executive Vice President
• Mr. Bruce Robertson will

retire on January 1st

• Bruce Robertson has sold

400 000 shares and now has 6.1MM shares or 3.081% of the common shares outstanding

Return Profile Market Statistics Performance Since Purchase Recent Events Investment Outlook Valuation $0 $10 $20

EV/EBITDA LTM EV/EBITDA NTM EV/2P Reserves NAV

Quarterly EPS: Q1 Q2 Q3 Q4 2015 0.00 0.06 0.05 0.04e 2016 0.06e

(60%) (40%) (20%) 0% 20% 40% RRX TSX TSX - Energy WTI

Western Refining (NYSE:WNR)

Quarterly EPS: Q1 Q2 Q3 Q4 2015 1.11 1.40 1.61 0.78e 2016 0.68e

Rec.: Hold Target (U$): $53.49 Upside: 19.7% Re: 12.5% Investment Catalysts

• High margins on crack spread
• Macro trends for refined oil

products Investment Risks

• Volatility with commodity

prices and crack spreads

• Pressure to lift WTI export ban

Return Profile

Share Price (U$) $45.26 Market Cap ($MM) $4,240.14 EV ($MM) $6,841.25 P / LTM E 8.01x P / NTM E 11.57x EV / LTM EBITDA 5.07x EV / NTM EBITDA 6.36x P / B 3.2x ROE 24.39% Dividend Yield 3.28% D / E .21 5-Year Beta 1.62 Purchase Date 07/27/15 Purchase Price (U$) $44.51 Current Price (U$) $45.26 Shares Owned 150 Market Value $6,789.00 Return - Purchase 2.54% Return - TTM N/A Return - YTD N/A 5% VaR (22.99%) 10% VaR (18.03%)

• Western Refining put in an
• ffer to takeover Northern

Tier Energy.

• Currently they own 38% of

the common shares and have all of the controlling general partnership interest

• Board of directors authorise

additional 200MM share repurchase program on Sep 21

Return Profile Market Statistics 1 Year Performance Recent Events Investment Outlook Valuation $0 $40 $80 $120 $160

P/LTM EPS EV/EBIT EV/LTM… EV/LTM EBITDA DCF (60%) (50%) (40%) (30%) (20%) (10%) 0% 10% 20% Dec-2014 Mar-2015 Jun-2015 Sep-2015 WNR NYSE NYSE - Energy WTI

Capital Power (TSX:CPX)

Quarterly EPS: Q1 Q2 Q3 Q4 2015 0.41 (0.39) 0.44 0.33e 2016 0.30e

Rec.: Hold Target: $18.24 Upside: Re: 5.38% Investment Catalysts

• Utility company with high

quality of portfolio of power generation assets Investment Risks

• Alberta power prices and

construction delays

• Changing political climate

Return Profile

Share Price (C$) $16.85 Market Cap ($MM) $1,679.58 EV ($MM) $3,786.58 P / LTM E 23.87x P / NTM E 17.40x EV / LTM EBITDA 8.71x EV / NTM EBITDA 8.24x P / B .82x ROE 3.5% Dividend Yield 8.48% D / E .94 5-Year Beta .47 Purchase Date 11/30/12 Purchase Price (C$) $21.77 Current Price (C$) $16.85 Shares Owned 350 Market Value $5,897.50 Return - Purchase (5.44%) Return - TTM (27.26%) Return - YTD (23.78%) 5% VaR (9.17%) 10% VaR (7.80%)

• Alberta government

announces changes to regulations governing carbon emissions. Capital Power is working with the government to speed up the retirement of coal plants

• Capital Power is also

working with the government to speed up the retirement of coal plants

Market Statistics Performance Since Purchase Return Profile Recent Events Investment Outlook Valuation $0 $20 $40 $60

52 - Week Range DCF - Perpetual DCF - EM LTM EV/EBITDA LTM P/E (20%) (10%) 0% 10% 20% 30% 40% CPX TSX TSX - Utilities

First Quantum (TSX:FM)

Stock Rec. Portfolio Rec. Updated Intrinsic Value Hold Hold $8.08

Market Statistics Recent Events Investment Outlook Return Profile 5 Year Performance Valuation

Quarterly EPS: Q1 Q2 Q3 Q4 2015 A -0.14 -0.16 -0.62 0.05e 2016 A 0.11e 0.11e

Investment Thesis

• CAD’s largest pure-play

copper producer with lowest cash costs

• Large production pipeline

Investment Risks

• Exposure to African

economies, political risk

Base $8.08 Bull $13.23 Bear $2.92

• Zambia power outage

stabilizing, resume commercial production

• Sentinel mine life to

increase by three years

• Reduced capex

requirement on Cobre Panama project

• Committed to reducing net

debt by $1bn by Q1/16

Share Price (C$) $4.82 Market Cap ($M) $3,323 Debt ($M) $5,691 P / E NM EV / EBITDA 11.8x P / B 0.3x PEG nmf Dividend Yield 1.3% Debt Rating B Beta 2.20

Purchase Date 01-Dec-14 Purchase Price $17.95 Current Price $4.82 Shares Owned 450 Market Value $2,169 Return - Inception (73.1%) Return - TTM (73.0%) Return - YTD (71.9%) 5% Daily VaR (6.0%) 10% Daily VaR (4.7%)

(90%) (60%) (30%) 0% 30% 60% 90% Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 FM CAD Materials TSX

$14.33 $0.54 $1.94 $8.72 $8.08

$0.00 $4.00 $8.00 $12.00 $16.00 NAV Cash Working Cap. Debt Share Price

• A. Schulman (Nasdaq:SHLM)

Stock Rec. Portfolio Rec. Updated Intrinsic Value Hold Hold $40.80

Market Statistics Recent Events Investment Outlook Return Profile 5 Year Performance Valuation

Quarterly EPS: Q1 Q2 Q3 Q4 2015 A 0.45 -0.03 -0.34 0.75 2016 E 0.39e 0.28e 0.63e

Investment Thesis

• Flexible business model to

capitalize on megatrends

• Deep acquisition pipeline

Investment Risks

• Ability to integrate newly

acquired businesses

• Risk of disintermediation /
• bsolescence

(30%) 10% 50% 90% 130% 170% Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 SHLM US Materials S&P 500

Share Price (US$) $33.76 Market Cap ($M) $989 Debt ($M) $1,066 P / E 40.7x EV / EBITDA 11.7x P / B 2.1x PEG 2.5x Dividend Yield 2.4% Debt Rating BB- Beta 1.29

Purchase Date 27-Jul-15 Purchase Price $35.70 Current Price $33.76 Shares Owned 230 Market Value $7,765 Return - Inception (5.4%) Return - TTM N/A Return - YTD (5.4%) 5% Daily VaR (3.3%) 10% Daily VaR (2.6%)

$20.0 $35.0 $50.0 $65.0 Comps DCF-Exit Multiple DCF-Gordon Growth Current Price Implied Price

Base $40.80 Bull $50.50 Bear $30.80

• Closed 3 engineered

plastic plants in Evansville, post-Citadel acquisition integration

• Americas Net sales

increased 41% YoY

• Company guiding F2016

diluted EPS to a range

• f $2.80-$2.85

Goldcorp (TSX:G)

Stock Rec. Portfolio Rec. Updated Intrinsic Value Hold Hold $14.22

Market Statistics Recent Events Investment Outlook Return Profile 5 Year Performance Valuation

Quarterly EPS: Q1 Q2 Q3 Q4 2015 A -0.11 -0.47 -0.23 0.04e 2016 A 0.05e 0.06e

Investment Thesis

• Unhedged gold exposure
• Leading production costs and

robust production pipeline

• Low risk operations

Investment Risks

• Commodity price risk
• Development Risk

Base $14.22 Bull $20.43 Bear $7.97

• Production at Cerro

Negro mine to resume following a work stoppage

• n 30/9/2015
• Goldcorp and Teck to

combine projects in Chile to reduce infrastructure costs and optimize mine plan

• Acquired New Gold’s

30% interest of El Morro

Share Price (C$) $15.75 Market Cap ($M) $13,073 Debt ($M) $2,699 P / E NM EV / EBITDA 8.1x P / B 0.6x PEG nmf Dividend Yield 2.0% Debt Rating BBB+ Beta 0.94

Latest Purch. Date 27-Jul-15 Adjusted Cost Base $25.75 Current Price $15.75 Shares Owned 530 Market Value $8,348 Return - Inception (38.8%) Return - TTM (20.9%) Return - YTD (18.7%) 5% Daily VaR (4.1%) 10% Daily VaR (3.2%)

(90%) (70%) (50%) (30%) (10%) 10% 30% 50% Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 G CAD Materials TSX

$14.07 $14.22 $2.63 $2.48 $0.00 $4.00 $8.00 $12.00 $16.00 Producing Assets Developing Assets Other Assets NAV

Market Statistics Return Profile

Note: Market data as at November 30, 2015. Source: Capital IQ, Bloomberg Financial Markets.

• Occupancy rate of 91.6%,

exceeding CBRE average

• f 88.2%
• IFRS NAV of $33/share

($24/share excl. Alberta)

• Largest markets are

Edmonton, Calgary, and Toronto Investment Thesis

• Exposure to high quality

portfolio in office space Investment Risks

• Declining occupancy in

Alberta

• Low oil prices sustained in

the future Target Price: $24.84

Recent Events Performance Since Purchase Investment Outlook

Dream Office REIT (TSX:D.UN)

Valuation

$10 $20 $30 $40 $50 52 - Week Range NAV (Cap: 5.78 - 7.78%) FFO / Share - 2015E FFO / Share - 2016E AFFO / Share - 2015E AFFO / Share - 2016E Current Price Target Price Share Price (C$) $18.27 Market Cap (C$bn) $2.1 EV (C$bn) $5.1 P / LTM AFFO 7.4x P / NTM AFFO 7.9x P / LTM FFO 11.0x P / NTM FFO 6.8x EV / NTM EBITDA 11.3x LTM ROE 0.17% Dividend Yield 12.26% D / E NMF Beta (5Y) 0.6420 Purchase Date 12/4/2013 Shares Owned 180 Purchase Price (C$) $28.03 Share Price (C$) $18.27 Market Value (C$) $3,289 Return - Inception (20.8%) Return - LTM (24.1%) Return - YTD (20.8%) 5% VaR (4.9%) 10% VaR (3.8%)

AFFO / Share Q1 Q2 Q3 Q4 2015 $0.62 $0.64 $0.61 $0.60E 2016 $0.59E

(30%) (20%) (10%)

• 10%

20% 30% Dec-13 Jun-14 Dec-14 Jun-15 D.UN S&P/TSX TSX REITs 0.9% 1.2% (33.2%)

Market Statistics Return Profile

Note: Market data as at November 30, 2015. Source: Capital IQ, Bloomberg Financial Markets.

• Q3 Earnings reported on

October 29th, 2015, $1.00, up $0.01 from Q2 and $0.03 YoY, beat est. $0.94

• Loss ratio of 21% under

estimate of 25%

• Net premiums earned

increased 5% YoY

• Expense ratio up 2% YoY

Investment Thesis

• Market share gains from

the CMHC tapering

• Top line growth fueled by

premium increases Investment Risks

• Threat of Canadian

housing crash

• Dynamic regulatory

environment Target Price: $37.00

Recent Events Performance Since Purchase Investment Outlook

Genworth Canada (TSX:MIC)

Valuation

(15%) (10%) (5%)

• 5%

10% 15% Apr-15 Jun-15 Aug-15 Oct-15 MIC S&P/TSX S&P/TSX Financials (3.3%) (12.1%) (5.8%) Share Price (C$) $29.47 Market Cap (C$bn) $2.7 EV (C$bn) N.A. LTM P / E 8.4x NTM P / E 8.2x EV / LTM EBITDA NMF EV / NTM EBITDA NMF P / B 0.81x LTM ROE 11.6% Dividend Yield 5.70% D / E NMF Beta (5Y) 0.8860 Purchase Date 4/9/2015 Shares Owned 200 Purchase Price (C$) $30.20 Share Price (C$) $29.47 Market Value (C$) $5,894 Return - Inception 0.2% Return - LTM (24.4%) Return - YTD (17.4%) 5% VaR (13.1%) 10% VaR (9.9%) $20 $30 $40 $50 $60 $70 52 Week Range DDM NTM P/E LTM P/B Historic P/E Historic P/B Current Price Target Price

EPS Q1 Q2 Q3 Q4 2015 $1.15 $1.12 $0.98 $1.02E 2016 $0.96E

Scotiabank (TSX:BNS)

Market Statistics Recent Events Performance Since Purchase Return Profile Investment Outlook

Note: Market data as at November 30, 2015. Source: Capital IQ, Bloomberg Financial Markets.

• Q4 results announcement
• n Dec 1, 2015, $1.46

ahead of $1.44 est.

• Revenue growth of 4%

year-over-year

• Strong capital ratios (Tier

1 Ratio of 10.3%)

• Increased dividend by

$.02 inQ4, 6% YoY Investment Thesis

• International exposure,

potentially “higher growth” Investment Risks

• Sluggish Canadian

economy

• Oil and gas exposure

Target Price: $65.96

Valuation

(10%)

• 10%

20% 30% 40% Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 BNS S&P/TSX Cdn Equal Weight Bank ETF

20.7% 6.1% 2.5% $40 $50 $60 $70 $80 $90 52 - Week Range P/B vs Fwd ROE DDM NTM P/E LTM P/BV Current Price Target Price Share Price (C$) $60.89 Market Cap (C$bn) $74.1 EV (C$bn) N.A. LTM P / E 11.4x NTM P / E 10.3x EV / LTM EBITDA NMF EV / NTM EBITDA NMF P / B 1.51x LTM ROE 14.0% Dividend Yield 4.60% D / E NMF Beta (5Y) 0.8341 Purchase Date 3/27/2013 Shares Owned 190 Purchase Price (C$) $62.08 Share Price (C$) $60.89 Market Value (C$) $11,569 Return - Inception 7.7% Return - LTM (8.0%) Return - YTD (2.9%) 5% VaR (6.8%) 10% VaR (4.9%)

EPS Q1 Q2 Q3 Q4 2015 $1.36 $1.43 $1.46 $1.46 2016 $1.70E $1.75E

National Bank (TSX:NA)

Market Statistics Return Profile

Note: Market data as at November 30, 2015 Source: Capital IQ, Bloomberg Financial Markets.

Investment Thesis

• Expansion outside of

Quebec and Eastern Canada focus

• Most domestic bank

Investment Risks

• Reliance on capital

markets

• Oil and Gas Exposure

Target Price: $49.00

Recent Events Performance Since Purchase Investment Outlook

• Q4 results announced on

Dec 2nd 2015, EPS of $1.16, meeting consensus

• Revenue growth of 5%

year-over-year

• Issued 7.16 MM common

shares at $41.90, Tier 1 Ratio of 9.9%

• Increased Q4 dividend by

4% to $0.54/share

Valuation

(10%)

• 10%

20% 30% 40% 50% Aug-12 Aug-13 Aug-14 Aug-15 NA S&P/TSX Cdn Equal Weight Bank ETF

31.6% 15.5% 17.3% EPS Q1 Q2 Q3 Q4 2015 $1.14 $1.15 $1.25 $1.16 2016 $1.24E $1.26E 30 40 50 60 70 80 52 Week Range P/B vs Fwd ROE DDM NTM P/E LTM P/Book Current Price Target Price Share Price (C$) $43.77 Market Cap (C$bn) $15.1 EV (C$bn) N.A. LTM P / E 9.8x NTM P / E 9.3x EV / LTM EBITDA NMF EV / NTM EBITDA NMF P / B 1.59x LTM ROE 14.8% Dividend Yield 4.75% D / E NMF Beta (5Y) 0.8250 Purchase Date 8/3/2012 Shares Owned 208 Purchase Price (C$) $38.37 Share Price (C$) $43.77 Market Value (C$) $9,104 Return - Inception 25.8% Return - LTM (12.9%) Return - YTD (9.4%) 5% VaR (6.5%) 10% VaR (5.7%)

Appendix III – Macroeconomic Outlook

74

Interest Rate Outlook – U.S. & Canada, Short-Term & Long Term

▲ U.S. Fed Funds Rate: expect gradual increase, hike very soon (possibly in December)

• U.S. measures which suggest rate hike:

 Unemployment rate (5% vs. peak 10%)  Housing starts, consumer & business spending

• U.S. measures which suggest no rate hike:

 U6 unemployment rate (above 6%)  Inflation (near 0%; well below 2% target)

• Caught in a corner with appreciation of USD and

weak global economic conditions ▲ U.S. Long-Term Bond Yields: no significant increase expected in foreseeable future; some increase plausible

• Upward pressure from:

 Increase in short-term yields  China’s adoption of a more floating currency regime (lower accumulation of U.S. dollars by China in the form of U.S. Treasury Bonds)  Lower pedrodollar recycling (lower oil prices translate into lower investments in U.S. Treasury bonds)

• Downward pressure from:

 Global deflationary pressures (low energy and commodity pries, low growth)  Low yields internationally ▲ Canada Overnight Rate: expect stability in the foreseeable future; another rate reduction possible

• Glum economic outlook:

 BoC cut GDP growth projections for H2 2015 from 1.8% to 0.7%  Low oil prices  No evident benefit from weak Canadian dollar amid increasing competitiveness from other declining currencies

• Rate is at 0.5% currently, leaves room for

reduction ▲ Canadian Long-Term Bond Yields: no increase expected in foreseeable future

• Upward pressure from:

 Shift to shorter-term assets from concerns about oil prices declining further

• Downward pressure from:

 Global deflationary pressures (low energy and commodity pries, low growth)  Low yields internationally

Energy

▲ Allocation (Canada & U.S.): Underweight

• Oil prices: expect volatility in short term, no change in the intermediate-term; increase in the long-term

 Upward pressure from:

• Decline in prices have prompted cuts to spending, particularly for high-cost producers
• Decline in production in the U.S.
• Deferral of long-term projects
• Decline in prices has led to an increase in demand for refined product
• Geopolitical risk in the middle east

 Downward pressure from:

• Expectations of global economic growth
• Growing switch to other fuels (electric vehicles, biofuels, etc.)
• Sanguineness about geopolitical risk
• Prospect of alternative methods and geographies of oil extraction (i.e. shale, the arctic)

 Mixed pressure from OPEC politics, particularly in relation to Saudi Arabia

• Saudi officials have stated they will not decrease production even if prices go below $20
• Cartels can be unpredictable
• Curbing production would mean benefits transferred to Saudi competitors
• Not curbing production would entail the collapse of high-cost producers (increasing market share for Saudi

Arabia)

• Not curbing production would also mean potential supply shortages in the future due to decreased

investment now (which may be disastrous for global economic growth)

Materials

▲ Outlook (U.S. and Canada): Underweight

• The Positive:

 Gold:

• Central Banks are expected to buy gold to diversify from USD
• Global economy still in recovery mode
• The Negative:

 Gold:

• No evidence of safe haven needed given resiliency of USD

 Base metals:

• Pace of GDP growth of emerging markets is low
• Aluminum market is in oversupply with expanding smelting capacity and rising inventories
• Copper has experienced supply cuts; however, demand is weak, especially from China, with

construction starts, fixed asset investment, and manufacturing PMI all declining

• Zinc, nickel, and steel also negatively affected by low demand

Consumer Staples

▲ Outlook (Canada): Overweight

• Defensive sectors have greater potential for outperformance in periods of slow growth

 Further reinforced by strong balance sheets ▲ Outlook (U.S.): Underweight

• Opposite of Canada

Consumer Discretionary

▲ Outlook (Canada): Underweight

• Household debt is at one of the highest levels in history
• The effect of a potential housing bubble would be significant to this sector
• Outlook differs by province—more bearish outlook for oil-exposed provinces

▲ Outlook (U.S.): Overweight

• Improvement in the labour market fuels spending
• Household net worth highest and debt payments as % of disposable income lowest in at least 25 years

Healthcare

▲ Outlook (Canada): n.a.

• Too small in Canada to determine sector weighting (also, the size of Valeant makes it even worse)
• Stock selection is paramount

▲ Outlook (U.S.): Overweight

• The good:

 Biotech drug innovation  Growing middle class globally & aging population in developed markets  Consolidation in the pharmaceutical sector

• The bad:

 Regulation uncertainties (Obamacare controversies)  Public scrutiny of high drug prices

Industrials

▲ Outlook (U.S. and Canada): Mixed

• The positive:

 Benefit from strengthening U.S. economy  Subsector example: Rising political tensions around the world benefit the defense sector may expand defense budgets

• The negative:

 Global growth prospects

• The mixed:

 Mixed impact from oil & metal price outlook (ex. Airlines benefit, beneficiaries of oil & gas spending do not)  Stronger USD

Financials

▲ Outlook: Mixed

• The positive (non-bank financials):

 Outlook on interest rates support movement to equities, which should have a positive impact on asset managers

• The negative (banks):

 Housing bubble burst would negatively impact mortgage lenders

• Housing related expenditures now at 20% of GDP (record high)

 Consumer / business loan losses from energy exposure  Interest rate outlook suggests flat net interest margins

Technology

▲ Outlook (Canada): n.a.

• Too small in Canada to determine sector weighting
• Stock selection is paramount

▲ Outlook (U.S.): mixed

• No signs of overvaluation (trading around 16x P/E, in line with post tech-bubble norms)
• Stock selection is paramount

Telecommunications & Media

▲ Outlook (Canada): Underweight

• The positive:

 Oligopoly remains intact  Operators compete on service rather than price  High-speed internet no longer a discretionary item  Valuation at historical highs, but not an issue given interest rate outlook

• The negative:

 Regulatory environment is a “?”  Source of upside not evident:

• Oligopoly benefits already in place (high negative impact if broken up)
• Unclear where growth could come from

Utilities

▲ Outlook (Canada & U.S.): Market Weight

• Reaching historical peaks in terms of valuation

 Coincidentally lowest bond yields  Interest rate outlook suggests no issues with valuation

• Heavy regulation limits upside / downside