1. 80/20 Portfolio Analysis June 2014 FOR ADVISOR USE ONLY

2. 1 Portfolio Holdings TickerPurposeDescriptionMERWeight HXTCore Canadian EquityHorizons S&P/TSX 600.05%9.84% XUSCore US EquityiShares S&P 5000.10%14.83% XEFCore EAFE EquityiShares MSCI EAFE IMI0.20%20.75% XECCore Emerging Market EquityiShares MSCI Emerging Markets0.25%10.59% XXM.BUS ValueFirst Asset US Value0.60%7.22% YXM.BUS MomentumFirst Asset US Momentum0.60%3.95% FXMCanadian ValueFirst Asset Canadian Value0.60%4.15% WXMCanadian MomentumFirst Asset Canadian Momentum0.60%2.77% XSUUS Small CapiShares Russell 20000.36%6.48% Equity80.57% PMO505"Go anywhere" Fixed IncomePIMCO Montlhy0.67%5.00% HFRShort Duration Strong CreditHorizons Active Floating Rate Bond0.40%4.77% CSDShort Duration High YieldiShares Advantage Short Duration High Income0.61%4.84% BKLZero Duration High YieldPowershares Bank Loan0.80%4.82% Fixed Income19.43% Benchmark S&P/TSX Composite Index80% FTSE TMX Canada Universe Bond Index20%

3. 2 Correlation Matrix July 1, 2013 – June 30, 2014  Correlation greater than 0.80 indicates a strong relationship between returns of the assets 12345678910111213 1S&P/TSX 60 TR 1.00 2S&P 500 TR USD 0.471.00 3MSCI EAFE IMI NR USD 0.370.821.00 4MSCI EM IMI NR USD 0.360.680.761.00 5Morningstar US Value Trgt 50 TR CAD 0.320.540.150.021.00 6Morningstar US Mtum Trgt 50 TR CAD 0.120.560.460.040.701.00 7Morningstar Canada Momentum TR CAD 0.680.590.620.43 0.521.00 8Morningstar Canada Value TR CAD 0.660.510.570.510.390.240.681.00 9Russell 2000 TR USD 0.330.810.770.530.430.590.520.381.00 10PIMCO Monthly Income F 0.090.410.430.420.130.290.470.140.271.00 11Horizons Active FR Bond ETF Comm 0.170.12-0.08 0.480.180.470.300.020.571.00 12iShares Adv Short Dur High Inc Comm 0.570.700.600.280.580.730.760.600.650.510.431.00 13PowerShares Senior Loan CAD Hdg ETF 0.330.640.330.180.550.480.580.220.530.610.680.751.00

4. 3 Annual Performance Since Inception, the portfolio has outpaced the benchmark by 18%

5. 4 Calendar Performance The portfolio has historically outperformed the benchmark on a rolling 1 year return basis, however, the benchmark has closed the gap, surging since the beginning of 2014.

6. 5 Risk Analysis

7. 6 Risk-Adjusted Return Analysis The benchmark’s strong performance YTD has resulted in its Sharpe ratio pulling slightly ahead of the portfolio.

8. 7 Risk/Return Analysis

9. 8 Up & Down Market Summary

10. 9 Glossary Asset Allocation The description of the way in which the assets in question are distributed (allocated) across the types of assets (investments) included in a portfolio. Benchmark A standard index used for measuring the performance of an investment. Beta A measure of volatility. If a fund has a beta of 1, then it has the same volatility as its benchmark index. If a fund has a Beta higher than 1, it is moving up and down more than the rest of the market. A fund with a beta of 2 will move up 20% when the market rises 10% Correlation A statistical measure of how two securities move in relation to each other. Perfect positive correlation (a correlation co- efficient of +1) implies that as one security moves, either up or down, the other security will move in lockstep, in the same direction. Alternatively, perfect negative correlation means that if one security moves in either direction the security that is perfectly negatively correlated will move in the opposite direction. Downside Deviation A measure of downside risk that focuses on returns that fall below a minimum threshold or minimum acceptable return (MAR). Investors are generally more concerned with negative divergences than positive ones, i.e. downside risk is a bigger concern. Downside deviation resolves this issue by focusing only on downside risk. Exchange Traded Fund (ETF) ETFs or Exchange Traded Funds are low-cost Index Funds that trade like stocks. ETFs can be bought or sold when the stock market is open for trading. ETFs can be sold short, leveraged with margin, hedged with call or put options or bought and held

11. 10 Glossary Fundamental Indexing A methodology aimed at linking the composition of an index to underlying fundamental factors (as opposed to “defaulting” to market capitalization weighting). In a fundamental index, the weights assigned to the securities comprising the index are a function of how each security scores on the fundamental criteria in question. Research Affiliates Fundamental Indexing makes use of cash dividends (5 Yr average), free cash flow, total sales (5 Yr average), and book equity value (current period book value). Management Expense Ratio The expense ratio of a mutual fund or ETF covers the cost of investment management, legal and administrative expenses. The expense ratio does not include the cost of acquiring a fund, such as commissions or sales loads, and it’s expressed as a percentage of the fund’s average daily net assets. Management Fee The compensation perceived by a money manager for his/her services in managing/administering investments Sharpe Ratio The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. This measurement is very useful because although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. Standard deviation Standard deviation is a statistical measurement that sheds light on historical volatility. For example, a volatile stock will have a high standard deviation while the deviation of a stable blue chip stock will be lower. A large dispersion tells us how much the return on the fund is deviating from the expected normal returns Volatility Volatility is determined by the price movement (rise or fall) of a security. Securities that experience sharp increases or declines within a short time frame are considered more volatile than those that don’t.

12. 11 Disclaimer This communication is confidential and for the exclusive use of registered dealers and their representatives. The contents may not be reproduced or distributed to any clients or potential clients of such dealers or to the public generally or to the press. Canadian securities legislation, including National Instrument 81-102 Mutual Funds, prohibits any such distribution. This communication is not intended to be, a sales communication within the meaning of that Instrument and accordingly has not been designed to comply with the requirements of that Instrument relating to sales communications. The commentaries presented are prepared as a general source of information. They are not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax.