Mutual Fund Monthly ReviewMutual Fund Industry Vital SignsStarting assets (September 30, 2012) $678.7 billion+ net sales $2.5 billion+/- estimated market effect $2.7 billion (0.4%)= Ending assets (October 31, 2012) $683.9 billion

Vitals Signs by Fund Category for October 2012

October 2012 – Product Development Highlights First Asset Investment Management launched First Asset Morningstar Emerging Markets Composite Bond Index ETF, bringing the number of ETFs offered by the company to 15. The fund’s management fees are 0.5% and 1.0% for the common-class and advisor-class units respectively.

BlackRock Asset Management Canada made dividend reinvestment plans (DRIPs) available for all 88 of the iShares ETFs. The feature, long available with open-end mutual funds, allows investors to reinvest distributions in additional units without incurring commissions.

Horizons Exchange Traded Funds launched two new actively managed ETFs: Horizons Active Emerging Markets Dividend ETF and Horizons Active Cdn Bond ETF. Both new funds are available in Class E and Advisor Class units. The Emerging Markets fund is subject to a 20% performance fee on returns that exceed the total return of the MSCI Emerging Markets Index.

Standard Life Mutual Funds announced changes to the fees and purchase options on some of its funds. These changes include a reduction in management fees of certain A, E and F-series funds plus the expansion of the number of funds available in the F and E Series. The announced changes do not apply to the corporate-class versions of the funds.

October 2012

Note: Asset growth figures can be affected by a change in the number of companies reporting to IFIC and by fund category changes.

Source: IFIC except for Performance where the source is Fundata.

Top 3 Categories Bottom 3 Categories

Asset Growth ($) Global Neutral Balanced: $1.081 billion Canadian Money Market: -$427 million Cdn. Div. & Income Equity: $898 million Natural Resources Equity: -$130 million Cdn. Fixed Income Balanced: $870 million Miscellaneous - Other: -$122 million

Asset Growth Alternative Strategies: 15.2% Miscellaneous - Other: -34.1%(as a % of starting assets) Global Fixed Income: 5.7% Financial Services Equity: -9.9% Greater China Equity: 4.3% Miscellaneous - Commodity: -3.0%

Net Sales ($) Canadian Fixed Income: $831 million Canadian Equity Balanced: -$397 million Cdn. Fixed Income Balanced: $793 million Canadian Money Market: -$395 million Global Neutral Balanced: $723 million Canadian Equity: -$392 million

Net Sales Alternative Strategies: 16.4% Financial Services Equity: -11.7%(as a % of starting assets) Tactical Balanced: 4.2% U.S. Synthetic Money Market: -2.9% Global Fixed Income: 3.8% Global Small/Mid Cap Equity: -2.7%

Performance Greater China Equity: 5.1% Precious Metals Equity: -1.3%(Fund category averages) European Equity: 2.6% U.S. Equity: -1.0% Financial Services Equity: 2.4% Health Care Equity: -0.9%

EquiSoft specializes in the design and development of digital business solutions primarily for the financial industry. For more information please contact: Jonathan Georges, CIM, FCSI , Vice President, Financial Products. T: 514.989.3141 X 201 | T: 888.989.3141 | Jonathan.Georges@equisoft.com | www.equisoft.com. ©2012 EquiSoft consulting and software solutions.

Did You Know?A recent study from Morningstar Inc. found that, contrary to other popular reports, over the past 10 calendar years, investors tended to select solid performing mutual funds. This claim is supported by comparing the average return on each dollar invested in a fund category (asset-weighted) to results that give equal weight to each fund in a category. 83% of the categories exhibited better returns using asset-weighted figures.

Source: Morningstar Inc.

% of Fund Categories Outperforming

83%Asset-weightedreturns

17%Equal-weighted

returns

CONSULTING AND SOFTWARE SOLUTIONS

Please do not hesitate to contact us for more information.Jonathan Georges, CIM, FCSI Vice-président, Produits financiers / Vice President, Financial Products

EquiSoftCONSEILS ET SOLUTIONS INFORMATIQUES / CONSULTING AND SOFTWARE SOLUTIONS

T: 514.989.3141 X 201 | T: 888.989.3141 | F: 514.989.3140 Jonathan.Georges@equisoft.com | www.equisoft.com

CONSULTING AND SOFTWARE SOLUTIONS

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EquiSoft specializes in the design and development of digital business solutions primarily for the financial industryDesigning and developing industry-leading business solutions for financial sector clients is second nature to us. Years of delivering successful projects have made the EquiSoft team a highly sought-after resource. Knowledge, expertise, an entrepreneurial spirit and first-rate client care are some of the hallmarks of our brand.

Each month this space features an EquiSoft product or service that exemplifies our commitment to the financial industry. This month’s edition highlights our online calculator capabilities. The availability of such calculators can drive traffic to both your investor and advisor sites and helps to reinforce your firm’s position as provider of value-added services.

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EquiSoft has a comprehensive suite of online calculators at your disposal. Some examples are outlined below.

Please do not hesitate to contact us for more information.Jonathan Georges, CIM, FCSI Vice-président, Produits financiers / Vice President, Financial Products

EquiSoft CONSEILS ET SOLUTIONS INFORMATIQUES / CONSULTING AND SOFTWARE SOLUTIONS

T: 514.989.3141 X 201 | T: 888.989.3141 | F: 514.989.3140 Jonathan.Georges@equisoft.com | www.equisoft.com