Roberts Nash Advisory Group

Managed Yield (M.Y.) Private Portfolio

National Bank Financial Wealth Management – 802-380 Wellington Street, London ON N6A 5B5

Tel.: 519-646-5700 • Toll Free: 1-855-301-5700 • Fax: 519-645-4896 • Email: robertsnashgroup@nbf.ca

April 30, 2016

Kelly Roberts, BSc. CIM, FCSI Senior Vice President Investment Advisor /Portfolio Manager

Jay Nash, BA, CIM, FCSI Vice President Investment Advisor / Portfolio Manager

Management Philosophy

M.Y. Private Portfolio was established to provide investors with a stable, tax efficient, higher than average yield. The objective is to provide a stable long term total return to investors.

Focus is on value oriented Canadian & global equities

Diversify using exchange traded & closed end funds

Aim to capitalize on inefficiencies within the closed end market

All holdings must have sufficient liquidity

Tax efficient income generation is targeted

All holdings are exchange listed

Top 10 Holdings (65.4% of total portfolio)

Symbol Symbol Description Portfolio Weight Income Yield

HAB Horizons Active Corporate Bond ETF 9.5% 3.4%

JE.DB.B Just Energy Group Inc. 5.75% 09/30/18 7.4% 5.8%

EIF.DB.F Exchange Income Corp 5.35% 03/31/20 7.4% 5.6%

VXM.B First Asset Morningstar International Value ETF 7.3% 2.7%

ZXM.B First Asset Morningstar International Momentum ETF 7.2% 1.3%

MFC Manulife Financial Corp. 5.7% 4.0%

NA National Bank of Canada 5.5% 4.9%

STB Student Transport Inc. 5.3% 8.9%

CRR.UN Crombie Real Estate Investment Trust 5.1% 6.4%

IPL Inter Pipeline Ltd. 5.0% 5.9%

1 month 3 Months 6 Months 1 Yr 3 Yr Inception Performance -0.4% 2.6% 1.4% 0.4% 8.4% 8.9% Benchmark 0.4% 1.2% 0.5% -0.7% 7.6% 7.9%

Fees: Returns presented are before fees

Composition of the benchmark: NBFWM Growth Benchmark is composed of 35% DEX Universe, 20% S&P/TSX Total Return, 20% S&P 500 $CAD Total Return Index; 15% MSCI EAFE Total Return Index; & 10% Alternative (made up of Credit Suisse Tremont Hedge Fund Index; Thomson Reuters/Jeffries CRB Commodity Index; S&P Global Infrastructure Index; & FTSE EPRS/NAREIT Global Real Estate Index; all $CDN) Other Characteristics: Inception Date: April 1, 2012 Initial Investment: $40,000 Distributions Made: $875

Portfolio Income Yield: 4.5% Current Investment: $53,097.44

Geographic Asset Allocation Industry Weightings

Portfolio Manager’s Comments

The S&P/TSX Materials sub-index has underperformed the broader TSX 60 index significantly for a long time. In April, however, it jump substantially (+20.2%) on a rebound in the price of gold. This accounted for a large part of the TSX 60 return for the month. Over the past 6 months the materials sector is up 46.7%. By design the Managed Yield portfolio is underweight the materials sector, favouring less volatile sectors. Much on the recent gains in energy and materials appear to be linked to a decline in the US dollar (the commodities are priced in USD). We believe this move may have gotten ahead of itself and anticipate some pullback in the coming months. The portfolio finished April with a small decline. We made a shift from Suncor Energy Inc (SU) to Capital Power Corporation (CPX). With the recent rebound in oil we saw an opportunity to move from an oil producer to a power generator. Suncor was an original holding of the portfolio. This change has brought the portfolio yield to 4.5%, the highest it’s been since launch in 2012. Recent Transactions: Position

April

Bought

Sold Capital Power Corp (CPX) Suncor Energy Inc (SU)

March Trimmed ↑ Bought Bought Bought

Sold Sold

First Asset Int’l Value ETF (VXB.B) Inter Pipeline Ltd (ITP) Crombie REIT (CRR.UN) BMO US Dividend Hdg ETF (ZDY) BMO US Dividend ETF (ZUD) Glaxo Smith Kline (GSK)

February

Trimmed ↑ Sold

Manulife Financial Corp. (MFC) Northland Power Inc. (NPI)

3.5% 29.1%

34.8%

13.0%

14.5%

5.1%Cash & Equivalents

Fixed Income & Equivalents

Canadian Equity

US Equity

Global Equity

Other

8.6%2.5%

11.7%

4.7%

1.8%

1.2%

35.1%

9.3%

0.5%

17.1%

7.5% Energy

Materials

Industrials

Consumer Discretionary

Consumer Staples

Health Care

Financials

Information Technology

Telecom

Utilities

Real Estate