AMENDMENT NO. 2 DATED JULY 29, 2016 TO THE SIMPLIFIED PROSPECTUS DATED MAY 12, 2016, AS AMENDED BY AMENDMENT NO. 1 DATED JULY 14, 2016

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1 AMENDMENT NO. 2 DATED JULY 29, 2016 TO THE SIMPLIFIED PROSPECTUS DATED MAY 12, 2016, AS AMENDED BY AMENDMENT NO. 1 DATED JULY 14, 2016 National Bank Canadian Equity Fund (Investor, Advisor, F and O Series) NBI Canadian Equity Private Portfolio (Advisor, F, F5, T5, N and NR Series) Jarislowsky Fraser Select Income Fund (Advisor, E, F and O Series) Jarislowsky Fraser Select Balanced Fund (Advisor, E, F, F5, O and T5 Series) Jarislowsky Fraser Select Canadian Equity Fund (Advisor, E, F, F5, O and T5 Series) (together, the Funds ) (together, the Jarislowsky Fraser Funds ) The Simplified Prospectus dated May 12, 2016, as amended by Amendment No. 1 dated July 14, 2016 (the Prospectus ), relating to the distribution of the securities of the Funds and the Jarislowsky Fraser Funds by National Bank Investments Inc. is hereby amended as indicated hereinafter. Unless otherwise defined herein, the terms and expressions used in this Amendment No. 2 to the Prospectus have the meaning given to them in the Prospectus. The Prospectus is amended to give notice to investors of: - the change in the portfolio manager for the Funds; - the addition of a portfolio sub-advisor for the NBI Canadian Equity Private Portfolio; - the modification of the investment strategies for the Funds; - the modification of certain risks of investing in the Funds; - the change in the description of the investors for whom the National Bank Canadian Equity Fund is suitable; - the change in the names of the Jarislowsky Fraser Funds; and - the correction of a typo in the English version of item Who should invest in this fund of the Jarislowsky Fraser Select Balanced Fund. AMENDMENTS TO THE PROSPECTUS The Prospectus is hereby amended as follows: a) The information on the cover page relating to the Jarislowsky Fraser Funds is deleted and replaced, as of August 31, 2016, by the following:

2 NBI Jarislowsky Fraser Select Income Fund (formerly Jarislowsky Fraser Select Income Fund) ** NBI Jarislowsky Fraser Select Balanced Fund (formerly Jarislowsky Fraser Select Balanced Fund) ** NBI Jarislowsky Fraser Select Canadian Equity Fund (formerly Jarislowsky Fraser Select Canadian Equity Fund) ** b) On page 1, the fifth sentence of the second paragraph of the section Introduction is deleted and The NBI Jarislowsky Fraser Select Income Fund (formerly Jarislowsky Fraser Select Income Fund), the NBI Jarislowsky Fraser Select Balanced Fund (formerly Jarislowsky Fraser Select Balanced Fund) and the NBI Jarislowsky Fraser Select Canadian Equity Fund (formerly Jarislowsky Fraser Select Canadian Equity Fund) are collectively referred to as the NBI Jarislowsky Fraser Funds. c) On page 1, in the seventh paragraph of the section Introduction, the name of the Jarislowsky Fraser Funds' website, is deleted and replaced, as of August 31, 2016, by the following: d) On page 9, the text in the Name column for the entry Jarislowsky, Fraser Limited under Portfolio Managers in the table Organization and management of National Bank Mutual Funds is deleted and Jarislowsky, Fraser Limited (portfolio manager of the National Bank Canadian Equity Fund, the National Bank U.S. Dividend Fund, the NBI North American Dividend Private Portfolio and the NBI Jarislowsky Fraser Funds) e) On page 10, the text in the Name column for the entry National Bank Trust Inc. under Portfolio Managers in the table Organization and management of National Bank Mutual Funds is deleted and National Bank Trust Inc. (portfolio manager of the NBI Non-Traditional Capital Appreciation Private Portfolio, the NBI Non-Traditional Fixed Income Private Portfolio, the NBI Emerging Markets Equity Private Portfolio and the NBI Canadian Equity Private Portfolio); f) On pages 87 and 88, the name of the Jarislowsky Fraser Select Income Fund at the top of the page is deleted and NBI Jarislowsky Fraser Select Income Fund (formerly Jarislowsky Fraser Select Income Fund) g) On pages 112 and 113, the name of the Jarislowsky Fraser Select Balanced Fund at the top of the page is deleted and NBI Jarislowsky Fraser Select Balanced Fund (formerly Jarislowsky Fraser Select Balanced Fund) 2

3 h) On page 113, the last bullet under Who should invest in this fund? for the Jarislowsky Fraser Select Balanced Fund is deleted and replaced by the following: Are willing to tolerate a low to medium level of risk. i) On pages 121 and 122, the name of the Jarislowsky Fraser Select Canadian Equity Fund at the top of the page is deleted and NBI Jarislowsky Fraser Select Canadian Equity Fund (formerly Jarislowsky Fraser Select Canadian Equity Fund) j) On page 127, the first paragraph under Investment Strategies for the National Bank Canadian Equity Fund is deleted and The fund may invest in: common shares of Canadian companies; shares of foreign companies; income trusts; mortgage-backed securities. k) On page 127, the third, fourth and fifth paragraphs under Investment strategies for the National Bank Canadian Equity Fund are deleted and When buying and selling equity securities for the fund, the portfolio manager uses a valuation approach of growth at a reasonable price with a long-term investment horizon. Based on fundamental analysis, the portfolio manager identifies companies with above average growth prospects and below average risk. Securities held in the portfolio are common shares of large-, medium- and small-capitalization companies that are industry leaders and have strong management, an earnings track record and reasonable financial leverage. The fund may invest up to 30% of its assets in securities of foreign issuers. The fund may use derivatives consistent with its investment objective and in compliance with applicable legislation. Such derivatives may include options, futures, forward contracts, swaps and other similar instruments for hedging purposes only. The fund may use such instruments to gain exposure to securities, indices or currencies without otherwise making a direct investment. Derivatives may also be used to manage the risks to which the investment portfolio is exposed. See Risks relating to derivatives for a description of the risks associated with their use. At the current time, the fund is not using derivatives directly. l) On page 127, the item What are the risks of investing in this fund? for the National Bank Canadian Equity Fund is amended, as of August 31, 2016, by adding the bullet point below between the 12th and 13th bullet points: mortgage-backed securities; m) On page 128, the item Who should invest in this fund? for the National Bank Canadian Equity Fund is deleted and Who should invest in this fund? 3

4 The National Bank Canadian Equity Fund is suitable if you: wish to add a Canadian equity fund to your portfolio are looking to invest for the long term (at least 5 years) are willing to tolerate a medium level of risk. n) On page 211, the following line is added at the end of table Fund details for the NBI Canadian Equity Private Portfolio, as of August 31, 2016 Portfolio sub-advisor CI Investments Inc. o) On page 211, the third paragraph under Investment strategies for the NBI Canadian Equity Private Portfolio is deleted as of August 31, p) On page 211, under Investment strategies for the NBI Canadian Equity Private Portfolio, all references to the portfolio manager are deleted and replaced, as of August 31, 2016, by portfolio sub-advisor. q) On page 211, the fifth paragraph under Investment strategies for the NBI Canadian Equity Private Portfolio is deleted and When buying and selling securities for the fund, the portfolio sub-advisor examines each company s potential for success in light of its current financial condition, its industry positioning, and economic and market conditions. The portfolio sub-advisor considers factors such as growth potential, earning estimates, quality of management and current market value of the securities. r) On page 211, the item What are the risks of investing in this fund for the NBI Canadian Equity Private Portfolio is amended by removing, as of August 31, 2016, the bullet point depositary receipts from the list of risks. s) On the back cover, the name of the Jarislowsky Fraser Funds website, is deleted and t) Any other reference in the Simplified Prospectus to the Jarislowsky Fraser Funds is deleted and replaced, as of August 31, 2016, by NBI Jarislowsky Fraser Funds. u) Any other reference in the Simplified Prospectus to the Jarislowsky Fraser Select Income Fund is deleted and replaced, as of August 31, 2016, by NBI Jarislowsky Fraser Select Income Fund. v) Any other reference in the Simplified Prospectus to the Jarislowsky Fraser Select Balanced Fund is deleted and replaced, as of August 31, 2016, by NBI Jarislowsky Fraser Select Balanced Fund. w) Any other reference in the Simplified Prospectus to the Jarislowsky Fraser Select Canadian Equity Fund is deleted and replaced, as of August 31, 2016, by NBI Jarislowsky Fraser Select Canadian Equity Fund. WHAT ARE YOUR RIGHTS? 4

5 Securities legislation in some provinces and territories gives you the right to withdraw from an agreement to buy mutual funds within 2 business days of receiving the Simplified Prospectus or the Fund Facts, or to cancel your purchase within 48 hours of receiving confirmation of your order. Securities legislation in some provinces and territories also allows you to cancel an agreement to buy mutual fund securities and get your money back, or make a claim for damages, if the Simplified Prospectus, Annual Information Form, Fund Facts or financial statements misrepresent any facts about the fund. These rights must usually be exercised within certain time limits. For more information, refer to the securities legislation of your province or territory or consult your lawyer. 5