Fund Features. Since Inception : +21.5%

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2 Fund Features Middlefield has a proven global track record Since Inception : +21.5% ~2X Outperformance vs MSCI World Index Attractive, fully-earned 5% yield with capital appreciation potential Low MER less than half of Canada s largest balanced funds Diversified Global Portfolio: Tactical Balance across geographies, sectors and asset classes Improved risk-adjusted returns Proven track record and strategy Initial allocation: 80% equities, 20% fixed income Stable income with capital appreciation potential Automatic, tax-free merger into an open-ended mutual fund at no cost Access to daily NAV redemptions at no cost 2

3 Volatility = Great Buying Opportunity U.S. Equities Provide Steady, Predictable Earnings Growth Secular Bull Market Below Average Multiple Visible Dividend Growth Europe Remains Cheap & Offers Strong Capital Appreciation Potential YTD Gains Wiped Out Low P/E ratios Earnings 40% below 2007 Tactical Fixed Income Reduces Volatility Improved Risk Adjusted Returns Stability & Diversification Predicable Income 3

4 Tactically Positioned & Differentiated Other Balanced Funds Yield 5% (Fully Earned) <2.5% MER ~1.5% ~2.5% 1 Holdings ~40 Fund of Funds; ~150 Asset Allocation 100% Tactical Fixed Geographical Allocation 100% Tactical Fixed Fixed Income Investment Grade Only Includes High-Yield/Junk Performance Top Decile Returns (GDG.UN/GDG Class) Average returns <50% of GDG.UN since inception 1. Source: Morningstar. Based on Canada s Largest 10 Global Balanced Mutual Funds Asset, Geographic, and Sector Allocation WILL Change 4

5 About Middlefield Middlefield is a proven, award-winning investment manager, founded in 1979 Extensive experience investing in global equity income, real estate and resources Approximately $4.5 billion in AUM with offices in Toronto, Calgary, San Francisco and London, UK Largest issuer of Canadian TSX-listed funds, with large, liquid product offerings Top-performing funds listed on the Toronto and London stock exchanges and awardwinning mutual fund family and 2013 #1 CANADIAN EQUITY BALANCED MUTUAL FUND OVER 10-YEARS Middlefield Income Plus Class 2012 #1 NATURAL RESOURCE EQUITY FUND OVER 1-YEAR Groppe Tactical Energy Class Award-Winning Manager of Equity Income Mandates 5

6 L to R: Jeremy Brasseur, Managing Director, Nancy Tham, Managing Director, Sales and Marketing, Andy Nasr, Managing Director, Investments and Senior Portfolio Manager, Dean Orrico, President and Chief Investment Officer, Rob Lauzon, Managing Director, Western Canada, Dennis da Silva, Managing Director and Senior Portfolio Manager, Michael Bury, Executive Director, Investments and Portfolio Manager, and Matthew Watson, Executive Director, Investments 6

7 Strong Global Track Record RCO.UN-T IPO: November 2012 Since Inception: +17.8% S&P/TSX Cap. REIT: +4.4% GDG.UN-T IPO: March 2013 Since Inception: +21.5% MSCI World: +11.7% ACZ.UN-T IPO: December 2013 Since Inception: +20.1% S&P 500: +11.7% GHC.UN-T IPO: October 2014 Since Inception: +29.6% MSCI World Health Care: 19.4% GIF.UN-T IPO: July 2014 Since Inception: +7.60% S&P Global Infrastructure: -5.3% Global Diversification Makes Sense for Canadians 7

8 Dividend Growers Outperform The Global Dividend Growers Income Fund ( GDG ) has outperformed the MSCI World and S&P/TSX Composite indices by ~2x since inception +19.5% +26.0% +4.6% +5.1% +0.6% +22.9% +10.8% +10.5% +21.5% +11.7% +8.7% ~2X Outperformance -2.9% YTD 1-Year 2-Year Since Inception Global Dividend Growers Income Fund MSCI World S&P/TSX Composite Source: Bloomberg; Global Dividend Growers returns since inception March 22, 2013 GDG s Dividend has Increased by 10% 8

9 Proven Equity Income Investment Process Since 1972, S&P 500 dividend growers have outperformed non-dividend payers by ~4x Equity portfolio built on a foundation of large, well capitalized firms with strong balance sheets and stable and growing dividends 500% Dividend Sweet Spot +456% 400% 300% 200% Dividend Sweet Spot (3-6%) S&P 500 Total Return >4X 100% +93% % Source: Ned Davis Research Source: Bloomberg 9

10 Internationally-Focused, Risk-Balanced By Region By Sector U.S. Equities Global Equities Fixed Income Strong Risk- Adjusted Returns No Emerging Market Exposure 10

11 Balanced = Superior Risk-Reward Investment-grade fixed income exposure designed to improve the portfolio s riskadjusted returns Improved Risk / Return Profile Global interest rates are expected to remain low and are unlikely to return to historical averages Fixed Income Portfolio Attributes Yield 3.74% Quality Range A- to BBB- Model Portfolio is 20% Global Investment Grade Bonds, 40% S&P 500, 40% STOXX 600 (from ). Credit Spread 234 bps Average Rating BBB Duration 5.9 years Geography Fixed Income Issuers 11

12 Macro Overview Buy the Dip Chinese Growth Concerns Overblown The central government is exceptionally well capitalized FX depreciation and lower interest rates will stimulate growth Services (as a % of GDP) > Manufacturing Linkages to the U.S./EU are Weak Exports from the U.S./EU to China are <4% of total exports in each region Imports from China are <5% of total imports in both regions Financial linkages are weak Current Outlook Accommodative monetary policies may stay in place for longer Inflation/interest rates will remain low = more demand for dividends/income Companies continue to buy back stock/increase dividends vs. spend aggressively Less demand for commodities Invest in U.S./E.U. Companies with Little/No EM Exposure 12

13 PMI Index Significant Growth Potential Ahead Focus on Developed Economies Where Growth is Accelerating U.S. earnings and the S&P 500 are both up >30% since 2007 European and U.K. earnings remain down >35% since 2007 but are improving quickly EU Earnings Recovery Is Underway Implies ~20% EPS Growth 80% 60% 40% % 0% -20% EPS Growth 35-40% Source: Bloomberg 30-60% Euro-area manufacturing PMI (LHS) Euro-area 12m fwd EPS growth YoY (4 month lag) (RHS) Source: Markit, Bloomberg Europe Poised for Significant EPS Growth 13

14 Forward P/E Multiples Europe: High Total Return Potential 16.5x Valuations Are Compelling European Large Caps are Attractively Valued 5.0% Strong Earnings Growth Potential European Earnings Margins 16.0x 16.0x 4.0% 15.5x 15.0x 14.9x 3.0% 2.0% Dividend Yield 14.5x 1.0% 14.0x Source: Bloomberg United States (S&P 500) Forward P/E Multiple Europe (STOXX 600) Dividend Yield 0.0% Source: Bloomberg, Middlefield European large caps boast 60% higher dividend yields and more attractive valuations than their U.S. peers Labour reform initiatives and improved economic outlook should improve operating efficiencies, profit margins and earnings 14

15 Overweight Healthcare Aging Population Global population >65 years of age is expected to more than double from 2015 to 2040 Average life expectancy continues to lengthen beyond 80 years Seniors spend ~3x as much on healthcare than people aged 19 to 64 Secular Growth Global economic growth, regulatory reform and increasing insurance coverage are expected to support higher healthcare spending U.S. Affordable Care Act ( ACA ) China 2020 Plan Emerging market pharmaceutical sales are expected to double in the next 5 years ~3x Long-Term Convergence Source: UN Data Statistics Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group Source: World Health Organization 15

16 CELG VRTX GILD NVO REGN SHPG ALXN PFE ABBV AMGN BIIB NVS BMY ROCHE LLY GSK MRK AZN MKGAY SNY JNJ BAYER Healthcare - Proprietary Methodology Focus on companies that have strong and mispriced development pipelines Investors often ascribe a higher valuation to existing products that generate cash flow SSR has identified Pre-Phase III developmental projects that represent hidden value Potential Value = Value of Proven Portfolio + Value of Pipeline 80% 70% Potential Pipeline Value as % of TEV Poor Relative Value Good Relative Value 60% 50% 40% 30% 20% 10% - Source: Bloomberg, SSR Research 16 Note: Hidden Pipeline Value = Total Enterprise Value (TEV) - Present Value of Tangible Pharma Value

17 European Financials: EPS <25% of 2007 Levels Banking/Financial Services Life Insurance European banks have strengthened their balance sheets Key beneficiaries from lending and capital markets activity Favour banks with strong earnings power, potential for capital return and ability to deliver on cost restructuring Relatively low capital, political and regulatory risk Benefit from rising global interest rates and equity markets Life insurance premia as a % of GDP should increase as the population ages 10% Life Insurance Premia as % of GDP Rising ROEs 9% 8% 7% 6% 5% 4% 3% Falling ROEs 2% 1% U.S. and European banks Canadian banks Circle Size = Relative 2-Year Estimated EPS Growth - Japan Asia Europe North America Source: Credit Suisse LatAm 17 Source: Bloomberg

18 Key Takeaways 1. Attractive, fully-earned, 5% yield with capital appreciation potential 2. Exposure to a proven management team with global equity income expertise Global Dividend Growers Class Since Inception: +21.5% MSCI World Index: +11.7% FE: MID181 / F: MID182 Since Inception: +24.2% 3. Tax-free merger into an open-ended mutual fund with daily redemptions at NAV Ability to switch into F-Class or remain in A-Class 4. Globalance Dividend Growers Provides Investors with: Proven track record and strategy Diversification beyond Canada Stable income with capital appreciation potential Risk-reduction benefits 18

19 Fund Summary Issue Price: $10 per Share (Minimum 100 shares or $1,000) Merge into Open-End Fund: June 2018 (Daily redemption at NAV post-merger) NAV Redemption: April 2017 Eligibility: Monthly Distributions: RRSPs, DPSPs, RDSPs, RRIFs, RESPs and TFSAs 5% p.a. & eligible for Distribution Reinvestment Plan Low MER: Management fee 1.25%, all-in MER ~1.50% 19