Independent. Diligent. Proactive.

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1 Independent. Diligent. Proactive.

2 About National Bank Investments Our mission Guided by our 100% open architecture structure, we are dedicated to providing diverse investment solutions to meet your evolving needs. Our vision Our values To be a client-centric, top-tier Canadian asset manager dedicated to creating value. Client centricity Your satisfaction represents our success. Present at every stage, we are commited to nurturing your growth. Excellence National Bank Investments (NBI) solutions seek to provide superior risk-adjusted investment returns over the long term, for all investor profiles. Innovation Our 100% open architecture structure enables us to select amongst the best global portfolio managers. Integrity We have developed a robust supervision process of external portfolio managers to ensure that both the investment strategy and objectives of Meritage Portfolios are met at all times.

3 3 What is Meritage? Launched in 2006, Meritage Portfolios offer an objectively managed solution featuring mutual funds and exchange-traded funds (ETFs). As at December 31, 2017, Meritage Portfolios had $3.7 billion in assets under management. Assets under management (As at December 31 of the given year) $1 B $2 B $3.7 B Culture and benefits Independent Our 100% open architecture structure allows us to select amongst the world s top portfolio managers and provide you with their investment expertise. This structure gives us the agility and independence required to operate in the complex world of investing. Diligent To create Meritage Portfolios, we use a three-stage selection process to identify the best mutual funds and ETFs on the market for each asset class. Next, an in-depth analysis allows us to determine which funds are complementary in order to create optimal solutions. Proactive In a context where financial markets evolve constantly, a continuous monitoring of all the funds and ETFs that make up Meritage Portfolios is essential. This disciplined approach allows us to be prepared for any eventuality, such as a portfolio manager change.

4 4 NBI s 100% open architecture Did you know that we are the leading bank-afﬁliated asset manager in Canada to sub-advise exclusively to other ﬁrms the portfolio management of the funds built for our product shelf? In fact, NBI is the largest manager-of-managers in Canada1. This 100% open architecture structure is what sets us apart and it provides many beneﬁts. Open architecture. Endless opportunities. Our approach allows us to select prominent global portfolio managers we believe are the best ﬁt for our solutions. Our 100% open architecture is guided by our client promise that places empowerment, agility and partnership at the heart of our mission and at the service of your assets. 1 Our OP4 + governance process Investor Economics Insight, February 2016, Table 8 Investment Fund Complexes with Most Sub-advised Fund Assets, p. 10. Our monitoring efforts are based on a cycle during which the organization, the people, the process, the portfolios, the performance and the ESG practices of external portfolio managers are assessed on an ongoing basis. Organization Strong organization with top-tier investment culture People Talented and stable group of investors Process Emphasis on proven management processes to select securities, build portfolios and manage risk Portfolio Optimized portfolio construction that follows the investment process and ensures sound diversiﬁcation Performance Strong and predictable risk-adjusted returns + Integration of Environment, Social and Governance practices

5 5 Our fund selection process We carefully choose between 30 and 50 of the best mutual funds and ETFs on the market using our unique fund selection process, developed by a fi nancial engineering team Screening 5,000 FUNDS AND 2,000 ETFs FOCUS ON PROVEN FUNDS Minimum performance history 2. Quantitative analysis 200 TO 400 FUNDS AND ETFs SEEK ADDED VALUE Returns by unit of risk analysis 3. Final selection 20 TO 30 FUNDS AND 10 TO 20 ETFS MAKE INFORMED CHOICES Funds and ETFs that meet our OP4+ governance process criteria Our multi-manager approach The success of Meritage depends on partnerships with renowned portfolio managers, which complement each other and are selected for their expertise and performance history. This list is given for informational purposes only and may change without notice. For the most recent list of portfolio managers, visit nbcadvisor.com/meritage.

6 6 A solution for your investor profile Meritage Portfolios provide a wide range of solutions, based on various criteria and suited for all types of investors. Regardless of your objectives, investment horizon and risk tolerance, there is a Meritage Portfolio that is right for you. Expected return Fixed income Canadian equities Global equities Canadian, global, international or American equities Growth Equity Pure Equity Efficient Frontier Balanced Moderate Conservative Pure Fixed income Volatility

7 7 Asset allocation Numerous studies have shown the importance of asset allocation. 30 years ago, research conducted by Brinson, Hood and Beebower 1 showed that asset allocation is the primary determinant of a portfolio s return variability, explaining nearly 90% of its return. This is why, when constructing Meritage Portfolios, we pay particular attention to balancing risk and optimal return of investments, in accordance with economic and financial forecasts. Once a fund has been selected and its weighting within a Meritage Portfolio determined, NBI will continue to monitor the Portfolio closely to make sure that the underlying funds and ETFs meet our selection criteria and that they are fulfilling their purpose within the Portfolios. 1 Gary P. Brinson, L. Randolph Hood and Gilbert L. Beebower, Determinants of Portfolio Performance, The Financial Analysts Journal, July/August Optimal diversification Meritage Portfolios offer optimal exposure and diversifi cation by asset class, geographic region and sector, market capitalization and management style, all within an integrated fund-of-funds or fund-of-etfs structure. Bonds (Canadian, real return, high yield) Equities (Canadian and foreign) Emerging markets Asset classes Market capitalizations Small Mid Large Value and deep value Blend Growth and GARP (growth at reasonable price) Bottom-up Top-down Multiple fi xed income strategies Management styles Styles de gestion Regions/sectors Régions / Secteurs Optimal geographic and sector coverage No restrictions

8 8 Two types of Meritage Portfolios 1. MERITAGE STRATEGIC PORTFOLIOS A combination of optimal asset allocation and renowned portfolio managers within a diverse range of solutions. Meritage Strategic Portfolios include our Equity, Investment, Income and Global Portfolios. Value added An optimal blend of actively managed funds. Automatic rebalancing Meritage Portfolios are automatically rebalanced to meet their target asset allocation and prevent overexposure in any specific asset class. If the market value of a fund deviates more than 2.5% from its target allocation or an asset class varies by more than 5%, we will rebalance the Portfolio. Currency management Portfolio managers manage the currency exposure strategy. Construction of Meritage Strategic Portfolios First, the objective of the Portfolio and the optimization factors are determined. Subsequently, NBI establishes potential range of returns, volatility and correlation for main asset classes through consultation with our investment experts. With the investment objectives and quantitative parameters well established, we carry out optimization to maximize the risk/return ratio. Once the optimal asset allocation is determined, we verify the results obtained in comparison to the expected returns and risk parameters of the underlying funds selected for the Portfolio. Optimization is completed again each year to ensure that the Portfolio s asset allocation remains optimal. Governance process ANNUAL Optimization and review of positioning based on current market conditions and competition Target asset allocation update Qualitative analysis of underlying funds Management expense ratios (MERs) and fi xed distribution target QUARTERLY Review of underlying funds with regards to performance, risk metrics and performance attribution Review and adjustments to underlying funds MONTHLY Review of performance and risk metrics of Meritage Portfolios Manager selection and portfolio construction Value added monitoring AD HOC Analysis following a major event on an underlying fund Portfolio manager departure Optimization following addition or reorganization

9 9 2. MERITAGE TACTICAL ETF PORTFOLIOS Markets are constantly evolving. There are times when they create opportunities either to reduce risk or to earn potentially higher returns. In such cases, it is useful to tactically deviate from the initially targeted asset allocation. Value added An optimal blend of some of the best low-cost ETFs on the market and tactically managed asset allocation based on market conditions. Tactical asset allocation Meritage Tactical ETF Portfolios undergo a review process during which the asset allocation and choice of underlying ETFs are subject to periodic adjustments in order to reflect market conditions. Our investment experts determine the target asset allocation of Meritage Tactical ETF Portfolios. Construction of Meritage Tactical ETF Portfolios The tactical biases that we want to leverage are determined quarterly. To adapt to the evolution of financial markets, certain deviations can be implemented by overweighting or underweighting the ETFs currently found in the Portfolios. These deviations seek to create added value for the Portfolios while helping mitigate short-term volatility. Performance attribution is carried out each month to ensure optimal risk management. Currency management NBI manages the currency exposure strategy. Governance process ANNUAL Optimization and review of positioning based on current market conditions and competition Target asset allocation update Management expense ratios (MERs) and fi xed distribution target QUARTERLY MONTHLY Review of underlying ETFs with regards to performance, risk metrics and performance attribution Review of performance and risk metrics of Meritage Portfolios Review and adjustments to underlying ETFs based on the list produced by National Bank Financial s ETF research team Tactical asset allocation and currency exposure adjustments Tactical asset allocation and portfolio construction Value added monitoring AD HOC Analysis following a major event on an underlying ETF ETF listing or delisting Optimization following an addition or reorganization

10 10 Independent. Diligent. Proactive Launch of the first Meritage Portfolios in F Series and Advisor Series 2007 Addition of two new Meritage Equity Portfolios 2011 Like the investment world, Meritage Portfolios are constantly evolving. We stay abreast of the latest trends in order to create innovative investment solutions with your needs in mind. Introduction of Corporate Class and T Series 2013 Launch of the Meritage Diversified Fixed Income Portfolio 2015 Implementation of the High Net Worth Plan, to which Meritage Portfolios are eligible 2016 Launch of Meritage Global Portfolios and Meritage Tactical ETF Portfolios 2014 Launch of the Meritage Global Balanced Portfolio and the T5 and F5 Series High Net Worth Plan * : A competitive advantage The more assets you hold in Meritage Portfolios, the more you can save. In order to qualify for the management fee reduction plan for high net worth investors, you must invest at least $100,000 in one eligible Meritage Portfolio** or $250,000 in several Meritage Portfolios. Visit nbcadvisor.com/hnw for full details. Fully automated rebates Greater flexibility to attain minimum thresholds Competitive pricing Allowing your advisor more time to focus on providing you with the best service * The management fee reduction plan for high net worth investors only applies to the series of the National Bank Mutual Funds and/or Meritage Portfolios (the Funds ) that are eligible. The amount equivalent to the management fee reduction takes the form of a rebate or a distribution, which is automatically reinvested in additional securities of the same series of the applicable National Bank Mutual Fund and/or Meritage Portfolio. For more information about the management fee reduction plan for high net worth investors, please see the National Bank Mutual Funds prospectus and/or the Meritage Portfolios prospectus. ** The minimum amount of $100,000 must be held in securities of the same series, denominated in the same currency and bought under the same purchase option, if applicable.

11 Meritage Portfolios : A solution for every investor profile Talk to your advisor to determine your profile List of Meritage Portfolios Tactical ETF Portfolios Fixed Income Moderate Balanced Growth Equity Global Portfolios Conservative Moderate Balanced Growth* Dynamic Growth* Income Portfolios Diversified Fixed Income Conservative Moderate Balanced Growth Dynamic Growth Investment Portfolios Conservative Moderate Balanced Growth* Dynamic Growth* Equity Portfolios Canadian* Global* International American This list is given for information purposes only and may change without notice. For the most recent list, visit nbcadvisor.com/meritage. * Also available in corporate class.

12 Independent. Diligent. Proactive. nbcadvisor.com/meritage Meritage Portfolios (the Portfolios ) are managed by National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with investments in the Portfolios. Please read the prospectus of the Portfolios before making an investment. The Portfolios securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The Portfolios are not guaranteed, their values change frequently and past performance may not be repeated. MERITAGE PORTFOLIOS and the Meritage Portfolios logo are registered trademarks of National Bank of Canada, used under licence by National Bank Investments Inc. ishares is a global leader in ETFs with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 800 funds globally across multiple asset classes and strategies and more than US$1.5 trillion in assets under management, of which over $55 billion is held by Canadians 1, ishares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. ishares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm 2. Sources: (1) BlackRock as of September 30, 2017, includes Canadian domiciled AUM and US-listed AUM held by Canadians; (2) Based on US$5.977 trillion in AUM as of September 30, Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc. and manages more than $12.5 billion (CAD) in assets, as of September 30, The Vanguard Group, Inc. is one of the world s largest investment management companies managing more than $4.5 trillion (USD) in global assets, as of September 30, The firm offers 370 funds, including ETFs, to its more than 20 million investors worldwide National Bank Investments Inc. All rights reserved. Any reproduction, in whole or in part, is strictly prohibited without the prior written consent of National Bank Investments Inc (2018/04)

An institution focused on innovation

An institution focused on innovation Our mission Guided by our 100% open architecture structure, we are dedicated to providing diverse investment solutions to meet the evolving needs of clients. Our vision