Portfolio Review xxx Quarter 20xx. Evolution 100e Model Portfolio Portfolio Review Second Quarter 2018

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1 Portfolio Review xxx Quarter 20xx Evolution 100e Model Portfolio Portfolio Review Second Quarter 2018 Q2

2 Evolution 100e Model Portfolio Standard geographic asset allocation and blend of investment styles including alpha Portfolio Review Second Quarter 2018 as at June 30, 2018 Overview Diversified portfolios capture gains from asset classes and security types that are performing well, while limiting exposure to those that are underperforming. Evolution s portfolios are diversified not only across asset classes such as equities, bonds and real estate, but also by country, market capitalization, industry sector and investment style. CI Multi-Asset Management combines its portfolio construction expertise with ongoing comprehensive research and recommendations from State Street Global Advisors, one of the world s largest investment management companies, to create portfolios designed to capture evolving opportunities in the various asset classes. Each Evolution portfolio consists of a number of United and CI mutual funds. The information in the Portfolio Performance and Activity sections below is an aggregate of the underlying funds that make up the portfolio. Portfolio Performance Based on net returns and representative of Class E shares of the underlying United Funds and Class A shares of the underlying Cambridge Canadian Equity Corporate Class, Synergy American Corporate Class and Signature Emerging Markets Corporate Class funds. Returns are rounded to one decimal place. 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Since Inception (September 2008) 0.5% 1.9% 0.3% 5.7% 6.0% 9.6% 8.2% Activity This report is designed to provide you with an up-to-date look at the Evolution 100e Model Portfolio, including the allocations by type of underlying investment and geographic region. Underlying Investments Geographic Regions 33.8% 25.8% 18.9% 6.8% 5.6% 5.4% 3.7% U.S. equity Canadian equity European equity Cash Asian equity Emerging markets equity Other equity 33.8% 25.8% 17.0% 5.4% 4.5% 4.4% 2.7% 2.3% 2.3% 1.8% U.S. Canada Cash and other countries Emerging markets Japan U.K. Germany Switzerland France Bermuda Equity Market Cap Equity Industry Sector 80.6% 12.3% 7.1% Large-cap Mid-cap Small-cap 20.5% 15.0% 12.5% 10.1% 9.9% 9.7% 7.9% 7.2% 3.6% 1.7% 1.4% 0.5% Financial services Information technology Industrials Consumer discretionary Energy Health care Materials Consumer staples Utilities Telecommunication services Real estate Other Placements sous-jacents Régions géographiques 27

3 Evolution 100e Model Portfolio Standard geographic asset allocation and blend of investment styles including alpha Portfolio Review Second Quarter 2018 as at June 30, 2018 Portfolio Target Allocations Equity 100% Canadian Equity 37% Cambridge Canadian Equity Corporate Class 13% Canadian Equity Value Corporate Class 9% Canadian Equity Alpha Corporate Class 9% Canadian Equity Small Cap Corporate Class 6% U.S. Equity 29% Synergy American Corporate Class 10% US Equity Value Corporate Class 7% US Equity Alpha Corporate Class 6% US Equity Small Cap Corporate Class 6% Top Ten Holdings Microsoft Corp. 1.2% Gilead Sciences 1.1% Apple Inc. 1.0% CSX Corp. 0.8% Athene Holding Ltd. 0.8% SNC-Lavalin Group Inc. 0.7% Atco Ltd. 0.7% Anthem Inc. 0.7% Canadian Natural Resources Ltd. 0.7% Suncor Energy Inc. 0.6% International Equity 34% International Equity Growth Corporate Class 10% Signature Emerging Markets Corporate Class 8% International Equity Value Corporate Class 8% International Equity Alpha Corporate Class 8% 28

4 Evolution 100e Model Portfolio Standard geographic asset allocation and blend of investment styles including alpha Portfolio Review Second Quarter 2018 as at June 30, 2018 Performance Summary The portfolio gained 1.9% during the second quarter of 2018, underperforming its blended benchmark (50% S&P/TSX Index and 50% MSCI World Index), which rose 5.3%. Contributors to Performance Canadian and U.S. equities made the biggest contributions to relative performance. International Equity Growth Corporate Class outperformed the MSCI EAFE Index due to strong stock selection in financials and its underweight position in that sector. Detractors from Performance Cambridge Canadian Equity Corporate Class underperformed the broader Canadian equity market due to its holdings in financials and energy, as well as to underweight exposure to energy. U.S. Equity Alpha Corporate Class detracted from relative value due to its holdings in in consumer discretionary and an underweight allocation to energy. International Equity Alpha Corporate Class detracted from relative value due to its holdings in health care and consumer staples. Portfolio Activity The portfolio s asset allocation at the end of the quarter was 91.9% equity, 1.3% REITs and 6.8% cash. Market Outlook The global economy has improved consistently since 2009, albeit at slow rate, and was one of the longest recoveries in history. Investors have become accustomed to long-term market stability and low interest rates, and appear to have become complacent while some fundamentals begin to shift. New tariffs introduced by the United States and the resulting retaliatory measures taken by affected countries are changing the face of global trade. Meantime, interest rates are rising, credit conditions are tightening and growth in emerging markets is slowing. Some equity markets, notably China, have entered a bear market. Nonetheless, global stock and credit-market valuations continue to be elevated, an indication that investors are basing their decisions on the past, not the future. We are concerned this late cycle could be extended and defensive strategies may cause short-term underperformance. We are satisfied with the current equity weightings in our portfolios, which are relatively neutral to their benchmarks. Our defensive positioning is generally expressed through derivatives that provide a favourable, asymmetric payoff. Within equities, value stocks and the Canadian market have been out of favour and thus offer attractive value. Sovereign bonds appear to have found support at current yields, despite rising interest rates. We are benefiting from market growth, but we anticipate significant additional growth when we begin to deploy cash once selected securities become even more attractively valued. During the quarter, we increased our exposure to Canadian equities due to favourable relative valuations to the U.S. market. 29

5 Portfolio management teams In the Evolution Private Managed Accounts program

6 For more information on Evolution Private Managed Accounts, please contact your advisor or visit Evolution Private Managed Accounts is a program that provides strategic asset allocation across a series of portfolios comprised of United and CI mutual funds and is managed by CI Investments Inc. ( CII ). Evolution Private Managed Accounts is not a mutual fund. CII provides portfolio management and investment advisory services as a registered advisor under applicable securities legislation. Evolution Private Managed Accounts is available through Assante Financial Management Ltd. and Assante Capital Management Ltd., affiliates of CII. The principal business of CII is the management, marketing, distribution and administration of mutual funds, segregated funds and other fee-earning investment products for Canadian investors. If you invest in CII products, CII will earn ongoing asset management fees in accordance with applicable prospectus or other offering documents. All commentaries are published by CII, the manager of all the funds described herein. They are provided as a general source of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort has been made to ensure that the material contained in the commentaries is accurate at the time of publication. However, CII cannot guarantee their accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein. This report may contain forward-looking statements about the funds, future performance, strategies or prospects, and possible future fund action. These statements reflect the portfolio managers current beliefs and are based on information currently available to them. Forward-looking statements are not guarantees of future performance. We caution you not to place undue reliance on these statements as a number of factors could cause actual events or results to differ materially from those expressed in any forward-looking statement, including economic, political and market changes and other developments. All indexes quoted in this document are reported on a total return basis, which assumes the reinvestment of all dividends and other cash distributions. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of an asset allocation service. Please read the prospectus of the mutual funds in which investment may be made under the asset allocation service before investing. The indicated rates of return are the historical annual compounded total returns assuming the investment strategy recommended by the asset allocation service is used and after deduction of the fees and charges in respect of the service. The returns are based on the historical annual compounded total returns of the participating funds including changes in share unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder in respect of a participating fund that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Signature Global Asset Management, Signature Funds and CI Multi-Asset Management are trademarks of CII. Evolution, Cambridge, CI Investments, the CI Investments design, Harbour Advisors and Harbour Funds are registered trademarks of CII. Cambridge Global Asset Management is a division of CII. Certain funds associated with Cambridge Global Asset Management are sub-advised by CI Global Investments Inc., a firm registered with the U.S. Securities and Exchange Commission and an affiliate of CII Asset Management L.P. and the 1832 Asset Management design are trademarks of The Bank of Nova Scotia, used under licence. All trademarks used under licence. Published August _E (08/18)