WAM COLLINS INCOME POOL Q4 REPORT - SERIES F DECEMBER 31, 2018

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1 WAM COLLINS INCOME POOL Q4 REPORT - SERIES F DECEMBER 31,

2 COMMENTARY OCTOBER: As we entered October we were uneasy about the state of the stock market. It had started to show signs of sputtering and October is the month of the year that is most likely to bear bad news if there will be any. As such, we decided to hedge the portfolio by adding stop losses to all exchange traded positions. It had become clear that the momentum was shifting away from stocks in general and into cash and bonds. The equity action call remained neutral and the top performer was small and medium US stocks. As those equities don't suit our mandate, we were compelled to take a closer look at individual bonds that had dropped below par and were due to rebound. As the stop losses began to get filled, we added to existing positions in bonds that were yielding greater than 4% in most cases. NOVEMBER: There were some bright spots in the equity side of the portfolio but as optimistic as we like to be, we continued to want to hedge the portfolio against any losses by increasing our stop losses as shares like Proctor & Gamble, Verizon, Bausch Health and Pfizer rose in value. The premise in this strategy is that we would continue to hold the winners as they rose but we protected ourselves against any material downfall. DECEMBER: The preferred share market had fallen approximately 17% since the beginning of the quarter. We own three good quality, cumulative preferred shares in the portfolio in very small quantities. We took the opportunity in December to add to those positions in Enbridge and Fortis. Because preferred shares can be illiquid, we decided to also buy into the Horizons preferred shares ETF so that we could catch any rebound that may occur as it had done the last time the preferred shares fell this much back in In addition, the preferred share ETF pays a monthly dividend at an annual rate of approximately 4.5%, DECEMBER 31,

3 ASSET ALLOCATION & PERFORMANCE HISTORY ASSET ALLOCATION 15.7% Cash & Cash Equivalent 73.9% Fixed Income Securities 5.4% Canadian Equities 5.0% American Equities PERFORMANCE HISTORY $10,100 $10,000 $9,900 $9,800 $9,700 $9,600 $9,500 $9,400 $9,300 $9,200 November 8, 2017 November 30, 2017 December 31, 2017 January 31, February 28, March 31, April 30, May 31, June 30, July 31, August 31, September 30, October 31, November 30, December 31, DECEMBER 31,

4 PORTFOLIO HOLDINGS CASH & CASH EQUIVALENT FIXED INCOME SECURITIES DECEMBER 31,

5 PORTFOLIO HOLDINGS CANADIAN EQUITY AMERICAN EQUITY DECEMBER 31,

6 INVESTMENT INCOME Preferred Share Weighted Yield: 5.17% Bond Weighted Yield: 4.13% ETF Weighted Yield: 4.17% Dividends: $38, Interest: $109, Accrued Interest: $61, This summary does not include fund expenses for the quarter, it is not a full representation of the net asset value. DECEMBER 31,

7 TRADING ACTIVITY BUY BELL CDA CB %12AG26 CDN NAT RES CB 3.42%1DC26 FAIRFAX FIN CB 4.25%6DC27 FIRST CAP CB 3.753%12JL27 METRO INC CB 3.39% 6DC27 HUSKY ENGY RED 3.6%10MR27 BROOKFIELD C26 3.8%16MR27 TELUS CORP MTN 4.4% 1AP43 PACWEST BANCORP ENBRIDGE INC PFD SER A INTERPUBLIC GROUP OF COS PFIZER INC CAE INC TORONTO DOMINION BANK FORTIS INC 4.75%-J 1ST PF INTACT FINL CB 2.85%7JN27 METHANEX CORP HORIZONS ACTV PFD-E ETF BMO LOW VOLATIL US EQ ETF EXCH ICM CV RD5.35%30JN25 CDN UTIL 4% RED 2ND PFD-Y BMO COVERED CALL UTIL ETF GILDAN ACTIVEWEAR INC BAUSCH HEALTH COS INC VERIZON COMMUNICATIONS UNITED HEALTH GROUP INC CALL-100 TFII'18 DC@46 BMO COVRD CALL CDN BK ETF CALL-100 VZ'18 7DC@60 PASON SYSTEMS INC LABRADOR IRON ORE RYL CRP ROGERS COMMUNICATION-B NV CALL-100 PG'18 30NV@93 NORDSTROM INC AVERAGE PURCHASE PRICE CAD CAD CAD CAD CAD CAD CAD CAD USD CAD USD USD CAD CAD CAD CAD CAD 8.15 CAD CAD CAD CAD CAD CAD CAD USD USD 0.25 CAD CAD 0.22 USD CAD CAD CAD 0.22 USD USD DECEMBER 31,

8 TRADING ACTIVITY BUY CALL-100 BHC'18 BOEING COMPANY INFOSYS LTD-SPON ADR CALL-100 BA'18 CALL-100 TSM'18 CALL-100 SU'18 CALL-100 VZ'18 CALL-100 TCL.A'18 CALL-100 TFII'18 CALL-100 BA'18 CALL-100 INFY'18 CALL-100 SHOP'18 CALL-100 TSM'18 CALL-100 ODFL'18 SELL BELL CDA CB %12AG26 CDN NAT RES CB 3.42%1DC26 FAIRFAX FIN CB 4.25%6DC27 FIRST CAP CB 3.753%12JL27 METRO INC CB 3.39% 6DC27 UNITS-GRANITE REIT-STAPLE TELUS CORP MTN 4.4% 1AP43 PACWEST BANCORP WATSCO INC SUNCOR ENERGY INC NEW TRANSCONTINENTAL CL-A SV INTERPUBLIC GROUP OF COS PFIZER INC CAE INC TORONTO DOMINION BANK CONSTELLATION BRANDS CL-A INTACT FINL CB 2.85%7JN27 ISHR CORE CDN UNIV BD ETF FIRST ASSET TEC GIANT ETF AVERAGE PURCHASE PRICE 0.17 CAD USD 9.16 USD 0.37 USD 0.06 USD 0.05 CAD 0.04 USD 0.04 CAD 0.04 CAD 0.40 USD 0.08 USD 0.30 CAD 0.05 USD 0.02 USD AVERAGE SELL PRICE CAD CAD CAD CAD CAD CAD CAD USD USD CAD CAD USD USD CAD CAD USD CAD CAD CAD DECEMBER 31,

9 TRADING ACTIVITY SELL TAIWAN SEMICON MAN SP/ADR METHANEX CORP CDN UTIL 4% RED 2ND PFD-Y CONSTEL SFTWR S1 FR31MR40 TFI INTERNATIONAL INC BMO COVERED CALL UTIL ETF GILDAN ACTIVEWEAR INC BAUSCH HEALTH COS INC VERIZON COMMUNICATIONS UNITED HEALTH GROUP INC CALL-100 TFII'18 ISHRS CORE S&P US TOT ETF BMO COVRD CALL CDN BK ETF CALL-100 VZ'18 PASON SYSTEMS INC LABRADOR IRON ORE RYL CRP ROGERS COMMUNICATION-B NV CALL-100 PG'18 PROCTER & GAMBLE CO. NORDSTROM INC CALL-100 BHC'18 BOEING COMPANY INFOSYS LTD-SPON ADR ALIMENT COUCHE-TARD-B SV CALL-100 BA'18 CALL-100 TSM'18 CALL-100 SU'18 CALL-100 VZ'18 CALL-100 BHC'18 CALL-100 JWN'18 GENWORTH MI CANADA INC CALL-100 BA'18 SHOPIFY INC CL-A SVS OLD DOMINION FREIGHT LINE CALL-100 BHC'18 AVERAGE SELL PRICE USD CAD CAD CAD CAD CAD CAD CAD USD USD 0.75 CAD CAD CAD 0.38 USD CAD CAD CAD 0.56 USD USD USD 0.65 CAD USD 9.38 USD CAD 2.50 USD 0.40 USD 0.35 CAD 0.28 USD 0.50 CAD 0.76 USD CAD 2.70 USD CAD USD 0.35 CAD DECEMBER 31,

10 DISCLAIMER Disclosure: Data as of December 31,. This report doesn t represent your personal portfolio and it is not meant to replace the investment account statements provided by your financial institution. The under lying holdings and data provided in this report represent those of the WAM Collins Income Pool. Your personal investment account held at your financial institution may include other securities in addition to the WAM Collins Income Pool. For specific information including the amount of units you hold in the WAM Collins Income Pool, your cost base and any income distributions, please refer to your investment account statements or contact your financial advisor. Commissions, trailing commissions, performance fees, management fees and expenses may be associated with pooled and mutual fund investments. Please read the WAM Collins Income Pool Simplified Prospectus before investing. You can obtain a Simplified Prospectus from Willoughby Asset Management Inc. The Simplified Prospectus for Willoughby Asset Management Inc. s investment funds does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. The fund returns are not guaranteed, values change frequently and past performance may not be repeated. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. All returns are presented net of all fees, including the management fee, administration fees and expenses and any performance fee that might apply. Your financial institution may charge other fees and expenses. The portfolio return figures represent those of the WAM Collins Income Pool F. The management fee may vary from series to series. For further information on different fund pricing options please refer to the Simplified Prospectus. WILLOUGHBY ASSET MANAGEMENT INC. MNP Tower, W Hastings St. Vancouver, British Columbia, V6E 0C3 Phone (local): Toll Free: admin@willoughbyasset.com DECEMBER 31,