ROCKRIDGE PRIVATE DEBT & REAL ESTATE POOL. Q3 Portfolio Analysis September 30, 2018

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1 ROCKRIDGE PRIVATE DEBT & REAL ESTATE POOL Q Portfolio Analysis September 0, 2018

2 COMMENTARY While pension & endowment funds recognize the importance of diversification by including private debt and real estate in their portfolios, retail investors have a difficult time accessing alternatives to stocks and bonds. Private debt & real estate can provide portfolio stability and offset the volatility in equity and fixed income markets. Factoring and Real Estate, Mortgage Investment Corporations, and Bridge Loans, can provide portfolio stability with equity type returns. Fig 7.1: Make-up of Investors Private Debt Type

3 PERFORMANCE PRIVATE DEBT - Asset Based Lending - Factoring MORTGAGE INVESTMENT CORPORATION - Residential - Commercial PRIVATE REAL ESTATE INVESTMENT TRUST - Multi-Family Apartments Backtested Investment Growth 1 Time Period: to Q4 15Q1 15Q2 15Q 15Q4 16Q1 16Q2 16Q 16Q4 17Q1 17Q2 17Q 17Q4 18Q1 18Q2 18Q Rockridge 1 ishares Core S&P/TSX Index ETF (XIC.TO) Ishares Cdn Bond Index (XBB.TO) Dex 91 Day T-Bill PORTFOLIO OBJECTIVES Portfolio diversification Low correlation to traditional asset classes Low volatility Consistent & predictable returns Rockridge Backtested Quarterly Returns Q1 Q2 Q Q4 Annual ishares Core Canadian Universe Bond ETF Quarterly Returns Q1 Q2 Q Q4 Annual 1, 2 Higher yields compared to traditional investments Access investments used by pensions and endowment funds

4 PERFORMANCE PERFORMANCE YTD 5.00% 4.00%.00% 2.00% 1.00% 0.00% -1.00% 1 Rockridge ishares Cdn Bond Index (XBB.TO) ishares Core S&P/TSX Index ETF (XIC.TO) Dex 91 Day T-Bill YEAR PERFORMANCE - CUMULATIVE 5.00% 0.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 1 Rockridge ishares Cdn Bond Index (XBB.TO) ishares Core S&P/TSX Index ETF (XIC.TO) Dex 91 Day T-Bill

5 RISK The graph to the right illustrates the quarterly return volatility of Rockridge and ishares Canadian Bond Index. 1 Time Period: to The table below highlights the back tested year standard deviation (Unit Measure of Risk) of both Rockridge and the Bond index. Viewing both together we can see that Rockridge not only has more consistent and probable returns than the Canadian Bond Index, but produces better results with less risk. Year Standard Deviation Rockridge 1 ishares Cdn Bond Index (XBB.TO) Rockridge Private Debt & Real Estate Pool 1.24% ishares Canadian Bond Index.7% HOLDINGS Rockridge Holdings Backtest Portfolio Holdings Trez Yield Trust US 12.8 Antrim Balanced Mortgage 12.5 Bridging Financing Mid-Market Fund 12.2 Third Eye Capital Private Credit Fund - NPP* 11.5 Liquid Capital Private Debt Fund NE* 10.7 Bridging Income Fund 10.0 Ryan Mortgage 8. Romspen Mortgage Investment Fund 6.6 Waygar Senior Debt Fund NPP* 5.7 RISE 4.9 RC Morris Private Yield Fund - NE* * NE: Next Edge * NPP Ninepoint Partners

6 HOLDINGS Antrim Balanced Mortgage Fund Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year Liquid Capital Private Debt Fund NE - Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year Bridging Income Fund - Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year Rise Properties Trust Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year

7 HOLDINGS Third Eye Capital Private Credit Fund NPP- Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year Trez Capital Yield Trust US Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year Ryan Mortgage Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year Bridging Mid-Market Debt Fund Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year

8 HOLDINGS Waygar Senior Debt Fund NP - Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year Romspen Mortgage Investment Fund Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year RC Morris Private Yield - NE - Quarterly Returns 1 st Quarter 2 nd Quarter rd Quarter 4 th Quarter Year

9 THE ROCKRIDGE PROCESS PRIVATE DEBT Rockridge Private Debt & Real Estate Pool currently invests 55% of assets in a diversified portfolio of leading Asset Based Lending & Factoring companies in Canada. Asset Based Lending & Factoring 6 Investments Pools Total assets under management of the 6 Pools: $1.87B Total number of loans: 248 (78% ABL, 22% Factoring) Loan to Value (LTV): 62% Average Turn Over Duration/Maturity of Loans: 0.98 Years Geographic Location: Canada 85% USA: 15% PRIVATE DEBT - Asset Based Lending - Factoring MORTGAGE INVESTMENT CORPORATION - Residential - Commercial PRIVATE REAL ESTATE INVESTMENT TRUST - Multi-Family Apartments ABL & Factoring Investment Manager*: Third Eye Capital NPP Waygar Capital NPP RC Morris NE Liquid Capital NE Bridging Finance Mid Market Bridging Finance Fund * NE: Next Edge, NPP: NinePoint Partners Born out of the financial crisis in 2008 and banks constrained ability to lend, private credit is now seen as an accepted and credible source of finance and a stand alone asset class. - Stuart Fiertz, Alternative Credit Council

10 THE ROCKRIDGE PROCESS MORTAGE INVESTMENT CORPORATIONS Rockridge Private Debt & Real Estate Pool currently holds 40% of the portfolio in Private Mortgage Investment Pools. By investing in the leaders in both commercial and residential private mortgages, with a focus on low loan to value ratios, we are able to achieve incredible diversification and security. 40% - Mortgage Investment Corporations 4 Providers Total assets under management: $.69B Total number of loans: 5,825 48% Commercial 52% Residential 61% Canada 9% US Total loan to value: 6% Average Turn Over Duration/Maturity of Loans: 1.04 Years Mortgage Investment Corporations Antrim Ryan Rompsen Trez PRIVATE DEBT - Asset Based Lending - Factoring MORTGAGE INVESTMENT CORPORATION - Residential - Commercial PRIVATE REAL ESTATE INVESTMENT TRUST - Multi-Family Apartments Investors are setting dedicated private debt targets for what has now become a key, income producing portfolio slice for large pension funds and family offices alike, as well as other investor types in between. - Ryan Flanders, Preqin

11 THE ROCKRIDGE PROCESS PRIVATE REAL ESTATE INVESTMENT TRUSTS Rockridge Private Debt & Real Estate Pool currently holds 5% of the portfolio in Private Real Estate Investment Trusts. They are specialists in multi-family apartments in the Seattle, Washington area. The top rules to Revenue Real Estate are: Low vacancy rates High job growth High population growth Seattle ticks all these boxes. Seattle Ranked #1 in a study done by the Urban Land Institute and PWC in 2017 & Geographic location: 100% Seattle Number of Properties: 1 Number of Unites: 1,525 Loan to Value: 49.48% PRIVATE DEBT - Asset Based Lending - Factoring MORTGAGE INVESTMENT CORPORATION - Residential - Commercial PRIVATE REAL ESTATE INVESTMENT TRUST - Multi-Family Apartments US apartments are a preferred asset class of Canadian Pension Plans, representing 1% of the top 24 pensions in Canada at the end of Dave Kirzinger, RISE Properties Trust

12 THE ROCKRIDGE PROCESS THE BOTTOM LINE Faced with increasing interest rates, investors are struggling to find yield without increasing risk as traditional bonds no longer work. Pension and endowment funds have been shifting from publicly traded fixed income investments to private debt to enhance return. Institutionalize the retail portfolio! PORTFOLIO OBJECTIVES Portfolio diversification Low correlation to traditional asset classes Low volatility Consistent & predictable returns Higher yields compared to traditional investments Access investments used by pensions and endowment funds Rockridge is the solution. As Canada s first multi-manager private debt and real estate equity fund, clients have access to institutional investments with unparalleled security and diversification with the liquidity of a retail mutual fund.

13 DISCLAIMER Fund Essentials Inception date: January 1, 2018 Minimum initial investment: $500 Minimum additional investment: $500 Management fee: 1.00% High Water Mark: Yes Incentive Fee: 20% Hurdle: 5% Redemption: Last day of each calendar month Short-term Trading Penalty: 2% of Net Asset Value of amount redeemed if redeemed within 120 days of purchase. Fund Management Name: Willoughby Asset Management Address: MNP Tower, W Hastings St. Vancouver, British Columbia, V6E 0E Website: Telephone: or Toll Free admin@willoughbyasset.com Fund Codes: F: NBN1251, A: NBN1250 Distributions A distributions may be applicable to this fund. Refer to the Offering Memorandum for more details. 1 2 Disclaimers: The rate of return table and chart do not indicate the actual rate of return for Rockridge Private Debt & Real Estate Pool as the pool s inception date is January 1st, The quarterly annual performance figures and investment growth chart are shown for illustrative purposes only. The rate of return prior to January 1st, 2018 is back tested and has been compiled by blending the returns of the underlying investment funds based on their weightings in the Rockridge Private Debt & Real Estate Pool, as at July 1st, A 1% management fee has been incorporated into the returns table and chart. These returns are returns net of fees, since the pools inception date of January 1st, The rate of returns for the underlying funds within this report are returns obtained from the websites of the various fund providers, for the F Class (Fee Class) and/or I Class (Institutional Class) funds. Willoughby Asset Management has not attempted to verify the accuracy of these figures. 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 underlying holdings and data provided in this report represent those of the Rockridge Private Debt & Real Estate Pool at the time of the reports production. Your personal investment account held at your financial institution may include other securities in addition to the Rockridge Private Debt & Real Estate Pool. For specific information including the amount of units you hold in the Rockridge Private Debt & Real Estate 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. Your financial institutions may charge other fees and expenses. The management fee may vary from series to series. For further information on different fund pricing options please refer to the Offering Memorandum. Please read the Rockridge Private Debt & Real Estate Pool Offering Memorandum before investing. You can obtain an Offering Memorandum from Willoughby Asset Management Inc. The Offering Memorandum for Willoughby Asset Management Inc s investment pool and 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 off or solicitation. The pool/fund returns are not guaranteed, values change frequently and past performance may not be repeated.