Monthly Performance Review March 2017

Monthly Performance Review March 2017 Scotia Wealth Managment April 3, 2017 S&P/TSX Composite Canadian equities climb, as Valeant continues to drag on Health Care S&P 500 Financials lead U.S. equities lower through March Please be advised that this material is not to be distributed to residents of the European Union

S&P/TSX Index Performance Review March 2017 Scotia Wealth Portfolio Advisory Group Monthly S&P/TSX Index Performance Review March 2017 Canadian equities climb, as Valeant continues to drag on Health Care The S&P/TSX Composite Index advanced 0.96% through the month of March on a price only basis. With 251 stocks in the Index at month end, 161 rose, while 90 declined. There were 3 constituents added and 1 was removed from the index through March. The large-cap and small-cap indices underperformed the broader index, while the mid-cap index outperformed. The Health Care, Real Estate and Financials sectors declined, while the remaining 8 sectors advanced through the month of March. 2017 Index Returns (price only) March YTD S&P/TSX Composite 0.96% 1.70% S&P/TSX 60 0.88% 1.72% S&P/TSX Completion 1.21% 1.64% S&P/TSX SmallCap 0.64% 0.86% Top 10 Point Contributors Canadian Natural Resources Ltd. (+47) Canadian Natural Railway Co. (+35.3) Bank of Nova Scotia (+13.6) BCE Inc. (+11) Rogers Communications Inc. (+9.4) Teck Resources Inc. (+8.8) Barrick Gold Corp. (+6.5) Encana Corp. (+6.4) Dollarama Inc. (+6.1) Silver Wheaton Corp. (+6) Top 10 Point Detractors Toronto Dominion Bank (-25.6) Cenovus Energy Inc. (-10.5) Goldcorp Inc. (-10.3) Valeant Pharmaceuticals International Inc. (-9.4) Bank of Montreal (-7) Element Fleet Management Corp. (-4.8) PrairieSky Royalty Ltd. (-4.5) Bombardier Inc. (-3.7) Methanex Corp. (-3.3) Hudbay Minerals Inc. (-2.7) 8.0% March 2017 Monthly S&P/TSX Composite Index Performance by Sector (Price only) 6.0% 4.0% 2.0% Info Tech 5.2% Utilities 4.8% Cons. Staples 4.5% Cons. Discret. 3.5% Industrials 2.8% Telecom 2.0% S&P/TSX Comp. Energy 1.0% 0.7% Materials 0.6% 0.0% -2.0% Financials -0.4% Real Estate -0.6% -4.0% -6.0% -8.0% -10.0% -12.0% -14.0% Source: Bloomberg Health Care -11.3%

S&P/TSX Index Performance Review March 2017 Sector Monthly price-only return Monthly total return Financials 34.51% of S&P/TSX Composite -0.41% -0.09% Energy 21.37% of S&P/TSX Composite Materials 12.05% of S&P/TSX Composite Industrials 8.95% of S&P/TSX Composite Consumer Discretionary 5.11% of S&P/TSX Composite Telecommunications Services 4.75% of S&P/TSX Composite Consumer Staples 3.76% of S&P/TSX Composite Utilities 3.05% of S&P/TSX Composite Real Estate 3.01% of S&P/TSX Composite +0.74% +1.18% +0.65% +0.85% +2.75% +3.12% +3.46% +3.80% +2.02% +3.14% +4.49% +4.75% +4.83% +5.17% -0.57% -0.15% Notable Movement Of the sector s 27 constituents at month end, 16 advanced, while 11 retreated. Detracting the most points from the sector through the month of March was Toronto-Dominion Bank (TD, -2.70%). Shares of TD tumbled the most in more than eight years half way through the month, after news broke that a large group of bank employees had been conducting unethical sales practices amidst pressure to meet steep sales goals. Bank of Nova Scotia (BNS, +0.99%) was the largest point contributor by month end. 22 of the Energy sector s 51 constituents rose through the month of March, while 28 fell and 1 was left unchanged. There was 1 constituent added to the sector. Canadian Natural Resources Ltd. (CNQ, +14.91%) added the most points to the sector through March. The stock saw a large climb in the first half of the month, after it was announced that the company would acquire Canadian oil sands assets from Royal Dutch Shell Plc and Marathon Oil Corp. Cenovus Energy Inc. (CVE, -10.42%) was the sector s largest laggard in March, after news broke that the company would be acquiring ConocoPhillips Canadian energy assets for around C$17.7 billion. The Materials sector saw 35 of its 56 constituent s climb through March, while 21 fell. Adding the most points to the sector through the month was Teck Resources Ltd. (TECK.B, +9.53%). Goldcorp Inc. (G, -7.84%) detracted the most points through the month of March. 18 of the Industrials sector s 26 constituents gained through the month of March, while the other 8 declined. Canadian National Railway Co. (CNR, +6.28%) was the largest point contributor by month end. Detracting the most points from the sector through March was Bombardier Inc. (BBD.b, -11.30%). The Consumer Discretionary sector saw 18 of its 22 constituents rise through the month of March, while the remaining 4 retreated. The largest point contributor in the sector through March was Dollarama Inc. (DOL, +7.75%). Hudson s Bay Co. (HBC, -12.40%) was the sector s biggest laggard through the month. The Telecommunications Services sector saw all 4 of its constituents rise through March. There was 1 constituent removed by month end. BCE Inc. (BCE, +1.62%) led the sector s advance through March. The company acquisition of Manitoba Telecom Services was completed mid-way through the month. All 11 of the Consumer Staples sector s constituents rose through March. Leading the monthly climb was Loblaw Cos Ltd. (L, +4.19%). The Utilities sector saw all 15 of its constituents climb through the month. 1 constituent was added by month end. Fortis Inc. (FTS, +4.60%) was the largest point contributor to the monthly advance. The Real Estate sector saw 11 of its 22 constituents rise through March, while the remaining 11 declined. The biggest laggard in the sector through March was Colliers International Group Inc. (CIGI, -5.91%), while the largest point contributor was Canadian Apartment Properties (CAR.UN, +3.54%).

S&P/TSX Index Performance Review March 2017 Information Technology 2.85% of S&P/TSX Composite Healthcare 0.60% of S&P/TSX Composite +5.20% +5.35% -11.29% -11.20% The Information Technology sector saw all but 1 of its 12 constituents gain through the month. CGI Group Inc. (GIB.A, +4.36%) contributed the most points to the monthly advance. The lone decliner through the month was Sierra Wireless Inc. (SW, - 5.92%). The Healthcare sector saw all 6 constituents fall through the month of March. Leading the monthly decline was Valeant Pharmaceuticals International Inc. (VRX, -22.2%). News of Bill Ackman selling his stake in the company in mid-march added to the stock s already substantial loss.

S&P 500 Index Performance Review March 2017 Scotia Wealth Portfolio Advisory Group Monthly S&P 500 Index Performance Review March 2017 Financials lead U.S. equities lower through March The S&P 500 index dropped slightly through the month of March, declining 0.04% on a price only basis. Out of the 505 stocks in the index at month end, 257 rose, while 253 declined and 2 were left unchanged. 7 constituents were added, while 7 were removed during the month. The Dow Jones Industrial Average and Russell 2000 indices underperformed the S&P 500, while the NASDAQ Composite outperformed. The Information Technology, Consumer Discretionary and Materials sectors rose, while the remaining 8 sectors fell through the month of March. 2017 Index Returns (price only) March YTD S&P 500-0.04% 5.53% Dow Jones Industrial Average -0.72% 4.56% NASDAQ Composite 1.48% 9.82% Russell 2000-0.06% 2.12% Top 10 Point Contributors Apple Inc. (+4.1) Amazon.com Inc. (+1.9) Facebook Inc. (+1.8) Microsoft Corp. (+1.7) Philip Morris International Inc. (+0.82) Lowe s Cos Inc. (+0.79) Johnson & Johnson (+0.74) Oracle Corp. (+0.70) Adobe Systems Inc. (+0.68) Micron Technology Inc. (+0.65) Top 10 Point Detractors Bank of America Corp. (-1.18) Wells Fargo & Co. (-1.16) JPMorgan Chase & Co. (-1.157) Chevron Corp. (-1.12) Amgen Inc. (-1.07) Berkshire Hathaway Inc. (-1.05) Goldman Sachs Group Inc. (-0.79) Altria Group Inc. (-0.65) US Bancorp (-0.598) Merck & Co. Inc. (-0.596) 3.0% 2.0% Info Tech 2.5% Cons. Discret. 1.9% March 2017 Monthly S&P 500 Index Performance by Sector (Price Only) 1.0% Materials 0.2% 0.0% S&P 500-0.04% -1.0% -2.0% Utilities -0.5% Health Care -0.6% Cons. Staples Industrial -0.7% -0.8% Energy -1.1% Telecom -1.2% Real Estate -1.5% -3.0% Financials -2.9% Source: Bloomberg -4.0%

S&P 500 Index Performance Review March 2017 Sector Information Technology 22.08% of S&P 500 Index Financials 14.36% of S&P 500 Index Health Care 13.91% of S&P 500 Index Consumer Discretionary 12.33% of S&P 500 Index Industrials 10.08% of S&P 500 Index Consumer Staples 9.30% of S&P 500 Index Energy 6.59% of S&P 500 Index Utilities 3.19% of S&P 500 Index Real Estate 2.94% of S&P 500 Index Monthly price-only return Monthly total return +2.51% +2.55% -2.90% -2.77% -0.56% -0.42% +1.90% +2.05% -0.77% -0.69% -0.71% -0.30% -1.10% -1.03% -0.52% -0.19% -1.50% -1.03% Notable Movement Of the 67 constituents at month end, 48 rose through March, while 21 declined. There were 2 constituents added and 2 were removed from the sector by month end. Apple Inc. (AAPL, +4.87%) was the sector s largest point contributor through the month of March. Detracting the most points in the sector through March was International Business Machines (IBM, -3.16%). The Financial sector saw 15 of its 65 constituents advance through March, while 49 declined and 1 was left unchanged. There was 1 constituent added through the month. The biggest laggard in the sector through the month was Bank of America Corp. (BAC, -4.42%). Intercontinental Exchange Inc. (ICE, +4.80%) contributed the most points to the monthly advance. 35 of the Health Care sector s 60 constituents rose through the month of March, while the remaining 26 retreated. There was 1 constituent removed from the sector. Removing the most points from the sector through March was Amgen Inc. (AMGN, -7.06%). The stock struggled halfway through the month, after the company s Repatha drug failed to meet drug trial expectations. Johnson & Johnson (JNJ, +1.91%) contributed the most points to the sector through the month. Of the Consumer Discretionary sector s 85 constituents at month end, 54 rose, while 33 retreated and 1 was left unchanged. There were 2 constituents added, while 3 were removed during the month. Amazon.com Inc. (AMZN, +4.91%) was the largest point contributor in the sector through the month of March. The biggest laggard in the sector through the month was Ford Motor Co. (F, -7.10%). The Industrials sector saw 34 of its 68 constituents climb through the month of March, while the remaining 34 retreated. Delta Air Lines Inc. (DAL, -7.95%) was the sectors largest point detractor, after the company cut its forecast for revenue for each seat per mile flown for the fiscal quarter. Adding the most points to the sector through March was 3M Co. (MMM, +2.67%). The stock rose substantially halfway through the month, after the company announced it had acquired Scott Safety from Johnson Controls International for around US$2 billion. Of the sector s 37 constituents at month end, 23 declined, while 14 rose. Altria Group Inc. (MO, -4.67%) was the sector s biggest laggard. Adding the most points to the sector through March was Philip Morris International Inc. (PM, +3.25%). 17 of the Energy sector s 35 constituents rose through the month of March, while the remaining 18 declined. Adding the most points to the sector through March was Exxon Mobil Corp. (XOM, +0.85%). Chevron Corp. (CVX, -4.56%) detracted the most points from the sector by month end. The Utilities sector saw 17 of its 28 constituents rise through the month of March, while the remaining 11 retreated. Contributing the most points to the monthly advance was NRG Energy Inc. (NRG, +12.92%). NextEra Energy Inc. (NEE, -2.01%) was the largest point detractor in the sector through March, after the company s proposed acquisition of Oncor Electric Delivery Co. ran into issues with local regulators. The Real Estate sector saw 21 of its 31 constituents fall through the month, while the remaining 10 advanced. 2 constituents were added throughout the month. American Tower Corp. (AMT, +5.88%) added the most points to the sector through March. The biggest laggard in the sector was Simon Property Group Inc. (SPG, - 6.71%).

S&P 500 Index Performance Review March 2017 Materials 2.84% of S&P 500 Index Telecommunication Services 2.38% of S&P 500 Index +0.18% +0.48% -1.23% -1.15% 13 of the sectors 25 constituents rose, while 12 declined through March. Leading the monthly advance was Dow Chemical Co. (DOW, +2.06%). The company s planned merger with DuPont Co. received preliminary EU approval near the end of the month. Air Products & Chemicals Inc. (APD, -3.69%) detracted the most points from the sector through March. All 5 of the Telecom sector s constituents fell through March. 1 constituent was removed by month end. Leading the monthly decline was Verizon Communications Inc. (VZ, - 1.77%)

Important Disclosures This material does not include or constitute an investment recommendation, and is not intended to take into account the particular investment objectives, financial conditions, or needs of individual clients. Before acting on this material, you should consider whether it is suitable for your particular circumstances and talk to your investment advisor. This report has been prepared by members of the ScotiaMcLeod Portfolio Advisory Group. ScotiaMcLeod is the full service retail division of Scotia Capital Inc General Disclosures The Scotia Wealth Portfolio Advisory Group prepares this report by aggregating information obtained from various sources as a resource for Scotia Wealth Advisors and their clients. Information may be obtained from the Equity Research and Fixed Income Research departments of the Global Banking and Markets division of Scotiabank. Information may be also obtained from the Foreign Exchange Research and Scotia Economics departments within Scotiabank. In addition to information obtained from members of the Scotiabank group, information may be obtained from the following third party sources: Standard & Poor s, Valueline, Morningstar CPMS and Bloomberg. The information and opinions contained in this report have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. While the information provided is believed to be accurate and reliable, neither Scotia Capital Inc., which includes the Scotia Wealth Management Portfolio Advisory Group, nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Neither Scotia Capital Inc. nor its affiliates accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. This report is provided to you for informational purposes only. This report is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation or particular needs of any specific person. Investors should seek advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Nothing contained in this report is or should be relied upon as a promise or representation as to the future. The pro forma and estimated financial information contained in this report, if any, is based on certain assumptions and management s analysis of information available at the time that this information was prepared, which assumptions and analysis may or may not be correct. There is no representation, warranty or other assurance that any projections contained in this report will be realized. Opinions, estimates and projections contained in this report are our own as of the date hereof and are subject to change without notice. Copyright 2012 Scotia Capital Inc. All rights reserved