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Returns include peace of mind.

Canaccord Genuity GPS OPTIMIZED PORTFOLIOS

To us there are no foreign markets.™

About GPS Optimized Portfolios

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To us there are no foreign markets.™ 3

A global investment opportunity from a global wealth management firm

To us there are no foreign markets.™ To us there are no foreign markets.™

Canaccord Genuity Wealth Management enables investors to reach the coordinates that define their life goals. With offices in 10 countries worldwide, including Wealth Management offices in Canada, Australia, the UK and Europe, we search the globe for investment opportunities and deliver targeted long-term and near-term investment strategies for our clients.

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* ICICI Alliance


An innovative investment solution

Our Optimized Portfolios, part of Canaccord Genuity Global Portfolio Solutions (GPS), were created by Canaccord Genuity Wealth Management in the UK in 2011.

GPS Optimized Portfolios are proprietary to Canaccord Genuity Wealth Management and are now available in Canada for the first time.

Using our forward-looking investment process, GPS Optimized Portfolios analyze risk and global opportunities, aiming to provide you with steadier returns and more certainty by targeting a capped level of volatility.

In other words, returns include peace of mind.

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An internationally recognized best-in-class investing discipline

In the UK, Canaccord Genuity Wealth Management’s successful investment strategy based on the same model received the Gold Standard Award for Discretionary Portfolio Management in 2012 and 2013, as well as a five-star rating by independent research firm Defaqto.

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Features • An award-winning investment process designed to cap volatility

• An innovative, forward-looking risk management framework

• A sophisticated approach to portfolio diversification

• Global expertise from Canaccord Genuity thought leaders

Benefits • A smoother, more confident path toward achieving your investment objectives

• More certainty for your investments during periods of market volatility

•  The power to reduce the potential for capital loss

• Direct access to global investment ideas and opportunities

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Investing in GPS Optimized Portfolios

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Market volatility is a reality - and it has doubled on average:

From 1962 to 1996, the S&P 500 gained or lost more than 1% one in every six trading days on average. But since 1997, such moves have risen to one in every three trading days. Increased market volatility can lead to poor investment decisions – more buying at market peaks and panic selling at market lows.

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Source: Yahoo Finance, S&P 500 January 1, 1962 to December 31, 2013


An award-winning investment process designed to cap volatility

At Canaccord Genuity Wealth Management, we recognize that capital preservation is the cornerstone of any investment strategy.

That’s why we engineered GPS Optimized Portfolios to adjust to an appropriate level of risk.

The aim is to help you achieve your investment objectives with more certainty while endeavouring to cap risk, and therefore reduce the potential for loss, at the level best suited to you.

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Modern Portfolio Theory hasn’t evolved substantially since it was introduced in 1952.

Can you imagine another industry using technology that is more than 60 years old?

As markets evolve, the tools we use to achieve your goals have to evolve with them.

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An innovative, forward-looking risk management framework

GPS Optimized Portfolios use a forward-looking process that recognizes that risk and correlation change:

•  Traditional investment management frameworks use a simple, backward-looking measure of risk which can grossly underestimate a portfolio’s exposure to capital loss when markets become stressed – they don’t account for asset correlations and volatility changing over time.

•  The innovative process behind GPS Optimized Portfolios incorporates a dynamic, forward-looking correlation matrix that appropriately accounts for the current level of market risk, even in stressed environments.

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To us there are no foreign markets.™ To us there are no foreign markets.™ 13

The Canadian Equity Market is dominated by three sectors:

Source: Henderson Global Investors. Period reflected for payment 2013.

Total dividend payout by country:


A sophisticated approach to portfolio diversification

GPS Optimized Portfolios offer global exposure, helping to diversify investment portfolios and reduce risk.

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Global expertise from Canaccord Genuity thought leaders

Our GPS Optimized Portfolios’ Security Selection Committee is comprised of a global team of Canaccord Genuity thought leaders:

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Cameron B. Hurst, Senior Vice President & Chief Portfolio Manager, North America, Canaccord Genuity Wealth Management (CAD) •  15 years of high-level research and

investment experience •  Focus on fundamental analysis and US &

International equity markets •  Performance ranked in the top 10% of

comparable mandates during the global financial crisis

Martin Roberge, North American Portfolio Strategist & Technical Analyst, Managing Director, Canaccord Genuity Corp. (CAD) •  Highly ranked Portfolio Strategist and

Quantitative Analyst in Canada (Brendan Wood International Survey)

•  Responsible for tactical asset mix and sector rotation research and recommendations

Robert Jukes, Global Strategist, Canaccord Genuity Wealth Management (UK) •  Experienced Global Strategist and Fund

Manager specializing in top-down macroeconomic and thematic ideas along with multi-asset risk-based quantitative strategies

•  Joined Canaccord Genuity in 2007 from Credit Suisse, where he was Global Equity Strategist

Tony Dwyer, US Portfolio Strategist & Senior Managing Director, Canaccord Genuity Corp. (US) •  Over 25 years of equities experience •  Joined Canaccord Genuity in 2012 with

the acquisition of Collins Stewart •  Former Director of Research and

Executive Committee member at Collins Stewart


How GPS Optimized Portfolios work

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The evolution of risk management – Avoiding the worst losses is more important than capturing the largest gains •  Meaningful outperformance is about avoiding the

worst periods of negative returns.

•  By committing to a risk target, we can meaningfully de-risk relative to benchmark in times of market stress – this approach is a key characterization of GPS Optimized Portfolios.

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MSCI World: avoiding the best and the worst returns

“Hugging a benchmark when the risks are rapidly rising will

not ensure that a client’s investments are in line with

their risk tolerance. GPS Optimized Portfolios cannot and will not hug a benchmark when

the risks are rising.”

- Robert Jukes

Global Strategist, Canaccord Genuity Wealth Management (UK)

Source: DataStream, Bloomberg, Canaccord Genuity Wealth Management.


GPS Optimized Portfolios – Results that speak for themselves

•  During the Eurozone crisis in 2011, volatility spiked and correlations rose precipitously.

•  GPS Optimized Portfolios deliberately moved away from the benchmark and protected capital.

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GPS Optimized Portfolios UK: Actual results through Euro crisis

Source: DataStream, Thomson Reuters Canaccord Genuity Wealth Management

- Cameron B. Hurst

Senior Vice President & Chief Portfolio Manager, North America, Canaccord Genuity Wealth Management

“GPS Optimized Portfolios employ a truly unique perspective on risk. By

engaging our forward-looking, proprietary risk management framework that appropriately accounts for risk at the total

portfolio level, we help to provide steadier investment performance

and peace of mind for our clients.”

Past performance may not be repeated. As this is an illustration of one of the available GPS UK portfolios, it may not be suitable for all investors as there are different risk and objectives associated with each portfolio.


A “boldly cautious” approach Our proprietary investment process uses an innovative, forward-looking risk process, which explicitly recognizes that risk and correlation change in various market conditions.

Risk Optimizer

GPS Optimized Portfolios

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Rates... Gold... Bond Yields... Industrial Methods... Cr Credit Spreads... Soft Commodities... Foreign Exchange Rates... GoBond Yields... Industrial Methods... Credit Spreads... Soft Coies... Foreign Exchange Rates... Gold... Bond Yields... Indust

Methods... Credit Spreads... Soft Commodities... Foreign ExcRates... Gold... Bond Yields... Industrial Methods... Credit Spreads... Soft Commodities... Foreign Exchange Rates... Go

Global Market Data

Market Stress Indicator

100%Equity

100%Cash


Our depth of experience in asset allocation and security selection is an integral input into our innovative risk framework.

Security selection

The securities that populate our risk-focused models are drawn from the Master Lists supplied by our Security Selection Committee, who diligently scrutinize companies for best-in-class fundamentals, liquidity, structure, performance and management competency. •  Fixed Income Master List •  Equity Master List •  ETF Master List

Our global Security Selection Committee reviews economic and international forecasts from the UK-based Asset Allocation Committee.


To gauge the level of stress in the market, Canaccord Genuity Wealth Management has developed a proprietary Market Stress Indicator (MSI).

Other indicators of market stress exist, but this proprietary tool is the only indicator that accounts for both determinants of portfolio risk: volatility and correlation.

Our proprietary MSI identifies five market states, enabling us to prepare for upcoming risks and reduce the potential for capital loss by:

• Analyzing asset classes by volatility and correlation

• Anticipating periods of significant market stress

• Adjusting to an appropriate level of risk with the aim of protecting your capital

To us there are no foreign markets.™ To us there are no foreign markets.™ 22

This framework systematically heeds client risk tolerances, appropriately accounts for portfolio risk, even during periods of market stress, and significantly reduces drawdown.

Over the long term, this can dramatically improve upon benchmark return, helping us to grow your wealth, with a focus on capital preservation.

Our risk optimizer is a mathematical framework that uses inputs from the MSI to better guard against risk, rather than to chase down extra return.

Risk Optimizer


Find out which GPS Optimized Portfolio is right for you

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There is a GPS Optimized Portfolios mandate for every client situation Take the questionnaire to learn about which GPS Optimized Portfolio might be right for you.

GPS Optimized Portfolios

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100%Equity

100%Cash

canaccordgenuity.com

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Canada

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France

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Ireland

Isle of Man

Jersey

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United States

United Kingdom

Canaccord Genuity Wealth Management is a division of Canaccord Genuity Corp. Member – Canadian Investor Protection Fund Member of all Canadian stock exchanges and the Investment Industry Regulatory Organization of Canada The company of the Canaccord Genuity group of companies through which products and services are offered may differ by location and service. See canaccordgenuitygroup.com/en/companies for more information.



This presentation is solely the work of the author for the private information of clients. Although the author is a registered investment advisor at Canaccord Genuity Wealth Management, a division of Canaccord Genuity Corp. (“Canaccord”), this is not an official presentation of Canaccord Genuity Corp. and the author is not a Canaccord analyst. The views (including any recommendations) expressed in this presentation are those of the author alone, and are not necessarily those of Canaccord Genuity Corp.

The information contained in this document has been compiled by Canaccord Genuity Wealth Management rom sources believed to be reliable, but no representation or warranty, express or implied, is made by the author or Canaccord, its affiliates or any other person as to its accuracy, completeness or correctness. All estimates, opinions and other information contained in this document constitute his judgment as of the date of this document, are subject to change without notice and are provided in good faith but without legal responsibility or liability.

Canaccord Genuity Corp. and its affiliates may have an investment banking or other relationship with the companies that are the subject of this report and may trade in any of the securities mentioned herein either for their own account or the accounts of their customers. Accordingly, Canaccord Genuity Corp. or their affiliates may at any time have a long or short position in any such securities, related securities or in options, futures or other derivative instruments based thereon.

This document is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. As a result, the securities discussed in this report may not be eligible for sale in some provinces. This report is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. This material is prepared for general circulation to clients and does not have regard to the investment objectives, financial situation or particular needs of any particular person. Investors should obtain advice based on their own individual circumstances before making an investment decision. To the fullest extent permitted by law, neither Canaccord Genuity Corp., its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of the information contained in this report.

Canaccord Genuity Wealth Management is a division of Canaccord Genuity Corp. Member-Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Copyright © Canaccord Genuity Corp. 2015.

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