FORSYTHPRIVATE REAL ESTATE PORTFOLIOS

Asset Management SolutionsFor Discerning Investors

BUILD A MORE STABLE PORTFOLIO WITH HIGHER, TAX-EFFICIENT RETURNSMore than ever investors want capital preservation, sustainable growth, and predictable cash flow – results that bonds and traditional fixed income simply can’t deliver in a low interest rate world.

Institutional money managers and ultra-wealthy investors have been reaping the rewards of investing in private real estate and alternative investments for decades. Retail investors have been stymied by product availability, high minimums and deposit and liquidity restrictions… until now.

Introducing a leading-edge investment solution from Willoughby Asset Management available exclusively to Harbourfront Wealth Management clients: Forsyth Private Real Estate Portfolios.

Uniquely constructed as multi-manager, multi-strategy private alternative investment Pool, Forsyth Private Real Estate Portfolios consists of Canadian and US income-producing multifamily and commercial real estate and infrastructure investments managed by leading private investment managers with an established track record of generating consistent and positive returns. Private investments in real estate and infrastructure are essential assets to own for achieving less volatile growth while adding a layer of capital preservation and a hedge against inflation. With a low correlation to stocks and bonds, an investment in Forsyth Private Real Estate Portfolios will provide greater diversification with the potential for higher returns.

WHY PRIVATE REAL ESTATE? WHY NOW?

REAP THE REWARDS OF PENSION STYLE INVESTINGFollowing the massive 2008 stock market correction and ensuing low interest rate environment, pension plans worldwide ran into serious headwinds, including underfunded liability and even insolvency. Fearing a repeat of 08 and a 50% drop in equity markets, pension fund managers began to significantly increase their exposure to defensive private alternative investments including commercial and multifamily residential real estate, which generally don’t fluctuate like equities and are designed to provide consistent, predictable returns.

CPP has been aggressivelyreducing exposure to public equities and increasing exposure to private credit &real estate.

The Canada Pension Plan is a great example of innovation and adaptability. According to the World Bank, CPP is among “the world’s most admired and successful public pension organizations.” And it’s no coincidence the shift from traditional fixed income and public equity markets to alternative investments and real estate is the key reason:

CPP has increased allocation to alternative/private investments from 4.3% in 2005 to 50% in 2019.

CPPs real estate portfolio has Increased from $400m in 2005 To 46.1B in 2018.

Asset Type 2005 2010 2015 2017 2018

Private Equity 2.9 16.1 50.4 57.8 69.3

Real Estate 0.4 7.0 30.3 40.1 46.1

Infrastructure 0.2 5.8 15.2 24.3 28.6

Other Real Assets - - - 8.7 9.1

Private Debt - 0.9 8.0 16.8 20.4

Private Real Estate Debt - 0.3 3.8 4.8 4.7

Total 3.5 30.1 107.7 152.5 178.2

% of Net Investments 4.3% 23.6% 40.7% 48.2% 50.0%

Growth of CPPs Private Markets Investing Program

Source: CPPIB 2018 Report

Growth of CPPs Private Markets Investing Program

“Our plan is that our real assets portfolio, our credit and fixed income portfolio will grow while public equities will continue to come down.” - Mark Machin, CEO Canada Pension Plan CPPIB

INCOME WITH A TAX ADVANTAGE

An investment in Forsyth Private Real Estate Portfolios offers the potential to achieve higher, risk-adjusted returns while enjoying the added benefit of quarterly tax-deferred distribution income:

Cash Flow Stability: Quarterly return of capital (ROC) distributions are ideal for providing a tax-efficient and predictable income stream.

Tax Efficiency: Unlike interest income, dividends and capital gains, ROC income is not taxable in the year it is received.

Tax Deferral: Taxable income is deferred until units are sold, helping you better manage current cash flow and maintain control over when tax is paid.

No Loss of Benefits: Because ROC distributions are not considered taxable income, OAS, tax credits and other government income-tested benefits are not affected.

Interest Income (40.70% MTR) 5% 2.97%

Capital Gain (20.35% MTR) 0% 0%

Total 5% 2.97%

Return Net Return Return Net Return

100% Taxable ROC Income

66.7% HIGHER INCOME

100% Taxable Blended

Initial Investment $500,000

Time 15 Years

Total Value of Income Stream $319,902

Market Value after 15 Years $1,039,464

Adjust Cost Base after 15 years $500,000

Tax payable after 15 years (assuming disposition)

$109,781

After Tax Gain After 15 Years $749,585

16% MORE MONEY

$500,000

15 Year

$539,464

$1,039,464

$0

$211,531

$867,397

5% 5%

0% 0%

5% 5%

Forsyth Private Real Estate Portfolios offers the distinct advantage of tax deferral and significantly higher after-tax returns over time.

Investment Example

INCREASE YOUR RETURN, NOT YOUR TAXES

INCOME WITH A TAX ADVANTAGE

THIRD-PARTY MANAGEMENT

Diversification. Tax Advantages. Higher Return Potential with Less Risk

Willoughby Asset Management takes a disciplined approach to creating and managing a high-quality equity portfolio.

By employing a robust risk management strategy coupled with superior screening and stock selection, we achieve lower volatility and better diversification. This approach helps to avoid concentration risk and sidestep companies with inconsistent earnings, therefore achieving a smoother return profile to better direct and manage investor behavior.

SUB-ADVISORS

Forsyth Private Real Estate Portfolios utilizes multiple sub-advisors to manage the holdings within the Portfolio. Below are third-party managers being used.

DISCLAIMERThis information circular pertaining to the Forsyth Private Real Estate Portfolios (“The Portfolio”) is not to be construed as a public offering of securities in any jurisdiction of Canada. Important information about The Portfolio, is contained in its Offering Memorandum available through Willoughby Asset Management. Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with investments in The Portfolio. Investments in The Portfolio are not guaranteed, their values change frequently and past performance may not be repeated. Historical annual compounded total returns including changes in units value and reinvestment of all distributions do not take into account sales, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Unit values and investment returns will fluctuate and there is no assurance that The Portfolio can maintain a specific net asset value. Cover Image: Via Oxford Media

CONTACT INFORMATIONPhone: 604.558.6822 / 1.877.588.6822

Email: admin@willoughbyasset.com

Address: MNP Tower, 3100-1021 W Hastings Street, Vancouver, British Columbia, V6E 0C3

Website: www.willoughbyasset.com

KEY POINTS

For complete offering terms and conditions, please refer to the Forsyth Private Real Estate Portfolios Offering Memorandum

Multi-manager, multi-strategy direct private real estate investment available exclusively to Harbourfront Wealth Management clients.

Underlying holdings consist of both Canadian and US income-producing multifamily and commercial real estate & infrastructure investments.

Investment offers low-correlation to publicly traded securities.

Targeted 8-10% annual return with tax deferred return of capital income through quarterly distributions.

SUMMARY

Continuous Offering, month-end purchases and redemptions (4% early redemption charge < 120 days)

RRSP, TFSA, RRIF eligible

Minimum Initial Subscription: $500 | Minimum Additional Investment: $100

Management Fees: Series A: 2.38% | Series F: 0.98%

Fund Codes: Series A: NBN1290 | Series F: NBN1291

TERMS OF OFFERING