Golf Canada Board of Directors Meeting June 20 and 21, 2013

INVESTMENT COMMITTEE REPORT Meetings since last report: June 18 Key Activities: Performance Review – see-attached report. Return for the 7 months to May 31st is 3.34% compared to a full year budget of 4.25 % and a full year target of 6%. Recent results have been adversely impacted by volatility in interest rates, but we are still projecting that we can finish the year ahead of budget. The committee had an extensive discussion about the outlook for interest rates and the risk to the portfolio. There was general agreement that there are some short-term bond holdings that should be sold and our investment advisor will recommend some other holdings that could be added to the portfolio for Committee decision. These changes will be considered shortly and an additional meeting will be held to approve the changes. In addition we continue to review the risks within the overall portfolio and considered different ways to assess the risk attaching to different types of securities. Golf Canada Foundation – In contemplation of having increased funds within the Foundation we have started discussions about how we might be able to enhance the Foundation returns while meeting its needs for liquidity and risk management. The Investment Committee is currently managing the Foundation’s money as a separate portfolio and are working with the Foundation Board to consider loaning the money to Golf Canada so it can be managed as part of our larger portfolio, which we feel will provide them with greater overall returns. Future Scheduled Meetings: September, November, AGM Submitted by, Doug Alexander Chair, Investment Committee

Monthly Report - For the Month Ending May 31, 2013

Prepared For:

Golf CanadaSuite 1 - 1333 Dorval Drive, Oakville ON, L6M 4X7

Westcourt Private Wealth

175 Bloor St. East, South Tower, Suite 803

Toronto ON M4W 3R8( (416) 907-4950

62.18% Income $16,057,781 Income -$63,993 -0.40% Income $484,339 2.86%

17.91% Equity $4,624,698 Equity $22,514 0.49% Equity $457,322 5.71%

19.92% Alternative $5,143,816 Alternative $18,991 0.37% Alternative $62,124 1.22%

Total 100.00% Total $25,826,294 Total ($22,488) -0.09% Total $1,003,785 3.34%

Investment Min

Core Investments 80%

Equities 0%

Income 40%

Alternatives 0%

Investment

Core Investments 80.08%

Equities 17.91%

Income 62.18%

Alternatives 19.92%

Dist'n Income

F2013 Budget

Surplus Funds

Objective - Total Return: 6%

Alternative

Asset Allocation $ Total Gain For May 2013 Total Gain Since Oct 31, 2012

Strategic Asset Allocation Target

Asset Allocation %

Equity

Income

60%

100%

20%

Max

Strategic Asset Allocation Actual

% Compliant

100%

Estimated Income vs Budget

$1,291,077

$1,082,569

$208,508 $0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept

Westcourt Private Wealth for Golf Canada 2

Class Holding Held

Adjusted Book

Value*

Mkt Value as at

Apr 30, 2013

Mkt Value as at

May 31, 2013

Total Gain

May %

YTD Total

Return ($)

YTD Total

Return (%)

Income Cash Var $867 $867 $867 n/a n/a n/a

Income Hahn International Income Focus (63%) NBCN $945,000 $993,324 $981,059 -1.23% $36,059 3.82%

Income Hahn Global Balanced (34%) NBCN $510,000 $545,262 $546,461 0.22% $36,461 7.15%

Income Harbour Edge MIC NBCN $800,000 $800,000 $800,000 0.76% $44,128 5.52%

Income Morrison Laurier MIC NBCN $800,000 $800,000 $804,580 0.57% $32,581 4.07%

Income Centurion Apartment REIT NBCN $1,000,000 $1,039,030 $1,045,244 0.60% $81,779 8.18%

Income RP Fixed Income Plus NBCN $3,000,000 $3,023,014 $3,005,534 -0.58% $5,534 0.18%

Income O'Leary Global Infrastructure Yield RBC $806,990 $850,338 $826,264 -2.83% $80,764 10.01%

Income PH&N Short Term Bond & Mortgage PH&N $3,873,527 $3,880,956 $3,869,282 -0.30% $68,637 1.77%

Income PH&N Mortgage Pension Trust PH&N $3,108,452 $3,131,878 $3,108,394 -0.75% $57,638 1.85%

Income Raven Rock Income Fund RBC $1,062,115 $1,068,508 $1,070,096 0.65% $13,302 1.25%

Income Class Dispositions $1,040,142 $27,456

$16,947,094 $16,133,177 $16,057,781 -0.40% $484,339 2.86%

Equity Hahn International Income Focus (37%) NBCN $555,000 $583,381 $576,178 -1.23% $21,178 3.82%

Equity Hahn Global Balanced (66%) NBCN $990,000 $1,058,449 $1,060,777 0.22% $70,777 7.15%

Equity Roundtable Dividend & Income Fund RBC $1,000,000 $972,992 $990,233 1.77% $17,241 1.72%

Equity Vision Opportunity RBC $750,000 $741,598 $737,787 -0.51% ($12,213) -1.63%

Equity PH&N Dividend Income PH&N $1,192,385 $1,245,764 $1,259,723 1.12% $177,423 14.88%

Equity Class Distributions $3,519,957 $182,916

$8,007,342 $4,602,184 $4,624,698 0.49% $457,322 5.71%

Alternative RP Debt Opportunities NBCN $1,100,000 $1,119,415 $1,126,752 0.66% $26,752 2.43%

Alternative Picton Mahoney Market Neutral RBC $2,067,237 $2,096,841 $2,106,241 0.45% $39,004 1.89%

Alternative Curvature RBC $1,000,000 $1,033,108 $1,031,557 -0.15% $31,557 3.16%

Alternative SW8 Strategy Fund RBC $914,455 $875,461 $879,265 0.43% ($35,190) -3.85%

$5,081,692 $5,124,825 $5,143,816 0.37% $62,124 1.22%

*Adjusted Book Value represents the value as of Oct 31, 2012 or the purchase price if it was purchased after that day

$30,036,128 $25,860,186 $25,826,294 -0.09% $1,003,785 3.34%

All Holdings Return from Oct 31, 2012 to May 31, 2013: 3.34%

Total

Subtotal

Subtotal

Subtotal

Westcourt Private Wealth for Golf Canada 3

Class Holding

Adjusted Book

Value*

Mkt Value as at

Disposition Date Disposition Date

YTD Capital

Gain

YTD Distribution

Income

YTD Total

Return (%)

Equity Canadian Horizons $837,000 $778,500 19-Dec-12 ($58,500) $9,920 -5.80%

Equity Mackenzie Cundill Value $1,596,274 $1,792,092 15-Feb-13 $195,817 $0 12.27%

Equity BMO Guardian CDN Diversified $1,086,683 $1,122,364 15-Feb-13 $26,580 $9,100 3.28%

Income Arrow Yield Fund $1,040,142 $1,060,537 5-Mar-13 ($9,873) $30,267 2.91%

$4,560,099 $154,024 $49,287

*Adjusted Book Value represents the value as of Oct 31, 2012 or the purchase price if it was purchased after that day

Dispositions Year-to-Date

Subtotal

Westcourt Private Wealth for Golf Canada 4

SECURITY Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Total

PH&N ST Bond & Mortgage Fund 37,704 - - 26,531 - - 26,531 - - 26,531 - 117,297

PH&N Dividend Income Fund 59,838 - - 6,947 - - 10,000 - - 10,000 - 86,785

PH&N Mortgage Pension Trust 22,727 - - 34,965 - - 23,000 - - 23,000 - 103,692

Hahn Global Balanced 5,345 4,525 2,207 2,181 (886) 2,500 2,500 2,500 2,500 2,500 2,500 28,372

Hahn International Income Focus 6,348 4,187 357 3,467 (475) 3,500 3,500 3,500 3,500 3,500 3,500 34,884

RP Fixed Income (25) 756 - - - - - 731

Arrow High Yield Fund** 6,908 6,954 9,344 7,062 - - - - - - - - 30,267

Arrow Raven Rock 5,321 - - - - - 5,321

BMO Guardian CDN Diversified** 3,026 3,031 3,043 - - - - - - - - - 9,100

O'Leary Global Infrastructure Fund 22,116 15,505 7,887 4,072 4,093 4,113 4,113 4,113 4,113 4,113 4,113 78,351

Centurion REIT 6,089 6,089 6,089 6,089 6,089 6,089 6,089 6,089 6,089 6,089 6,089 6,089 73,070

HarbourEdge 6,387 6,181 6,353 6,386 5,707 6,387 6,082 6,082 6,082 6,082 6,082 6,082 73,892

Morrison Laurier 4,667 4,667 4,667 4,667 4,667 4,667 4,667 4,667 4,667 4,667 4,667 4,667 56,002

Canadian Horizons** 4,580 4,432 907 - - - - - - - - - 9,920

Monthly Total 53,772 178,820 47,002 30,840 90,529 20,631 32,272 86,482 26,951 26,951 86,482 26,951 707,685

Forecasted Distributions $707,685

Realized Gains on Disposition $154,025

Capital Appreciation $429,367

Total Forecasted Income $1,291,077

F2013 Budget $1,082,569

*Capital Appreciation is equal to the net increase in market value recognized year-to-date and is subject to fluctuations

**Holdings disposed of during 2013

Actual / Rolling Forecast 2013 Estimated Distribution Income and Capital Gains

2012 2013

Westcourt Private Wealth for Golf Canada 5

a) The dollar figures in 'YTD Total Return ($1,003,785) are additive. The final figure is the total amount of gain inclusive of

capital and distributions over that time period

b) The percentage gain in 'YTD Total Return (%)' represents the percentage gain of that strategy over that time period (irrespective

of the dollar amount allocated to that strategy), and the total gain of 3.34% is not additive of the individual strategy gains (being Income,

Equity, and Alternative)

c) The total portfolio return of 3.10% is the weighted average of the individual strategy returns and their weights in the portfolio over that

a) To preserve the capital in the Portfolio

Investment Objectives

b) To provide total returns on the Portfolio (with adequate liquidity) which may be used by Golf Canada to fund initiatives to fulfill its

mandate; and specifically,

time period and includes capital and distributions

c) To obtain a 5-year annualized total return, net of fees, of 6.0%, with volatility not exceeding the actual total return on invested assets.

The long-term total return objective will be reviewed no less than annually to assess whether it accurately reflects the current market

environment.

Notes on understanding the Total Portfolio Gains on Page 2

Westcourt Private Wealth for Golf Canada 6

Investment Guidelines

c) Currency: The Portfolio may include investments denominated in any currency without restriction. The Committee may, at any time,

place guidelines and/or restrictions regarding exposure to foreign currency risks, to be followed by the IMs. If necessary, a currency

hedging program may be initiated on the entire Portfolio. Notwithstanding the fact that investments may be in various currencies,

reporting on the Portfolio as a whole shall be in Canadian dollars.

a) Prohibited Investments include but are not limited to:

- investments precluded by law or regulation;

- Investments specifically proscribed by the Board; and

diversification requirements are as follows:

Diversification relative to a single security: At no time should a single security holding represent more than 2% of the outstanding

investable assets of the Portfolio. This limit does not apply to a security whose purpose is to provide exposure to a widely diversified

Investment Guidelines

- Investments in asset classes or investment strategies not contemplated in any part of the IPS, without the prior written consent of the

Committee

b) Diversification: To limit the Portfolio’s risk associated with potential concentration in securities and/or Investment Funds,

set of other securities, such as an ETF, total return swap, or futures contract.

Diversification relative to a single Investment Fund: Any Investment Fund operating within any asset class should not manage more

than 25% of the outstanding investable assets of the Portfolio at the time the investment is made. This sub-section does not preclude

the possibility that investment in multiple Investment Funds owned by the same entity may aggregately represent more than 25% of

the outstanding investable assets of the Portfolio. In the event that an increase in value of such an investment (or a decrease in value in

the balance of the Portfolio) results in an individual investment in and Investment Fund representing more than 25% of the portfolio,

the CIO shall report to the Committee without delay. The CIO will recommend a plan to bring the holdings in compliance with the IPS

in an appropriate time period.

Westcourt Private Wealth for Golf Canada 7

HOLDINGS CURRENT AMOUNT** % OF PORTFOLIORISK

RANKING

INCOME $9,331,460 36.10%

BONDS $5,396,802 20.88%PH&N Short Term Bond & Mortgage $3,869,282 14.97% A

Hahn Global Balanced (FI Portion) $546,461 2.11% B

Hahn International Income Focus (FI Portion) $981,059 3.80% B

REAL ESTATE & INFRASTRUCTURE $3,934,658 15.22%

PH&N Mortgage Pension Trust $3,108,394 12.03% A

O'Leary Global Infrastructure Yield $826,264 3.20% C

EQUITY $2,896,678 11.21%

DIVIDEND/GLOBAL EQUITY $2,896,678 11.21%

PH&N Dividend Income $1,259,723 4.87% C

Hahn Global Balanced (Equity Portion) $1,060,777 4.10% C

Hahn International Income Focus (Equity Portion) $576,178 2.23% C

ALTERNATIVES $13,619,060 52.69%

Very Low Risk $3,005,534 11.63% A 38.6%

RP Fixed Income Plus $3,005,534 11.63% A B 40.1%

C 21.2%

Low Risk $8,848,844 34.24% 100.00%

Picton Mahoney Market Neutral $2,106,241 8.15% B

Curvature Market Neutral $1,031,557 3.99% B

Centurion Apartment REIT $1,039,030 4.02% B

RP Debt Opportunities Fund $1,119,415 4.33% B

SW8 Strategy Fund $875,502 3.39% B

Arrow Raven Rock Income $1,072,519 4.15% B

HarbourEdge MIC $800,000 3.10% B

Morisson Laurier MIC $804,580 3.11% BVery Low Risk 22.1%

Riskier $1,764,682 6.83% Low Risk 65.0%

Vision Capital LP $753,882 2.92% C Riskier 13.0%

RoundTable Canadian Dividend & Income $1,010,800 3.91% C 100.00%

TOTAL $25,847,198 100.00%

D"Speculative". These fall under the 'Riskier" category but are more risky, usually because they involve investments into

start-ups or extremely volatile asset classes. They are not suitable for this portfolio.

C"Riskier". These investments are generally un-hedged equity investments that have higher volatility. They bring higher

returns but have greater volatility that makes them susceptible to larger losses at times of financial crisis.

APPENDIX A - EXPANDED ALTERNATIVE DEFINITION

A"Very low risk". This ranking implies little chance of losing money over any period, and is generally associated with low

duration, investments-grade debt instruments only

"Low Risk". These investments are either low-volatility investments that have some operational or credit risk but are

unlikely to have much volatility, or more volatile asset classes with "risk overlays" that mitigage losses in times of crisisB

37.8%

42.3%

19.9%

Portfolio Risk Allocation

A B C

14.9%

70.5%

14.6%

Alternatives Risk Allocation

Very Low Risk

Low Risk

Riskier