Portfolio Review – First Quarter 2018

Q1

Portfolio Review – xxx Quarter 20xx

Evolution 100i Model Portfolio

3

Portfolio Review – First Quarter 2018 as at March 31, 2018

Evolution 100i Model PortfolioStandard geographic asset allocation and blend of investment styles

OverviewDiversified portfolios capture gains from asset classes and security types that are performing well, while limiting exposure to those that are underperforming. Evolution’s portfolios are diversified not only across asset classes such as equities, bonds and real estate, but also by country, market capitalization, industry sector and investment style. CI Multi-Asset Management combines its portfolio construction expertise with ongoing comprehensive research and recommendations from State Street Global Advisors, one of the world’s largest investment management companies, to create portfolios designed to capture evolving opportunities in the various asset classes. Each Evolution portfolio consists of a number of United and CI mutual funds. The information in the Portfolio Performance and Activity sections below is an aggregate of the underlying funds that make up the portfolio.

Portfolio PerformanceBased on net returns and representative of Class E shares of the underlying United Funds. Returns are rounded to one decimal place.

1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Since Inception (September 2008)

0.5% 0.0% 1.2% 0.0% 0.8% 3.1% 4.2%

ActivityThis report is designed to provide you with an up-to-date look at the Evolution 100i Model Portfolio, including the allocations by type of underlying investment, currency exposure and bond term. The arrows indicate whether the allocation for each category has increased or decreased since the previous quarter-end.

47.3%18.8%16.5%9.6%5.6%2.1%

— — — — — —

11.1%25.6%13.2%14.8%17.2%2.7%

15.4%

— — —————

70.7%21.3%4.5%3.5%

— — — —

Bond Term

Underlying Investments Currency Exposure

47,3 %18,8 %16,5 %9,6 %5,6 %2,1 %

— — — — — —

— — —————

11,1 %25,6 %13,2 %14,8 %17,2 %2,7 %

15,4 %

70,7 %21,3 %4,5 %3,5 %

— — — —

Durée des obligations

Placements sous-jacents Exposition aux devises

▲ Government bonds▲ High-yield bonds▼ Investment-grade corporate bonds▲ Equities▼ Cash▼ REITs, trusts

▲ Canadian dollar▼ U.S. dollar▲ Other▲ Euro

▼ <1 Year▲ 1-3 Years▼ 3-5 Years▼ 5-7 Years▼ 7-10 Years▼ 10-20 Years▲ >20 Years

4

Portfolio Review – First Quarter 2018 as at March 31, 2018

Evolution 100i Model PortfolioStandard geographic asset allocation and blend of investment styles

Portfolio Target Allocations

Income 100%

Canadian Fixed Income Corporate Class 40%

Enhanced Income Corporate Class 40%

Global Fixed Income Corporate Class 20%

Bond Information

Portfolio yield (approx.) 3% ▲

Duration in years 6.1 ▲

Average credit quality A- ■Credit quality under B 2.% ▲

Top Ten Holdings

Canada Gov't Bond 1% 01Jun27 2.6%

iShares 20+ Year Treasury Bond ETF 2.4%

Canada Gov't Bond 1.25% 01Feb20 2.2%

Canada Gov't Bond 2.75% 01Dec64 2.0%

Canada Gov't Bond 1.25% 01Nov19 1.8%

Canada Gov't Bond 1.75% 01Mar23 1.8%

Canada Gov't Bond 1% 01Sep22 1.6%

iShares JP Morgan USD Emerg Mkt Bond ETF 1.6%

Canada Gov't Bond 1.5% 01Mar20 1.5%

British Columbia Province 3.2% 18Jun44 1.3%

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Portfolio Review – First Quarter 2018 as at March 31, 2018

Evolution 100i Model PortfolioStandard geographic asset allocation and blend of investment styles

Portfolio CommentaryThe portfolio had no gain during the quarter, slightly underperforming its

benchmark (FTSE TMX Canada Universe Bond Index), which rose 0.1%.

Global bonds and U.S.-dollar exposure made positive contributions

to relative performance, while diversified exposure to global listed

real estate, infrastructure and dividend-paying equities detracted. The

portfolio’s positioning provided strong downside protection during

periods of volatility.

Global equity markets soared in January, continuing 2017’s gains. In early

February, however, market volatility resurfaced and stocks declined, as

very positive U.S. economic data prompted investor concerns about rising

inflation. Valuations recovered during the ensuing weeks, but markets

were roiled again in late March by rising international trade tensions.

The North American energy and materials sectors were among the weakest

during the quarter. Information technology was a top performer, although

gains achieved early in the period were reduced by later losses. The S&P/

TSX Composite Index lagged global equity markets due to its heavy

weightings in the resource sectors and its under-representation in sectors

that outperformed, including information technology. The Canadian dollar

depreciated against its U.S. counterpart, which created positive returns in

foreign markets for Canadian investors after currency conversion.

Central banks worldwide continued to weigh their options for scaling back

monetary policies designed to stimulate the economy. Despite continuing

economic growth, the Bank of Canada in early March maintained the

target for its key overnight interest rate at 1.25%, citing international

trade uncertainties. The U.S. Federal Reserve, under new Chairman

Jerome Powell, raised its target range for the federal funds rate by one-

quarter of a percentage point, based on a stronger economic outlook.

This was in line with market expectations. Government bond yields rose

early in the quarter, reflecting the market’s optimism for continued global

growth and expectations of higher interest rates.

Our core goals for the portfolio remain preserving capital and outpacing

inflation over a three-year period. We focus on careful portfolio

construction and asset allocation, built on a foundation of government

bonds for safety and income. Interest rate sensitivity is hedged by

diversifying into other asset classes, such as gold bullion, corporate bonds

and stocks. Within the corporate bond portion, we maintain a short term

to maturity as we near the latter stages of the economic cycle, when credit

defaults could become more frequent.

Currency hedging detracted from relative performance during the quarter,

after playing a positive role in 2017 when it mitigated some foreign

investment losses. Nonetheless, we continue to attempt to limit the

effects of exchange rate fluctuations by maintaining our long-standing,

partial hedge on the portfolio.

Our market outlook has not changed from the previous quarter, and we

believe equity valuations are nearing their peaks. While we believe it is

possible for corporate earnings to continue to grow, market prosperity could

be threatened by macroeconomic developments in such areas as global

trade, credit conditions, sovereign and household debts, and central bank

policies. We will monitor these threats closely and will continue to use

derivatives to help manage the risk of stock market decline.

The U.S. deficit and debt expansion are significant concerns, as we believe

these will weaken the U.S. dollar. We are decreasing our U.S. exposure by

selling assets denominated in the greenback and increasing our hedge ratio.

With correlation increasing between asset classes (equities and bonds)

and declining among stock prices, true active management – employing

both asset allocation and security selection – is more important than

ever. Moreover, active management thrives during periods of high market

volatility, while a passive approach is exposed to the fluctuations of the

entire market.

Alfred Lam, CFA, Senior Vice-President and Chief Investment Officer Yoonjai Shin, CFA, Vice-President and Portfolio Manager Marchello Holditch, CFA, Vice-President Milica Stojanovic, Associate Director Andrew Ashworth, MBA, CFA Desta Tadesse, Analyst Zoe Li, Junior Analyst

Portfolio management teamsIn the Evolution Private Managed Accounts program

Evolution Private Managed Accounts is a program that provides strategic asset allocation across a series of portfolios comprised of United and CI mutual funds and is managed by CI Investments Inc. (“CII”). Evolution Private Managed Accounts is not a mutual fund. CII provides portfolio management and investment advisory services as a registered advisor under applicable securities legislation.

Evolution Private Managed Accounts is available through Assante Financial Management Ltd. and Assante Capital Management Ltd., affiliates of CII. The principal business of CII is the management, marketing, distribution and administration of mutual funds, segregated funds and other fee-earning investment products for Canadian investors. If you invest in CII products, CII will earn ongoing asset management fees in accordance with applicable prospectus or other offering documents.

All commentaries are published by CII, the manager of all the funds described herein. They are provided as a general source of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort has been made to ensure that the material contained in the commentaries is accurate at the time of publication. However, CII cannot guarantee their accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein.

This report may contain forward-looking statements about the funds, future performance, strategies or prospects, and possible future fund action. These statements reflect the portfolio managers’ current beliefs and are based on information currently available to them. Forward-looking statements are not guarantees of future performance. We caution you not to place undue reliance on these statements as a number of factors could cause actual events or results to differ materially from those expressed in any forward-looking statement, including economic, political and market changes and other developments.

All indexes quoted in this document are reported on a total return basis, which assumes the reinvestment of all dividends and other cash distributions.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of an asset allocation service. Please read the prospectus of the mutual funds in which investment may be made under the asset allocation service before investing. The indicated rates of return are the historical annual compounded total returns assuming the investment strategy recommended by the asset allocation service is used and after deduction of the fees and charges in respect of the service. The returns are based on the historical annual compounded total returns of the participating funds including changes in share unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder in respect of a participating fund that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ™Signature Global Asset Management, Signature Funds and CI Multi-Asset Management are trademarks of CII.® Evolution, Cambridge, CI Investments, the CI Investments design, Harbour Advisors and Harbour Funds are registered trademarks of CII. Cambridge Global Asset Management is a division of CII. Certain funds associated with Cambridge Global Asset Management are sub-advised by CI Global Investments Inc., a firm registered with the U.S. Securities and Exchange Commission and an affiliate of CII. ™1832 Asset Management L.P. and the 1832 Asset Management design are trademarks of The Bank of Nova Scotia, used under licence. All trademarks used under licence. Published May 2018.

1804-0713_E (05/18)

For more information on Evolution Private Managed Accounts, please contact your advisor or visit www.assante.com