NORREP ALTERNATIVE STRATEGIES MONTHLY FUND SUMMARIES · investable cash and ... $KLJKQXPEHULQGLFDWHVDPRUHXVHIXOEHWD4JXUH Standard Deviation i a meaurement o inetment olatility up

NORREP ALTERNATIVE STRATEGIES

MONTHLY FUND SUMMARIES

AS AT NOVEMBER 30, 2016

TABLE OF CONTENTS

Fund Performance

Norrep Market Neutral Income Fund

Norrep Canadian Enhanced Equity Fund

Norrep Enhanced Credit Fund

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4

6

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By combining cutting-edge techniques to reduce risk, increasing investable cash and driving outperformance with Norrep’s proven methodology, our experienced Portfolio Mangers have expanded the scope of what an investment can do, creating an opportunity to add a valuable form of diversity to your portfolio

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FUND PERFORMANCE SUMMARIES

Fund YTD 1Y 3Y 5Y 10Y 15YSince

Inception Inception Date

FundYield

Target1

ALTERNATIVE STRATEGIES

Norrep Market Neutral Income Fund -4.6% -5.2% -0.1% 3.3% - - 4.8% Dec 31, 2010 4.0%

Norrep Canadian EnhancedEquity Fund 16.0% 11.4% - - - - 8.1% Jan 31, 2015 3.0%

Norrep Enhanced Credit Fund2 7.2% 3.7% 4.2% 7.5% - - 7.3% Jun 30, 20113 6.0%

as at November 30, 2016

All performance F Series as of November 30, 2016, net of fees, annualized, unless otherwise stated. Commissions, trailing commissions, management fees and expenses all may be associated with investments. Please read the offering memorandum before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income tax-es payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect the future values or returns in any Fund. These funds are available for sale to Accredited Investors, BC residents by Offering Memorandum or with a minimum purchase of $150,000 by a non-individual, and are subject to resale restrictions under applicable securities laws.

NOTES

1. Target yields for all funds are reviewed annually and set on December 31st of each year.

2. I Series

3. A and F Series launched April 22, 2015. I series performance starts on June 30, 2011. See fund summary.

PERFORMANCE

1 month 3 month 6 month YTD 1 year 3 year 5 year Inception

F -1.0% -2.7% -2.5% -4.6% -5.2% -0.1% 3.3% 4.8%

A -1.1% -3.0% -3.1% -5.6% -6.2% -1.2% 2.2% 3.8%

VALUE OF $10,000 INVESTED AT INCEPTION

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

$16,000

201620152014201320122011

$13,229

UNCORRELATED RETURNSPercentage of Positive Months Number of Positive Months Average Monthly Return

Up Markets1 53.5% 23/43 0.2%

Down Markets1 57.1% 16/28 0.8%

Overall1 54.9% 39/71 0.4%1. Based on the S&P TSX Composite Total Return Index

2016 Paid Distributions $0.363




DISTRIBUTIONS

NORREP MARKET NEUTRALINCOME FUND

MONTHLY SUMMARY AS AT November 30, 2016

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

2011 -0.8% 2.6% 1.8% -2.0% 1.9% -0.1% 0.9% 4.8% 1.7% -1.2% 2.6% -0.2% 12.3%

2012 -1.8% 1.2% 2.3% 3.3% 1.7% 1.9% 3.3% -0.8% -1.9% 1.9% -0.8% -1.9% 8.5%

2013 0.3% 1.0% 2.6% -0.1% 1.7% -0.5% 1.1% -1.3% -0.9% 3.5% 1.2% -0.7% 8.4%

2014 0.7% 2.0% 0.8% 0.2% 0.7% 0.8% 0.3% -0.8% -1.3% 2.0% -1.3% -3.4% 0.7%

2015 4.1% -2.3% 1.8% -1.9% 1.9% -0.2% 2.3% -0.6% 1.7% -2.0% 0.5% -0.6% 4.7%

2016 -1.2% -2.7% 2.0% 1.8% -1.9% 0.8% 1.0% -1.6% -1.3% -0.4% -1.0% - -4.6%

MONTHLY PERFORMANCE

Who don’t want large-scale movements in markets to affect their investments and who want to receive a quarterly distributionFOR INVESTORS

Paid Quarterly

NAV/Share F Series: $10.41 A Series: $9.76

A Canadian absolute return fund designed to achieve positive returns regardless of market direction, providing low volatility and a targeted annual distribution of 4.0% to help with downside protection.

Aggregate of eligible and capital gains dividends paid. Complete list and breakdown available at norrep.com.

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SECTOR EXPOSURE

Trailing P/E Trailing ROE Earnings Surprise QEM Dividend Yield

Longs 16.4x 14.1% 2.6% 5.5% 3.5%

Shorts 30.7x 4.3% 0.1% 3.7% 3.1%

Number of Longs 42

Number of Shorts 54

Number of Bonds 18

Percent Long 89%

Percent Short 89%

Percent Bond 88%

Modified Duration (years) 2.3

S&P/TSX TRI

Norrep Market Neutral Income Fund

Average Monthly Return Since Inception 0.4% 0.4%Average Monthly Return In Up Markets 2.1% 0.2%

Average Monthly Return In Down Markets -2.1% 0.8%

Maximum Drawdown2 -16.5% -6.5%

Standard Deviation3 9.3% 6.1%

Correlation3 - -0.09

Beta3 - -0.062. Based on monthly performance 3. Since Inception

Except where indicated otherwise, F Series data as of November 30, 2016, net of fees, annualized. Norrep Market Neutral Income Fund is available for sale to Accredited Investors, BC residents by Offering Memorandum or with a minimum purchase of $150,000 by a non-individual, and is subject to resale restrictions under applicable securities laws. The fund is not guaranteed, unit values changes frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses all may be associated with this investment. Indicated rates of return are the historical annual compound total returns including changes in unit value and reinvestment of all dividends and distributions and do not take into account sales, redemption, distribution or optional charges or income tax payable by any security holder, if any, that would have reduced returns. The rate of return is used to illustrate the effects of the compound growth rate and is not intended to reflect future sales of the fund or returns on investment in the fund.

Fund Codes NRP3100 (F)NRP3101 (A)

Net Assets $98.2 Million

Inception December 31, 2010

CIFSCCategory

AlternativeStrategies

Risk Rating Low to Medium

Management FeeF SeriesA Series

0.90%1.90%

Capped MERF SeriesA Series

1.25%*2.25%*

Portfolio Manager

Norrep Capital Management Ltd.

Auditor KPMG LLP

Custodian CIBC Mellon Trust Company

Transfer Agentand Registrar

CIBC Mellon Global Securities ServicesCompany

*Does not include performance bonus.

Source: CPMS

Keith Leslie, CFAChief Risk Officer and Portfolio Manager

PORTFOLIO MANAGER

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www.norrep.com

*Does not include performance bonus or taxes.

Canadian absolute return fund targeting positive returns in both up and down markets

Provides low volatility with returns uncorrelated to the market

Pays a targeted annual distribution of 4.0% to help with downside protection

13.6%

15.0%

10.0%

10.6%

5.1%

0.0%

6.1%

2.3%

2.7%

5.1%

19.1%

-13.6%

-15.0%

-10.0%

-10.6%

-5.1%

-0.0%

-6.1%

-2.3%

-2.7%

-5.1%

-19.1%

PERFORMANCE

1 month 3 month 6 month YTD 1 year Inception

F 0.0% -0.2% 5.0% 16.0% 11.4% 8.1%

A -0.1% -0.4% 4.6% 14.9% 10.3% 7.0%

2015

F -0.6% 1

A -1.5%1

1. 2015 return begins with January 31 inception

NORREP CANADIANENHANCEDEQUITY FUND


Who want exposure to Canadian equities in a fund that has additional choices for downside protectionFOR INVESTORS

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DISTRIBUTIONS


$9,000

$9,500

$10,000

$10,500

$11,000

$11,500

$12,000

20162015

$11,529

Paid Quarterly

Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive cor-relation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard Deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).

METRICS SINCE INCEPTIONBeta Correlation R-squared Standard Deviation

0.93 0.90 81.2 9.2%

NAV/Share F Series: $10.95 MF Series: $10.75

A ‘130/30’ fund that uses both long and short positions to reduce risk, while also paying a targeted annual distribution of 3.0%. The Fund is ideal for experienced investors looking for innovative means to enhance returns.

Fund Codes NRP 5100 (F)NRP 5101 (A)


Inception January 31, 2015

CIFSC Category

AlternativeStrategies

Risk Rating Medium

Management Fee F SeriesA Series

1.00%*2.00%*

Benchmark Index S&P/TSX Composite Total Return Index

Portfolio Manager


Auditor KPMG LLP


Transfer Agent and Registrar

CIBC Mellon Global Securities Services Company

*Does not include performance bonus.PORTFOLIO WEIGHTS

Bank of Montreal CCL Industries Inc.

BCE Inc. Enbridge Inc.

Canadian Imperial Bank of Commerce Kirkland Lake Gold Inc.

Canadian National Railway Company Royal Bank of Canada

Capital Power Corporation Sun Life Financial Inc.

TOP TEN HOLDINGS LISTED ALPHABETICALLY

Except where indicated otherwise, F Series data as of November 30, 2016, net of fees, annualized. Norrep Canadian Enhanced Equity Fund is available for sale to Accredited Investors, BC residents by Offering Memorandum or with a minimum purchase of $150,000 by a non-individual, and is subject to resale restrictions under applicable securities laws. The fund is not guaranteed, unit values changes frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses all may be associated with this investment. Indicated rates of return are the historical annual compound total returns including changes in unit value and reinvestment of all dividends and distributions and do not take into account sales, redemption, distribution or optional charges or income tax payable by any security holder, if any, that would have reduced returns. The rate of return is used to illustrate the effects of the compound growth rate and is not intended to reflect future sales of the fund or returns on investment in the fund.

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Keith Leslie, CFAChief Risk Officer and Portfolio Manager

PORTFOLIO MANAGER18+14+7+5+4+0+26+4+5+7+4+0+6+0+0+G<Energy (18.0%) <Basic Materials (14.1%) <Industrials (7.4%) <Consumer Discretionary (5.4%) <Consumer Staples (4.0%) <Financials (25.9%) <Information Technology (3.9%) <Telecommunications (5.1%) <Utilities (6.8%) <Real Estate (3.8%) <Net Cash (5.5%)

www.norrep.com

Canadian Equity Fund with more choices than a standard long-only mutual fund through its use of long and short positions to provide enhanced portfolio returns with additional downside protection

In normal times, the fund will invest 130% of its assets in long positions and 30% of its assets in short positions for 100% net market exposure

Pays a targeted annual distribution of 3.0%

Long Positions S&P/TSX Composite Index Short Positions

Trailing P/E 15.0x 20.6x 22.9x

Trailing ROE 15.3% 11.5% 4.9%

Earnings Surprise 2.7% 1.9% -2.6%

Earnings Momentum (QEM) 3.9% 1.0% 0.4%

Dividend Yield 3.1% 2.8% 3.3%

Cash Flow / Debt 0.31 0.30 0.21

Source: CPMS

PORTFOLIO ATTRIBUTES

PERFORMANCE

NORREP ENHANCEDCREDIT FUND


Who want a versatile fund with a flexible approach to investing in the North American high yield credit marketFOR INVESTORS

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DISTRIBUTIONS


$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

201620152014201320122011

$14,650

Paid Quarterly

Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive corre-lation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard Deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).

THREE YEAR METRICSBeta Correlation R-squared Standard Deviation

1.05 0.83 68.9 4.9%

1 month 3 month 6 month YTD 1 year 3 year 5 year Inception

F -0.6% 0.6% 3.6% 6.1% 2.5% - - -0.5%

A -0.7% 0.3% 3.0% 5.0% 1.4% - - -1.6%

I -0.5% 0.9% 4.1% 7.2% 3.7% 4.2% 7.5% 7.3%

2011 2012 2013 2014 2015

F - - - - -6.5%1

A - - - - -7.2%1

I 2.7%2 14.0% 11.9% 4.6% -0.3%

NAV/Share I Series: $9.44 A Series: $9.11 F Series: $9.28

A Credit Fund that invests principally in corporate bonds and senior secured loans. To enhance the Fund’s risk-adjusted return profile, the Fund has the ability to dynamically adjust/hedge its interest rate and credit exposure through short positions in government bonds or in select high yield corporate bonds.

1. 2015 return begins with April 22 inception 2. 2011 return begins with June 30 inception

Except where indicated otherwise, I Series data as of November 30, 2016, net of fees, annualized. Norrep Enhanced Credit Fund (Fund) continues the investment strategy of Centurion Credit Class (Centurion), which was a separate share class of Norrep Opportunities Corp (NOC). Centurion was established on June 30, 2011 and distributed securities to investors by private placement. Prior to offering Units of the Fund, Norrep Capital Management Ltd. (Norrep), on behalf of the Fund, arranged for the transfer of all of the assets held by Centurion to the Fund at fair market value in exchange for Series I Units. The management fee paid to Norrep in respect of Series I Units is paid directly to Norrep pursuant to a Series I agreement between each holder and Norrep, as was the management fee paid in respect of Series I shares of Centurion. In both cases, if the management fee was charged directly by Centurion or the Fund, the returns disclosed would be reduced to that extent. The performance of A Series and F Series Units will be reduced by the management fees charged by the Fund. Refer to the Offering Memorandum and financial statements of the Fund for further details. The Fund is available for sale to Accredited Investors, BC residents by Offering Memorandum or with a minimum purchase of $150,000 by a non-individual, and is subject to resale restrictions under applicable securities laws. Series I minimum investment requirement is $500,000. The Fund is subject to a performance fee. The Fund is not guaranteed, unit values changes frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses all may be associated with this investment. Indicated rates of return are the historical annual compound total returns including changes in unit value and reinvestment of all dividends and distributions and do not take into account sales, redemption, distribution or optional charges or income tax payable by any security holder, if any, that would have reduced returns. The rate of return is used to illustrate the effects of the compound growth rate and is not intended to reflect future sales of the fund or returns on investment in the fund. Performance of Series I shown discloses the performance of Series I shares of Centurion from June 30, 2011 until April 22, 2015. Performance after April 22, 2015 is performance of Series I Units of the Fund. 9

Government Bonds 0.0%

Investment Grade Bonds 0.0%

High Yield Bonds 38.3%

Senior Loans 24.9%

Asset Backed Securities 0.0%

Net Cash 55.6%

Short Positions -18.9%

Total 100%

PORTFOLIO COMPOSITION

Internal Yield 4.2%

Yield to Maturity 4.1%

Modified Duration (years) 0.6

Holdings 22

PORTFOLIO ATTRIBUTES

PORTFOLIO WEIGHTSAAA -18.9%

AA 0.0%

BB 13.2%

B 44.1%

CCC 2.2%

NR 3.7%

Net cash 55.6%

Total 100.0%

2+43+0+0+0+0+0+0+0+0+0+55+0+0+H<Canada (1.7%) <United States (42.7%) <Net Cash (55.6%)

Fund Codes NRP6100 (F)NRP6101 (A)NRP6105 (I)


InceptionSeries A, FSeries I

April 22, 2015June 30, 2011

CIFSCCategory

Alternative Strategies

Risk Rating Medium

Management Fee F SeriesA SeriesI Series

1.00%*2.00%*See disclaimer

Benchmark Index 25% Merrill Lynch Canada High Yield Canadian Issuers Index 25% Merrill Lynch U.S. High Yield Master II 50% Credit Suisse Leveraged Loan Index

Portfolio Manager


Auditor KPMG LLP


Transfer Agent and Registrar

CIBC Mellon Global Securities Services Company

*Does not include performance bonus.

Bill Holy, MBA, CFAVice President and Portfolio Manager

Owen Morgan, MBA, CFAPortfolio Manager

MANAGEMENT TEAM

www.norrep.com

Credit Fund with more choices than a standard long-only mutual fund through its use of long and short positions to provide enhanced portfolio returns

Unique strategy of overweighting floating rate senior secured loans and/or high yield corporate bonds, depending on market conditions, helps manage credit and interest rate risk

In normal times the fund will invest up to 130% of its assets in US and Canadian high yield bonds and senior secured loans and up to 30% of its assets in short positions (typically US Treasuries) for 100% net market exposure

NOTES

To be a leading global investment manager, providing unrivalled investment solutions, delivering exceptional long-term performance and being a trusted partner to our clients.

NORREP’S VISION

CONTACT US

Calgary Barclay CentreSuite 1100, 606 - 4 Street SWCalgary, Alberta T2P 1T1

Toronto TD North TowerSuite 4330, 77 King Street WestToronto, Ontario M5K 1H6

403.531.2650 phone1.877.531.9355 client services1.877.431.1407 sales & [email protected]

www.norrep.com

MAKING ACTIVE MANAGEMENT COUNT™

Documents

NORREP ALTERNATIVE STRATEGIES MONTHLY FUND SUMMARIES · investable cash and ... $KLJKQXPEHULQGLFDWHVDPRUHXVHIXOEHWD4JXUH Standard Deviation i a meaurement o inetment olatility up