Report Card Quarter Ending December 31, 2013 Date: Prepared for:, Compliments of: IPC Investment Corporation or IPC Securities Corporation,, Phone: Email:

Report Card Quarter Ending December 31, 2013

Date: <Date>

Prepared for:

<Client Name(s)>

<Address>

<City>, <Prov>

<Postal Code>

Compliments of:

<Advisor Name>

IPC Investment Corporation or

IPC Securities Corporation

<Street Address>

<City>, <Prov>, <Postal Code>

Phone: <Telephone Number>

Email: <Email address>

Website: www.ipcc.ca

The Report Card provides a comprehensive review of past, current and potential factors that may impact your investments. Our goal is to continuously monitor your investments to help you meet your financial objectives.

About This Report• Comments in Report Card refer to last three and 12 months.

• Market discussions related to indices and do not analyze or reflect personal investments.

• We review performance, risk management and overall effectiveness of each sub-advisor and underlying fund manager.

• Counsel investment solutions adopt a long-term approach to investing. Each portfolio solution diversified to reflect appropriate:

– Asset mix

– Geographic allocation

– Investment style

• Benchmarks for each Counsel investment solution can be found at end of presentation.

Agenda

1. Market and economic overview

2. What our investment specialists say

3. Review of Counsel investment solutions

4. Benchmarks and Disclaimers

1. Market and Economic Overview

Global Stock Markets: Index Movements

Performance is calculated using local currency. Data as at: December 31, 2013Source: Morningstar Direct, Counsel Portfolio Services

• Quantitative easing (QE) continues to influence

• Leaders: U.S. and Japan, United Kingdom and Germany – (QE’ing frenzy)

• Mediocre: rest of Europe (sense of recovery)

• Laggards: China, Brazil (no QE in place – makes commodities weaker; this impacts on commodity based countries like Canada and Australia)

• Biggest risk is “recency bias”

Source: Morningstar

1 Year

•QE + low rates: helped equities (Risk ON)

•Fears of reduction in QE: hurt Fixed Income (Risk OFF)

A bi-polar world – those that QE and those that don’t

Source: Morningstar

0.00

2.00

4.00

6.00

8.00

10.00

12.00

October-13 November-13 December-13

S&P/TSX Composite TR S&P 500 TR CAD MSCI EAFE GR CAD DEX Universe

3 Months

• The fear of large tapering is off the table – equities breathed a large sigh of relief.

• The concern is that much of the rise in the equity markets is based on low volumes and large margin debt.

Canadian Dollar Performance

• China slowing and the Iran/U.S. accord meant oil and geographic risks were lower – this impacted commodity based countries like Canada.

• U.S. prospects seemingly looking better helped the U.S. dollar vs. Canadian dollar.

• Stability in Europe (no more scares from the weaker nations) helped the euro vs. the Canadian dollar.

• Bank of Canada governor has stated that a lower Canadian dollar will support exports – can expect Canadian dollar to go lower.

CAD vs. U.S. Dollar CAD vs. Euro

Source: Bank of Canada

0.88

0.9

0.92

0.94

0.96

0.98

1

1.02

1.04

12/3

1/20

12

1/31

/201

3

2/28

/201

3

3/31

/201

3

4/30

/201

3

5/31

/201

3

6/30

/201

3

7/31

/201

3

8/31

/201

3

9/30

/201

3

10/3

1/20

13

11/3

0/20

13

12/3

1/20

13

0.62

0.64

0.66

0.68

0.7

0.72

0.74

0.76

0.78

0.8

12/3

1/20

12

1/31

/201

3

2/28

/201

3

3/31

/201

3

4/30

/201

3

5/31

/201

3

6/30

/201

3

7/31

/201

3

8/31

/201

3

9/30

/201

3

10/3

1/20

13

11/3

0/20

13

12/3

1/20

13

Canada: Equities Vs. Bonds

• The fear of tapering hurt bonds – it’s the uncertainty of what might happen.

• Yields in equities are greater than fixed income, hence the move to higher yielding equities.

• Canadian equities also moved up with the momentum of U.S. equities.

• Fixed income is not only a yielding component of a portfolio but is also an important diversification tool. There is almost always a place for fixed income.

Short-term: Equities vs. Bonds Long-term: Equities vs. Bonds

Source: Globe and Mail

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

1 Month 3 Month 6 Month 1 Year

DEX Universe S&P/TSX Composite TR

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

3 Year 5 Year 10 Year 15 Year 20 Year

DEX Universe S&P/TSX Composite TR

Canadian Market Overview

• Materials - Commodities, especially gold was hurt by the increasing U.S. Dollar.

• Utilities were hurt because the yields are lower.

• The rest of the market was strong, mainly on the back of buoyancy in the U.S. market.

Investment Style Market Cap

Source: Morningstar Direct Source: Morningstar Direct

3/2013 6/2013 9/2013 12/20139.8K

10K

10.2K

10.4K

10.6K

10.8K

11K

11.2K

11.4K

11.6K

11.8K

12K

Investment Name Value

MSCI Canada Growth GR CAD (Market Return, CAD, Pre... 11.19K MSCI Canada Value GR CAD (Market Return, CAD, Pre-... 11.94K

MSCI Canada Value GR CAD

Time Period: 12/31/2013

Value: 11,940.70

Cumulative Return from 12/1/2012: 19.41%

MSCI Canada Growth GR CAD


Value: 11,188.32


Source: Morningstar Direct

MSCI Canada Growth Index

MSCI Canada Value Index.

3/2013 6/2013 9/2013 12/20139.2K

9.4K

9.6K

9.8K

10K

10.2K

10.4K

10.6K

10.8K

11K

11.2K

11.4K

11.6K


S&P/TSX 60 TR (Market Retu... 11.43K S&P/TSX Completion TR (Mar... 11.33K S&P/TSX Small Cap TR (Mark... 10.93K

S&P/TSX 60 TR


Value: 11,434.05


S&P/TSX Completion TR


Value: 11,327.61


S&P/TSX Small Cap TR


Value: 10,926.38



S&P TSX 60 Total Return

S&P TSX Completion Total Return

S&P TSX Small Cap Total Return

Market SectorYear-on-

YearYear-to-

dateQ4

2013Energy 13.32 13.32 4.19Materials - 29.11 - 29.11 - 1.98Industrials 37.55 37.55 16.28Consumer Discretionary 43.04 43.04 7.96Consumer Staples 23.57 23.57 4.08Healthcare 44.20 44.20 9.29Financials 26.78 26.78 10.69Info. Technology 36.12 36.12 8.78Telecom Services 11.38 11.38 5.97Utilities - 4.44 - 4.44 3.06

U.S. Market Overview

• Obamacare helped boost Healthcare stocks, especially the insurers.

• Liquidity has been the wind behind the sails of the U.S. economy.

• Utilities and telecom services performed the weakest because of their lower yields.

Investment Style

Returns measured in U.S. dollar terms

Market Cap

Source: Morningstar Direct Source: Morningstar Direct

3/2013 6/2013 9/2013 12/201310K

10.5K

11K

11.5K

12K

12.5K

13K

13.5K

14K


Russell 1000 Growth TR USD (Market Return, USD, Pre-... 13.58K Russell 1000 Value TR USD (Market Return, USD, Pre-T... 13.47K

Russell 1000 Growth TR USD


Value: 13,584.62


Russell 1000 Value TR USD


Value: 13,465.84



Russell 1000 Value Index

Russell 1000 Growth Index

3/2013 6/2013 9/2013 12/201310K

10.5K

11K

11.5K

12K

12.5K

13K

13.5K

14K

14.5K


S&P 500 TR USD (Market Ret... 13.46K S&P MidCap 400 TR (Market ... 13.56K S&P SmallCap 600 TR USD (... 14.41K

S&P SmallCap 600 TR USD


Value: 14,408.27


S&P 500 TR USD


Value: 13,463.18


S&P MidCap 400 TR


Value: 13,564.25



S&P 500 Total Return

S&P Mid Cap 400 Total Return

S&P Small Cap 600 Total Return


YearYear-to-

dateQ4

2013Energy 22.27 22.27 7.74Materials 22.73 22.73 10.05Industrials 37.63 37.63 12.92Consumer Discretionary 40.96 40.96 10.37Consumer Staples 22.68 22.68 7.89Healthcare 38.74 38.74 9.60Financials 33.21 33.21 9.82Info. Technology 26.23 26.23 12.75Telecom Services 6.49 6.49 4.17Utilities 8.75 8.75 1.78

International Market Overview

• Japan was boosted by their own version of QE, in fact they are ‘QE on steroids’, putting approximately $225 billion instead of the U.S.’s $85 billion into monthly purchases.

• China had a marked slowdown that impacted other countries, especially the commodity producing countries like Brazil.

• The QE tapering discussion hurt emerging market bonds.

• Gold was affected by slowing global growth and a rising perception of U.S. growth.

Investment Style

Returns measured in Canadian dollar terms


3/2013 6/2013 9/2013 12/20139.75K

10K

10.25K

10.5K

10.75K

11K

11.25K

11.5K

11.75K

12K

12.25K

12.5K


MSCI EAFE Growth GR USD (Market Return, USD, Pre-T... 12.28K MSCI EAFE Value GR USD (Market Return, USD, Pre-Tax) 12.35K

MSCI EAFE Growth GR USD


Value: 12,277.76


MSCI EAFE Value GR USD


Value: 12,348.04



MSCI EAFE Value

MSCI EAFE Growth


YearYear-to-

dateQ4

2013Energy 18.84 18.84 6.99Materials 3.91 3.91 4.44Industrials 32.80 32.80 9.32Consumer Discretionary 39.80 39.80 8.33Consumer Staples 22.03 22.03 6.12Healthcare 37.06 37.06 9.02Financials 27.95 27.95 7.81Info. Technology 29.30 29.30 11.97Telecom Services 32.37 32.37 9.90Utilities 13.73 13.73 2.15

Recency Bias

• Definition: the tendency of people to place too much weight on the most recent events.

• What just happened will keep happening.

• Events from the past might be less important.

Example: an Earthquake occurs.

People change their buying habits based on the fact that they recently experienced an earthquake; they might buy too many earthquake supplies even though strong earthquakes are quite rare.

This market was brought to you by the letters Q & E

It was all about Q & E

QE

Source: MYRA Capital

Despite all the things thrown at it – S&P 500 moved up as if made from Teflon

Range-Bound Markets are Typical

18

U.S. Stock Market

13 Years • Markets have been range-bound in 109 of the last 144 years

• Secular bull runs are a rarity; not the norm

• After major bull markets, markets trend sideways for a minimum of 15 years

13 years into this consolidation market – best one before this was 15 years – so have about 4 years left in this range bound market

SOURCE: Sionna Investments

Inflation Adjusted Market Is Not At New Highs

19 Source: Gary Shilling’s Insight January 2014

Markets have not broken a record when inflation is taken into account

Source: STAWEALTH.COM

Margin Debt is getting to concerned levels

Chart to Jan 9. 2014

Trading volumes have been trending lower, suggesting new buyers may be scarce.

Only the Tech era had higher P/E’s

(NTM – Next Twelve Months)

Bear Arguments

1.Fed quantitative easing is over

2.Interest rate rise will kill rally

3.Growth is too weak

4.Corporate profit margins are peaking

5.Business cycle/bull market is getting old

6.Dysfunction remains in Washington

7.A hard landing in China may occur

8.Stocks are in a bubble (valuations too high)

Benign, if Not Bullish for Stock Prices

•Monetary Ease (Dovish Fed)

•Fiscal Restraint (Falling Deficit)

Big Themes for 2014

•Economic Recovery

•Obamacare

•Further Fiscal Restraint

•Loss of Global Prestige

•Mid-Term Elections

2. What our Investment Specialists say

As we look ahead to 2014, we expect another solid year for the Canadian equity market, but are more cautious on the U.S. market given the rapid price appreciation of the last two years. We believe the U.S. economy is poised to accelerate as the private sector is finally strong enough to withstand stimulus withdrawal and still post 3%+ GDP growth.

Canadian Dividend Equities

Commodities have been a drag on the resource laden Canadian equity market this past year. With the expected improvement in global growth, the free fall in commodity prices should moderate. This assumes no adverse change to China’s current level of GDP growth. Gold remains a concern as investors appear to no longer need the safety gold typically offers due to the improved growth outlook and lack of geopolitical/financial turmoil.

North American economies will continue to show signs of improvement. In the U.S., recent gains in housing, consumer confidence and manufacturing will sustain growth going forward. Canada will be a net benefactor from the strengthening U.S. economy. A weaker Canadian dollar will also contribute to Canada’s growth through improved exports.

Canadian Quantitative Growth Equities

Global Fixed Income

Despite the relatively strong fundamental outlook in many emerging-market countries, we believe the emerging-market asset class is likely to see broad-based bouts of elevated volatility surrounding the issue of Fed tapering. We believe that selecting countries with relatively good fundamentals, avoiding countries with poor fundamentals, and actively managing risk within emerging markets may prove more successful than a passive allocation to emerging markets as an asset class.

Global Dividend

For Europe, the challenges of divergent economic profiles being managed under a singular monetary authority remain at the forefront. Although many euro zone nations, especially the weaker southern European countries, appear to be on more solid economic footing, having returned to modest growth, the frailty of those recoveries and weakness in France's large economy are likely to keep European GDP only modestly positive.

Global Real Estate

From a real estate perspective the supply side remains limited. Even though the availability of real estate financing was relaxed during 2013 and is more readily available than a year before, particularly in Europe which is still undergoing the deleveraging process, we expect development capacity to be very specific and de-risked, and we do not expect that targeted development activity would bring supply out of balance.

Equity markets have risen consistently over the past year, with a number of market indices approaching record highs. Investors have bid up equity valuations on signs that the global economy was strengthening and on relief that the U.S. Federal Reserve Board would use a measured approach in tapering its quantitative-easing program. The portfolio management team believes rising equity markets have led to an increase in valuation of many businesses, which may not be warranted.

U.S. Small Cap

Our outlook for the Canadian small cap sector remains positive. With global economies on a firmer footing, we would expect many companies to benefit from improved demand for their products and services, leading to growth in earnings and cash flows. Should the economy be in a self propelling recovery, this should give the U.S. Fed the leeway to engage in further tapering of Quantitative Easing without alarming investors too much.

Canadian Small Cap

We expect a slightly better backdrop for the U.S. In addition, we expect to see continued economic improvement in Europe and China which should have a positive effect on the global economy. With a more constructive macro outlook, an investment posture that increases the portfolio’s exposure to companies that are leveraged to global growth may be appropriate. We continue to focus on companies with dependable solid top-line growth and visible earnings streams.

U.S. Growth Equities

3. Review Of Counsel Investment Solutions

* Target asset allocation weights adjusted following annual review of Counsel portfolios and with the renewal of the Simplified Prospectus.This Portfolio is managed using a multi-manager process. The current sub-advisor or underlying mutual fund manager for each mandate is listed beside the mandate for which it provides portfolio management / sub-advisory services. This Portfolio invests in underlying mutual funds (which may be managed by Counsel) currently sub-advised by the sub-advisors listed beside each investment mandate. For information on the underlying funds, please refer to the Simplified Prospectus, which is available on our websiteat www.counselservices.com or on the SEDAR website at www.sedar.com.

Mandate Target Allocation (Oct 2009)*

Current Target Allocation*

Canadian short term fixed income n/a 7.00%Fixed income 40.00% 33.00%Canadian value equities 8.00% 7.75%Canadian growth equities 8.00% 7.75%U.S. value equities 7.50% 7.00%U.S. growth equities 7.50% 7.00%International value equities 7.50% 7.00%International growth equities 7.50% 7.00%Global small cap 8.00% 10.50%Global real estate 6.00% 6.00%

Counsel Balanced Portfolio

Counsel Balanced PortfolioEffective Asset Class Mix Effective Top 10 Sector Allocation

Effective Geographic Mix

Counsel Balanced Portfolio

Positive and negative attribution for Q4 2013

Positive and negative attribution for the 12 months ended December 31, 2013

+ Positive attribution to overall Portfolio, reflecting that the mandate outperformed its relative benchmark on a gross returns basis.

- Negative attribution to overall Portfolio, reflecting that the mandate underperformed its relative benchmark on a gross returns basis.

Mandate

Canadian short term

fixed incomeFixed

income

Cdn value

equities

Cdn growth equities

U.S. value

equities

U.S. growth equities

Int'l value equities

Int'l growth equities

Global small cap

Global real

estate

Portfolio Design &

ConstructionAttribution + + - + + + + + - + -

Mandate

Canadian short term

fixed incomeFixed

income

Cdn value

equities

Cdn growth equities

U.S. value

equities

U.S. growth equities

Int'l value equities

Int'l growth equities

Global small cap

Global real

estate

Portfolio Design &

ConstructionAttribution + + + + + + + - + - -

Period 1 mth 3 mth 6 mth 1 yr 3 yr 5 yr 10 yrIncept.

Return

Incept.

Date

Series 'A' 0.92 5.63 8.95 14.56 6.12 9.01 4.43 4.30 1/15/02Net Benchmark* 1.22 6.76 9.97 18.38 8.98 7.98 4.10 3.11

Performance (%)

Compound Returns vs. Benchmark

Counsel Short Term Bond

Effective Investment Mix Effective Bond Maturity


Return

Incept.

Date

Series 'A' -0.17 0.49 0.74 0.44 1.64 n/a n/a 1.61 1/25/10Net Benchmark* -0.15 0.57 1.07 0.99 2.04 n/a n/a 2.29


Performance (%)

Counsel Short Term Bond

Contributors Detractors

Q4 • Security selection in the Financial sector

• Incremental yield associated with the overweight exposure to corporate credit

• Negative impact from yield curve positioning, as the shortest sections of the yield curve moved down and the 4-6 year section moved up

Past 12 months

• Incremental yield associated with the overweight exposure to corporate credit

• Security selection, particularly in financial and communication sectors

NA

Counsel Fixed Income

Effective Investment Mix Effective Bond Maturity


Return

Incept.

Date

Series 'A' -0.26 0.64 1.07 -0.78 2.75 4.50 4.15 5.36 5/31/01Net Benchmark* -0.50 0.18 0.10 -1.99 3.13 3.98 4.36 5.08

Performance (%)


Canadian Core Fixed Income


Q4 • Overweight in corporate bonds• Overweight in BBB-rated corporate

bonds • Shorter-than-index duration

• Tactically reducing provincial bond exposure into a rallying provincial bond market hurt performance

• Overweight position in mid-term bonds

High Yield Fixed Income

Contributors Detractors Strategic Shifts

Q4 • First Data Corp. • Sprint Communications• Valeant Pharmaceutical

International

• Bombardier Inc.• Quebecor Inc. • Lone Pine Resources

Inc.

• Increased Technology and Transportation

• Reduced Paper & Packaging

Past 12 months

• Rite Aid Corp. • First Data Corp. • Intelsat Investments SA

• Bombardier Inc. • First Quantum Minerals

Ltd. • Lone Pine Resources

Inc

Global Fixed Income


Q4 • In Q4 2013, the portfolio’s currency positions led positive absolute performance, followed by sovereign credit exposures and interest-rate strategies

• The portfolio’s currency positions in Asia ex-Japan added to results. The portfolio’s positions in peripheral European currencies against the euro also benefited absolute results

• Select duration exposures in Europe added to results

In Q4 2013, there were no significant detractors from absolute performance

Counsel Canadian Value


Q4 • Methanex Corporation • Thomson Reuters

Corporation • Silver Wheaton Corp.

• Empire Co. Ltd. Class A • Central Fund of Canada

Limited Class A • Canadian Pacific Railway

Overweight sectors • Financials• Energy• Consumer Discretionary• Consumer Staples

Underweight sectors • Materials• Industrials• Telecommunication

Services• Information Technology• Health Care

Past 12 months

• Methanex Corporation • Thomson Reuters

Corporation • Canadian Tire Corporation,

Limited Class A

• Central Fund of Canada Limited Class A

• Valeant Pharmaceuticals International, Inc.

• Barrick Gold Corporation


Return

Incept.

Date

Series 'A' 1.38 5.80 10.51 12.54 3.71 n/a n/a 10.49 01/14/09Net Benchmark* 1.89 6.98 13.38 11.74 2.15 n/a n/a 11.51

Performance (%)


Effective Asset Class Mix Effective Top 10 Sector Allocation

Counsel Canadian Value

Counsel Canadian Growth



Return

Incept.

Date



Performance (%)

Canadian Growth EquitiesContributors Detractors Strategic Shifts

Q4 • Positioning in the Consumer Discretionary

• Positioning in the Materials sector

• Canadian Tire Corp was the top individual relative contributor

• Positioning in the Financials Sector

• Positioning in the Consumer Staples Sector

• Potash Corp of Saskatchewan was the largest individual relative detractor

We reduced our underweight position in materials and energy during the quarter. We also reduced our cash position.

Overweight sectors We are positioned for continued cyclical growth led by the U.S. economy by being overweight cyclical sectors (particularly non-resource cyclical). Underweight sectors We are underweight in interest rate sensitive groups as we expect interest rates to continue to rise gradually as global growth improves and Monetary Policy becomes less accommodative.

Past 12 months

• Positioning in the Consumer Discretionary sector

• Positioning in the Materials Sector

• Top individual contributors were Barrick Gold Corp., Magna International and Canadian Tire Corp.

• Positioning in the Financials Sector

• Positioning in the Telecom Sector

• Positioning in Bank of Montreal, New Gold and Silver Wheaton were the largest individual detractors from relative performance

Canadian Quantitative Growth Equities


Q4 • Constellation Software Inc.

• Methanex Corporation • Enerplus Corporation

• CGI Group Inc. • Stantec Inc. • Canadian Pacific Railway

The strategy is based purely bottom up stock selection, sector changes are a residual of stock selection.

Sector exposure moved from six to seven with the addition of industrials and consumer staples and the elimination of financials. Sector exposure until the February 28th rebalancing will consist of Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, and Information Technology.

Past 12 months

• Methanex Corporation • Valeant

Pharmaceuticals International Inc.

• Magna International Inc.

• Agnico-Eagle Mines Limited

• Franco-Nevada Corporation

• Canadian Pacific Railway

Counsel U.S. Value


Q4 • Valero Energy Corporation • Marathon Petroleum

Corporation • Tesoro Corporation

• Safeway Inc. • Murphy USA, Inc. • Berkshire Hathaway Inc.

There were no sector allocation shifts during

the fourth quarter. Past 12 months

• Safeway Inc. • Seagate Technology PLC • Western Digital Corporation

• D.R. Horton, Inc. • L-3 Communications

Holdings, Inc. • McCormick & Company,

Incorporated


Return

Incept.

Date



Performance (%)

Counsel U.S. ValueEffective Asset Class Mix Effective Top 10 Sector Allocation

Counsel U.S. Growth


Q4 • Pharmaceuticals Biotechnology & Life Sciences Industry – Gilead Sciences and Biogen Idec

• Software & Services Industry – Google and Visa

• Consumer Services Industry – Wynn Resorts, Starwood Hotels & Resorts Worldwide, and Chipotle Mexican Grill.

• Cash - 5% of average net assets dampened performance as the benchmark index returned +10.5%

• Consumer Durables & Apparel Industry – Lululemon Athletica

• Food Beverage & Tobacco Industry – Green Mountain Coffee Roasters.

The portfolio reduced its allocation to Financials from 14% to 9% due primarily to the sale of Wells Fargo and paring of our AIG position.

Additionally, Industrials were reduced from 11% to 9% due primarily to the sale of Union Pacific.

The portfolio increased sector allocations modestly in Consumer Discretionary Health Care and Energy.

Past 12 months

• Pharmaceuticals Biotechnology & Life Sciences Industry – Gilead Sciences and Biogen Idec

• Consumer Services - Wynn Resorts, Chipotle Mexican Grill and Starbucks Corp.

• Information Technology – Google, Facebook Inc. and Visa Inc.

• Cash - 5% of average net assets dampened performance as the benchmark index returned +32%

• Industrials – In aggregate, the portfolio’s holdings in the sector returned +32% but underperformed the +41% sector return in the benchmark index; in particular, Precision Castparts Corp. and Cummins Inc. lagged.

• Food Beverage & Tobacco Industry – Green Mountain Coffee Roasters


Return

Incept.

Date


Performance (%)


Counsel U.S. GrowthEffective Asset Class Mix Effective Top 10 Sector Allocation

Counsel International Value


Q4 • ING Groep NV • PostNL NV • Aryzta AG Net Euro exposure via

securities and cash balance net of hedge helped portfolio performance

• Henderson Land Development

Canadian dollar weakness against most currencies, particularly the Euro, hurt the portfolio via currency hedge. Hedge levels were scaled back for all currencies except the Yen, mitigating the loss potential

Changes are stock specific and not done to specifically over or underweight sectors.

Past 12 months

• Nokia OyJ • Renault SA • ING Groep NV On an annual basis net of the

currency hedge appreciation of the Euro vs. Canadian dollar was beneficial.

• Canon Inc• Henderson Land Development The currency hedge program hurt

the portfolio as a whole in 2013, the only exception being the Japanese Yen as the Yen weakened in 2013, in this case the hedge helped.


Return

Incept.

Date



Performance (%)

Industrials 0.42% Financials -1.93% Cons. Discretionary -4.96% Cons. Staples 1.64% Energy 2.01% Materials -0.13% Information Technology -1.69% Telecom. Services 0.22%

Counsel International ValueEffective Asset Class Mix Effective Top 10 Sector Allocation

Counsel International Growth


Return

Incept.

Date


Performance (%)



Counsel Global Real Estate


Q4 • Stock selection in the U.S. and Canada

• Allocation and stock selection in Japan

• Stock selection in Western Europe

• Stock selection in Hong Kong and China

• Allocation to the United Kingdom

The biggest shift that occurred during the quarter was an increase in weighting towards specialty (data centers) as the portfolio bought into a small cap data center company QTS in the U.S. This shift was funded via a reduction in weighting towards the industrial sector (via an exit from Segro in the U. K.).

Past 12 months

• Stock selection and allocation in the U.S.

• Allocation and stock selection in Singapore

• Stock selection in Australia

• Cash • Stock selection in Japan • Allocation to Latin America


Return

Incept.

Date



Performance (%)

Counsel Global Real EstateEffective Asset Class Mix Effective Geographic Mix

Counsel Global Small Cap

Positive and negative attribution for Q4 2013

Positive and negative attribution for the past 12 months ended December 31, 2013

+ Positive attribution to overall Portfolio, reflecting that the mandate outperformed its relative benchmark on a gross returns basis.

- Negative attribution to overall Portfolio, reflecting that the mandate underperformed its relative benchmark on a gross returns basis.

MandateCdn Small

Cap

U.S. small cap

Int'l small cap

Portfolio Design &

ConstructionAttribution + - - +

MandateCdn Small

Cap

U.S. small cap

Int'l small cap

Portfolio Design &

ConstructionAttribution + - + +


Return

Incept.

Date

Series 'A' 2.65 9.33 17.59 34.16 9.65 17.18 n/a 6.15 6/6/05Net Benchmark* 2.65 10.79 20.26 40.46 13.93 16.34 n/a 5.79

Performance (%)


Counsel Global Small CapEffective Asset Class Mix Effective Top 10 Sector Allocation

Canadian Small Cap


Q4 • Low weight in mining and metals - a weak performing sector during the quarter.

• An overweight allocation to alternative lenders and asset managers.

• Auto related stocks were up significantly in the quarter.

• Paladin Labs was acquired by Endo Health and was sold at a 54% premium after the announcement.

• Dundee Precious Metals• Interest sensitive stocks, such as

Boralex Power, Agellan Commerical REIT and Dundee Industrial REIT came under pressure due to fears over rising interest rates.

• Martinrea International lost 20% of its value after the company disclosed misreported financials in the past. The position was sold out of the portfolio prior to the announcement mostly due to concerns over ongoing legal battles and the potential impact on its operations.

There were no major sector shifts, but we were actively reducing the portfolio’s exposure to metals and mining companies.

Past 12 months

• Low weight in mining and metals - a very weak performing sector during the past 12 months.

• Paladin Labs• CCL Industries• Winpak• Western Forest products

• Material stocks such as Dundee Precious Metals and Major Drilling

• Surge Energy and Angle Energy

U.S. Small Cap


Q4 • Alliance Data Systems Corp. (ADS) • Alere Inc. •Global Payments Inc.

• Cash • ION Geophysical Corp • Energy sector

There were no significant changes to the sector allocation within the portfolio during the period

Past 12 months

• Alliance Data Systems Corp.

• International Rectifier Corp.

• Alere Inc.

• Cash • ION Geophysical Corp. • Energy sector

International Small Cap


Q4 The Information Technology sector was the largest contributor for the period. The companies in the portfolio returned, on average, 5.6% while those in the benchmark returned, on average, 3.5%. The portfolio’s top two contributors were in this sector. •Oxford Instruments Plc. was up 19% in the period. •Infomart Corporation was up over 25% in the period.

The portfolio is structurally overweight in the Consumer Discretionary sector at 25.5% versus the benchmark at 18.7%. The securities in the portfolio were up, on average, 1% while those in the benchmark were up 1.7%. The portfolio’s three largest detractors were in this sector. •REA Group was down -9.1% during the period. •Merida Industry, a Taiwanese bicycle manufacturer, was down -7.7% during the period.• United Arrows Ltd. was down -11.2% during the period.

Not applicable as Wasatch assumed the investment management of this mandate on November 30, 2013.

Past 12 months Not applicable. Wasatch assumed the investment management of

this mandate on November 30, 2013.

4. Benchmarks and Disclaimers

Net Benchmarks

Investment Solution Index

Counsel Conservative Portfolio 60% DEX Universe Bond, 40% MSCI World Total Return

Counsel Regular Pay Portfolio 50% DEX Universe Bond, 20% MSCI World Total Return, 30% S&P/TSX Composite Dividend Total Return

Counsel Balanced Portfolio 40% DEX Universe Bond, 60% MSCI World Total Return

Counsel Growth Portfolio 20% DEX Universe Bond, 80% MSCI World Total Return

Counsel All Equity Portfolio 100% MSCI World Total Return

Counsel Managed Yield Portfolio 55% DEX Universe Bond Index, 25% JP Morgan Global Government Bond Index, 20% S&P/TSX Composite Dividend Total Return

Counsel Managed High Yield Portfolio 40% DEX Universe Bond, MSCI AWCI High Dividend Yield, 25% Bank of America Merrill Lynch Global High Yield & Emerging Market Corporate Bond Total Return

Counsel Income Managed Portfolio 40% DEX Universe Bond, 40% S&P/TSX Composite Dividend Total Return, 20% MSCI World Total Return

Counsel Managed Portfolio 40% DEX Universe Bond, 15% MSCI World Total Return, 45% S&P/TSX Composite Total Return

Counsel World Managed Portfolio 40% DEX Universe Bond, 60% MSCI World Total Return

Net benchmark return is calculated using the actual management expense ratio(s) of the equivalent exchange traded fund(s) and weighing that/those MER(s) by the benchmark/hybrid benchmark weight(s). The weighted MER(s) is/are then added to a typical retail management fee of 1%. In February 2009, the typical retail management fee for Counsel Fixed Income was revised from 1% to 0.5%.

Net Benchmarks

Investment Solution Index

Counsel Short Term Bond 100% DEX Short Term Bond Index

Counsel Fixed Income 100% DEX Universe Bond Index

Counsel High Yield Fixed Income 70% Bank of America Merrill Lynch U.S. High Yield Master II Total Return, 30% Bank of America Merrill Lynch Emerging Market Liquid Corporate Plus Total Return

Counsel Canadian Dividend 100% S&P/TSX Dividend Composite Total Return

Counsel Canadian Value 100% S&P/TSX Composite Index

Counsel Canadian Growth 100% S&P/TSX Composite Index

Counsel U.S. Value 100% Russell 1000 Value Index

Counsel U.S. Growth 100% Russell 1000 Growth Index

Counsel International Value 100% MSCI EAFE Value Index

Counsel International Growth 100% MSCI EAFE Growth Index

Counsel Global Dividend 100% MSCI ACWI High Dividend Yield Index

Counsel Global Real Estate 100% FTSE EPRA/NAREIT

Counsel Global Small Cap 100% MSCI World Small Cap Total Return

Net benchmark return is calculated using the actual management expense ratio(s) of the equivalent exchange traded fund(s) and weighing that/those MER(s) by the benchmark/hybrid benchmark weight(s). The weighted MER(s) is/are then added to a typical retail management fee of 1%. In February 2009, the typical retail management fee for Counsel Fixed Income was revised from 1% to 0.5%.

General DisclaimersThis report may contain forward-looking statements which reflect our current expectations or forecasts of future events. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as: “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “preliminary”, “typical” and other similar expressions. In addition, these statements may relate to future corporate actions, future financial performance of a fund or a security and their future investment strategies and prospects. Forward-looking statements are inherently subject to, among other things, risks, uncertainties and assumptions which could cause actual events, results, performance or prospects to differ materiality from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, the volatility of global equity and capital markets, business competition, technological change, changes in government regulations, changes in tax law, unexpected judicial or regulatory proceedings, catastrophic events and the ability of Counsel Portfolio Services to attract or retain key employees. The foregoing list of important risks, uncertainties and assumptions is not exhaustive. Please consider these and other factors carefully and not place undue reliance on forward-looking statements.

The forward-looking information contained in this report is current only as of the date of this report. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Simplified Prospectus 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 taxes payable by any securityholder that would have reduced returns. The indices cited are widely accepted benchmarks for investment performance within their relevant regions, sectors or asset class, represent non-managed investment portfolios, exclude management fees and expenses related to investing in the indices, and are not necessarily indicative of future investment returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

To learn more about Counsel’s investment solutions, please speak to your Advisor.

Review Checklist Your portfolio mix remains consistent

with your risk tolerance.

Your portfolio mix has been rebalanced

to your pre-determined mix (see

Portfolio Review).

Your portfolio’s long-term performance

is acceptable given your investment

strategy and financial objectives.

Sub-advisors and underlying fund

managers have been effective in their

respective areas of expertise.

Do you have any questions or

concerns?

Is an action plan required?

We are committed to helping youachieve your financial goals through:

• effective investments

• accountability of all parties

• operating with your objectives and goals as our guide

Insert Advisor name and details here

Documents

Report Card Quarter Ending December 31, 2013 Date: Prepared for:, Compliments of: IPC Investment Corporation or IPC Securities Corporation,, Phone: Email: