Report Card

1. Report Card Quarter Ending March 31, 2013 Date: March 31, 2013 Compliments of: Frank Dakos IPC Investment Corporation 1100-100 Conestoga College Blvd. Kitchener, ON N2P 2N6 Phone: 519-578-2591 Email: fdakos@ipckitchener.com Website: www.moneytipswithfrank.com 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.

2. 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.

3. Agenda • Market and economic overview • What our investment specialists say • Review of Counsel investment solutions • Benchmarks and Disclaimers

4. 1. Market and Economic Overview

5. Strange! Why has the US recovered when the rest of the world has not – could it be the stimulus that Dr Bernanke provided US stocks specifically have been outpacing the rest of the world during the last three years. Such outperformance also tends to revert to the mean.

7. The result of the unprecedented stimulus from Dr, Ben B has been the recovery of the American markets Sources: Bloomberg, JP Morgan Asset Management, December 2012

8. Trading volumes have been shrinking! Trading volumes are historically low. This suggests that new buyers may be scarce.

9. Volatility now at lows – means complacency The volatility index, aka the 'fear index,' is near a historic low, which reflects investor complacency.

10. But the markets are not as record breaking - factoring in inflation

11. The exuberance of the markets reaching the same points they did 5 years ago, has led to a similar type of optimism that was there 5 years ago

12. Margin debt is also getting up to 2007 levels Much of the frenzy of stock buying has been boosted by borrowed money. Margin levels are rising fast.

13. According to the latest speech from Fed Chairman Ben Bernanke, it looks like concerns about the anemic economy persist. "In light of the moderate pace of the recovery and the continued high level of economic slack, dialing back accommodation with the goal of deterring excessive risk-taking in some areas poses its own risks to growth, price stability, and, ultimately, financial stability," said Bernanke.  "Indeed, as I noted, a premature removal of accommodation could, by slowing the economy, perversely serve to extend the period of low long-term rates.“ "In our view, his speech re-affirms that the Fed leadership and the majority of FOMC voters will continue with QE3 purchases well into next year," said Bank of America's Michael Hartnett in response. Source: http://www.businessinsider.com/why-the-bull-market-can-continue-2013 But monetary policy is expected to stay accommodative for years … and Dr. Ben B can continue this injection for a long time.

14. There are several reasons why Canada appears to be one of the safest global venues for bond investors. Among them, is how modest its overall debt levels are relative to the rest of the “rich” (but increasingly in-debt) world. If debt is a concern, then Canada is worth looking at.

15. The secret is diversification

16. Global Stock Markets: Index Movements • Countries with stimulus did well • Stimulus programs in both the US and Japan helped these markets outperform other major markets • These countries also had lower GDP growth rates • The US suffered a credit downgrade as well • The higher growth rate markets of the emerging economies were the weakest performers • For sustainability, revenues and earnings growth will have to take over from stimulus Performance is calculated using local currency. Data as at: March 31, 2013 Source: Morningstar Direct, Counsel Portfolio Services

17. Canadian Dollar Performance CAD vs. U.S. Dollar CAD vs. Euro • Canadian dollar was weaker primarily due to the influence of a slowing demand for commodities from China. • US dollar appreciated, on the outlook of an improving housing sector – despite unemployment staying stubbornly high, and the fiscal crisis being deferred but not tackled. US debt is now over $16 Trillion • The Euro rose on the back of an improved sentiment that the worst is over – this may be wish full thinking – as Cyprus reared its head just after the quarter end. Source: Bank of Canada

18. Canada: Equities Vs. Bonds Equities have risen on the back of the unprecedented stimulus being provided to the US and the Japanese markets. This stimulus is concerning as it requires the printing and devaluing of the currency at some point. Risks still remain: US fiscal policy, further possible credit downgrades, further sovereign debt concerns in Europe, China slowdown and the uncertainty of North Korea. Equities are likely to remain volatile as investors continue to focus on macroeconomic headlines. Short-term: Equities vs. Bonds Long-term: Equities vs. Bonds Source: Globe and Mail

19. S&P TSX 60 Total Return S&P TSX Completion Total Return S&P TSX Small Cap Total Return MSCI Canada Growth Index MSCI Canada Value Index. Canadian Market Overview Investment Style Market Cap • Canada was impacted by the slowdown in China, in particular the falling price of Gold and Oil. • Gold stocks have taken a dramatic drop. • Large caps outperformed small caps, mainly because the small cap sector is dominated by Oil and Gold stocks. • Dividend earning companies generally performed well, yields are attractive in a low yield world. Source: Morningstar Direct Source: Morningstar Direct

20. S&P 500 Total Return S&P Mid Cap 400 Total Return S&P Small Cap 600 Total Return Russell 1000 Value Index Russell 1000 Growth Index U.S. Market Overview Investment Style Market Cap Quantitative easing (stimulus) has provided support for the US market but has had little impact on a slowing economy, as consumers continue to deleverage. Performance has been driven by defensive stocks rather than high growth stocks – Consumer Staples vs. Info Technology. Dividend earning companies were strong performers. Source: Morningstar Direct Source: Morningstar Direct Returns measured in U.S. dollar terms

21. MSCI EAFE Value MSCI EAFE Growth International Market Overview Investment Style • Japan’s stimulus program was a main driver for them. • Japan, U.K. and Europe are likely to continue with monetary stimulus. • China had the largest negative impact, its real estate is in a gradual correction and they are trying to shift from an export to a consumption based economy. • U.K.’s audit rating was reduced on sluggish growth concerns. • Large Cap dividend paying companies generally performed better than small caps. • The risks to the economies and markets have not been solved - just deferred to another date. • Caution is still warranted. Source: Morningstar Direct Returns measured in Canadian dollar terms

22. 2. What our Investment Specialists say

23. Income and Growth We believe that continued stimulus policies from central banks and improving momentum in economic data could lead to a modest retracement in government bond yields. This could result in further underperformance of government bonds relative to corporate bonds. For the remainder of the year, we expect yields to remain range bound with a modest upward bias due to improving growth trends but to be offset by ongoing central bank and investor purchases coupled with muted inflation.

24. Canadian Dividend Going forward, we continue to be cautiously optimistic with regard to the markets and the economy. While investor sentiment has swung to the positive as of late, it is paramount to control emotions and focus on discipline and facts when sentiment gets extended in one direction or another. In our view, time in the market is more important than timing the market.

25. Canadian Growth Equities With slower growth in Europe and China, US economic growth will be a significant factor in sustaining global growth in the months ahead. Canada’s sluggish economy will also benefit from resurgence in US growth. We remain constructive on the Canadian equity market as we do not think that the current gradual cool-off in the housing sector will be cause for concern. In addition, commodities may very well surprise on the upside in the second half of 2013. Until commodity prices start to trend upwards the broad based S&P/TSX will lag relative to other equity indices that have less emphasis on resources.

26. Canadian Growth Equities Improving economic trends are a positive for equity markets for now, but will likely become a concern in the future as the recovery starts to really take hold. These Goldilocks conditions could turn into something more aggressive and unpleasant. Therefore, we will see some ups and downs in markets over the next year or two until central bank involvement is lessened.

27. U.S. Small Cap Equity markets will likely continue to be volatile going forward as investors continue to focus on macroeconomic headlines. The portfolio management team will continue to ignore the macroeconomic noise. The team does not believe anyone can consistently predict macroeconomic outcomes. Instead, they focus on investing in high-quality businesses, with strong management teams and attractive competitive advantages that can generate wealth in the long term. The portfolio management team believes their patience and focus on company fundamentals – rather than background noise – will continue to reward investors.

28. Global Dividend Growth expectations for the world’s major markets have been somewhat uneven in the year to date. Indicators in the U.S., particularly around housing and employment, underscore continued recovery despite fiscal retrenchment. In Europe, most markets are expected to see improvement in the second half, while Japan’s outlook remains more uncertain amid persistently sluggish economic activity

29. Global Real Estate In general, 2012 and early 2013 have been excellent periods for global real estate securities. They have generally outperformed other asset classes and responded well to slow but steady increases in demand for space in the face of little or no anticipated increases in incipient supply. Pricing and valuation in many markets is back to peak levels. Consequently, further appreciation will depend on increases in demand meeting or exceeding expectations.

30. International Small Cap We have seen global equity markets rise to new highs despite a number of political and economic developments, such as the recent crisis in Cyprus, that would have likely had significantly negative consequences on these markets just a couple of years ago. We see the markets’ ability to look through such events as quite positive. We are especially encouraged by recent economic developments in Asia – with the number two and number three economies in the world turning or offering hope of mending, improving economic momentum in the region is particularly impactful in a global context.

31. 3. Review Of Counsel Investment Solutions

32. Counsel Balanced Portfolio * 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 managerfor 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 prospectus, which is available on our website at www.counselservices.com or on the SEDAR website at www.sedar.com.

33. Counsel Balanced Portfolio Effective Asset Class Mix Effective Top 10 Sector Allocation Effective Geographic Mix

34. Counsel Balanced Portfolio Positive and negative attribution for Q1 2013 Positive and negative attribution for the 12 months ended March 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.

35. Counsel Short Term Bond Effective Investment Mix Effective Bond Maturity

36. Counsel Short Term Bond

37. Counsel Fixed Income Effective Investment Mix Effective Bond Maturity

38. Counsel Fixed Income(Core Fixed Income)

39. Counsel Fixed Income(North American High Yield Fixed Income)

40. Counsel Fixed Income(Global Fixed Income)

41. Counsel Canadian Value

42. Counsel Canadian Value Effective Asset Class Mix Effective Top 10 Sector Allocation

43. Counsel Canadian Growth

44. Counsel Canadian Growth Effective Asset Class Mix Effective Top 10 Sector Allocation

45. Canadian Growth Equities

46. Canadian Quantitative Growth Equities

47. Counsel U.S. Value

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

49. Counsel U.S. Growth

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