NEW AIMA CEO JACK INGLIS

MONTHLY REVIEW OF HEDGE FUNDS & ALTERNATIVE INVESTING MARCH 2014 VOLUME 14 ISSUE 3 A CONVERSATION WITH NEW AIMA CEO JACK INGLIS @RadiusFE

In step with market needs kpmg.ca 80% Agree that the demands of regulatory Have compliance have increased since 2008. 32% had to increase staff headcount Say in order to increase transparency. 88% investors have become more demanding in terms of due diligence since 2008. AIMA and KPMG have teamed up and conducted quantitative and qualitative research with 150 hedge fund managers around the world over the period from October 2011 to February 2012. The results of this survey indicate that the changes brought on by the institutionalization of the alternative fund industry have been underestimated. KPMG is focused on providing informed perspectives to help navigate challenge and take advantage of opportunity from value creation to realization keeping in step with market needs. PETER HAYES Partner, National Director, Alternative Investments T: 416-777-3939 E: phayes@kpmg.ca JAMES LOEWEN Partner, National Asset Management Leader T: 416-777-8427 E: jloewen@kpmg.ca 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms

Hedge funds sealed the first quarter of the year with another month of negative returns, down 0.18% in March as managers navigated through a choppy start to the year. However, strong returns posted by fund managers in the previous month saw them through with the Eurekahedge Hedge Fund Index up 1.05% in Q1 2014, outperforming the MSCI World Index, which gained 0.67% over the same period. Key takeaways for March include: Net asset flows for Q1 2014 stood at US$32.6 billion, with capital allocations to North American managers at US$ 17.7 billion and those for European managers at US$ 13.6 billion; Japan focused hedge funds posted their third consecutive month of negative returns down 0.84% in March and 2.09% in the first quarter of the year; Latin America focused managers surpassed all regional mandates delivering the strongest gains up 1.53% in March, and outperforming the MSCI EM Latin America Index by 2.45% in Q1 2014; Distressed debt investing hedge funds delivered their ninth consecutive month of positive returns up 2.70% in the first quarter of the year; CTA/managed futures hedge funds continued to languish, down 0.98% in March and 0.33% in Q1 2014. Investors have redeemed US$5.0 billion from the strategy in the first quarter of the year; and Eastern Europe & Russia focused hedge funds fared the worst, losing 2.54% in March and 8.02% in Q1 2014, weighed down by geopolitical tensions in the region. Source: Eurekahedge And from Reuters: hedge fund investors asked to pull out just slightly more money in February than they did the previous month, largely sticking with their managers to help them navigate financial markets. The percentage of investors asking to withdraw their money from hedge funds rose slightly to 3.38 percent of assets under administration in February, up from 2.67 percent in January and in line with seasonal trends, according to the SS&C GlobeOp Forward Redemption Indicator. "The 3.38 for February is very consistent with the last four or five years," Bill Stone, CEO and Chairman of financial software provider SS&C Technology, said on Friday. The monthly data, which captures around 10 percent of the global hedge fund industry, suggest that most investors chose to keep their stakes intact despite a disappointing 2013. Redemption requests peaked at over 19 percent in late 2008 following the collapse of Lehman Brothers but have not risen above 10 percent since September 2009. Hedge fund assets stand at around $2.85 trillion, according to data released this week by evestment, but Stone expects the market to surpass the $3 trillion mark by the end of the year. Terry Krowtowski Canadian Hedge Watch Inc. Volume 14 Issue 3 - March 2014

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Performance Summary Feb. 2014 YTD MONTHLY REVIEW OF HEDGE FUNDS & ALTERNATIVE INVESTING MARCH 2014 VOLUME 14 I SSUE 3 Editorial and Sales Editor Terry Krowtowski Sales Director Judy Street Art Director Vic Finucci Online Developer Ferenc Schneman Canadian Hedge Watch Inc. 20 Toronto St., Suite 820, Toronto, Ontario M5C 2B8 tel: 416.848.0277 toll free: 1.877.249.9249 fax: 416.848.0278 Media, Advertising & Editorial: info@canadianhedgewatch.com Subscriptions: info@canadianhedgewatch.com Canadian Hedge Watch is published 11 times per year by Canadian Hedge Watch Inc. We welcome articles, suggestions and comments from our readers. All submissions become the property of Canadian Hedge Watch Inc., which reserves the right to exercise editorial control in accordance with its policies and educational goals. Disclaimer Canadian Hedge Watch (CHW) presents news, information and data on both Canadian and Global alternative investment activity. The information presented is not to be taken as an endorsement, investment advice or a promotion for the organizations and individuals whose material and information appears in this CHW publication or on the Canadian Hedge Watch website. The material presented, separate from paid advertisements, is for the sole purpose of providing industry-specific information. As with all areas of financial investing, CHW recommends strongly that readers should exercise due diligence by consulting with their investment advisor or other trusted financial professional before taking any action based upon the information presented within these pages. CHW HEDGE FUND INDICES (CHW-HF) % % CHW-HF Composite Index 4.07 8.63 CHW-HF Equity Hedged Index 4.14 8.52 CHW-HF Notes Index -0.33-0.16 CHW-FOHF Index 2.01 8.27 Scotia Capital Canadian Hedge Fund Performance Index SC CDN HF Index Asset Weighted 1.91 4.49 SC CDN HF Index Equal Weighted 2.67 4.61 Dow Jones Credit Suisse Hedge Fund Indices Dow Jones Credit Suisse Hedge Fund Index 1.72 1.42 Convertible Arbitrage 0.14 2.24 Emerging Markets 1.79-0.52 Event Driven 2.75 3.04 Fixed Income Arbitrage 0.66 1.66 Global Macro 0.69-0.37 Long/Short Equity 2.88 2.80 Managed Futures 0.94-2.52 HEDGE FUND INDICES Hennessee Hedge Fund Index -2.46-2.18 HFRI Fund Weighted Composite Index 1.96 1.43 HFRI Equity Market Neutral Index 1.13 1.13 HFRI Fund of Funds Composite Index 1.62 1.21 MARKET INDICES Dow Jones Global Index (C$) 4.06 4.79 Dow Jones Global Index (U$) 4.86 0.84 Dow Jones 30 Industrial Average (US$) 3.97-1.54 NASDAQ Composite Index (C$) 4.73 7.40 NASDAQ Composite Index (US$) 4.98 3.15 S&P 500 Total Return Index (C$) 3.97 5.12 S&P 500 Total Return Index (US$) 4.57 0.96 S&P/TSX Composite Index Total Return 3.76 4.32 @RadiusFE Volume 14 Issue 3 - March 2014 1

C O N T E N T S M A R C H A Conversation With 4 new AIMA CEO, Jack Inglis Canadian Hedge Watch Interview 2014 Calendar of Events 7 Hedge Fund Performance Tables 8 A CONVERSATION WITH NEW AIMA CEO JACK INGLIS @RadiusFE Volume 14 Issue 3 - March 2014 3

A Conversation With New AIMA CEO Jack Inglis Jack Inglis, appointed AIMA s new Chief Executive Officer. Canadian HedgeWatch recently had the opportunity to speak with Jack Inglis, AIMA s new CEO, on the occasion of his appointment as chief executive of the hedge fund industry s global trade association. Based in the organization s London headquarters, Mr. Inglis became AIMA s Chief Executive Officer in February 2014. Prior to joining AIMA, he oversaw Barclays European Prime Services Distribution business and was a member of the Global Executive Committee for Prime Services. During his 30-year career he has held senior positions in hedge fund roles with such firms as Morgan Stanley and Ferox Capital Management. He holds a degree in economics from Cambridge University. Canadian Hedge Watch What prompted you to leave a very successful career in international finance and banking to take on your new role with AIMA? Jack Inglis This is a unique role that I couldn t refuse. AIMA has an important and central role to play in representing the interests of the global hedge fund industry. I am excited by the very broad nature of our engagement and I see my previous experience on both the buy- and sell-sides of the hedge fund fence as providing an ideal background to lead AIMA in its work on behalf of our members. CHW Before we go further, can you give our readers some background on AIMA, including the size of its global organization? JI Certainly. We were founded in 1990 and we are truly a global representative of the hedge fund industry. Today, we have over 1,400 corporate members in a growing network of over 50 countries. We are very active around the world, including in Canada where we represent the local industry. AIMA addresses the real issues affecting the industry s development. Our focus on education, regulation and sound practices has resulted in a substantial body of work used around the world by members, institutional investors, policymakers and regulators. CHW How have you found your transition to the CEO role? Jack Inglis AIMA CEO JI It s been a very structured process which has enabled me to hit the ground running. Having been announced as Andrew Baker s successor as CEO in November of last year, I was fortunate to have enjoyed a three-month transition period in which to spend time with our Board, my senior colleagues and with our members familiarising myself with many of the issues before I started full time. This has enabled me to gain a sound understanding of the association and the expectations of our members. 4 www.canadianhedgewatch.com

CHW What do you see as you first priorities in the job? JI This has to be ensuring our resources are being channelled effectively to meet the priorities and expectations of our members. I am meeting with, and listening to, many of our members around the world so that we can accurately align our efforts in their best interests. In March, I participated in AIMA s Global Policy & Regulatory Forum in New York at which I had the opportunity to meet with key regulators from around the world, as well as US manager members and the heads of other industry bodies including the Managed Funds Association (MFA). Following this, I will be traveling to Asia-Pacific to visit AIMA s staff and members in that important region for the industry. All of this will help me gain insight into AIMA activities in our various regions and the key issues faced in those regions. It will also prepare me to shape our programs and plans in ways that will best help and serve our members in terms of advocacy, education and engagement. Ultimately, one of my most important priorities will be to work with AIMA s Council, our board of directors, to develop a strategic plan that will guide our organization over the next several years. CHW Does AIMA publish any form of report card on its activities each year? JI Yes we do. Our global Review of the Year is published every December and details the very significant work carried out by our staff and by industry volunteers that lend their expertise to AIMA s 70 various committees and working groups. The most recent Review was published at the end of 2013 and provides an excellent overview of the association s global activities and accomplishments last year. It can be accessed online at http://www.aima.org/en/login/index.cfm/login/1/ (it s a member-only document). In addition, our National Groups including AIMA Canada publish annual reports and reviews about their local activities. And throughout the year we provide continuous updates on our activities via our newsletters to members and on our websites. CHW AIMA Canada, the Canada National Group of the international AIMA organization, was founded in 2003. How do you view its progress to date as a member of the global AIMA family? JI AIMA Canada has built an impressive track record as one of AIMA s fastest-growing National Groups and an important fixture in our international organization. Their progress can be measured not only by their strong membership growth and their regional and national expansion, but by the significant number of educational initiatives and social events they hold each year across the country. The involvement of AIMA Canada members in events and committees has been particularly impressive. Last year, AIMA held 120 events globally and of this total, 32 were held by AIMA Canada. CHW What do you see as AIMA s main strengths? JI One of our main strengths is the global nature of our organization which allows us to coordinate ideas and marshal resources on an international basis as well as provide a truly international service to an increasingly global marketplace. We have also benefitted enormously from the active participation of industry professionals in the work we do through membership in our committees and working groups. This has been a great strength of our organization and has earned us credibility on the global stage. Another related strength is our ability to adapt very quickly to new challenges faced by the global industry such as with the AIFMD and its significant impact on managers in Canada and elsewhere. The global expertise we bring together under our umbrella has been a very important factor in our capability in this area. CHW How has AIMA s role evolved in recent years? JI Our role has evolved quite significantly over the past five years. Previously, we were best known for promoting sound industry practices, due diligence and investor education, and that is still hugely important. We are planning to update and expand our library of sound practices guides and due diligence questionnaires. But since the financial crisis and the waves of new regulation, AIMA has focused much more on its advocacy work with policymakers and regulators in all the world s financial centres. AIMA has also been able to forge excellent working relationships with regulators globally since the crisis, and I intend to continue that work in the spirit of constructive co-operation that has always defined the association s regulatory engagement. The association continues to do a great job of explaining the useful roles that hedge funds play both in financial markets and investor portfolios. We also seek wider recognition of the contribution of the industry to economic growth, businesses and jobs through its investment activity in the capital markets and this is a narrative we will continue to expand on. CHW AIMA is well known for the excellence of its publications. What is next on the agenda? JI AIMA s next major publication will be a study on capital markets. This study was commissioned by AIMA and written by two prominent German academics. We think it s an important and timely paper because it will underline the contributions that capital markets and their participants make to economic growth and prosperity and highlight the positive role that hedge funds play in the capital markets as important providers of finance and liquidity. CHW How do you view AIMA s role moving forward? JI It is very important that AIMA continues to represent the global industry effectively. This is particularly important in terms of providing appropriate input in regulatory matters and in communicating and promoting the benefits of hedge funds to investors, markets and the real economy. I am very keen for us to strengthen our engagement with investors in hedge funds as we look to build on the very good work to date of the AIMA Investor Steering Committee, a group of leading institutional investors from around the world. We will also look to strengthen our global network as we consolidate our presence in the more than 50 countries where our members are based and seek to continue to expand into new territories and markets. There is much work to do, and I look forward to meeting and working closely with my colleagues and our members over the coming months. Volume 14 Issue 3 - March 2014 5

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2014 CALENDAR OF EVENTS Brought to you by radiusfinancialeducation.com Exchange Traded Forum (ETF) Monday, March 31, 2014 ~ Toronto Canada s leading event dedicated to Exchange Traded Products. Hear from leading financial industry professionals and industry experts who will provide valuable insights into the issues and trends that matter most to Canada s financial professionals. Join us for presentations, advisor/client-focused sessions, roundtable discussions, networking events and knowledge sharing critical issues facing the financial industry. This is an opportunity for IIROC based financial advisors and also Portfolio Managers to gather together in a great location to network, learn from each other, and participate in the numerous educational opportunities that fill the agenda. Practice Management & Retirement Summit (PMARS) Thursday, May 8, 2014 ~ Toronto PMARS offers proven practice management tools and education to help enhance businessbuilding efforts, increase efficiencies within your practice, and grow revenue to sustain your practice. This extensive one day event delivers a focused set of tools and resources from select sponsor partners that include products, retirement coaching and planning, current economic perspectives, information on advisor support programs and tools for your business and development. This is an opportunity for financial advisors to gather together in a great location to network, learn from each other, and participate in the numerous educational opportunities that fill the agenda. Exchange Traded Forum (ETF West) Tuesday, June 17, 2014 ~ Vancouver Canada s leading event dedicated to Exchange Traded Products. Hear from leading financial industry professionals and industry experts who will provide valuable insights into the issues and trends that matter most to Canada s financial professionals. Join us for presentations, advisor/client-focused sessions, roundtable discussions, networking events and knowledge sharing critical issues facing the financial industry. This is an opportunity for IIROC based financial advisors and also Portfolio Managers to gather together in a great location to network, learn from each other, and participate in the numerous educational opportunities that fill the agenda. World Alternative Investment Summit Canada (WAISC) Mon., Sept. 15 to Wed., Sept. 17, 2014 ~ Niagara Falls WAISC is in its 13th year and is Canada s largest gathering of alternative and exempt market investment professionals and service providers. Featuring panel discussions with top-level Canadian and international speakers, fund managers and leading service providers, WAISC brings together over 300 delegates to explore every side of alternative investments. WAISC is a popular annual event that is not to be missed. World Alternative Investment Summit Canada (WAISC West) Wednesday, November 12, 2014 ~ Vancouver WAISC West is in its 3rd year and is Canada s largest gathering of alternative and exempt market investment professionals and service providers. Featuring panel discussions with toplevel international speakers, fund managers and leading service providers, WAISC brings together over 200 delegates to explore every side of alternative investments. EXCHANGE TRADED FORUM ExchangeTradedForum.com RadiusPMRS.com EXCHANGE TRADED FORUM ExchangeTradedForum.com WAISC waisc.com WAISC waisc.com Radius Financial Education (Radius), has been producing high level conferences within the financial services sector in Canada for over 13 years. As Canada s leading producer of conferences within the financial sector, Radius events focus on education and networking through an exchange of independent ideas and information, allowing our delegates to be leaders in their chosen fields. Our top-down approach to the agenda enables us to deliver relevant, thought-provoking, cutting edge, and sometimes controversial insight in a stimulating manner. We understand the importance of learning from the best. Each conference offers a well balanced speaker composition consisting of insight from authors, educators, economists, regulatory bodies and industry leaders from around the globe. For more information, please contact: Radius Financial Education T 416.306.0151 info@radiusfinancialeducation.com

H E D G E F U N D P E R F O R M A N C E (as of February 28, 2014) Fund Name Asset Size ($MM) 1 3 6 YTD 1 Year 3 Year (Ann.) Since Inception (Ann.) Best 6 Mo. Worst 6 Mo. Max. Draw Down Std. (1 Year) Std. Beta Alpha (%) Correl. Correl. S&P500) % High Watermark % Pos. Since Inc. Acorn Diversified Program 48.000 11.58 13.06 7.47 11.85 18.53 4.85 4.98 13.08-13.20-17.77 14.89 15.77 0.36 14.63 0.22 0.27 100.00 51.79 Agilith North American Diversified Fund 30.800 2.00 3.63 18.16 1.87 41.19 21.96 19.96 29.54-19.60-46.04 11.05 14.57 0.29 38.05 0.24 0.40 100.00 62.34 AlphaNorth Partners Fund Class A 70.000 4.10 3.24 7.26 22.90-6.32-12.86 15.05 12.77-25.15-63.30 29.42 23.38 0.45-11.20 0.14-0.32 58.76 60.00 Arrow Act II New Media Fund A 9.050 2.60 1.72 8.35-1.24 10.66 3.56 5.57 11.70-16.38-16.38 9.17 9.00 0.18 8.71 0.18 0.27 98.76 54.17 Arrow Act II New Media Fund Class U - 2.54 1.53 7.95-1.35 9.93 - -1.02 11.32-16.31-16.31 9.15-0.18 7.98 0.18 0.27 96.22 48.39 Arrow Act II New Media Fund F - 2.70 2.01 8.96-1.05 11.97 5.50 6.86 12.34-15.87-15.87 9.17 8.92 0.18 10.02 0.18 0.27 98.95 58.90 Arrow Curvature Market Neutral Fund A 158.590 1.19 3.59 3.86 2.05 10.40 6.45 7.40 8.25-2.65-5.61 2.82 4.98 0.00 10.40-0.01-0.01 100.00 69.77 Arrow Diversified Fund Class A 20.460 1.51 3.31 3.69 2.13 0.79-4.86 1.45 3.69-8.84-20.17 3.10 3.69 0.04 0.36 0.13-0.23 83.33 59.15 Arrow Diversified Fund Class A U$ 93.620 1.38 3.07 3.30 1.92 1.14-5.46 2.59 3.30-9.72-22.49 3.27 3.93-0.03 1.47-0.09-0.32 80.65 57.86 Arrow Diversified Fund Class F C$ 75.750 1.51 3.45 4.18 2.18 2.01-3.71 2.74 4.18-8.54-17.21 3.01 3.73 0.04 1.58 0.11-0.23 88.01 61.07 Arrow Diversified Fund Class F U$ 75.750 1.49 3.40 3.97 2.15 1.98-4.43 1.62 3.97-9.11-17.82 2.93 3.79 0.03 1.65 0.09-0.21 85.96 58.12 Arrow High Yield Fund A C$ 179.340 2.00 3.37 6.01 2.62 4.35 1.14 5.59 6.01-5.60-9.27 4.69 4.65 0.01 4.24 0.02-0.22 100.00 66.20 Arrow High Yield Fund A U$ 304.240 1.90 3.10 5.64 2.44 3.50 0.63 5.71 5.64-5.89-8.65 4.76 4.80 0.01 3.39 0.01-0.21 99.11 69.51 Arrow High Yield Fund F 95.570 2.06 3.56 5.88 2.73 4.69 1.65 6.13 5.88-5.83-9.82 4.48 4.73 0.01 4.58 0.03-0.25 100.00 67.94 Arrow U.S. Equity Income Fund A C$ 1.410 2.03-0.38-0.74 0.51-8.20-5.22-10.92 4.77-8.91-71.45 5.83 7.71 0.23-10.69 0.36 0.25 41.07 43.90 Arrow U.S. Equity Income Fund Class U U$ 33.880 1.97-0.57-1.85 0.40-9.52-5.95-8.96 5.01-8.89-69.19 5.31 7.62 0.22-11.90 0.38 0.23 47.60 46.34 Arrow U.S. Equity Income Fund F - 2.20 0.13-0.62 0.85-7.33-4.34-10.07 5.43-8.19-71.06 5.58 7.68 0.20-9.50 0.33 0.30 43.71 46.34 Aurion II Equity Fund 36.460 4.02 7.20 14.60 5.14 16.36-3.99 7.28 14.90-27.12-41.81 8.50 14.01 0.79 7.80 0.85 0.37 88.51 62.89 Aurion II Equity Fund Series D 6.140 3.93 6.94 14.05 4.97 15.25-4.97 4.14 14.36-27.54-42.05 8.50 13.99 0.79 6.69 0.85 0.37 85.82 60.71 Aurion Income Opportunities Fund 24.900 0.47 1.28 1.73 0.12-0.15 4.48 3.33 6.18-2.10-13.79 3.39 2.97-0.14 1.37-0.38 0.13 98.30 69.81 Aurion Income Opportunities Fund Class D 5.770 0.43 1.16 1.51-0.05-0.68 3.98 1.38 5.94-2.40-13.74 3.45 3.00-0.14 0.84-0.37 0.15 98.00 64.71 Auspice Diversified Trust Class A - 1.60-0.85-2.97-0.47-4.89-8.51-3.24 0.68-13.21-26.66 5.91 7.38 0.01-5.00 0.01 0.27 74.52 50.94 Auspice Diversified Trust Class S - 1.60-0.85-2.98-0.47-4.90-8.55-6.91 0.64-13.21-26.71 5.91 7.37 0.01-5.01 0.01 0.27 74.46 44.74 Auspice Managed Futures LP. - 1.62-0.79-2.88-0.43-4.68-8.28 0.98 0.94-13.44-26.20 5.92 7.46 0.01-4.79 0.01 0.27 74.99 49.47 Barometer Long Short Equity Pool Class A 6.660 4.64 8.94 19.41 3.61 19.75-1.76 5.91 19.41-19.19-32.59 10.71 16.18 0.65 12.71 0.56 0.41 94.81 57.65 Blackheath Futures Fund L.P. Class A 3.640-0.95 1.49-3.22-1.51-14.24-2.56-0.11 21.38-18.69-27.46 21.06 19.45-0.42-9.69-0.18-0.12 78.19 60.38 Blackheath Volatility Arbitrage Fund L.P. Class A 2.160-1.48-2.33 4.42-3.40-5.08 4.97 6.65 20.08-9.46-11.69 9.10 10.37 0.06-5.73 0.06 0.41 93.29 51.22 BluMont Hirsch Performance Fund 34.390 3.82 5.79 15.38 2.84 22.76 11.05 10.28 22.15-16.09-41.19 5.29 8.99 0.36 18.86 0.63 0.74 100.00 62.96 Broadview Dark Horse LP 34.000 3.23 3.98 9.34 3.26 18.65 12.05 17.44 13.49-5.14-7.41 5.03 6.76 0.39 14.42 0.72 0.55 100.00 83.05 Brompton Energy Opportunities Fund Series 2009 8.680 6.46 16.48 20.97 11.31 11.61-3.20 21.49 20.97-22.80-33.30 13.53 19.16 0.86 2.29 0.58 0.13 83.82 61.40 Brompton Energy Opportunities Fund Series 2010 2.730 6.32 16.33 20.81 11.17 11.46-11.15 2.66 20.81-22.80-44.11 13.47 23.15 0.85 2.25 0.58 0.13 70.15 55.56 Brompton Energy Opportunities Fund Series A 3.720 6.29 16.27 20.74 11.13 11.36-3.83 5.02 20.74-22.83-52.21 13.45 19.06 0.85 2.15 0.58 0.13 83.54 60.00 Burlington Partners Plus LP - 5.23 9.28 16.75 5.40 18.91 12.02 12.50 21.51-13.48-14.40 6.70 9.67 0.51 13.38 0.69 0.55 100.00 68.89 Burlington Partners1 LP - 3.56 6.39 11.06 3.82 10.72 8.06 5.75 12.70-7.28-13.27 4.95 5.81 0.33 7.14 0.61 0.52 100.00 64.22 Calrossie Partners Fund - 3.66 3.95 15.07 2.19 20.72 12.69 10.41 16.53-10.26-35.06 7.68 8.41 0.59 14.33 0.70 0.84 100.00 69.01 ChapelGate Credit Opportunity Fund Ltd. 478.560 0.01 2.94 6.43 1.95 14.11 14.17 14.51 12.94 1.12-4.23 2.80 3.60-0.01 14.22-0.02 0.07 100.00 89.90 CI Global Opportunities Fund C$ 11.520-1.73-4.60-7.73-3.19-5.94-1.69 15.38 9.56-12.57-39.28 9.85 7.89-0.57 0.24-0.53 0.20 83.33 57.40 CI Global Opportunities Fund U$ 21.160-1.12-9.55-10.66-7.10-14.08-4.46 5.02 8.03-19.43-46.22 15.57 11.49-0.59-7.69-0.34 0.41 79.67 51.79 DKAM Capital Ideas Fund 121.075 3.87 8.83 28.48 5.17 48.71 20.61 29.06 33.42-8.15-11.98 9.99 11.48 0.28 45.68 0.26 0.35 100.00 76.92 Dynamic Alpha Performance Fund Series A 485.104 0.71 3.97 5.85 3.88 10.92 3.26 7.17 7.69-8.29-15.50 5.15 6.01 0.14 9.40 0.24-0.16 100.00 61.70 Dynamic Alpha Performance Fund Series F - 0.79 4.08 6.31 3.93 11.71 4.30 7.41 7.86-7.60-15.12 4.99 5.89 0.14 10.19 0.27-0.12 100.00 60.82 Dynamic Alpha Performance Fund Series FH U$ - 0.75 3.87 5.86 3.67 12.11-8.35 8.44-0.62-2.05 5.33-0.13 10.70 0.22-0.11 100.00 66.67 Dynamic Alpha Performance Fund Series H - 0.57 3.56 5.38 3.54 11.46-8.20 8.59-1.25-2.28 5.48-0.15 9.83 0.26-0.08 100.00 66.67 Dynamic Alpha Performance Fund Series T 7.880 0.80 3.95 5.74 3.84 10.70 3.20 5.42 7.51-8.28-8.47 5.06 5.99 0.14 9.18 0.26-0.15 100.00 57.45 Dynamic Contrarian Fund 8.350-0.51 6.53 7.89 1.73 6.72-15.06 2.22 10.27-39.54-63.12 6.83 15.30 0.17 4.88 0.23-0.39 59.65 52.43 Dynamic Income Opportunities Fund 44.650 3.61 5.45 14.39 3.87 15.85 7.93 8.71 14.39-4.17-29.50 6.22 6.81 0.55 9.89 0.81 0.76 100.00 68.13 Dynamic Power Hedge Fund Series C 32.630 5.31 4.88 2.25 7.42-7.75-20.23 12.16 13.30-38.65-79.61 14.32 23.89 0.90-17.50 0.57 0.21 50.77 53.57 Exemplar Diversified Portfolio Series A 36.880 1.08 0.08 6.40-1.99 3.65-5.26 1.28 7.30-16.67-21.78 8.67 10.45-0.16 5.38-0.17 0.48 83.43 53.45 Exemplar Diversified Portfolio Series F - 1.16 0.34 6.97-1.82 4.79 6.58 6.68 18.18-9.36-9.36 8.68 10.60-0.16 6.52-0.17 0.48 98.08 57.78 Exemplar Leaders Fund Series A 34.290 3.52 4.18 12.37 2.61 25.26 11.00 8.76 23.19-13.65-39.46 7.15 12.16 0.44 20.49 0.56 0.70 100.00 65.38 8 www.canadianhedgewatch.com

H E D G E F U N D P E R F O R M A N C E (as of February 28, 2014) Fund Name Asset Size ($MM) 1 3 6 YTD 1 Year 3 Year (Ann.) Since Inception (Ann.) Best 6 Mo. Worst 6 Mo. Max. Draw Down Std. (1 Year) Std. Beta Alpha (%) Correl. Correl. S&P500) % High Watermark % Pos. Since Inc. Exemplar Leaders Fund Series F 2.910 3.60 4.46 12.95 2.78 25.54 11.82 6.21 24.31-13.19-38.51 7.33 12.19 0.47 20.45 0.59 0.67 100.00 63.64 Fiera Tactical Bond Yield Fund Class A 77.030-0.17 0.28-0.24 0.27-2.09-0.64 4.68-1.92-2.65 2.21 - -0.04-1.66-0.18-0.66 97.84 61.29 Formula Growth Alpha II Fund Class B 42.700 2.14 4.64 10.03 4.28 17.48-9.58 26.68-8.92-17.40 4.90-0.32 14.01 0.61 0.16 100.00 64.71 Formula Growth Global Opportunities Fund Cl. S C$ 54.900-0.81 7.97 20.09 2.03 31.51 9.43 9.81 27.73-19.87-24.00 12.26 14.70 0.45 26.63 0.33-0.14 99.19 62.90 Formula Growth Hedge Fund Class F C$ 216.100 2.32 6.29 12.27 6.46 18.61 8.36 17.84 28.39-19.19-20.73 7.22 14.50 0.36 14.71 0.46-0.20 100.00 65.44 Formula Growth Hedge Fund Class F U$ - 2.73 1.73 6.98 2.25 10.14 3.81 21.35 33.34-24.33-25.96 6.15 18.78 0.42 5.59 0.63 0.62 100.00 68.15 Friedberg Asset Allocation Fund 52.800 3.11 4.31 6.75 6.82-2.32 0.90 7.22 12.87-11.55-18.49 11.18 11.94 0.63-9.15 0.52 0.27 88.10 62.75 Friedberg Global Macro Hedge Fund U$ 189.400 0.35 19.62 5.77 17.41-31.75 1.40 15.02 37.48-41.98-45.58 29.75 30.57 0.25-34.46 0.08-0.42 68.25 56.79 Front Street Canadian Energy Resource Fund Ser B 18.810 10.14 36.15 39.43 30.38 31.62-20.95 6.35 39.43-43.97-72.55 25.19 33.86 1.66 13.63 0.61-0.16 48.21 63.30 Front Street Canadian Energy Resource Fund Ser F 0.520 10.23 36.52 40.19 30.61 33.10-20.31-4.60 40.19-43.69-67.98 25.20 33.97 1.66 15.11 0.60-0.16 49.08 56.82 Front Street Canadian Hedge Fund Series B 115.690 4.68 8.52 18.92 7.15 25.18-2.63 11.65 18.92-26.95-43.40 5.90 14.07 0.53 19.44 0.82 0.42 92.31 64.37 FrontFour Opportunity Fund 28.000 2.99 2.06 12.62 3.26 21.22-16.33 17.26 0.99-5.84 7.74-0.43 16.56 0.51 0.67 100.00 71.88 GFM 130/30 Fund - 2.91 6.28 16.25 4.28 17.99 2.21 11.92 16.25-16.18-20.72 8.17 12.54 0.76 9.76 0.85 0.61 100.00 63.08 GFM Dividend Income Fund - 2.12 3.08 9.81 1.52 14.69-6.97 15.47-4.87-12.73 4.85-0.45 9.81 0.84 0.77 100.00 59.38 GFM Market Neutral Fund - -0.52 0.32 5.32 0.21 4.58 1.33 5.70 6.46-5.57-8.81 4.89 5.08-0.14 6.10-0.27-0.04 99.48 58.46 Goodwood Fund Class A 14.300 4.59 10.69 19.62 9.74 27.73 2.38 10.88 19.62-21.03-55.80 7.57 11.31 0.27 24.80 0.33-0.16 78.50 62.98 Goodwood Fund Class B 34.700 4.59 10.69 19.62 9.74 27.70 2.40 2.36 19.62-21.03-55.41 7.57 11.31 0.27 24.77 0.33-0.16 79.24 59.59 Goodwood Milford Fund - 4.05 10.10 13.71 9.13 15.93 14.63 17.48 13.71 0.96-49.99 5.55 5.90 0.26 13.11 0.42-0.10 100.00 74.49 Hillsdale Canadian Long/Short Equity Fund Class A 4.950 3.38 2.58 16.10 1.65 15.44 2.26 7.53 17.98-7.07-24.49 9.21 8.75 0.34 11.76 0.34 0.43 93.60 58.82 Hillsdale Enhanced Income Fund Class A 10.090 2.39 3.98 9.90 3.52 0.87 3.77 3.70 9.90-8.22-11.70 10.13 8.11 0.38-3.25 0.35 0.42 97.05 65.00 IA Multi-Strategy 1.370 3.54 27.62 29.81 26.97 27.80 4.43-0.81 29.81-6.92-38.57 23.40 14.12 0.53 22.06 0.21-0.36 80.89 46.62 IMFC Global Concentrated Program - 0.56-1.73 3.69-2.26-3.50-3.63 2.02 8.03-13.50-17.77 8.20 10.71-0.13-2.09-0.15 0.56 85.26 52.54 IMFC Global Investment Program - 1.26 0.67 7.42-1.63 5.46-4.21 8.20 8.08-16.05-21.06 8.66 10.50-0.15 7.09-0.16 0.48 85.97 50.59 JC Clark Adaly Fund Class A - 6.49 11.20 22.00 9.07 19.95-4.55 13.65 22.00-27.52-35.68 10.44 15.62 0.66 12.80 0.58 0.32 86.98 70.00 JC Clark Adaly Fund Class B - 6.39 10.69 21.00 8.85 18.64-5.24 6.66 21.00-27.72-36.14 10.38 15.57 0.66 11.49 0.58 0.32 85.09 65.60 JC Clark Focused Opportunities Fund (Class A) - 1.18 3.58 11.45 1.69 10.74 5.63 7.71 19.24-11.47-14.02 5.09 8.54 0.33 7.16 0.59 0.55 100.00 65.71 JC Clark Patriot Trust (Class B) - 4.45 8.39 16.55 4.79 14.99-3.78 8.65 16.55-17.01-29.64 8.63 12.88 0.79 6.43 0.83 0.51 89.08 66.17 JC Clark Preservation Trust (Class B) - 1.10 4.35 16.63 1.98 15.63 5.73 11.27 18.60-9.84-22.61 7.24 7.94 0.47 10.54 0.60 0.50 100.00 60.11 JM Catalyst Fund 23.300 2.76 6.62 10.51 5.62 24.31 17.68 14.18 13.82 3.87-3.31 4.04 4.11 0.23 21.82 0.52-0.01 100.00 82.43 King & Victoria Fund LP - 1.40 3.52 9.20 0.89 26.90 18.11 25.64 35.96-11.98-32.14 7.31 10.47 0.15 25.27 0.19 0.54 100.00 76.98 King & Victoria RSP Fund Class A Units - 1.40 3.52 9.20 0.89 26.90 17.79 17.17 35.96-11.99-33.73 7.31 10.47 0.15 25.27 0.19 0.54 100.00 72.32 Kootenay Global Energy Abs. Return Fund LP Class A - 6.84 10.62 14.52 6.95 19.62-3.03 15.15-12.47-17.73 11.12-1.06 8.13 0.88 0.41 100.00 56.25 Landry Global Equity Long/Short Fund Series A - 1.58 4.13 6.30 3.18 13.68 5.58-0.01 11.00-10.47-27.24 3.87 7.25 0.12 12.38 0.29 0.18 90.41 55.91 Landry Global Equity Long/Short Fund Series F 29.100 1.67 2.83 7.37 3.38 10.94 7.29 4.90 11.31-10.02-26.44 3.63 7.49-0.04 11.37-0.10 0.23 97.91 59.23 Landry Global Equity Long/Short Fund Series I - 1.75 3.11 7.96 3.55 12.22 6.38 1.26 11.89-9.56-25.62 3.63 7.48-0.04 12.65-0.10 0.23 98.14 58.43 Lightwater Nimble Fund - 2.12 8.70 20.68 5.90 62.07-62.07 40.94 20.68-4.35 12.31 - -0.67 69.33-0.50-0.20 100.00 91.67 Lycos Value Fund Class O 2.000 7.47-3.59 6.76 3.98 27.81 26.43 17.40 68.00-14.32-22.62 26.75 27.18 1.02 16.76 0.35 0.57 95.98 58.06 Lycos Value Fund Class P 1.200 0.34 1.47 2.96 0.95 6.02 6.02 6.00 3.10 2.91 0.00 0.22 0.14 0.00 6.02-0.11-0.39 100.00 100.00 Majestic Global Diversified Fund - 1.40 3.74-1.88-0.73-13.29-9.62-0.73 12.89-20.07-32.95 11.10 16.79 0.22-15.67 0.18 0.35 69.70 46.97 Majestic Global Diversified Fund Series A - 1.42 3.71-1.92-0.72-13.34-9.65 0.46 12.78-20.03-33.00 11.12 16.84 0.19-15.40 0.16 0.33 69.63 47.69 Majestic Global Diversified Fund Series I - 1.26-3.35-14.52 2.20-10.80 - -9.69 15.74-20.22-30.37 10.45 - -0.62-4.08-0.54-0.39 71.16 45.71 Maxam Diversified Strategies Fund Series A - 1.69 4.15 13.91 1.15 23.10 6.02 12.15 18.47-14.83-16.15 5.98 9.25 0.24 20.50 0.37 0.12 100.00 60.71 Meson Capital Partners Fund - -12.65 4.62 19.20 0.67 3.52-14.12 25.03 28.10-26.71-59.12 26.15 28.29 0.55-2.44 0.19-0.14 48.73 53.33 Niagara Discovery Fund 9.500-1.72-2.48-5.94-3.54-6.13-2.62 9.82 9.86-9.86-14.06 11.10 12.90-0.19-4.07-0.16 0.04 86.67 52.27 Niagara Legacy Class B Fund 49.300 0.24 19.34 5.54 17.19-26.23 0.08 10.97 60.16-41.54-49.57 30.12 32.31 0.11-27.42 0.04-0.38 63.04 57.69 Norrep Market Neutral Income Fund 16.000 1.89 1.67 5.25 2.51 8.36-10.28 13.81-1.90-2.99 5.26-0.26 5.54 0.45 0.59 100.00 63.33 Northern Rivers Conservative Growth Fund LP 14.646 3.61 5.14 14.69 3.38 32.37 14.16 11.27 26.84-12.83-49.62 7.13 12.76 0.27 29.44 0.34 0.58 100.00 66.00 Palos Income Fund, L.P. 130.000 3.97 5.62 15.42 2.91 22.30 7.50 12.24 15.42-13.58-40.08 6.10 8.70 0.52 16.67 0.78 0.83 100.00 72.00 Pathway Energy Series A Rollover MIN002 2.100 6.13 8.93 0.29 8.96-14.14-39.11-29.42 2.28-49.90-92.29 18.92 26.12 1.61-31.58 0.78 0.04 8.40 49.30 Pathway Multi SF Explorer Series A Rollover MIN001 37.000 9.66 17.21-8.14 19.33-43.56-47.50-21.47-8.14-45.21-94.98 28.12 27.25 1.82-63.28 0.59-0.13 5.99 41.12 Volume 14 Issue 3 - March 2014 9

H E D G E F U N D P E R F O R M A N C E (as of February 28, 2014) Fund Name Asset Size ($MM) 1 3 6 YTD 1 Year 3 Year (Ann.) Since Inception (Ann.) Best 6 Mo. Worst 6 Mo. Max. Draw Down Std. (1 Year) Std. Beta Alpha (%) Correl. Correl. S&P500) % High Watermark % Pos. Since Inc. Picton Mahoney Diversified Strategies Fund Class A 16.520 1.74 2.61 8.67 1.92 11.22 6.09 8.01 9.62-7.99-7.99 3.85 5.11 0.35 7.43 0.83 0.77 100.00 68.00 Picton Mahoney Global Long Short Equity Fd Cl A C$ 19.080 2.00 3.89 11.90 2.55 15.38 8.82 3.58 13.21-7.72-25.98 5.60 7.32 0.27 12.45 0.45 0.72 100.00 62.67 Picton Mahoney Global Long Short Resource Cl A 3.240 3.26 3.61 9.06 2.28 12.73-5.62 12.89-9.98-12.13 8.95-0.79 4.17 0.81 0.47 100.00 62.96 Picton Mahoney Global Market Netural Equ Cl A C$ 46.110 0.36 2.08 4.57 1.97 5.91 5.30 2.07 6.14-1.14-17.21 3.03 3.26-0.02 6.13-0.06 0.08 100.00 60.00 Picton Mahoney Income Opportunities Fund Class A 229.050 1.40 2.99 7.09 2.62 8.64 3.88 7.57 7.09-8.16-9.14 3.79 5.04 0.35 4.85 0.86 0.50 100.00 76.00 Picton Mahoney Long Short Equity Fund Class A 119.530 2.59 3.02 9.45 2.23 13.69 4.36 11.41 10.77-10.78-24.86 4.86 6.34 0.45 8.81 0.85 0.75 100.00 71.43 Picton Mahoney Market Neutral Equity Fund Class A 275.790 0.75 0.64 2.96 0.75 5.87 2.45 8.46 4.28-1.94-4.63 1.62 2.13 0.05 5.33 0.29 0.58 100.00 69.39 Primevestfund 2.780 9.31 13.30 18.39 11.05 21.95-10.48 10.93 18.39-23.69-46.13 16.09 18.80 1.29 7.97 0.74 0.15 71.73 64.42 Radin Global Opportunities Fund Fd Class Series F - 3.62 5.19 11.70 3.33 14.65-20.75 14.40 2.57-2.41 6.52-0.60 8.15 0.85 0.48 100.00 76.47 RDA Mons Regalis Multi-Strategy LP - -0.93 0.36-0.75 1.66-8.73-0.48 1.58 12.35-10.10-18.03 8.86 9.18-0.25-6.02-0.26-0.63 83.33 50.00 Rosalind Capital Partners L.P. - 0.30 15.69 28.31 7.62 84.98 12.08 22.24 47.73-38.79-40.85 13.12 20.28 0.28 81.95 0.20-0.40 100.00 67.47 Ross Smith Capital Investment Fund 24.651 0.20 3.17 4.06 1.76 10.35 7.87 10.45 6.38 0.30-17.17 2.52 2.84-0.02 10.57-0.06-0.45 100.00 71.43 Ross Smith Opportunities Fund 25.238 1.92 2.25 3.86 0.69 5.15-8.56 10.22 1.08-1.21 3.33-0.09 4.17 0.26 0.59 100.00 69.23 SEI Futures Index Fund Class D - -0.22-0.24-0.70-0.75-2.13-3.16-2.95 4.04-7.21-13.12 2.11 3.52-0.04-1.70-0.19-0.06 87.30 37.50 SEI Futures Index Fund Class E 0.010-0.09 0.16 0.10-0.48-0.86-2.39-2.21 4.32-6.95-11.75 2.16 3.53-0.04-0.43-0.15-0.06 89.15 37.50 SEI Futures Index Fund Class F 0.700-0.08 0.12 0.00-0.49-0.62-1.49 1.05 4.98-6.37-9.79 2.10 3.52-0.05-0.08-0.20-0.06 91.07 50.00 SEI Futures Index Fund Class O 20.640 0.00 0.47 0.71-0.29 0.71-0.38 2.28 5.53-5.88-8.66 2.12 3.53-0.05 1.25-0.20-0.06 93.25 54.43 SEI Futures Index Fund Class P 0.150-0.13 0.05-0.13-0.56-0.97-2.04 0.59 4.65-6.68-10.95 2.12 3.52-0.05-0.43-0.20-0.07 89.82 49.18 SG US Market Neutral Fund 33.960 1.00 6.14 4.25 2.53 6.11 4.92 1.28 6.15-1.78-12.63 5.27 4.23 0.10 5.03 0.17-0.36 100.00 53.97 SG US Market Neutral Fund Class G - 1.54 5.13 3.75 2.25 5.35-5.14 4.63-1.62-1.94 4.42-0.10 4.27 0.20-0.23 100.00 61.54 SG US Market Neutral Fund Class U - 0.40 3.65 1.48 2.13 3.10-3.84 6.39-2.05-2.53 4.73-0.09 2.12 0.17-0.46 100.00 56.25 Sherpa Diversified Returns Fund Class A - 1.98 1.41 5.12 0.41 7.99 3.96 3.86 11.56-10.76-21.95 3.76 6.36 0.22 5.61 0.53 0.98 100.00 69.57 Sherpa Market Neutral Income Fund Class A - 0.16 0.40 0.59 0.02 0.25 0.21 1.75 3.09-5.30-6.90 0.53 3.17 0.02 0.03 0.39 0.28 98.28 75.56 SMI Defensive LP 145.800-2.69-2.61-8.97-0.98-32.55-8.03 14.41 7.28-28.55-34.45 16.76 11.64-0.63-25.72-0.35-0.35 65.55 82.81 SMI Income LP 3.600 3.19 8.39 14.43 5.14 24.25-23.41 15.32 4.82 0.00 3.89-0.23 21.76 0.55-0.21 100.00 100.00 Spartan Dorset Fund - -0.87 1.66 - -1.07 - - - - - -1.07 - - - - - - 98.93 50.00 Spartan Eleven Fund - 1.97 3.43 7.18 2.79 7.11-10.80 12.87-1.97-4.16 3.91-0.40 2.78 0.94 0.41 100.00 82.14 Spartan Humber Global Opportunity Fund - 0.34-0.64 3.44-2.14 - - - - - -2.47 - - - - - - 97.86 72.73 Spartan LSQ - 1.01 2.14 1.37 1.24 3.18-7.44 7.69 0.08-1.65 2.93-0.11 1.99 0.33-0.11 100.00 91.67 Spartan ontrend Fund - 3.88 3.83 13.50 4.32 23.39-17.15 18.79-0.06-3.08 9.65-0.87 13.96 0.83 0.41 100.00 64.29 Spartan Teraz Fund 1.000 12.36 18.89 15.41 17.91 17.59 - -0.93 15.41-15.98-24.09 15.27-1.03 6.43 0.62 0.03 94.23 42.31 Sprott Absolute Return Income Fund Class A 29.007 0.17 2.06-0.55 1.79-5.84-0.74 1.19 5.74-7.72-8.94 6.49 5.18 0.34-9.52 0.48 0.01 92.93 64.29 Sprott Absolute Return Income Fund Class T 5.630 0.16 2.04-0.58 1.77-5.90-0.77 1.24 5.81-7.74-9.01 6.49 5.21 0.34-9.58 0.48 0.01 92.85 64.29 Sprott Bull/Bear RSP Fund Class A 23.756 15.52 32.98-8.95 38.21-31.86-31.87 0.54 4.66-49.70-78.69 47.43 33.28 2.29-56.67 0.44-0.35 29.45 52.59 Sprott Enhanced Long/Short Equity Fund 55.660 3.20 2.05 7.21 1.27 13.81-0.28 11.95 9.16-13.52-19.15 4.64 8.91 0.16 12.08 0.32 0.79 97.84 58.47 Sprott Enhanced Long/Short Equity RSP Fund 20.310 3.12 1.94 7.01 1.19 13.43-0.60 6.07 8.96-13.62-19.39 4.59 8.90 0.16 11.70 0.32 0.79 97.04 53.47 Sprott Hedge Fund L.P. Class A 146.907 14.20 27.19-9.30 32.61-31.04-31.66 7.63 5.76-46.34-77.79 42.83 31.15 2.15-54.34 0.46-0.34 29.45 56.25 Sprott Hedge Fund L.P. II Class A 97.478 14.71 29.83-9.07 35.62-30.77-31.59-1.80 5.75-47.07-78.10 44.64 31.70 2.14-53.96 0.44-0.36 29.70 50.72 Sprott Small Cap Hedge Fund 13.473 5.93 9.78 15.97 5.68 12.62-7.65 4.35 17.57-18.87-54.39 10.91 14.09 1.02 1.57 0.86 0.34 78.77 58.82 Stornoway Recovery Fund Series I 26.421 3.07 8.54 10.61 5.88 25.38 17.99 8.78 18.97-8.93-61.27 8.25 10.71-0.37 29.39-0.41-0.50 100.00 70.80 SW8 Strategy Fund LP Class A 27.916 2.63 5.34-2.24 5.49-5.61-0.58 1.82 5.64-7.49-10.52 7.84 5.58 0.13-7.02 0.15-0.47 94.39 50.00 SW8 Strategy Fund LP Class B - 2.68 5.49-1.96 5.59-5.06-0.08 10.98 5.86-7.23-10.08 7.83 5.57 0.13-6.47 0.15-0.47 94.94 59.57 SW8 Strategy Trust Class A 13.260 2.63 5.34-2.24 5.49-5.61-1.02 1.34 5.37-7.49-10.52 7.84 5.59 0.13-7.02 0.15-0.47 94.39 50.00 SW8 Strategy Trust Class B - 2.68 5.49-1.96 5.59-5.06-0.39 2.01 5.58-7.23-10.08 7.83 5.55 0.13-6.47 0.15-0.47 94.94 50.00 Tapestry Balanced Growth Private Port Corp Cl A 8.990 2.07 4.55 11.17 3.38 10.76 3.58 4.62 11.17-6.05-8.55 4.81 5.38 0.43 6.10 0.82 0.48 100.00 64.00 Tapestry Balanced Growth Private Port Corp Cl T 2.510 2.13 3.84 10.49 2.75 10.06 3.35 4.32 10.49-5.98-8.48 4.90 5.36 0.44 5.29 0.83 0.56 100.00 64.00 Tapestry Balanced Income Private Port Corp Cl A 2.590 1.75 4.07 9.31 3.25 7.70 3.44 4.25 9.31-3.42-5.18 4.61 4.26 0.38 3.58 0.75 0.40 100.00 69.39 Tapestry Balanced Income Private Port Corp Cl T 0.650 1.70 3.52 8.79 2.78 7.17 3.15 3.88 8.79-3.45-5.26 4.50 4.24 0.37 3.16 0.75 0.46 100.00 64.00 Tapestry Divers Income Private Port Corp Class A 3.900 1.27 3.42 7.30 3.07 4.86 4.00 4.93 7.30-2.27-3.20 4.35 3.26 0.30 1.61 0.64 0.30 100.00 67.35 Tapestry Global Balanced Private Port Corp Cl A 4.570 2.26 4.67 12.06 3.43 12.26 4.81 5.19 12.06-5.86-7.38 5.05 5.77 0.43 7.60 0.78 0.51 100.00 61.22 10 www.canadianhedgewatch.com

H E D G E F U N D P E R F O R M A N C E (as of February 28, 2014) Fund Name Asset Size ($MM) 1 3 6 YTD 1 Year 3 Year (Ann.) Since Inception (Ann.) Best 6 Mo. Worst 6 Mo. Max. Draw Down Std. (1 Year) Std. Beta Alpha (%) Correl. Correl. S&P500) % High Watermark % Pos. Since Inc. Tapestry Global Growth Private Port Corp Cl A 1.030 2.74 4.37 14.39 2.77 17.67 6.62 6.73 14.39-8.43-10.32 5.82 7.69 0.48 12.47 0.76 0.68 100.00 66.67 Tapestry Global Growth Private Port Corp Cl T - 2.71 3.59 13.57 2.06 16.73 6.55 5.67 13.57-8.77-10.65 6.06 7.72 0.49 11.42 0.74 0.73 100.00 64.00 Tapestry Growth Private Portfolio Corporate Cl A 2.780 2.63 4.87 12.92 3.48 12.70 3.67 4.51 12.92-8.13-10.62 5.74 6.61 0.52 7.07 0.84 0.56 100.00 62.00 Tapestry Growth Private Portfolio Corporate Cl T - 2.64 4.13 12.03 2.70 11.82 3.31 4.21 12.03-8.29-10.84 5.79 6.59 0.53 6.08 0.84 0.62 100.00 60.00 The Vantage Fund 80.000 7.20 12.69 15.53 11.33 18.31 5.02 8.92 15.53-9.93-12.68 8.79 9.21 0.38 14.19 0.39-0.07 100.00 68.75 Topaz Multi-Startegy Fund (Canada) Series H 37.100 0.68 2.87 2.30 3.17-1.41 - -2.60 2.88-8.01-10.29 4.71-0.30-4.66 0.58-0.25 93.06 50.00 Trident Global Opportunities Fund C$ 83.140-1.77-4.47-7.66-3.26-5.69-1.53 7.77 9.82-12.50-17.16 9.97 8.04-0.58 0.59-0.53 0.20 82.84 51.95 Trident Global Opportunities Fund U$ 49.670-1.18-9.45-10.62-7.19-13.84-4.30 10.73 8.28-19.35-20.31 15.67 11.55-0.60-7.34-0.35 0.41 79.69 55.19 Trident Performance Corp II 10.470-1.69-3.22-3.06-3.53-7.40-1.59-2.71 10.14-9.32-17.24 7.08 7.16-0.37-3.39-0.47 0.08 82.76 43.64 Venator Founders Fund Class A 73.000 2.60 4.66 11.70 1.88 26.99 11.22 14.21 24.71-20.64-32.02 5.69 12.89 0.11 25.80 0.17 0.71 100.00 68.75 Venator Income Fund Class F 61.000 1.70 6.65 9.44 3.53 15.83 12.85 16.38 11.39-6.55-12.91 3.81 5.84 0.10 14.75 0.25 0.18 100.00 82.09 Venator Investment Trust Class A - 2.59 4.66 11.70 1.90 26.63 11.30 9.79 24.77-20.55-32.72 5.57 12.85 0.11 25.44 0.18 0.72 100.00 66.67 Vertex Fund Class A 1251.110 1.44 7.84 12.65 5.40 19.29 6.86 16.16 12.65-14.36-47.22 5.61 8.85 0.31 15.93 0.51 0.03 100.00 70.68 Vertex Fund Class B 225.210 1.37 7.71 12.22 5.24 18.86 5.34 11.16 12.22-14.88-47.05 5.92 8.81 0.33 15.28 0.51 0.07 100.00 72.58 Vertex Fund Class F 499.430 1.44 7.84 12.62 5.40 19.23 6.83 14.00 12.62-14.37-47.60 5.61 8.84 0.32 15.76 0.52 0.03 100.00 73.08 Vision Opportunity Fund L.P. - 1.77 3.56 15.01 0.71 0.76 9.10 20.17 16.64-12.39-17.27 11.66 10.20 0.24-1.84 0.19 0.52 100.00 72.06 Vision Opportunity Fund L.P. II - 1.71 3.40 14.67 0.53 0.23 9.29 19.77 16.44-12.59-12.59 11.72 9.87 0.24-2.37 0.19 0.53 100.00 74.07 Vision Opportunity Fund Trust - 1.27 2.62 11.21 0.11-2.55 6.97 16.10 17.35-12.37-15.47 9.61 9.29 0.30-5.80 0.28 0.54 97.45 70.59 WARATAH Income Fund 94.600 3.70 0.43 8.04-0.86 12.86 5.48 7.55 11.59-5.00-5.85 8.58 6.30 0.58 6.58 0.62 0.77 99.14 68.18 WARATAH One Fund 184.300 1.20-0.64 4.10-1.33 7.14 6.00 7.32 7.83-1.22-2.50 4.29 3.71 0.15 5.51 0.32 0.50 98.67 79.55 WARATAH Performance Fund 201.900 3.40 2.72 13.45 0.61 18.59 9.15 14.84 13.99-3.39-4.73 7.02 6.14 0.38 14.47 0.49 0.83 100.00 75.00 Wealhouse Panorama Fund, L.P. 252.515 3.42 5.94 11.92 3.74 19.15 4.47 12.24 13.34-14.39-17.00 5.31 8.49 0.37 15.14 0.64 0.70 100.00 67.16 Wolverine Opportunity Fund Series A - 4.80 12.09 24.50 5.47 18.44-13.29-7.52 24.50-37.20-48.94 13.41 18.47 1.18 5.65 0.81 0.59 65.19 53.66 Equally Weighted Average Performance of All Funds 8,384.36 2.49 5.23 8.01 4.11 8.67 0.84 - - - - - - - - - - - - Number of Funds in Sample 115 173 171 170 173 169 147 - - - - - - - - - - - - M A R K E T I N D I C E S (as of February 28, 2014) INDEX NAME 1 3 6 YTD 1 Year 3 Year Since Inception Best 6mo. Worst 6mo. Max. Draw Down Std. (1 Year) Std. Alpha Beta % High Watermark % Pos. s 183 Day Canada T-Bill 0.08 0.23 0.48 0.15 1.00 1.00 6.43 0.53 0.46 0.00 0.02 0.02 1.00 0.00 100.00 100 91 Day Canada T-Bill 0.07 0.23 0.47 0.15 0.96 0.95 6.16 0.49 0.43 0.00 0.01 0.02 0.96 0.00 100.00 100 BMO Canadian Small Cap Index 5.91 10.43 14.96 8.54 13.21-3.10 6.00 14.96-22.25-57.31 11.16 14.82 1.29 1.10 90.99 58.9 CHW-HF Composite Index 4.07 8.99 8.54 8.63 6.47-4.61 0.96 8.54-11.60-32.08 7.96 7.48 0.29 0.57 78.96 59.09 CHW-HF Equity Hedged Index 4.14 8.80 8.24 8.52 6.16-4.87 2.48 8.24-11.79-34.75 8.20 7.71-0.23 0.59 78.20 60 CHW-HF FoHF Index 2.01 9.39 11.30 8.27 8.97-2.91-6.79 11.30-9.85-57.95 6.92 5.55 5.50 0.32 46.85 50.46 CHW-HF Notes Index -0.33 0.05 0.74-0.16 3.94 2.94 0.42 3.75-1.83-11.09 1.14 1.75 3.94 0.00 99.67 58.33 Dow Jones Global Index (C$) 4.06 6.68 18.83 4.79 24.96 10.85 5.13 18.83-11.97-50.31 6.37 9.42 19.00 0.55 96.68 56.39 Dow Jones Global Index (U$) 4.86 2.50 13.31 0.84 16.54 5.89 5.30 18.68-18.57-55.89 10.98 14.78 9.82 0.62 98.01 59.77 Nasdaq Composite Index (C$) 4.37 10.65 26.09 7.40 46.44 20.87 9.41 26.09-6.54-74.24 6.99 10.05 40.59 0.54 70.11 58.79 S&P 500 Total Return Index C$ 3.97 7.94 20.91 5.12 34.70 19.49 10.92 21.42-6.83-51.16 7.28 8.47 29.61 0.47 100.00 61.56 S&P 500 Total Return Index US$ 4.57 2.66 14.13 0.96 24.35 14.04 10.58 25.88-13.78-50.98 10.09 12.46 18.72 0.52 100.00 61.81 S&P/TSX 60 Index TR 3.69 6.13 12.66 4.23 10.92 1.41 7.21 13.00-16.44-47.89 8.92 9.92 0.41 0.97 100.00 60.89 S&P/TSX Composite Index 3.76 6.08 12.30 4.32 10.84 0.18 6.47 12.31-17.66-45.05 8.40 10.21 0.87 0.92 96.59 59.38 Canadian Hedge Watch receives, tracks and presents the data and results of Canadian funds as a service to the hedge fund and alternative investment community. Business announcements, key personnel appointments and press releases are also welcome for publication. Please send to info@canadianhedgewatch.com. To ensure the highest level of accuracy, Hedge Funds are encouraged to directly submit monthly/quarterly/annual data to: data@canadianhedgewatch.com Volume 14 Issue 3 - March 2014 11

Highest Return (3 ) Fund Name 3 6 1 Year Ann. std (1 Year) Front Street Canadian Energy Resource Fund Ser F 36.52 40.19 33.10 25.20 Front Street Canadian Energy Resource Fund Ser B 36.15 39.43 31.62 25.19 Sprott Bull/Bear RSP Fund Class A 32.98-8.95-31.86 47.43 Sprott Hedge Fund L.P. II Class A 29.83-9.07-30.77 44.64 IA Multi-Strategy 27.62 29.81 27.80 23.40 Sprott Hedge Fund L.P. Class A 27.19-9.30-31.04 42.83 Friedberg Global Macro Hedge Fund U$ 19.62 5.77-31.75 29.75 Niagara Legacy Class B Fund 19.34 5.54-26.23 30.12 Spartan Teraz Fund 18.89 15.41 17.59 15.27 Pathway Multi SF Explorer Series A Rollover MIN001 17.21-8.14-43.56 28.12 Brompton Energy Opportunities Fund Series 2009 16.48 20.97 11.61 13.53 Brompton Energy Opportunities Fund Series 2010 16.33 20.81 11.46 13.47 Brompton Energy Opportunities Fund Series A 16.27 20.74 11.36 13.45 Rosalind Capital Partners L.P. 15.69 28.31 84.98 13.12 Primevestfund 13.30 18.39 21.95 16.09 Acorn Diversified Program 13.06 7.47 18.53 14.89 The Vantage Fund 12.69 15.53 18.31 8.79 Wolverine Opportunity Fund Series A 12.09 24.50 18.44 13.41 JC Clark Adaly Fund Class A 11.20 22.00 19.95 10.44 JC Clark Adaly Fund Class B 10.69 21.00 18.64 10.38 Goodwood Fund Class B 10.69 19.62 27.70 7.57 Fund Name Highest Return (1 Year) Ann. Return Ann. Std. # of Negative s Rosalind Capital Partners L.P. 84.98 13.12 1 Lightwater Nimble Fund 62.07 12.31 1 DKAM Capital Ideas Fund 48.71 9.99 1 Agilith North American Diversified Fund 41.33 11.04 3 Front Street Canadian Energy Resource Fund Ser F 33.10 25.20 4 Northern Rivers Conservative Growth Fund LP 32.37 7.13 2 Front Street Canadian Energy Resource Fund Ser B 31.62 25.19 4 Formula Growth Global Opportunities Fund Cl. S C$ 31.51 12.26 4 Lycos Value Fund Class O 27.81 26.75 7 IA Multi-Strategy 27.80 23.40 5 Goodwood Fund Class A 27.73 7.57 1 Goodwood Fund Class B 27.70 7.57 1 Venator Founders Fund Class A 26.99 5.69 2 King & Victoria RSP Fund Class A Units 26.90 7.31 2 King & Victoria Fund LP 26.90 7.31 2 Venator Investment Trust Class A 26.63 5.57 2 Exemplar Leaders Fund Series F 25.54 7.33 3 Stornoway Recovery Fund Series I 25.38 8.25 2 Exemplar Leaders Fund Series A 25.26 7.15 3 Front Street Canadian Hedge Fund Series B 25.18 5.90 3 JM Catalyst Fund 24.31 4.04 0 Lowest Return (3 ) Fund Name 3 6 1 Year Ann. std (1 Year) CI Global Opportunities Fund U$ -9.55-10.66-14.08 15.57 Trident Global Opportunities Fund U$ -9.45-10.62-13.84 15.67 CI Global Opportunities Fund C$ -4.60-7.73-5.94 9.85 Trident Global Opportunities Fund C$ -4.47-7.66-5.69 9.97 Lycos Value Fund Class O -3.59 6.76 27.81 26.75 Majestic Global Diversified Fund Series I -3.35-14.52-10.80 10.45 Trident Performance Corp II -3.22-3.06-7.40 7.08 SMI Defensive LP -2.61-8.97-32.55 16.76 Niagara Discovery Fund -2.48-5.94-6.13 11.10 Blackheath Volatility Arbitrage Fund L.P. Class A -2.33 4.42-5.08 9.10 IMFC Global Concentrated Program -1.73 3.69-3.50 8.20 Auspice Diversified Trust Class S -0.85-2.98-4.90 5.91 Auspice Diversified Trust Class A -0.85-2.97-4.89 5.91 Auspice Managed Futures LP. -0.79-2.88-4.68 5.92 Spartan Humber Global Opportunity Fund -0.64 3.44 - - WARATAH One Fund -0.64 4.10 7.14 4.29 Arrow U.S. Equity Income Fund Class U U$ -0.57-1.85-9.52 5.31 Arrow U.S. Equity Income Fund A C$ -0.38-0.74-8.20 5.83 SEI Futures Index Fund Class D -0.24-0.70-2.13 2.11 SEI Futures Index Fund Class P 0.05-0.13-0.97 2.12 Exemplar Diversified Portfolio Series A 0.08 6.40 3.65 8.67 Fund Name Highest Return Ann. Return Ann. Std. # of Negative s Lycos Value Fund Class O 26.43 27.18 14 Agilith North American Diversified Fund 22.00 14.57 12 DKAM Capital Ideas Fund 20.61 11.48 8 King & Victoria Fund LP 18.11 10.47 7 Stornoway Recovery Fund Series I 17.99 10.71 8 King & Victoria RSP Fund Class A Units 17.79 10.47 7 JM Catalyst Fund 17.68 4.11 2 Goodwood Milford Fund 14.63 5.90 6 ChapelGate Credit Opportunity Fund Ltd. 14.17 3.60 4 Northern Rivers Conservative Growth Fund LP 14.16 12.76 11 Venator Income Fund Class F 12.85 5.84 6 Calrossie Partners Fund 12.69 8.41 10 Rosalind Capital Partners L.P. 12.08 20.28 14 Broadview Dark Horse LP 12.05 6.76 6 Burlington Partners Plus LP 12.02 9.67 11 Exemplar Leaders Fund Series F 11.82 12.19 11 Venator Investment Trust Class A 11.30 12.85 12 Venator Founders Fund Class A 11.22 12.89 11 BluMont Hirsch Performance Fund 11.05 8.99 12 Exemplar Leaders Fund Series A 11.00 12.16 11 Formula Growth Global Opportunities Fund Cl. S C$ 9.43 14.70 16 12 www.canadianhedgewatch.com

Fewest Negative s (1 Year) Fund Name # of Negative s Ann. Return Ann. Std. JM Catalyst Fund 0 24.31 4.04 SMI Income LP 0 24.25 3.89 Lycos Value Fund Class P 0 6.02 0.22 Rosalind Capital Partners L.P. 1 84.98 13.12 Lightwater Nimble Fund 1 62.07 12.31 DKAM Capital Ideas Fund 1 48.71 9.99 Goodwood Fund Class A 1 27.73 7.57 Goodwood Fund Class B 1 27.70 7.57 Burlington Partners Plus LP 1 18.91 6.70 Broadview Dark Horse LP 1 18.65 5.03 Tapestry Global Growth Private Port Corp Cl A 1 17.67 5.82 Goodwood Milford Fund 1 15.93 5.55 Venator Income Fund Class F 1 15.83 3.81 ChapelGate Credit Opportunity Fund Ltd. 1 14.11 2.80 Landry Global Equity Long/Short Fund Series A 1 13.68 3.87 Tapestry Growth Private Portfolio Corporate Cl A 1 12.70 5.74 Ross Smith Capital Investment Fund 1 10.35 2.52 Northern Rivers Conservative Growth Fund LP 2 32.37 7.13 Venator Founders Fund Class A 2 26.99 5.69 King & Victoria RSP Fund Class A Units 2 26.90 7.31 King & Victoria Fund LP 2 26.90 7.31 Fund Name Lowest Volatility (1 Year) Ann. Std. Ann. Return # of Negative s Lycos Value Fund Class P 0.22 6.02 0 Sherpa Market Neutral Income Fund Class A 0.53 0.25 6 Picton Mahoney Market Neutral Equity Fund Class A 1.62 5.87 2 SEI Futures Index Fund Class F 2.10-0.62 6 SEI Futures Index Fund Class D 2.11-2.13 6 SEI Futures Index Fund Class O 2.12 0.71 5 SEI Futures Index Fund Class P 2.12-0.97 6 SEI Futures Index Fund Class E 2.16-0.86 6 Fiera Tactical Bond Yield Fund Class A 2.21-2.09 7 Ross Smith Capital Investment Fund 2.52 10.35 1 ChapelGate Credit Opportunity Fund Ltd. 2.80 14.11 1 Arrow Curvature Market Neutral Fund A 2.82 10.40 3 Spartan LSQ 2.93 3.18 2 Arrow Diversified Fund Class F U$ 2.93 1.98 4 Arrow Diversified Fund Class F C$ 3.01 2.01 4 Picton Mahoney Global Market Netural Equ Cl A C$ 3.03 5.91 3 Arrow Diversified Fund Class A 3.10 0.79 5 Arrow Diversified Fund Class A U$ 3.27 1.14 5 Ross Smith Opportunities Fund 3.33 5.15 5 Aurion Income Opportunities Fund 3.39-0.15 5 Aurion Income Opportunities Fund Class D 3.45-0.68 5 Fewest Negative s Fund Name # of Negative s Ann. Return Ann. Std. JM Catalyst Fund 2 17.68 4.11 ChapelGate Credit Opportunity Fund Ltd. 4 14.17 3.60 Goodwood Milford Fund 6 14.63 5.90 Venator Income Fund Class F 6 12.85 5.84 Broadview Dark Horse LP 6 12.05 6.76 King & Victoria Fund LP 7 18.11 10.47 King & Victoria RSP Fund Class A Units 7 17.79 10.47 DKAM Capital Ideas Fund 8 20.61 11.48 Stornoway Recovery Fund Series I 8 17.99 10.71 Ross Smith Capital Investment Fund 8 7.87 2.84 WARATAH One Fund 9 6.00 3.71 Sherpa Diversified Returns Fund Class A 9 3.96 6.36 Calrossie Partners Fund 10 12.69 8.41 Northern Rivers Conservative Growth Fund LP 11 14.16 12.76 Burlington Partners Plus LP 11 12.02 9.67 Exemplar Leaders Fund Series F 11 11.82 12.19 Venator Founders Fund Class A 11 11.22 12.89 Exemplar Leaders Fund Series A 11 11.00 12.16 WARATAH Performance Fund 11 9.15 6.14 Picton Mahoney Global Long Short Equity Fd Cl A C$ 11 8.82 7.32 Dynamic Income Opportunities Fund 11 7.93 6.81 Fund Name Lowest Volatility Ann. Std. Ann. Return # of Negative s Picton Mahoney Market Neutral Equity Fund Class A 2.13 2.45 15 Ross Smith Capital Investment Fund 2.84 7.87 8 Aurion Income Opportunities Fund 2.97 4.48 11 Aurion Income Opportunities Fund Class D 3.00 3.98 12 Sherpa Market Neutral Income Fund Class A 3.17 0.21 11 Picton Mahoney Global Market Netural Equ Cl A C$ 3.26 5.30 11 Tapestry Divers Income Private Port Corp Class A 3.26 4.00 13 SEI Futures Index Fund Class F 3.52-1.49 23 SEI Futures Index Fund Class P 3.52-2.04 23 SEI Futures Index Fund Class D 3.52-3.16 23 SEI Futures Index Fund Class O 3.53-0.38 21 SEI Futures Index Fund Class E 3.53-2.39 23 ChapelGate Credit Opportunity Fund Ltd. 3.60 14.17 4 Arrow Diversified Fund Class A 3.69-4.86 22 WARATAH One Fund 3.71 6.00 9 Arrow Diversified Fund Class F C$ 3.73-3.71 20 Arrow Diversified Fund Class F U$ 3.79-4.43 21 Arrow Diversified Fund Class A U$ 3.93-5.46 22 JM Catalyst Fund 4.11 17.68 2 SG US Market Neutral Fund 4.23 4.92 14 Tapestry Balanced Income Private Port Corp Cl T 4.24 3.15 13 Volume 14 Issue 3 - March 2014 13

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IE and FI 4006492 4 pp40064924 FINANCE ET INVEST FI INVESTISSEMENT IE EXECUTIVE MARCH INSIDE NEWS POLITICS? An Ontario bill attempts to regulate all financial advisors. Pg. 4 REGULATION Consolidation of enforcement regimes is generating concern. Pg. 8 FUNDS UP Mutual fund assets topped a record $1 trillion in January. Pg. 10 WOMEN OSC proposal aims to put more women on corporate boards. Pg. 12 LIABILITY How to prepare yourself for a lawsuit. Pg. 16 NEWSMAKER Meet Alex Besharat, the new head of ScotiaMcLeod Inc. Pg. 20 FOCUS ON PRODUCTS SEG FUNDS Good stockpicking helped some seg fund families in 2013. Pg. 23 CAUTIOUS Partly cloudy outlook for some Canadian equity funds. Pg. 24 RESEARCH PLEASANT DRIVE Datastorage makers are enjoying a healthy outlook. Pg. 27 FIXED-INCOME Rumours of bonds demise have been greatly exaggerated. Pg. 30 INSIGHT EDITORIAL Why is financial planning the only profession that imposes no standards? Pg. 31 PENSIONS Boosting the CPP is not the right way to improve savings. Pg. 34 BYB DANS CE NUMÉRO NOUVELLES INVESTMENT FINANCE Création d un centre d excellence. Pages 6 et 12 AGENTS GÉNÉRAUX QFS à l assaut du Québec. Page 8 BITCOINS Multiples subtilités fiscales. Page 10 COURTAGE L industrie crie famine. Page 12 PRODUITS ET ASSURANCE SECTEUR Occasions parmi les titres mondiaux à revenu fixe. Pages 15 et 16 PRODUITS Les fonds équilibrés sont incontournables. Page 16 TROIS FONDS offensifs pour la reprise. Page 18 ÉCONOMIE ET RECHERCHE ÉMERGENTS Viser le long terme. Page 21 POTENTIEL Analyse de celui de la Corée du Sud. Page 24 DÉVELOPPEMENT DES AFFAIRES INAPTITUDE La fiducie à soi-même peut-être pertinente. Pages 27 et 28 IMMOBILIER Une autre façon de monnayer une maison. Page 28 FISCALITÉ Le défi d optimiser le décaissement. Page 30 PSYCHO Toucher la corde sensible du client. Page 31 TECHNO Penser à numériser ses dossiers. Page 33 ACQUISITIONS Les impacts fiscaux de la vente d une clientèle. Page 37 ÉDITORIAL ET ANALYSES CES FILMS où vous êtes l ennemi. Page 38 L E JOURNAL DE S PROFES ESSIOS ION N ELS DU PLACE LACEMENT E CANADA S NEWSPA P ER FOR FINANCI AL A DV ISO R S WWW. I N V E S T M ENT E XECUTIVE.CO M WWW. F INA N C E-INV E S T ISSEMENT.C O M F I NANC I AL PL ANN I N G there s remarkable consensus that the lack of regulation for financial planners needs to be addressed, but figuring out what to do is another matter. For the better part of 20 years now, the complete absence of any oversight of or restriction on the practice of financial plan- PHOTO : FRANÇOIS RIVARD À L AFFICHE Conseiller le plus engagé dans sa communauté de Finance et Investissement, Julien Dufour épouse plusieurs causes qu il affectionne. À lire en page 4. C OMMIM S I ON UN I Q U E MARS 2014 4 0 P A GES Le FMI s en mêle L organisation vante le régime canadien, mais favorise tout de même la commission unique. PAR MARIE-CLAUDE FRENETTE dans son dernier programme d évaluation du secteur financier canadien, le Fonds monétaire international (FMI) écrit que la mise en place d un «régime coopératif de réglementation des valeurs mobilières» tel que préconisé par le gouverne- ment fédéral serait bénéfique pour le Canada. Ce constat n est pas passé ina- F I DUCI E S 2014 5 6 PA G E S Are new rules on the horizon? CHRIS BOLIN Michael Smith, best known as a former Olympic decathlete and NEW BLOOD How firms are as a TV sports commentator, is an established investment advisor attracting a new generation with Peters & Co. Ltd. in Calgary. Smith (pictured here at his home of advisors. Pg. B6 with his dog, Jersey) says his career as an athlete taught him valuable lessons about volatility, which he applies daily in working DIGITAL SECURITY There are with his high net-worth clients. Says Smith: I can talk people off several ways to back up your sensitive data. Pg. B18 a cliff or tell them not to party too hard. (See story on page B8.) Reaction to Ontario s initiative reveals big differences of opinion BY JAME S L ANGTON LEVERAGE Suitability issues BY JAMES L ANGTON for some time, policy- makers have been worried about rising household debt levels in Canada. Borrowing for the purposes of investing appears to be following that trend, too, with margin debt now at record levels. Regulators also are increasingly concerned about suitability and disclosure when investors play with borrowed money. The latest data from the Investment Industry Regulatory ning in most provinces has been identified as a glaring gap in the Canadian regulatory framework. The problem was pointed out in securities lawyer (now retired) Glorianne Stromberg s seminal report on the mutual fund industry way back in 1995. However, various efforts at correcting this basic flaw over the years have inevitably faltered for one reason or another. Now, Ontario s provincial government is taking another crack at it. The Ontario Ministry of Finance s economic outlook this past autumn signalled the intention to tackle this issue once again. Disparition de deux privilèges PAR GUILLAUME POULIN-GOYER le budget fédéral de 2014 > TURN TO SOME / PAGE 4 abolit deux avantages fiscaux liés aux fiducies, mais il assouplit les règles pour les dons successoraux. La première mesure supprimée, soit l imposition au taux maximum des fiducies testamentaires et des successions, était attendue. Le ministère des Finances avait mené des consultations à cet effet en 2013. La deuxième mesure est plus I N S U R A N C E Balance is needed BY M EGAN H ARM AN perçue à l Autorité des marchés financiers (AMF). Ainsi, le FMI lance carrément des fleurs au système économique et financier canadien. «Si le système bancaire du Ca- nada était une personne, une fiancée pourrait le présenter à ses parents : stable, solide, riche et prudemment réglementé», peuton lire dans le bulletin du FMI qui le résume. Néanmoins, l organisation internationale note certaines lacunes. Celle qui a trait à la réglementation des valeurs mobilières a suscité le plus de réactions à Ottawa et au Québec. «Il est surprenant que le FMI se préoccupe encore du débat F A TCA > COMMISSION SUITE PAGE 2 Un accord bienvenu PAR YAN BARCELO l industrie financière canadienne a accueilli avec un soupir de soulagement l entente intergouvernementale (EIG) survenue entre le Canada et les États- Unis concernant la FATCA A (Foreign Account Tax Compliance Act). Cette loi américaine sur les comptes à l étranger, qui vise à combattre l évasion fiscale de ci- toyens américains qui habitent au Canada et dans tout pays étranger, doit entrer en vigueurle 1 er juillet prochain. > FIDUCIES SUITE PAGE 6 > FATCA SUITE PAGE 8 insurance companies are 8e Colloque de conformité facing pressure to reinvigorate their product offerings in order to bolster client appetite, with several rounds of price hikes and diminishing guarantees having made many insurance products a tougher sell for financial advisors. However, insurers must strike a careful balance between offering long-term guarantees that appeal to clients and managing the risks associated with those guarantees, Le Centre Sheraton Montréal Mercredi, 26 mars 2014 Pour de plus amples informations, consultez la page 30. > TURN TO ADVISORS / PAGE 6 > TURN TO INSURERS / PAGE 6 INVESTMENT EXECUTIVE, and it s francophone sister publication, FINANCE ET INVESTISSEMENT, reaches more than 200,000 Canadian financial professionals. We report on the people, products, trends and technologies in Canada s financial services sector and what they need to know to do a better job for their clients. Visit our websites, subscribe to the daily newsletters, or download our apps to stay on top of the news as it happens. For more information, contact us at 416-218-3677 or visit our websites: www.investmentexecutive.com, www.finance-investissement.com Exchange Traded Receipts from the Royal Canadian Mint ETRs issued through the Mint s Canadian Gold Reserves and Canadian Silver Reserves programs offer a secure, efficient and low cost investment in gold or silver. Secure Direct beneficial ownership of gold or silver (no intermediaries) Stored at the Royal Canadian Mint, a Crown Corporation Convenient TSX listed in both C$ and US$ (MNT/MNT.U for gold and MNS/MNS.U for silver) Qualified investments for all Canadian registered accounts including RRSPs and TFSAs Flexible redemption options for newly casted bullion products including 99.9% pure silver London Good Delivery bars and 100 oz bars; 99.99% pure 1 oz Maple Leaf coins, gold kilobars and London Good Delivery bars Low Cost All-in annual service fee of 0.35% for gold ETRs and 0.45% for silver ETRs Reçus de transactions boursières de la Monnaie royale canadienne Les reçus de transactions boursières (RTB) de la Réserve d or canadienne et de la Réserve d argent canadienne sont des produits d investissement en or ou en argent sûrs, efficaces et abordables. Sûr Propriété directe d or ou d argent physique (aucun intermédiaire) Entreposés à la Monnaie royale canadienne, une société d État Pratique Négociés à la Bourse de Toronto ( en $CAN (MNT pour l or et MNS pour l argent) et en $US (MNT.U pour l or et MNS.U pour l argent) Admissibles à tous les régimes enregistrés d épargne canadiens, y compris les REER et CELI Options de rachat flexibles produits d investissement nouvellement frappés, y compris les lingots de bonne livraison et les lingots de 100 oz en argent pur à 99,99 %, les pièces Feuille d érable de une once, les lingots de un kilogramme et les lingots de bonne livraison en or pur à 99,99 % Abordable Frais annuels de 0,35 % pour les RTB Or et de 0,45 % pour les RTB Argent Visit our website for more information: www.reserves.mint.ca Pour plus d information, visitez notre site Web : www.reserve.monnaie.ca An investment in ETRs involves a degree of risk, resulting primarily from fluctuations in bullion price. For further information, see the website. This notice is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy ETRs. Investir dans des RTB implique certains risques, en particulier ceux qui découlent de la fluctuation du cours des métaux précieux. Consulter le site Web pour des renseignements complémentaires. Le présent avis n est fourni qu à titre indicatif et ne constitue pas une proposition de vente ni une sollicitation d achat de RTB. 2013 Royal Canadian Mint. All rights reserved. 2013, Monnaie royale canadienne. Tous droits réservés.

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Canada s Premier Source of Hedge Fund Information T QUAR E R LY R EDG OF H EVIEW D E FUN LT E R S & A N AT I V ES E INV OCT OBE TING R 2013 NADA GALA DS CARE CA HEDGE FUN of VOL UME 13 ISSU E SUPPORTS MONT on Preventi use NOV EMB ER 2013 VOL UME 13 ISSU E 11 N CAPITAL O T G IN S N E K Q&A PARTNEHREDSGE FUND 1 EVIE H LY R H W OF S FUND EDGE ER & A LT N AT I V ES E INV TING N b Child A ED ITIO Stay informed with all the latest hedge fund news and performance data with in-depth analyses. 10 KENSINGTO N C WAIS 2013 SP EC IAL CO NF ER EN CE ver cou orld Va12n AnnuInalveWstment th at ive na da @R adi usf rn it Ca. 12 Su mm Nov day,.c om Tuesw.w ai sc Al te E ww A FOR ALPH REPORT MANCE ARCHES NADA SE R PERFOR CASE AIMA CA QUARTE T SHOW ND THIRD P INTRO PRODUC HEDGE FU VER CA OU NC WAISC VA QUAR T E R LY R ES E INV TING JAN UAR Y 2014 VOL UME 14 RESULTS: USAGE SURVEY 1 CLOUD ISSU E EXAMINING INVESTMENT WITHIN THEENT INDUSTRY MANAGEM SHADOW EFITS OF THE BEN NG IN CURRENT ACCOUNTI E REGULATORY UR AND FUT ES CAP DS LAN INANCIAL: CATALYST F ATORS EDG OF H EVIEW D E FUN LT E R S & A N AT I V ALLOC SURVEYINOGF TRENDS 2014 INVEST MONT H LY R TING FEB RUA Also includes: ER D OCTOB HEDGE FUN NCE TABLES MA PERFOR E @R adi usf RY 2014 VOL UME 14 ISSU E Current and historical Canadian hedge fund data Distribution of assets in Canadian hedge funds Average asset size of funds Return information, average and detailed Correlation tables Comprehensive Canadian hedge fund listings Tables of new funds, the best funds and the worst funds CHW Index update sheet 2 E AL WITH TH HOW TO DEES OF LIQUIDITY G CHALLENM GEMENT K RIS ANA EDG OF H EVIEW D E FUN LT E R S & A N AT I V ES E INV E REPORT ORMANC E TER PERF @R adi usf TH QUAR ENTS ND FOUR AR OF EV HEDGE FU ND LE 2014 CA RADIUS @R adi usf E 4 SKI DAY ADA 201 AIMA CAN SH LOOK AIMA: FRE ENT MANAGEM AT ASSET ISSUES Stay Informed with a Canadian Hedge Watch Membership Canadian Hedge Watch is published 11 times per year by Canadian Hedge Watch Inc. We welcome articles, suggestions and comments from our readers. All submissions become the property of Canadian Hedge Watch Inc., which reserves the right to exercise editorial control in accordance with its policies and educational goals. canadianhedgewatch.com Contact Information Canadian Hedge Watch Inc. 20 Toronto Street, Suite 820, Toronto, Ontario M5C 2B8 tel: 416.848.0277 ext. 2225 fax: 416.848.0278 toll free: 1.877.249.9249 Media, Advertising & Editorial: info@canadianhedgewatch.com Subscriptions: info@canadianhedgewatch.com Disclaimer The information contained in Canadian Hedge Watch has been compiled from sources believed to be reliable, however accuracy is not guaranteed. Canadian Hedge Watch provides information as a general source of news and events and should not be considered personal investment advice. Before taking any action all readers are advised and cautioned to consult a certified financial advisor. We have endeavoured to ensure that the material contained in Canadian Hedge Watch is accurate at time of publication.

13 T H ANNUAL WORLD ALTERNATIVE INVESTMENT SUMMIT CANADA WAISC 2014 Canada s Premier Alternative Investment Event! Niagara Falls Monday, September 15 to Wednesday, September 17 Fallsview Casino Resort Vancouver Wednesday, November 12 Fairmont Waterfront Moderator Pat Boland Moderator for WAISC Niagara & Vancouver Now in its 13 th year, the World Alternative Investment Summit Canada WAISC 2014, scheduled for September 15-17 in Niagara Falls, and November 12 in Vancouver, brings together 300+ investment managers; institutional, retail and accredited investors; and various professional services firms. As the largest Canadian conference serving the alternative investment and exempt market sector, delegates will hear from renowned national and international speakers who will address key industry issues, learn about new strategies from existing fund managers and network with key decision-makers and major players. Hear innovative new strategies as WAISC 2014 builds upon it s past success. I Be Informed I Be Connected I Be Visible I A presentation of To register, visit or call waisc.com / T 416-306-0151 x 2234 or 2238