Presented by Scott Hickerson Partner & Vice President (ON, Atlantic Canada)

September 2015

MARKET NEUTRAL STRATEGIES

PORTFOLIO CONSTRUCTION IS EXTREMELY DIFFICULT IN TODAY’S ENVIRONMENT

Consider how lacking the traditional tools are for savers today:

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Source: Cornerstone Macro, Bloomberg, PMAM Research. For illustration purposes only.

53% less

VOLATILITY IS EXTREMELY DETRIMENTAL TO COMPOUNDING RETURNS

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AUTHENTIC HEDGE OFFERS MORE PRECISE RISK MANAGEMENT

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Source: Picton Mahoney Asset Management. The Hedge Allocator is provided for information purposes to show the hypothetical impact of adding equity Hedge Funds to a traditional balanced investment portfolio with the following composition: 40% Canadian Equities, 35% Bonds, 20% Foreign Equities and 5% Cash. Performance and Performance Analysis data covers the period from June 30, 1992 to June 30, 2015. Past performance is not a guarantee of future performance. Hedge Funds are represented by an equally weighted blend of the HFRI Equity Hedge (Total) Index (CAD) and the HFRI Equity Market Neutral Index (USD). Canadian Equities are represented by the S&P/TSX Composite Total Return Index (CAD). Bonds are represented by the Bank of America Merrill Lynch Canada Broad Market Index (CAD). Foreign Equities are represented by the MSCI World (ex-Canada) Gross Total Return Index (CAD). Cash is represented by the 3 month Government of Canada Treasury Bill. HFRI Equity Market Neutral Index returns are in USD to reflect the currency neutral composition of market neutral strategies. All other Index returns are in CAD. The allocation to Canadian Equities, Bonds. Foreign Equities and Cash are adjusted pro-rata for increases and decreases to the Hedge Fund allocation. Volatility, Maximum Drawdown and Return are calculated using monthly return data. Returns are annualized since inception. Updated quarterly.

Adding hedge makes sense: Reduce volatility Minimize drawdowns Maximize upside

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WHY INVEST IN MARKET NEUTRAL STRATEGIES?

Protection against equity volatilityCapital protection matters most when you think you need it least. October 2014 was a good reminder that volatility can resurfacequickly. With the stabilizing hand of QE now removed, we could be in for some rocky roads ahead. Now’s the time to consider moving some of your wealth into a strategy that has proven resistance to falling markets (compared to equities, as shown below) and outperformance during rising interest rate environments (compared to bonds, as shown on the next slide).

5Source: Bloomberg, Picton Mahoney Asset Management. As at August 31, 2015. Note: This period was selected for illustration purposes only and is not a complete representation of historical Fund performance. Please see next slide for complete Fund performance.

Our authentic market neutral offerings:

• Canadian strategy with track record since Dec. 31, 2005

• Global strategy with track record since October 2007

• Over $738 million in combined AUM

Who should buy market neutral strategies?

Investors looking to:

• minimize the depth, duration and frequency of losses so detrimental to compounding returns

• reduce risks in their current portfolio (equity, bond andinterest rate risk)

WHY INVEST IN MARKET NEUTRAL STRATEGIES?

A good way to hedge against pending interest rate increasesWith interest rates at historic lows, it is inevitable that rates will rise — which is usually bad news for bonds. Moving some of your wealth into market neutral strategies can help reduce your portfolio’s sensitivity to interest rate increases. In fact, with lowcorrelation to bond markets, market neutral strategies (as represented by the HFRI Equity Market Neutral Index (USD)) outperformed bonds during many rising rate environments in the US (as measured by the Merrill Lynch Broad US Market Index).

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Source: Bloomberg, Picton Mahoney Asset Management.

Reliable annual returnsAuthentic market neutral strategies focus on protecting your wealth as well as growing it. Key to this approach is generatingabsolute, positive returns each year so your money compounds at a higher rate — something our strategy has aimed to deliver on since inception. Speak to your Investment Advisor to learn more about how adding authentic market neutral strategies to your portfolio may help protect and grow your wealth.

*Average annualized performance.

Performance data is presented for Class A Units of the Funds. Inception for the funds is December 31, 2005 (Market Neutral Equity Fund) and Oct 31, 2007 (Global Market Neutral Equity Fund).

This report is published by Picton Mahoney Asset Management (PMAM) on September 10, 2015. It is provided as a generalsource of information and should not be considered personal investment advice or an offer or solicitation to buy or sellsecurities. The information contained in this report has been obtained from sources believed reliable however the accuracyand/or completeness of the information is not guaranteed by PMAM, nor does PMAM assume any responsibility or liabilitywhatsoever. All opinions expressed are subject to change without notification. The offering of units of the Picton Mahoneyfunds are made pursuant to an Offering Memorandum only to those investors in jurisdictions of Canada who meet certaineligibility or minimum purchase requirements. These funds may currently hold long and/or short positions in the securities ofthe companies mentioned in this report. These funds are not guaranteed, their values change frequently and pastperformance may not be repeated. Please see “Risk Factors” in the Confidential Offering Memorandum for more details.Commissions, trailing commissions, management fees and expenses all may be associated with fund investments. Thisreport is confidential and for dealer use only. Any review, re-transmission, dissemination or other use of this information bypersons or entities other than the intended recipient is prohibited.

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416.955.4108

shickerson@pictonmahoney.com / sfleming@pictonmahoney.com