Lawrence Park Credit Strategies Fund

Advisor Presentation

November , 2012 Accredited or Exempt Investors Only

• THIS SUMMARY HAS BEEN PREPARED FOR INFORMATIONAL PURPOSES ONLY, SOLELY AS A PRELIMINARY

DOCUMENT TO DETERMINE INVESTOR INTEREST REGARDING LAWRENCE PARK CREDIT STRATEGIES FUND (THE

“FUND”), WHICH IS DESCRIBED HEREIN. EXCEPT AS OTHERWISE DESCRIBED IN THE FUND’S CONFIDENTIAL PRIVATE

PLACEMENT MEMORANDUM (THE “PPM”), DATED FEBRUARY 24, 2012, THIS DOCUMENT MAY NOT BE REPRODUCED

FOR ANY PURPOSE OR PROVIDED TO OTHERS IN WHOLE OR IN PART WITHOUT THE PRIOR WRITTEN PERMISSION OF

THE FUND MANAGER OF THE FUND (THE “FUND MANAGER”). AN OFFER OR SOLICITATION WILL BE MADE ONLY

THROUGH THE PPM, AND WILL BE SUBJECT TO THE TERMS AND CONDITIONS CONTAINED IN THE PPM. THIS

SUMMARY DOES NOT CONSTITUTE AN OFFER TO SELL OR BUY ANY SECURITIES. THE INFORMATION SET FORTH

HEREIN DOES NOT PURPORT TO BE COMPLETE AND IS INTENDED TO BE READ IN CONJUNCTION WITH THE PPM. ALL

INFORMATION AND OPINIONS AS WELL AS ANY FIGURES INDICATED HEREIN ARE SUBJECT TO CHANGE WITHOUT

NOTICE. THE INVESTMENT RATES OF RETURN SET FORTH HEREIN DO NOT REFLECT MANAGEMENT FEES, EXPENSES OR

CARRIED INTEREST TO BE CHARGED BY THE FUND MANAGER.

• THIS PRODUCT WILL BE AVAILABLE TO ACCREDITED INVESTORS AS THAT TERM IS DEFINED UNDER CANADIAN

SECURITIES LEGISLATION. IN ONTARIO, IN ORDER FOR INVESTORS TO BE CONSIDERED ACCREDITED INVESTORS,

INVESTORS MUST MEET CERTAIN ELIGIBILITY REQUIREMENTS WITH REGARDS TO FINANCIAL ASSETS AND/OR INCOME

HISTORY. AN INVESTMENT IN THE FUND WILL INVOLVE SIGNIFICANT RISKS DUE, AMONG OTHER THINGS, TO THE

NATURE OF THE FUND’S INVESTMENTS. THE RISK FACTORS WILL BE CONTAINED IN THE PPM. INVESTORS SHOULD

HAVE THE FINANCIAL ABILITY AND WILLINGNESS TO ACCEPT RISKS WHICH ARE CHARACTERISTIC OF THE

INVESTMENTS DESCRIBED HEREIN. THIS PRESENTATION DOES NOT CONSIDER THE SPECIFIC INVESTMENT OBJECTIVES,

FINANCIAL SITUATION OR PARTICULAR NEEDS OF ANY RECIPIENT. NO ASSURANCE CAN BE GIVEN THAT THE FUND’S

INVESTMENT OBJECTIVE WILL BE ACHIEVED OR THAT THE INVESTORS WILL RECEIVE A RETURN OF THEIR CAPITAL.

ACCORDINGLY, THE PPM SHOULD BE READ IN ITS ENTIRETY AND REVIEWED BY POTENTIAL INVESTORS’ LEGAL AND

FINANCIAL ADVISORS.

Disclaimer

2

• Fixed Income investing for the past 30 years has been a

simple matter of buy and hold, and wait for strong positive

returns

• Now with yields at historic lows, steady returns in fixed

income will be difficult to achieve going forward. Short

term shocks may drive bond prices higher, but medium term returns are likely to be mediocre or poor.

• There is an alternative to traditional bond funds: Active

Fixed Income strategies such as the Lawrence Park Credit Strategies Fund that target steady returns and low

volatility, with downside protection against rising rates.

Executive Summary

3

0

50,000

100,000

150,000

200,000

250,000

2006 2007 2008 2009 2010 2011 Aug 2012

Ass

ets

Un

de

r M

anag

em

en

t (C

$m

m)

Fixed Income Mutual Funds

The world has become an uncertain

place. In the last four years, market

volatility has nearly doubled from the

previous four.

Equity volatility and demographics have

pushed Canadian investors towards fixed

income. Mutual fund fixed income assets

have nearly doubled from 100Bn to over

200Bn since 2008.

Current Markets: Volatility and Uncertainty

4

Source: Chicago Board Options Exchange Source: Insight Industry Review

0

10

20

30

40

50

60

70

80

90

2004 2005 2006 2007 2008 2009 2010 2011 2012

VIX Volatility Index

VIX Average Jan 2004-Jan-2008 14.7% Jan 2008-Jan 2012 27.5%

0

1

2

3

4

5

6

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

10y Canadian Government Yield

Canadian CPI YoY (12mo moving avg)

Meanwhile bond yields have been driven to new lows and offer little

or no protection to inflation risks from here. Real rates of return are now negative!

Current Markets: Volatility and Uncertainty

Source: Bloomberg

5

Negative real returns!

The Big Picture: A 50 Year Cycle in Bonds

TSX Dividend Yield ( )Canada Long Bond Yield ( )

Average yield of Govt of Canada bonds with at least 10 years to maturityM1623 DEC 2011

18 18

16 16

14 14

12 12

10 10

8 8

6 6

4 4

2 2

0 01955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Median: 3.16

Average: 3.08

2.852.42

Bonds today pay less income than stocks for the first

time in over 50 years!

30-year bond bull market

25-year bond bear market

Source: TD Newcrest, Dec 2011

6

Low High

Yiel

d

Fixed Income: Many options

7

Today, investors are faced with many options in the fixed income space, all differing in potential risk, return and liquidity:

Interest Rate Risk (Duration)

Cre

dit

Ris

k

Liquidity

T-Bills

GICs

DEX Corporate

Credit HFs

T-Bills

GICs

DEX Universe

DEX Corporate

Credit HFs

High Yield

DEX Universe

High Yield

Low High

Jason Crowley, CFA Trading

Former MD, Credit Derivatives Trading for BNS with 17 years of credit

experience

David Fry, CFA Chief Executive Officer

Former Head of Global Markets for Deutsche Bank Canada, with 18 years fixed income experience in Toronto,

London and NY

Lawrence Park: A High Quality Team

8

Andrew Torres Chief Investment Officer

Former Vice Chair and Global Head of Credit Trading for TD Securities, with

17 years trading experience in London, Toronto and NY

65 years

combined

Fixed

Income

experience

John Young, CA, CFA Finance and Operations

Former Head of Europe for Fore Research and Management, with 17 years experience in London, NY and

Toronto

Over 50

years

combined

International

experience

• On February 14, 2012, CI Financial agreed to purchase a minority stake in Lawrence Park Capital Partners Ltd. and to be a founding

investor in the Lawrence Park Credit Strategies Fund.

• With this transaction, Lawrence Park gained the following:

Significant investment capital to create the launch scale necessary to

run a diversified credit strategy.

Branding and validation from one of the best names in the Canadian

investment community.

… with the backing of one of Canada’s

largest independent asset managers

9

“In Lawrence Park, we have identified an exceptional opportunity for growth and a firm that can benefit from CI’s support. The portfolio managers have used their talent and extensive experience in the income markets to develop a credit-focused fund that is unique in the Canadian marketplace.” - Stephen MacPhail CEO, CI Financial February 14, 2012

Access to one of the largest fund

distribution channels in the country.

Use of CI’s best-in-class client interface

and back office functions.

Strategic focus from CI to help grow the

LP Credit Strategies Fund.

The Lawrence Park Credit Strategies Fund:

Fixed Income with a Difference

10

Focus on the global fixed income markets, which

are 15x the size of the global equity markets.

Actively manage a portfolio of corporate bonds, taking both long and short positions to reduce

volatility and generate consistent returns.

Hedge the portfolio against rising interest rates, fx risk

and unwanted credit risk.

Diversify beyond Canada’s narrow sectoral bias.

Alpha Sourcing: 3 Main Strategies

Market

Arbitrage

Relative Value

Trading

Absolute Value

Trading

Cash vs Default

Swap Basis

Capital Structure

Arbitrage

Credit Arbitrage

Cash and Derivative

Pairs Trading

Single Name vs

Index Trading

Low Volatility

Carry &

Convergence

Short &

Medium Term Total

Return

Core Portfolio

Liquidity Hedges

11

Fund Performance

12

• LP CSF = Lawrence Park Credit Strategies Fund, F Class, Net of all fees • JULI = JPMorgan US Liquid Index High Grade Corporate (Excess Return) • DEX = iShares DEX Corporate Bond Index (XCB:CN Equity) • 3m T-Bill = Daily return calculated using 90 day rolling average of Canadian 3mo T-Bill Yield

Source: Manager analysis / Bloomberg

1073.17

1035.51

1034.50

1006.42

960

980

1000

1020

1040

1060

1080

01-Mar 01-Apr 01-May 01-Jun 01-Jul 01-Aug 01-Sep 01-Oct 01-Nov

GROWTH OF $1000 SINCE INCEPTION Mar 1 - Oct 31, 2012 inclusive

LP CSF JULI DEX Cdn 3M T-bill

Risk / Return Analysis

13

Sharpe Ratio* LP CSF 6.0 JULI 1.4 DEX 1.0

* Sharpe Ratio = (Annualized Return – Risk Free Rate) / Annualized Volatility Risk Free Rate = 1.00%. Calculated using LP CSF unaudited daily returns vs. published benchmark returns, for the period March 1 – October 31, 2012, inclusive.

LP CSF

JULI DEX

T-Bill 0%

1%

2%

3%

4%

5%

6%

7%

8%

0% 1% 2% 3% 4% 5%

Ret

urn

Risk

Risk vs Return

Correlation DEX -0.196 TSX 0.25 JULI 0.61

• Credit Arbitrage is a strategy that takes advantage of pricing inefficiencies

of credit instruments in global markets. The Lawrence Park approach is

typically described within the Hedge Fund industry as a Credit Arbitrage

strategy.

• HFR, a leading hedge fund industry analyst, began tracking an index of

Credit Arbitrage funds at the end of 2004. Since then, these funds have

significantly outperformed traditional asset classes.

Credit Arbitrage: Stable Returns through

Volatile Markets

This graph shows comparative results of the three investment strategies over the past 6 years (as represented by the enumerated indices) and is not representative of the Fund’s past performance or future performance. The Fund was launched on March 1, 2012.

14

80.09

49.71

64.24

(10.00)

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

31-Jan-05 31-Jan-06 31-Jan-07 31-Jan-08 30-Jan-09 30-Jan-10 30-Jan-11 30-Jan-12

Tota

l Ret

urn

(A

ll d

ivid

end

s re

-in

vest

ed

)

Comparative Performance (Dec 31/2004 - Jun 30/2012 inclusive)

HFR Credit Arbitrage Index (USD)

DEX Canadian Bond Universe (CAD)

SPTSX Composite Index (CAD)

• Interest rates are at historic lows, and coupon protection

against rising interest rates is also at a low.

• An actively managed credit portfolio that hedges interest

rates offers a viable diversification from traditional bond

funds.

Summary

15

• The Lawrence Park Credit Strategies

Fund targets consistent returns with

an emphasis on capital preservation.

• The Lawrence Park team have built

their careers around the global fixed

income and credit markets.

FAQ

Fund Overview

Manager Biographies

Trade Examples

Appendices

• What do you invest in? Corporate and Financial Issuer bonds, some government bonds, in Canada, US

and Europe. We do this both from the long and short side.

• How do you hedge? We use a combination of tools to hedge away unwanted market or specific

credit risks, including: gov’t bonds, interest rate swaps, credit default swaps,

futures and options

• What types of market environments are good for this fund, and

which are difficult? Good: Stable markets with wide spreads trending tighter; Volatile markets

without direction where dispersion between securities increases significantly

Difficult: “fear” type markets where interest rates drop precipitously and credit

spreads widen; tight, benign credit markets with no volatility

• How would this fund have performed in Q4, 2008? Given the current risk and exposure profile of the Fund, we estimate that the

Fund would have experienced a drawdown of mid to high single digits during

Q4 of 2008*

FAQ – Lawrence Park Credit Strategies Fund

18

*The risk and exposure of the Fund can change quickly based on the Manager’s views of the markets. Scenario based risk metrics use historical data and are not perfect measures of potential future performance under different scenarios.

Fund Lawrence Park Credit Strategies Fund

Manager Lawrence Park Capital Partners Ltd.

Fund Codes CIG 6451; CIG 6453

RRSP Eligible Yes (also RESP and TFSA)

Objective 8-10% total annualized returns* over the cycle, net of fees with low volatility, low correlation and below market credit beta *There is no guarantee that the Fund’s objective can be met, or that the Fund will earn a profit at all

Strategy Relative Value Credit; Credit Arbitrage; Absolute Value Credit

Subscription Monthly; C$150,000 minimum

Redemption Monthly, with 45 days notice; 5% early redemption fee if redeemed within 12 months

Management Fee 2.0% (1.50% for fee-based accounts)

Performance Fee 20%

Trailer 0.75% (no trailer for fee-based accounts)

High Water Mark Permanent

Fund Overview

Our Executive Team

20

David Fry, CFA Chief Executive Officer

David has been building or managing fixed income businesses for the past 18 years, most recently with Deutsche Bank, where he was Head of Global Markets for Canada. Before this, David ran fixed income groups at ABN Amro in London, and TD Securities in London, New York and Toronto. David has an MBA from McGill University and has been a CFA charterholder since 1996.

Andrew Torres Chief Investment Officer

Andrew has been trading credit for most of his 17 year career, primarily with TD Securities in London, New York and Toronto. By the time he left TD, Andrew was Vice Chair and Global Head of Credit Products, a 30Bn trading business. More recently, Andrew was a partner and portfolio manager at the London office of Aladdin Capital Management, an 18Bn credit asset manager.

John Young, CFA Chief Financial/Chief Operating Officer

John’s career in finance spans 17 years, having traded large credit portfolios at both a major bank and a global hedge fund. In London, John was the European Portfolio Manager for Fore Research, a New York based global hedge fund. John was previously a senior member of the convertible arbitrage desk at TD Securities in New York. John has been a CFA charterholder since 1996 and earned a CA designation in 1991.

Jason Crowley, CFA Trading

Prior to joining LP, Jason spent his entire career in credit at the Bank of Nova Scotia in Toronto. With roles spanning across risk, credit portfolio management, and proprietary trading for the Bank, Jason’s 17 years at BNS saw him take on increasing responsibility, and ultimately rising to Managing Director, Credit Derivatives Trading. Jason has an MBA from McMaster University and earned his CFA charter in 2001.

Donald Wright Founder of The Winnington Capital Group, Don is former Chairman and Chief Executive Office of TD Securities Inc., and Deputy Chairman of TD Bank Financial Group. He sits on the board of directors for numerous Canadian entities, including, Cinaport Capital, GMP Capital, MaRS Innovation, and Tuscany International Drilling. Don is currently a member of the Board of Trustees of The Hospital for Sick Children and a Member of the Royal Ontario Museum Governors’ Finance Committee.

Richard Kostoff Rick is an active consultant to the Financial Services sector in Canada, and is founder and Chair of Temple Rock Holdings Inc. Rick is a former Deputy Chair of TD Securities Inc., and played an active role establishing TDSI as a top tier franchise in debt capital markets. Mr. Kostoff currently serves as a director for the Ontario Finance Authority, The OCADU Foundation Board and is Chair of Theatrefront, a non-profit theatre group.

Peter Anderson Peter W. Anderson is Executive Vice-President and Chief Investment Officer of CI Financial Corp. In this role, he is a key member of CI’s executive team and, as CIO, focuses on CI’s development of its portfolio management teams and relationships with sub-advisors. Mr. Anderson joined CI in 1997 as Executive Vice-President and was named President of CI Investments Inc. in 1999. He also became Chief Executive Officer of CI Investments in 2003. He held the CEO position until March 2010. Prior to joining CI, he was Managing Director with ScotiaMcLeod Inc. He holds a business degree from the University of News Brunswick.

Our advisory board provides guidance and counsel on an ongoing basis. We are grateful to have the support of such

prominent members of the Canadian business community.

Our Advisory Board

21

Lloyds 6.375% due Jan 2021

Rationale: Lloyds Bank (A2/A) and Royal Bank of Scotland (A3/A) 10 year senior bonds in USD trading

within 10bp of each other throughout 2012. Both banks have been actively tendering for debt

throughout the year.

On Sep 6, RBS announces a tender for 10y bonds at a spread of 180bp, 70bp inside the previous

day’s closing spread.

Trade: Buy Lloyds 6.375 21 at T+232 in anticipation of (a) investors replacing 10y UK bank debt in their

portfolio, or (b) Lloyds initiating a similar tender to RBS.

Entry Spread (Sep 6): T+232

Catalyst Event (Sep 18): Lloyds announces bond

tender at T+150

Exit Spread (Sep 20): T+152 (sold to dealer)

Return Analysis:

Return on Capital: 6.25%

Holding period: 14 days

Trade Examples – Special Situations

22

-50

0

50

100

150

200

250

300

LLOYDS 6 ⅜ 01/21/21

RBS 6 ⅛ 01/11/21

Spread Difference

Entry Exit

• Basis Trading allows us to position securities we believe to be “rich” or “cheap” while

neutralizing exposure to the company

• Involves buying (or selling) a corporate bond, and buying (or selling) credit default

swap protection on the same entity.

Trade Example: Cash CDS/Basis

Ford 7.5% 2015 bonds vs Ford 5y CDS

Rationale:

• Ford Credit 7.5% due 2015 in Canadian dollars, trades cheap compared to USD debt.

• Ford has been upgraded by Moody’s and Fitch this year. An upgrade by Canadian agency DBRS would make

CAD paper index eligible, which should drive demand for CAD bonds relative to USD bonds.

Entry Point (Sep 13):

• Buy CAD 3mm bonds at 111.125

• Buy USD 2mm 5y CDS at 207 bp

Catalyst Event (Sep 14):

• Ford upgraded by DBRS to BBB-low

Exit Spread (Sep 26):

• Sell bonds at 112.30

• Sell protection at 215bp

Price Change:

• Bonds +1.175%

• CDS +8bp on spread, or +0.35% upfront

Return Analysis

• Capital Required: CAD 1,000,000

• Return on Capital: 4.2%

• Holding Period: 13 days

23

160

170

180

190

200

210

220

230109.50

110.00

110.50

111.00

111.50

112.00

112.50

113.00

F 7.50% Aug 2015 (LHS)

Ford Credit 5y CDS (RHS)

Entry Exit

• Curve Trading involves taking offsetting positions in the debt of a single company at

two different maturities

• Low or neutral net credit exposure, profit driven by relative change in credit spread

Trade Example: Curve Flattener

NWSA 6.15% Feb 2041 vs NWSA 4.5% Feb 2021

Rationale:

• Newscorp (Baa1/BBB+) curve among the steepest in the media space with 30y bonds typically trading 70-80bp

wider to Treasuries than 10y bonds.

• During August 2012, the curve steepened substantially to 100bp.

Entry Point (Sep 7):

• Buy USD 1.5mm NWSA 6.15% 2041 at T+190

• Sell USD 3.3mm NWSA 4.50% 2021 at T+97

Catalyst Event (Sep 11):

• NWSA announces new 1Bn 10y deal at T+140

Exit Spread (Sep 20):

• Sell 2041 bonds at T+179

• Buy 2021 bonds at T+110

Price Change:

• 2041 Bonds +2.00%

• 2021 Bonds –1.05%

Return Analysis

• Capital Required: CAD 1,650,000

• Return on Capital: 3.9%

• Holding Period: 13 days

24

0

50

100

150

200

250

15-Aug 22-Aug 29-Aug 05-Sep 12-Sep 19-Sep 26-Sep

Cre

dit

Sp

read

NWSA 6.15% 2041NWSA 4.5% 2021Spread Difference

Entry Exit