CRESCENT SCHOOL INVESTMENT TEAM JANUARY 10, 2016

CRESCENT SCHOOL INVESTMENT TEAM

The Update

The Update is a bi-weekly publication (once every two weeks) summarizing the performance of the portfolio of the Crescent School Investment Team (CSIT). The Update measures the portfolio against two specially-designed benchmarks - Crescent TSX 60 Benchmark (BM), taking into account the performance of the TSX 60 as a whole and a Crescent Alternative Benchmark (XIU) composed of iShares S&P/TSX 60 Index Funds in place of our holdings. Additionally, it will include commentary from certain members of the Executive Team regarding the state of the portfolio, the markets and our outlook on the future. For any questions regarding The Update, please do not hesitate to contact any member of the Executive Team.

- Ronald Chow, Chief Marketing and Strategy Officer

Current Holdings

Stock Name Purchase Price # of Shares Total Cost Current

Price

Total Market Value

$ Change % Change

CASH BALANCE $21,007.61 Magna International (MG) $57.51 30 $1,725.30 $50.11 $1,503.30 -$222.00 -12.87% TOTAL $22,732.91 $22,510.91 -$222.00 -0.98%

Recent Activity

On December 11, 2015, we made our first investment of the 2015/2016 school year – 30 shares of MG at $57.51 per share. Similar to many other stocks on the TSX 60, the end of 2015 and opening week of 2016 were periods of decline for MG. Currently, MG remains in our portfolio at a 12.87% loss; the Investment Team has decided to sell MG if it falls below $48.75 (-15.23%) to prevent further loss.

- Ronald Chow, Chief Marketing and Strategy Officer

Executive Team:

Jordan Abramsky, Chief Executive Officer • jordanabramsky@crescentschool.org Ryan Boyd, Chief Operating Officer • ryanboyd@crescentschool.org

Ronald Chow, Chief Marketing and Strategy Officer • ronaldchow@crescentschool.org

Jake Erdman, Portfolio Manager (Financial Sector) • jakeerdman@crescentschool.org Josh Limpert, Portfolio Manager (Energy Sector) • joshlimpert@crescentschool.org

Ryley Mehta, Portfolio Manager (Industrial Sector) • ryleymehta@crescentschool.org Christian Metivier, Portfolio Manager (Diversified Sector) • christianmetivier@crescentschool.org

Mr. Gavin Muranaka • gmuranaka@crescentschool.org Mr. Michael Stephens • mstephens@crescentschool.org

Ms. Mita Bhattacharrya • mbhattacharyya@crescentschool.org

CRESCENT SCHOOL INVESTMENT TEAM JANUARY 10, 2016

CRESCENT SCHOOL INVESTMENT TEAM

The Update

Portfolio Performance

CSIT Portfolio *Blue Line*

Crescent TSX 60 Benchmark *Red Line*

Crescent Alternative Benchmark1

*Orange Line* % Change – Past Week -0.74% -3.43% -0.28% % Change – Past Month -0.98% -3.59% -0.40% % Change – Past Three Months -0.98% -9.93% -0.40% % Change – Since Inception -0.98% -4.52% -0.40% 1Alternative Benchmark replaces the investments in the CSIT portfolio with XIU holdings – iShares S&P/TSX 60 Index Funds. As a result, it allows for analysis of the performance of equities alone in the portfolio, discounting the influence of cash balance on the overall portfolio.

Comments:

After a dismal 2015 for the TSX, which saw the index decline by about 13%, it appears the New Year is not bringing any better results. A chaotic start to the year for the Chinese stock market caused markets around the world to face huge losses this past week. Our only holding, Magna, was not exempt to this and is down 12.87%. However, 93.32% of our holdings remain in cash, which has allowed us to outperform the BM. However, MG has performed more poorly than the index, resulting in XIU outperforming our portfolio.

- Ryan Boyd, Chief Operating Officer Despite a bearish finish in 2015, the 2016 Canadian market outlook is looking positive. The major factor affecting the Canadian economy is the downfall of oil, which is highly unexpected to continue this downward trend. The Investment Team is prepping to gain a diverse variety of holdings in the coming weeks. In response to the dreaded start of stocks in 2016, we will also consider investing a portion of the portfolio into XSB. We plan to see a comeback for the Canadian market in 2016, and we hope to capitalize on it.

- Jordan Abramsky, Chief Executive Officer