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1ETFINSIGHTYOURSOURCEFOR THELATESTETF NEWS& INSIGHTSWAISC2014 (Sept 15-17) ETFs – Meeting RealWorld Needs: Industry UpdateSept 16, 2014

ETFinsight – Ongoing updates, Weekly recaps, Monthly Perspectives,Model Portfolios, ETF screener, webinars2

ETFinsight – WAISC 2014: ETFs – Meeting Real World Needs: IndustryUpdatePanel Discussion: Faizan Dhanani, EVP, Head of Sales, Horizons ETFs Stephen Hoffman, VP, ETFs, RBC GAM Inc. Rohit Mehta, SVP, First Asset ETFsModerator: Yves Rebetez, CFA, MD, Editor, ETFinsight3

ETFinsight – WAISC2014: Industry UpdateBackdrop: Rising Geopolitical Risk (Russia-Ukraine/Israel-Gaza/Syria)Long climb up the proverbial Wall of WorriesRisky perception that “There Is No Alternative” As good as it gets? Profitability at all-times high, bolstered by low interestrates, share buybacks, and productivity gainsVolatility – Very subdued from a longer term perspectiveDespite literally all the money printing in the World, not much in the wayof inflation signs? – Or are there? 4

ETFinsight – ETFs Growth in new Millenium5

ETFinsight – Aggregate Allocation6

ETFinsight – Aggregate Allocation7

ETFinsight – ETFs AUM: Still heavilyconcentrated at the top ButiSharesiShares (former Claymore)BMO ETFsVanguard ETFsHorizons ETFsPowerShares ETFsFirst Asset ETFs8

ETFinsight – With a couple of layers ofmeaningful choices iSharesiShares (former Claymore)BMO ETFsVanguard ETFsHorizons ETFsPowerShares ETFsFirst Asset ETFs9

ETFinsight – With a couple of layers ofmeaningful choices iSharesiShares (former Claymore)BMO ETFsVanguard ETFsHorizons ETFsPowerShares ETFsFirst Asset ETFs10

ETFinsight – ETFs – lots of choices!Fixed Income including Preferred Shares ETFs: Broad / Gov / Corps incl. HY Ladders (incl. Strip ladders) Gov/Provincials/Corps – by duration “buckets” (incl.Floaters/Loans) Strategies: Barbell; Discount Bonds;Equity ETFs: Traditional Market Cap Fundamental / Factors EW Sectors / RegionsAlternative ETFs Covered Calls Commodities Hedge Funds Fundamental with “Risk mitigation overlay” Seasonal Rotation11

ETFinsight – AUM evolution by Asset ClassAug-09Aug-10Aug-11Aug-12Aug-13Aug-14X fold incr:growth rate:Aug 14 / Aug 09AUM Growthin %Aug 14 Aug 12AUM Growthin %Aug 14 Aug 13AUM Growthin %AUM Growth rates by Asset 409133,543,917188,315,948Bonds 7,585,60722,023,910,69225,451,193,339canadian 23,769,123,30424,571,921,81929,883,237,606us 2,262,0261,216,375,011aggregate 26,614,377,308 34,193,728,934 40,948,709,428 51,713,604,617 59,340,171,625 73,882,815,5831.7311.6%compoundedgrowth ratelast 5 years5.0338.2%compoundedgrowth ratelast 5 years1.9614.4%compoundedgrowth ratelast 5 years7.0947.9%compoundedgrowth ratelast 5 years1.9414.2%compoundedgrowth ratelast 5 years3.6829.7%compoundedgrowth ratelast 5 years0.79-4.6%compoundedgrowth ratelast 5 years4.1833.1%compoundedgrowth ratelast 5 years2.7822.7%compoundedgrowth ratelast 5 years 79,751,663 20,393,742,889 14,606,974,664 8,068,339,966 2,662,151,811 826,167,689- 293,893,011 925,202,604 47,268,438,2760.2%Last 2 years 114,893,54043.1%Last 2 years 7,153,607,73230.9%Last 2 years 6,114,114,30217.1%Last 2 years 6,273,566,7485.6%Last 2 years 2,201,601,3701.7%Last 2 years 399,025,735-0.6%Last 2 years- 432,699,9142.0%Last 2 years 345,101,455100.0%Last 2 years 22,169,210,96628.3%Last year 3,819,319,0779.9%Last year 1,809,695,5571.8%Last year 318,712,538-2.0%Last year- 272,566,6631.6%Last year 74,112,985100.0%Last year .52%Last year 54,772,0310.38%32.3%Last year3,427,282,64723.57%27.6%Last year5,311,315,78736.52%12

ETFinsight – Factor-based ETFs13

ETFinsight – Factor-based ETFs breakdown31-Aug-08 31-Aug-10 31-Aug-12 31-Aug-14 428,658,775VALUE 15.08MOMENTUM GROWTH35,572,824MOMENTUM GROWTH 41,033,328MOMENTUM GROWTH 64,169,478MOMENTUM GROWTH 244,982,602MOMENTUM GROWTH 6.89 SMALL CAP/EWRAFI / Quality129,308,313 98,879,363 SMALL CAP/EWRAFI / Quality 475,196,490 435,069,840 SMALL CAP/EWRAFI / Quality 793,618,917 1,551,405,028 SMALL CAP/EWRAFI / Quality 1,448,874,235 2,365,654,139 SMALL CAP/EWRAFI / Quality 11.20 23.92VOL "DRIVEN" - VOL "DRIVEN"VOL "DRIVEN"56,669,444VOL "DRIVEN"638,001,550VOL "DRIVEN"infinity 99YIELD5,491,755,759YIELD 16.6614

ETFinsight – Key Discussion points Beta exposure increasingly accessible at ultra competitive pricing Smart Beta / Factor-Based Indexing – Real World performance; Varietyof approaches/factors; Increasing penetration Resulting Risk-Adjusted Profiles differentiated from Traditional MarketCap Indexing Access to Alternative Investments via ETFs Actively Managed / Leveraged in context of Bull Market15

ETFinsight – Questions16

Factor Based ETFsDelivering Better Risk-Adjusted ReturnsRohit Mehta, Senior Vice PresidentTuesday, September 16, 2014

18Factor Based Strategies Combines the benefits of active and passive managementCost-effective, transparent, rules-based ways to capture factors.Factor Based IndexesBenchmarksFactor IndexesActiveMandatesMarketReturnTransparent& CostEffectiveActiveReturnsActiveValue AddCap-WeightedACWI cFactor TiltTactical AssetAllocationSecuritySelectionMarket TimingCap-weightedIndexesTactical FactorTilt and OverlaysActive Managementwww.firstasset.com 1.877.642.1289 info@firstasset.comADVISOR USE ONLY

19First Asset Factor Based SolutionsIndex Performance (as at June 30, 2014)1 Year3 Year5 Year10 YearETF TickersReplicating the IndexMorningstar Canada Value IndexSM22.9519.5520.1315.52FXMMorningstar Canada Momentum IndexSM29.9117.6718.7316.20WXMMorningstar Canada Dividend Target 30 IndexSM27.1312.4114.5810.82DXMMSCI Canada Risk Weighted Index25.0113.7514.3710.18RWCS&P/TSX Composite TR Index27.1310.2210.669.34BenchmarkMorningstar US Value Target 50 IndexSM (CAD Hedged)34.0732.5225.3916.92XXMMorningstar US Momentum Target 50 IndexSM (CAD Hedged)23.7220.9821.1812.07YXMMorningstar US Dividend Target 50 IndexSM (CAD Hedged)24.2317.6118.0210.96UXMMSCI USA Risk Weighted Top 150 Index (CAD Hedged)20.9817.6316.477.79RWUS&P 500 TR Index (CAD Hedged)25.2520.6116.888.38BenchmarkMSCI Europe Risk Weighted Top 100 Index (CAD Hedged)16.4715.5112.749.31RWEMSCI Europe NR Index (CAD Hedged)15.2314.779.076.78BenchmarkMSCI World Risk Weighted Top 200 Index (CAD Hedged)18.3315.6313.358.23RWWMSCI World NR Index (CAD Hedged)18.6516.789.076.78BenchmarkIndexCANADIAN EQUITYUS EQUITYEUROPEAN EQUITYGLOBAL EQUITYwww.firstasset.com 1.877.642.1289 info@firstasset.comADVISOR USE ONLY

20Building Portfolios: Risk/ReturnDividendSIZEwww.firstasset.com 1.877.642.1289 info@firstasset.comADVISOR USE ONLYRisk-WeightedRISKMomentumValueRETURN

21First AssetMorningstar US Value Index ETF (XXM) *CAD Hedged*90000 77,418800007000060000500004000030000 orningstar US Value Target 50 Index TR (CAD Hedged)Ending Value: 77,4182009201020122013S&P 500 TR Index (CAD Hedged)Ending Value: 22,504Index Performance (%)Benchmark2011Risk Metrics1-Year3-Year5-Year10-YearUp CaptureDownCaptureStd 0014.880.170.23Source: Morningstar Direct. As at August 31, 2014.www.firstasset.com 1.877.642.1289 info@firstasset.comADVISOR USE ONLY

22First AssetMSCI USA Low Risk Weighted ETF (RWU) *CAD Hedged*30000 28,4922500020000 21,8161500010000500001998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013MSCI USA Risk Weighted Top 150 Index (CAD Hedged)Ending Value: 28,492S&P 500 TR Index (CAD Hedged)Ending Value: 21,816Index Performance (%)BenchmarkRisk Metrics1-Year3-Year5-Year10-YearUp CaptureDownCaptureStd 5.450.200.27Source: Morningstar Direct. As at August 31, 2014.www.firstasset.com 1.877.642.1289 info@firstasset.comADVISOR USE ONLY

23Building Portfolios: 4x25 US Blend4x25 US PORTFOLIO:ValueMorningstar US Value Target 50 IndexSMMomentumMorningstar US Momentum Target 50 IndexSMDividendMorningstar US Dividend Target 50 IndexSMRisk-WeightedMSCI USA Risk Weighted Top 150 Index25%25%25%25%US indexes are CAD Hedgedwww.firstasset.com 1.877.642.1289 info@firstasset.comADVISOR USE ONLY

24Building Portfolios: 4x25 US Blend 45,000 44,083 40,000 35,000 30,000 25,000 22,504 20,000 15,000 10,000 5,000 0200120022003200420052006US Blended Portfolio - Ending Value: 44,083200720082009201120122013S&P 500 TR Index - Ending Value: 22,504Index Performance (%)Benchmark2010Risk Metrics1-Year3-Year5-Year10-YearUp CaptureDownCaptureStd 014.880.160.22Source: Morningstar Direct. As at August 31, 2014. US indexes are CAD Hedgedwww.firstasset.com 1.877.642.1289 info@firstasset.comADVISOR USE ONLY

25DisclaimerUse of benchmarks:a. The S&P/TSX Composite Index is a capitalization-weighted index designed to measure market activity of stocks listed on the Toronto Stock Exchange. This index is used asa benchmark to help you understand the Fund’s performance relative to the general performance of broader Canadian equity market.b. The S&P 500 Index (CAD Hedged) tracks 500 large-cap U.S. stocks representing all major industries, hedged back to CAD . This index is used as a benchmark to help youunderstand the Fund’s performance relative to the general performance of the broader U.S. equity market in CAD .This communication is confidential and for the exclusive use of registered dealers and their representatives. The contents may not be reproduced ordistributed to any clients or potential clients of such dealers or to the public generally or to the press. Canadian securities legislation, including NationalInstrument 81-102 Mutual Funds, prohibits any such distribution. This communication is not intended to be a sales communication within the meaning of thatInstrument and accordingly has not been designed to comply with the requirements of that Instrument relating to sales communications. Returns of an index donot represent the Fund’s returns and do not include any costs of investing. An investor cannot invest directly in an index. All performance data for all indicesassumes the reinvestment of all distributions. Morningstar and MSCI index performance data results prior to January 20, 2014 for the MSCI Europe RW Top100 Index; and prior to December 26, 2013, for the MSCI USA RW Top 150 Index, MSCI Canada RW Index, MSCI World RW Top 100 Index; and prior toSeptember 12, 2013 for the Morningstar US Momentum Target 50 Index and Morningstar US Value Target 50 Index; and prior to February 6, 2012, for theMorningstar Canada Value Index, Morningstar Canada Momentum Index, Morningstar Canada Dividend Target 30 Index, Morningstar US Dividend Target 50Index are hypothetical but are calculated using the same methodology that has been in use by the index provider since the index was first published.Information regarding the Morningstar and MSCI indexes, including the applicable index methodology, is available at http://indexes.morningstar.com andhttp://MSCI.com/products/indices. As a result of the risks and limitations inherent in hypothetical performance data, hypothetical results may differ from actualindex performance. The ETF Funds are managed by First Asset Investment Management Inc.Morningstar is a trademark of Morningstar, Inc. and has been licensed for use for certain purposes by First Asset Investment Management Inc. First AssetETFs are not sponsored, endorsed, sold or promoted by Morningstar or any of its affiliates (collectively, “Morningstar”), and Morningstar makes norepresentation regarding the advisability of investing in First Asset ETFs.MSCI is a trademark of MSCI Inc. The MSCI indexes have been licensed for use for certain purposes by First Asset. The funds or securities referred to hereinare not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such fundsor securities are based. The prospectus of the funds contains a more detailed description of the limited relationship MSCI has with First Asset and any relatedfunds.www.firstasset.com 1.877.642.1289 info@firstasset.comADVISOR USE ONLY

WAISC2014September 2014ETF solutions for every investorTM