Changes to the fixed income and global equity components of Meritage Portfolios

March 24, 2015

National Bank Investments Inc. ("NBI") has concluded its periodic assessment of the fixed income and global equity components of Meritage Portfolios.

In April 2015, the allocation towards fixed income funds held within the Meritage Portfolios will undergo a change in order to improve the portfolios’ flexibility, diversification and complementarity. At the same time, changes were made to help preserve capital in difficult market conditions.

In particular, the TD Canadian Bond Fund will be replaced by the TD Canadian Core Plus Bond Fund and the Beutel Goodman Income Fund will be replaced by the CI Signature Canadian Bond Fund. These two new funds have the ability to invest outside of the Canadian bond universe, in a way that increases the global diversification and flexibility of Meritage Portfolios. This will be done by building on portfolio managers’ strengths and their ability to anticipate and position their respective funds advantageously according to market conditions. This change also leads to an optimization of the exposure to short and very short term fixed income mandates.

In global equities, further to the continuous due diligence and monitoring process of Meritage Portfolios in collaboration with Aon Hewitt, the EdgePoint Global Portfolio has been selected as a replacement for the Mackenzie Cundill Value Fund. Furthermore, an optimization of the weights of other global equity fund constituents was performed to improve up market participation while maintaining a certain level of capital protection.

The EdgePoint Global Portfolio is managed by Geoff MacDonald and Tye Bousada since its inception in 2008. EdgePoint is an independent investment management company with $8 billion in assets under management at the end of 2014.Meritage Portfolios invest in third-party funds that are selected using a quantitative and qualitative approach known as the Select Rating System^®. In addition to specific criteria against which the underlying funds are evaluated, the funds selected for Meritage Portfolios are chosen based on a complete complementarity analysis which aims to optimize the risk/return ratio of the investment solution. The selection and monitoring processes of Meritage Portfolios are independently reviewed by Aon Hewitt.

Meritage Portfolios are designed to suit the needs of investors with varying risk tolerance levels and investment horizons. Meritage Portfolios offer a complete investment solution with optimal diversification across asset classes, regions, market capitalizations, and management styles, all integrated into a “fund of funds” structure. With assets exceeding $3.3 billion as of January 31, 2015, Meritage Portfolios are now amongst the well-known and performing investment solutions.

Transition report - for investment advisors only.

About Meritage Portfolios^®

The Meritage Portfolios (the “Portfolios”) are managed by National Bank Investments Inc., a wholly-owned subsidiary of National Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with investments in the Portfolios. Please read the prospectus of the Portfolios before investing. The Portfolios’ securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The Portfolios are not guaranteed, their values change frequently and past performance may not be repeated. “Meritage Portfolios^®” and the Meritage Portfolios^® logo are trademarks of National Bank of Canada and are used by National Bank Investments Inc.

The Select Rating System^® is a registered trade-mark of National Bank of Canada, used under license by National Bank Investments Inc.