The Update [02 21 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.

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

Current Holdings Stock Name iShares Canadian Short Term Bond Index Fund Gildan Activewear

Purchase Price

# of Shares

Total Cost

Current Price

$28.50 $33.50

473 44

$13,480.50 $1,474.00

$28.52 $33.65

Total Market Value $13,489.96 $1,480.60

$ Change

% Change

$9.46 $6.60

+0.07% +0.45%

-$230.64

-1.01%

TOTAL

$22,732.91

$22,502.27

Recent Activity On February 17, 2016, we purchased 473 shares of iShares Canadian Short Term Bond Index Fund (XSB), a bond ETF that serves as cash equivalent. The (not-so-volatile) holding has yielded a small percentage gain over the past two market days. We also purchased Gildan Activewear (GIL) on February 19, 2016. We have received approval to purchase Toronto Dominion (TD), Brookfield Asset Management (BAM.A) and hope to receive more approvals to fill out our portfolio. Our portfolio performance sits below both of our benchmarks’ now, as a result of the strong rally in the past week.

- Ronald Chow, Chief Marketing and Strategy Officer

CRESCENT SCHOOL INVESTMENT TEAM

FEBRUARY 21, 2016

CRESCENT SCHOOL INVESTMENT TEAM

The Update Portfolio Performance % Change – Past Week % Change – Past Month % Change – Past Three Months % Change – Since Inception

CSIT Portfolio *Blue Line* +0.09% +0.02% -1.01% -1.01%

Crescent TSX 60 Benchmark *Red Line* +3.47% +8.14% -2.41% +0.77%

Crescent Alternative Benchmark *Orange Line* +1.31% +1.20% +0.58% +0.58%

Comments: Last week’s rally allowed some investors to breath deep sighs of relief. This comes on the tail of the worst six-week start in history, and many investors are hoping that we’ve come off the bottom and are on the way up. The reality is that before the recent spike, the TSX officially entered bear territory, dropping more than 20% from its 52-week high last spring. Fingers remain crossed, but don’t hold your breath – the latest projections from OECD has sharply reduced the global economy for this year. But, every bear market eventually comes to an end and a new bull begins.

- Ronald Chow, Chief Marketing and Strategy Officer Most analysts and policymakers have been expressing nervousness about the market moving forward. It appears the Federal Reserve will not attempt to raise interest rates four times this year—which was what analysts were predicting—as the global economic outlook has dimmed since the Fed’s initial December rate hike. However, there is some positive news moving forward. Oil prices inched up slightly this past week and could continue to climb as Saudi Arabia and Russia agreed to a preliminary deal to cap production. This will continue to help the energy sector and the Canadian economy as a whole, which has been hit particularly badly by the global oil glut.

- Ryan Boyd, Chief Operating Officer

CRESCENT SCHOOL INVESTMENT TEAM

FEBRUARY 21, 2016