The world is evolving. Your investments should too. evolveetfs.com The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
A Leader in Thematic ETFs Canada’s First Cyber Security ETF
Canada’s First Future Cars ETF
World’s First US-Focused Marijuana ETF
Canada’s First Gender Diversity ETF
Canada’s First Innovation ETF
Actively Managed Marijuana ETF
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
Canada’s First eGaming ETF
Sustainable Investing
Environmental Social Governance
The Evolve Automobile Innovation Index Fund promotes environmental mandates by investing in companies which are directly or indirectly involved in the development of autonomous vehicles and drivetrains. This fund promotes the electrification of vehicles and raises awareness of the sector among investors (i.e. Ranked among Top 5 Eco-ETFs in 2019 by Corporate Knights). In 2017, we launched Canada’s first gender and diversity ETF. The Evolve North American Gender Diversity Index Fund invests in companies that have demonstrated commitment to gender diversity as part of their corporate social responsibility strategy. The fund is meant to promote gender diversity and ESG mandates, as well as increase awareness around the importance of gender and diversity on the societal level. Our commitment to advocacy of cyber security best practices and tracking of the cyber security industry through the Evolve Cyber Security Index Fund promotes good governance practices among businesses, tracks shifts across this increasingly impactful sector and looks at companies through the lens of their contributions to data privacy and security.
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Gender Diversity & Inclusion in the Workplace
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
The Importance of Gender Diversity Gender diversity has become important for global companies
Gender Diversity
= Better Corporate Performance Why? • Happier and more productive workforce • Overall better understanding of the end consumer • Organizations with greater transparency and better governance • Bottom-line: More Forward Thinking = Better Performance The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Companies with Diverse Work Environments
DIVERSE, DURABLE COMPANIES
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Investing in the Cyber Security Industry
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
Cyber Crime: A Multi-Billion Dollar Industry Cyber criminals made off with $45 billion in 2018*
*Source: https://www.cpomagazine.com/cyber-security/new-cyber-attack-trends-report-reveals-that-digital-criminals-made-off-with-45-billion-in-2018/ The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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The Need for Cyber Security
1
Number of devices that will be connected by 20201
Projected global cyber security market by 20232
Risk facing enterprises today is arguably cybercrime5
20 billion
US$248 billion
#1
Statista, 2019 Statista, size of the cybersecurity market worldwide 3 Cybersecurity Ventures, 2016 4 Cybint, 2017 5 Cybersecurity Ventures, Gartner, 2017 2
$6 trillion
The amount predicted to cost the global economy by 20213
38% Number of global organizations that claim they are prepared for a cyberattack4
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Data Breaches Are Costly to Shareholders EFX US EQUITY: Equifax Inc.
Breach occurred on July 29, 2017 Disclosed on September 7, 2017
-34.85%
Source: Bloomberg Finance L.P. as at July 31, 2019
143 million
the number of stolen user accounts, including: Social Security numbers, birth dates and addresses The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Cyber Security Talent Growth Trends Organizational cybersecurity talent growth trends
Stay the same or decrease
Over 3.5 million cybersecurity job openings by 2021
27% Increase
73%
73% of Canadian executives expect the number of full-time cybersecurity staff to increase over the next three to five years.
Demand for cyber talent in Canada: ▪ 7% CAGR; ▪ Over 8,000 cybersecurity roles to be filled between 2016 and 2021.
Source: Deloitte analysis based on data from ICTC, Statistics Canada. Canada's educational portrait, 2016 Census of Population, 2017. http://www.statcan.gc.ca/pub/11-627-m/11-627-m2017036-eng.htm The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Leading Cyber Security Companies
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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The Biggest Transformation in a Lifetime
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
The Great Disruption of Auto “When Henry Ford made cheap, reliable cars, people said, ‘Nah, what’s wrong with a horse?’
That was a huge bet he made, and it worked.“ Elon Musk CEO of Tesla Inc. in 2003
90% the percentage of worldwide vehicle production expected to be EVs by 20401
1 International
Monetary Fund (IMF): Riding the Energy Transition: Oil Beyond 2040
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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The Future of the Automobile The Future of the Car is “ACES� Autonomous
Connected
Electric
2025
20
$11 billion
Fully electric cars to make up 50% of its overall sales3
New all-electric car models on the road by 20231
The amount Ford plans to spend on electric cars2
Shared
1 The
Drive October 31, 2018 Motor Co. CEO on Jan 14, 2018 3 InsideEVs October 24, 2018 2 Ford
Company Spotlights: Nvidia is an American technology company that designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market
Aptiv is a global technology company headquartered in the UK that develops safer, greener and more connected solutions, which enable the future of mobility. The company operates manufacturing sites, 14 technical centres, and customer centres across 45 countries.
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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15
Innovative Companies in the Auto Industry
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Investing in Disruptive & Innovative Themes
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
The Consumption of Data is Enormous.
In 2019 This Is What Happens In An
Internet Minute The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
Source: Visual Capitalist 18
Seven Categories of Disruption and Innovation
Data, AI & IoT 1
2
3
4
5
6
7
Cyber Security
Future Cars
Big Data & Cloud Computing
Robotics & Automation
Genomics
Social Media
5G
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Data is the ‘New Gold’ The Digital Universe is Growing Exponentially1
4.4 ZB in 2013 DIGITAL UNIVERSE
44 ZB in 2020
By 2025, it’s estimated that 463 exabytes of data will be created each day globally – that’s the equivalent of 212,765,957 DVDs per day
1 Source:
Raconteur, https://www.raconteur.net/infographics/a-day-in-data
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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The Explosion of the Internet of Things (IoT) IoT connected devices installed worldwide from 2015 to 2025 (in billions) 80
75.44
70 62.12
Connected devices in billions
60 51.11 50 42.62 40
35.82 30.73
30
26.66 23.14 20.35
20
15.41
17.68
10
0 2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Source: Statista 2019 The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Where the Wireless Things Are and Why Most IoT devices aren’t in your home or phone – they are in factories, businesses and healthcare. By 2025, the total global worth of IoT technology could be as much as $6.2 trillion most of that value from devices in healthcare ($2.5 trillion) and manufacturing ($2.3 trillion).
40.2%
30.3% 8.3%
BUSINESS / MANUFACTURING Real-time analytics of supply chains and equipment, robotic machinery
7.7%
4.1%
HEALTH CARE
RETAIL
SECURITY
TRANSPORTATION
Portable health monitoring, electronic recordkeeping, pharmaceutical safeguards
Inventory tracking, smartphone purchasing, anonymous analytics of consumer choices
Biometric and facial recognition locks, remote sensors
Self-parking cars, GPS locators, performance tracking
Source: IDC, Intel, United Nations
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
Companies Driving Innovation
Cyber Security
Future Cars
Big Data & Cloud Computing
Robotics & Automation
Genomics
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
Social Media
5G
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Investing in eSports & eGaming
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
The Evolution of the Revenue Model in Gaming THEN
1.
Retail • •
NOW
1.
One-time purchase Lending and trading options only
2. 3. 4.
5. 6.
Retail • One-time and trade-ins Digital Distribution Subscriptions Microtransactions • In-game purchases • Downloadable content Player trading Advertising • Sponsorships & Events
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Growth in the eGaming Industry
2.2 billion
9.6%
$43.3 billion
The number of gamers globally
The expected growth in the gaming industry for 2019
The number of American spending on video games in 2018
70+ million The number of people who will watch an eSports final
11 billion The number of hours spent on watching eSports
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37
33
PC
Smartphone
Console
The average age of the most frequent game purchasers
11% The percentage of all viewing hours on YouTube and Twitch that are generated by eSports leagues and events
75% of Americans have at least one gamer in their household
Sources: Newzoo https://newzoo.com/insights/articles/newzoo-2017-report-insights-into-the-108-9-billion-global-games-market/ With Viewership and Revenue Booming, Esports Set to Compete with Traditional Sports, Syracuse Online Business Blog https://onlinebusiness.syr.edu/blog/esports-to-compete-with-traditional-sports/ The ESA, The NPD Group (Statista) 2019 Essential Facs About the Compouter and Video Game Industry, The ESA
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Professional Gaming Is Now A Billion Dollar Industry Gaming Revenue in $US Billions Gaming has grown into one of the most dominant forms of entertainment in the 21st century, eclipsing the film and music sectors by a wide margin.
Source: NewZoo, esportsearnings.com, Nielsen, Forbes
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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The eSports Ecosystem
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Leading eGaming Companies
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Investing in the Cannabis Industry
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
Canadian Cannabis: A Global Opportunity
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Growth Expectations: Canada vs U.S.
$10 Billion
$80 Billion
Canadian Market2
U.S. Market1
Note: Regulatory map based on National Conference of State Legislatures 1 Cowen Group estimate for 2030 (January 2019) 2 Eight Capital estimate for 2024 (May 2018)
Recreational & Medical Use Legalized Medical / CBD Use Legalized
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Developments in the U.S. Cannabis Industry The Farm Bill • Updated in 2018 to confirm the legalization of hemp. • Hemp is cannabis that contains less than 0.3% tetrahydrocannabinol (THC). • Potentially a stepping stone toward federal legalization of cannabis in all forms for all uses.
The SAFE Act • Prevents federal banking regulators from punishing banks for working with cannabis related businesses that are obeying state laws. • Opens up U.S. cannabis companies to the banking system providing growth and access to capital markets.
STATES Act • The Bill would make cannabis federally legal in places where it is legal at the state level. • Potential to eliminate the current disagreement in laws between the two levels of government. • President Trump said in June 2018 that he would “probably support” it.
Marijuana Justice Act • Removes marijuana from the federal scheduling system (currently it is an illegal “schedule 1” drug in the same category as heroin). • Co-sponsors include candidates such as Bernie Sanders, Kamala Harris, Elizabeth Warren, and Kirsten Gillibrand. The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Investment Case
Why invest in Cannabis? • Cannabis is about more than just smoking dried flower • Huge growth opportunity for both medical and recreational product categories • A growth driver for your portfolio
Why now? • Significant catalysts for growth are on the horizon • Big investors are still not participating
Why active management? • Active management can provide substantial added value in this volatile emerging sector
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Why Active Management is key in the Cannabis Industry
Flexible Actively managed, diversified basket of stocks in a rapidly growing sector
Opportunistic Ability to reposition the portfolio in response to mergers and acquisitions activities
Selective Stock selection based on fundamentals and risk management
Responsive Ability to capitalize on recent events and regulatory news within the industry
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Leading Companies in the Cannabis Space Ticker: CWEB
Ticker: CURA
Ticker: WEED
Ticker: CL
Ticker: ACB
Ticker: CRON
Ticker: TLRY
Ticker: NEPT
Ticker: ZYNE
Ticker: MMEN
Ticker: HARV Ticker: ACRG/U
Ticker: GRWG
Ticker: OGI
Ticker: GTII
Ticker: CVS
Ticker: SMG
Ticker: HEXO
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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Thematic Funds Our Thematic or Innovation strategies represent “Conversational Alpha” • •
Allows investors to express a view on asset classes that represent new long term growth industries Can act as a single stock position in a diversified portfolio
(i.e. difficult for an investor to choose a single stock in these themes as the variance between the top and worst performers is significant)
•
Can serve as a diversifier as they have very little overlap with traditional asset classes
Overlap Nasdaq 100
S&P 500
8
8
2
2
19
21
4
3
0
2
0
2
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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MARKETING RESOURCES EvolveETFs.com
Quarterly Calls & Webinars
Infographics, Videos & Podcasts
Newsletters
Press & Media Factsheets
Monthly Commentaries 38
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Disclaimer The contents of this presentation are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read the fund’s prospectus and consult your financial advisor before investing. This presentation is not an offer or solicitation of an offer or a recommendation to buy or sell any securities or financial instrument, nor shall it be deemed to provide investment, tax or accounting advice. The information contained herein is intended as a summary only and is qualified entirely by, and should be read in conjunction with, the more detailed information appearing in the prospectuses dated April 3, 2019, April 8, 2019, April 15, 2019 and August 9, 2019. Commissions, management fees and expenses all may be associated with exchange traded mutual funds (ETFs). Please read the prospectus before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Investors may incur customary brokerage commissions in buying or selling ETF units. Certain statements contained in this presentation may constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve Funds undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Bloomberg and Bloomberg.com are trademarks and service marks of Bloomberg Finance L.P., a Delaware limited partnership, or its subsidiaries. All rights reserved.
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed.
The world is evolving. Your investments should too. evolveetfs.com
Evolve Funds Group Inc.
| 416.214.4884 | Brookfield Place, 161 Bay Street, Suite 2700, Toronto ON M5J2S1
The contents of this piece are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Read a fund’s prospectus and consult your financial advisor before investing.
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The world is evolving. Your investments should too. THANK YOU
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