VERITAS TRACK RECORD

VERITAS PERFORMANCE: RETURN CALCULATIONS

For each rating (Buy, Sell and Neutral) the return is calculated based on:

• The closing price of the stock on the date a report or change of rating is issued (the opening price);
• The closing price on the date the rating is changed or the last trading day of the current period if the rating is still active (the closing price); and
• Any distributions or dividends recorded between these two dates [1].   

Distribution and dividends are added to the closing share price and divided by the opening share price to generate a total return for the rating period.   

This total return is converted to a daily return based on the number of days the rating was active and then annualized to a full year, providing an equivalent Cumulative Annual Growth Rate (CAGR).  

CAGR returns in each category are averaged to provide Veritas’ average return for each rating group (Buy, Sell and Neutral).  

For the purposes of evaluating each rating versus the S&P/TSX index, the index return is calculated over the same period as the rating, converted to a daily return and then annualized to a CAGR return.  This index return is then subtracted from the rating return (both in CAGR terms) to calculate the excess return for each rating.  These excess returns are then averaged for each rating category (Buy, Sell, Neutral).   

Only ratings that have been active for at least 30 days are included in these calculations.  

[1] Distributions of shares (e.g. Air Canada, Jazz, etc.) are converted to a dividend equivalent based on the closing price of the shares on the date of the distribution.