Black Creek Global Balanced Fund

Transcription

1 This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling , by writing to us at CI Investments Inc., 2 Queen Street East, Twentieth Floor, Toronto, ON, M5C 3G7 or by visiting our website at or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure. INVESTMENT OBJECTIVE AND STRATEGIES The objective of the Black Creek Global Balanced Fund (the Fund ) is to seek the growth of long-term total return by investing primarily in a balanced portfolio of equities, convertible and fixed income securities issued by governments, supra-national agencies or corporations anywhere in the world. To achieve its objective, the investment policy of the Fund is to invest a majority of the Fund s assets in a portfolio consisting of equities, convertible and fixed income investments issued globally. RESULTS OF OPERATIONS The net asset value of the Fund increased by $185.9 million to $1,322.8 million from March 31, 17 to March 31, 18. The Fund had net sales of $338. million during the year. The portfolio s performance decreased assets by $6.8 million. The Fund paid distributions totalling $91.3 million. Class A units returned -4.6% after fees and expenses for the one-year period ended March 31, 18. Over the same time period, the Fund s benchmark returned 8.1%.The benchmark is a combination of the MSCI World Total Return Index - 6% and the J.P. Morgan Global Government Bond Total Return Index - %. The global equity securities in which the Fund will invest are a diversified portfolio of primarily globally competitive companies within growing sectors. The debt securities in which the Fund will invest are a diversified portfolio of primarily convertible and fixed income investments issued by governments, corporations and supranational organizations throughout the world. Historical analysis of financial performance, trends and technological changes in the business, sensitivities of economic factors, as well as other factors which may affect the future economics of the business are all considered. The portfolio advisor strives to select companies with industry leadership, strong management, growing profits and potential for capital appreciation. The Fund may also invest in higher-yielding, lower-quality fixed income as well as other asset classes, including bank loans or loan participation interests in secured, second lien or unsecured variable, fixed or floating rate loans, convertible securities and preferred stocks. These may include non-investment grade debt securities rated below BBB by Standard & Poor s (or the equivalent rating from another rating agency), as well as debt obligations of issuers located in emerging markets. In choosing investments, the portfolio advisor uses quantitative and qualitative factors, including credit analysis, security selection, adjustment of foreign exchange exposure and the Fund s average maturity. The Fund may use derivatives, but only as permitted by securities regulations. In order to earn additional income, the Fund also may enter into securities lending transactions, repurchase transactions and reverse repurchase transactions, to the extent permitted by securities regulations. RISK There were no changes to the Fund over the period of this report that materially affected the overall level of risk associated with the Fund. The Fund is suitable for investors who are seeking growth and income, are investing for the medium term, and can tolerate low to medium risk. The performance of the Fund s other classes is substantially similar to that of Class A units, except for differences in the structure of fees and expenses. For the returns of the Fund s other classes, please refer to the Past performance section. The global equity market (as defined by MSCI World Index) for the 12 months ending March 31, 18, was up.7% in Canadian dollar terms, with the international markets (MSCI EAFE Index) modestly outperforming North American markets. During the period, equities outperformed fixed income. As we enter 18, a momentum-driven market persists, with the amount of money allocated to momentum ETF strategies growing rapidly, and indexes increasingly driven by the top-performing information technology stocks. Volatility of stock prices has picked up with quickly changing world views and rising interest rates. The global economy continues to expand, with additional signs of wage, transportation and other input cost pressures in many regions. It s too early to say that inflation is back, but inflation expectations seem to be rising and bond yields are also beginning to rise. Both the U.S. and Japanese economies are at full employment levels, and wage pressures are rising in both places. At the same time, it is more difficult for many companies to raise prices because of increased competition/disruption and because customers are now acclimatized to a low-inflation/deflationary environment. Therefore, companies without pricing power and unique customer value propositions will face margin compression. Political risk to the global economy is rising as the rhetoric out of the U.S. concerning trade becomes increasingly provocative, and as we begin to see talk of specific tariffs accelerate between the U.S. and China. At this point the two countries are just negotiating in public, but the market is showing disapproval. Separately, the recent row between Russia and NATO countries over the alleged poisoning of a former Russian spy in London by Russian agents has also elevated world tensions and has brought back talk of a new cold war era. Amid all of this, North Korea s leader Kim Jong-un appears to have been summoned to China for a scolding, but he remains a wild card. CIG

2 Despite daily headlines about which currencies are rising or falling against each other, we currently have a situation where the U.S. dollar is within % of the level of purchasing power parity against the Canadian dollar, sterling, the euro and the yen. On this basis, the main trading currencies are all relatively fairly valued against each other. Performance results for the reporting period were disappointing, but longer-term results remain favourable. The Fund underperformed its benchmark as both the fixed-income and equity components declined on an absolute basis over the reporting period. Within the equity portfolio, relative underperformance was experienced over the most recent six months in what has become a narrow, momentum-driven market. The portfolio looks different than the market and can underperform over short intervals of time as we seek to outperform over a full cycle. Often such environments lead to opportunities to find new names or add to/sell down existing holdings. Within the fixed-income portfolio, the relative underperformance came from currency fluctuations (not being exposed to euro- and yen-denominated debt), not owning the lowest quality corporate credit (which was preferred by investors through the period) and having exposure to longer dated U.S. Treasuries (as interest rates rose). From an allocation perspective, we continue to prefer corporate bonds and to hold a portion of our portfolio in U.S. government bonds for diversification purposes. We believe that the underlying fundamentals of the holdings in the portfolio remain compelling, however, there were notable detractors over the reporting period, including SES SA, Dialog Semiconductor PLC, Now Inc., Grupo Televisa SAB and Greencore Group PLC. Our investment thesis for each of these companies has not changed. Although not offsetting, positive contributors included Anta Sports Products Ltd., Koninklijke DSM NV, Capgemini, Accor SA and FTI Consulting Inc. During the reporting period investments were made in Royal Boskalis Westminster N.V., Ericsson Inc., Greencore Group, Hain Celestial Group Inc., L Brands Inc., Merck & Co. Inc., Santen Pharmaceutical Co., Ltd. and SES, and we exited Anta Sports Products, Christian Dior, Hugo Boss, IPG Photonics, Galaxy Entertainment Group, Grifols S.A. and Synopsys Inc. Additional comments on our most recent purchases and sales follow. Hain Celestial - is a U.S.-based leading organic and natural food, beverage and personal care products company with operations in North America, Europe, Asia and India. As a leader in many natural and organic product categories, Hain should continue to benefit from the increased popularity and growth of organic and more natural products over more conventional consumer goods. The company is also focused on bolstering its e-commerce platform, which may prove to be beneficial to its sales growth and further globalization. Merck - is an American-based, global biopharmaceutical company. The company is a leader and innovator in treatments for cancer, cardio-metabolic diseases, emerging animal diseases, Alzheimer s disease and infectious diseases including HIV and Ebola. Ericsson - is a world leader in information and communications technology solutions, including cloud services, mobile broadband, and network design and optimization. Ericsson has one of the industry s strongest patent portfolios and a high commitment to research and development. Greencore Group - is a leading international producer of convenience foods. The company offers a wide range of chilled, frozen and shelf-stable products to its retail and food service customers in the U.K., Ireland and the U.S. It is considered an innovator in its products, packaging and processes. The portfolio now holds Nutrien due to its prior ownership in Agrium. Nutrien is the world s largest provider of crop inputs and services. The company is the result of a merger of two of Canada s biggest fertilizer names Potash Corp. of Saskatchewan and Agrium, which closed in early 18. Anta Sports Products - a branded sportswear company in China, was sold for valuation reasons given its strong market performance. RECENT DEVELOPMENTS Chasing a momentum-driven market can be tempting given the fear of missing out, but this is an increasingly crowded trade, which works until it doesn t. At times like this, we focus on sticking to our investment discipline of building a concentrated, but diversified portfolio of winning businesses at attractive valuations. Although equity valuations remain elevated, we continue to look for opportunities to upgrade the portfolio by finding better ideas than what we already own, rather than trying to time or call markets. We believe that this approach works better over time. We are invested alongside our clients, will continue to manage our strategies with a disciplined approach and seek to add value over the long-term. Effective April 3, 18, Karen Fisher became a member of the CI Board of Governors ( BOG ) and the Independent Review Committee ( IRC ) of the Fund. Meanwhile, Christopher Hopper resigned from the role as a member of the BOG and IRC. RELATED PARTY TRANSACTIONS Manager, Portfolio Advisor, Trustee and Registrar CI Investments Inc. is the Manager, Portfolio Advisor, Trustee and Registrar of the Fund. CI Investments Inc. is a subsidiary of CI Financial Corp. The Manager, in consideration for management fees, provides management services required in the day-to-day operations of the Fund. The Manager bears all of the operating expenses of the Fund (other than taxes, borrowing costs and new governmental fees) in return for a fixed administration fee. Management fee and fixed administration fee rates as at March 31, 18, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) Class A Class A Class A Class A Class A Class A Class AT Class D Class E Class EF Class F Class F

3 Annual management fee rate (%) Annual fixed administration fee rate (%) Class F Class F Class I Paid directly by investor - Class O Paid directly by investor.15 Class P Paid directly by investor.22 The Manager received $22.1 million in management fees and $2.7 million in fixed administration fees for the year. Management Fees Approximately 26% of total management fees were used to pay for sales and trailing commissions. The remaining 74% of management fees were used for investment management and other general administration. Independent Review Committee The Fund received standing instructions from the Fund s Independent Review Committee with respect to the following related party transactions: a) trades in securities of CI Financial Corp.; b) purchases or sales of securities of an issuer from or to another investment fund managed by the Manager; c) purchases or sales of other investment funds managed by the Manager or their affiliates; and d) mergers involving the Fund and another fund managed by the Manager that is subject to National Instrument Investment Funds. The applicable standing instructions require that related party transactions be conducted in accordance with the Manager s policies and procedures and that the Manager advise the IRC of any material breach of a condition of the standing instructions. The standing instructions require, among other things, that investment decisions in respect of related party transactions (a) are free from any influence by an entity related to the Manager and without taking into account any consideration relevant to an entity related to the Manager; (b) represent the business judgment of the Manager uninfluenced by considerations other than the best interests of the Fund; (c) are made in compliance with the Manager s policies and procedures; and (d) achieve a fair and reasonable result for the Fund. Transactions made by the Manager under the standing instructions are subsequently reviewed by the IRC on a quarterly basis to monitor compliance. The Fund relied on the IRC s standing instructions regarding related party transactions during this reporting year. 3

4 FINANCIAL HIGHLIGHTS The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the past five years, as applicable. Net Assets per Unit ($) (1) (2) (4) * Increase (decrease) from operations: Distributions: Total Realized Unrealized Total increase From net investment Net assets Net assets at the beginning Total expenses (excluding gains (losses) for gains (losses) for (decrease) from income (excluding From From capital Total at the end of the year of year (2) revenue distributions) the year the year operations (2) dividends) dividends (2, 3) gains Return of capital distributions shown (2) $ $ $ $ $ $ $ $ $ $ $ $ Class A Commencement of operations January 31, 7 Mar. 31, (.36) 1.7 (1.74) (.67) (.2) (.2) (.93) - (.97) Mar. 31, (.34) (.6) (.1) (.25) - (.32) Mar. 31, (.35) 1.11 (1.).2 (.6) (.1) (.96) - (1.3) Mar. 31, (.34) (.4) - (.59) - (.63) Mar. 31, (.32) (.3) - (.41) - (.44) Class A1 Mar. 31, (.).6 (1.41) (.82) (.2) (.1) (.63) - (.66) 8.68 Class A2 Mar. 31, (.19).59 (1.55) (.96) (.2) (.1) (.64) - (.67) 8.68 Class A3 Mar. 31, 18.. (.18).56 (1.49) (.91) (.2) (.1) (.65) - (.68) 8.68 Class A4 Mar. 31, 18.. (.17).59 (1.88) (1.26) (.2) (.1) (.65) - (.68) 8.68 Class A5 Mar. 31, 18.. (.15).56 (1.65) (1.4) (.2) (.1) (.68) - (.71) 8.67 *Footnotes for the tables are found at the end of the Net Assets per Unit section of the Financial Highlights.

5 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Unit ($) (1) (2) (4) * Increase (decrease) from operations: Distributions: Total Realized Unrealized Total increase From net investment Net assets Net assets at the beginning Total expenses (excluding gains (losses) for gains (losses) for (decrease) from income (excluding From From capital Total at the end of the year of year (2) revenue distributions) the year the year operations (2) dividends) dividends (2, 3) gains Return of capital distributions shown (2) $ $ $ $ $ $ $ $ $ $ $ $ Class AT6 Commencement of operations July 7, 8 Mar. 31, (.36) 1.9 (1.63) (.54) (.2) (.2) (1.8) - (1.84) Mar. 31, (.37) (.7) (.2) (1.17) - (1.26) Mar. 31, (.) 1. (1.22).9 (.7) (.1) (2.2) - (2.) Mar. 31, (.41) (.5) - (1.7) - (1.75) Mar. 31, (.41) (.4) - (1.42) - (1.46) Class D Commencement of operations January 31, 7 Mar. 31, (.) 1.8 (1.71) (.57) (.2) (.2) (.99) - (1.3) Mar. 31, (.29) (.7) (.2) (.29) - (.38) Mar. 31, (.) 1.14 (1.8).12 (.7) (.1) (1.2) - (1.) Mar. 31, (.29) (.5) - (.65) - (.7) 14. Mar. 31, (.26) (.4) - (.46) - (.5) Class E Commencement of operations July 29, 15 Mar. 31, (.21).69 (1.24) (.51) (.2) (.1) (.64) - (.67) 8.72 Mar. 31, (.) (.5) (.1) (.18) - (.24) 9.77 Mar. 31, (.13).36 (.45) (.8) (.4) - (.65) - (.69) 8.79 Class EF Commencement of operations July 29, 15 Mar. 31, (.11).68 (1.16) (.35) (.2) (.1) (.75) - (.78) 8.66 Mar. 31, (.) (.7) (.2) (.26) - (.35) 9.71 Mar. 31, (.6).37 (.48) (.3) (.5) (.1) (.75) - (.81) 8.74 Class F Commencement of operations January 31, 7 Mar. 31, (.) 1.6 (1.76) (.54) (.3) (.2) (1.13) - (1.18) Mar. 31, (.19) (.) (.2) (.38) - (.5) Mar. 31, (.19) 1.9 (1.16). (.7) (.1) (1.15) - (1.23) Mar. 31, (.19) (.5) - (.75) - (.8) Mar. 31, (.18) (.5) - (.56) - (.61) Class F1 Mar. 31, (.).64 (1.55) (.82) (.2) (.1) (.74) - (.77) 8.66 *Footnotes for the tables are found at the end of the Net Assets per Unit section of the Financial Highlights.

6 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Unit ($) (1) (2) (4) Increase (decrease) from operations: Distributions: Total Realized Unrealized Total increase From net investment Net assets Net assets at the beginning Total expenses (excluding gains (losses) for gains (losses) for (decrease) from income (excluding From From capital Total at the end of the year of year (2) revenue distributions) the year the year operations (2) dividends) dividends (2, 3) gains Return of capital distributions shown (2) $ $ $ $ $ $ $ $ $ $ $ $ Class F2 Mar. 31, (.9).6 (1.33) (.63) (.2) (.1) (.75) - (.78) 8.66 Class F3 Mar. 31, (.9).49 (1.32) (.73) (.2) (.1) (.76) - (.79) 8.66 Class I Commencement of operations January 31, 7 Mar. 31, (1.76) (.34) (.3) (.2) (1.31) - (1.36) Mar. 31, (.13) (.3) (.52) - (.68) Mar. 31, (.68).83 (.8) (.1) (1.33) - (1.42) Mar. 31, (.6) - (.92) - (.98) Mar. 31, (.6) - (.73) - (.79) Class O Commencement of operations July 26, 13 Mar. 31, (.2).86 (1.48) (.36) (.2) (.2) (1.4) - (1.8).65 Mar. 31, (.2) (.) (.2) (.41) - (.53) Mar. 31, (.2).84 (.96).14 (.7) (.1) (1.5) - (1.13).76 Mar. 31, (.2) (.5) - (.72) - (.77) Mar. 31, (.1) (.4) (.5) - (.57) - (.62) Class P Mar. 31, 18.. (.2).59 (1.91) (1.14) (.2) (.1) (.84) - (.87) 8.64 (1) This information is derived from the Fund s audited annual financial statements. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant class at the relevant time. The increase (decrease) in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant class over the fiscal year. (3) Distributions are automatically reinvested in additional units of the Fund. (4) This information is provided for the years ended March 31.

7 FINANCIAL HIGHLIGHTS (cont d) Ratios and Supplemental Data (1) (5) * Total net assets (5) Number of units outstanding (5) Management expense ratio before taxes (2) Management expense ratio after taxes (2) Effective HST rate for the year (2) Harmonized Trading Portfolio sales tax (2) expense ratio (3) turnover rate (4) $ s s % % % % % % Class A Commencement of operations January 31, 7 Mar. 31, ,613 65, Mar. 31, ,893 62, Mar. 31, ,492 61, Mar. 31, ,941 46, Mar. 31, ,637 39, Class A1 Mar. 31, ,96 14, Class A2 Mar. 31, 18 25,965 2, Class A3 Mar. 31, 18 9,835 1, Class A4 Mar. 31, 18 1, Class A5 Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

8 FINANCIAL HIGHLIGHTS (cont d) Ratios and Supplemental Data (1) (5) * Total net assets (5) Number of units outstanding (5) Management expense ratio before taxes (2) Harmonized sales tax (2) Management expense ratio after taxes (2) Effective HST rate for the year (2) Trading expense ratio (3) Portfolio turnover rate (4) $ s s % % % % % % Class AT6 Commencement of operations July 7, 8 Mar. 31, 18 1, Mar. 31, 17 1, Mar. 31, 16 1, Mar. 31, 15 2, Mar. 31, 14 2, Class D Commencement of operations January 31, 7 Mar. 31, 18 2, Mar. 31, 17 2, Mar. 31, 16 2, Mar. 31, 15 2, Mar. 31, 14 2, Class E Commencement of operations July 29, 15 Mar. 31, 18 64,6 7, Mar. 31, 17 42,349 4, Mar. 31, 16 16,58 1, Class EF Commencement of operations July 29, 15 Mar. 31, 18 11,844 1, Mar. 31, 17 9,851 1, Mar. 31, 16 3, Class F Commencement of operations January 31, 7 Mar. 31, ,323 8, Mar. 31, 17,626 6, Mar. 31, 16 71,51 5, Mar. 31, 15 35,657 2, Mar. 31, 14 24,155 1, Class F1 Mar. 31, 18 17,995 2, *Footnotes for the tables are found at the end of the Financial Highlights section.

9 FINANCIAL HIGHLIGHTS (cont d) Ratios and Supplemental Data (1) (5) Total net assets (5) Number of units outstanding (5) Management expense ratio before taxes (2) Harmonized sales tax (2) Management expense ratio after taxes (2) Effective HST rate for the year (2) Trading expense ratio (3) Portfolio turnover rate (4) $ s s % % % % % % Class F2 Mar. 31, 18 3, Class F3 Mar. 31, 18 1, Class I Commencement of operations January 31, 7 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Class O Commencement of operations July 26, 13 Mar. 31, 18 74,6 6, Mar. 31, 17 55,968 4, Mar. 31, 16 28,2 2, Mar. 31, 15 6, Mar. 31, Class P Mar. 31, 18 4, (1) This information is derived from the Fund s audited annual financial statements. (2) Management expense ratio is calculated based on expenses charged to the Fund (excluding commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net assets for the year, including the Fund s proportionate share of any underlying fund(s) expenses, if applicable. The Effective HST tax rate is calculated using the attribution percentage for each province based on unitholder residency and can be different from 13%. (3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net assets during the year, including the Fund s proportionate share of such expenses of any underlying fund(s), if applicable. (4) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of % is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the fiscal year. The higher a Fund s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a higher turnover rate and the performance of a Fund. Portfolio turnover rate is calculated by dividing the lesser of the cost of purchases and the proceeds of sales of portfolio securities for the year, and excluding cash and short-term investments maturing in less than one year, and before assets acquired from a merger, if applicable, by the average of the monthly fair value of investments during the year. (5) This information is provided for the years ended March 31.

10 PAST PERFORMANCE This section describes how the Fund has performed in the past. Remember, past returns do not indicate how the Fund will perform in the future. The information shown assumes that distributions made by the Fund in the years shown were reinvested in additional units of the relevant classes of the Fund. In addition, the information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. Year-by-Year Returns The following charts show the Fund s annual performance for each of the years shown and illustrate how the Fund s performance has changed from year to year. In percentage terms, the charts show how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year, except where noted. Class A Class AT6 Class D Class E Dec. 9 Dec. Dec. 11 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Dec. 9 Dec. Dec. 11 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Dec. 9 Dec. Dec. 11 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 16 Mar. 17 Mar. 18 Class EF Class F Class I Class O Mar. 16 Mar. 17 Mar. 18 Dec. 9 Dec. Dec. 11 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Dec. 9 Dec. Dec. 11 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar return is for the period from January 1, 12 to March 31, return is for the period from July 29, 15 to March 31, return is for the period from July 26, 13 to March 31, 14.

11 Annual Compound Returns The following table shows the Fund s annual compound returns for each year indicated, compared to the Blended Index composed of: (6% - MSCI World Total Return Index and % - J.P. Morgan Global Government Bond Total Return Index); the MSCI World Total Return Index and the J.P. Morgan Global Government Bond Total Return Index. The MSCI World Total Return Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States of America. The J.P. Morgan Global Government Bond Total Return Index is an unmanaged index which tracks the performance of actively-traded issues of government bonds worldwide. The Index excludes floating rate notes, perpetuals, bonds targeted at the domestic market for tax purposes and bonds with less than one year remaining to maturity. A discussion of the performance of the Fund as compared to the benchmark is found in the Results of Operations section of this report. One Year (%) Three Years (%) Five Years (%) Ten Years (%) Since Inception (%) Class A (4.6) n/a Blended Index n/a MSCI World Total Return Index n/a J.P. Morgan Global Government Bond Total Return Index n/a Class AT6 (4.6) n/a 7.6 Blended Index n/a 8.5 MSCI World Total Return Index n/a 9.7 J.P. Morgan Global Government Bond Total Return Index n/a 6.1 Class D (4.2) n/a Blended Index n/a MSCI World Total Return Index n/a J.P. Morgan Global Government Bond Total Return Index n/a Class E (4.3) n/a n/a n/a 1.3 Blended Index 8.1 n/a n/a n/a 7.7 MSCI World Total Return Index.6 n/a n/a n/a 8.1 J.P. Morgan Global Government Bond Total Return Index 4.2 n/a n/a n/a 6.5 Class EF (3.3) n/a n/a n/a 2.4 Blended Index 8.1 n/a n/a n/a 7.7 MSCI World Total Return Index.6 n/a n/a n/a 8.1 J.P. Morgan Global Government Bond Total Return Index 4.2 n/a n/a n/a 6.5 Class F (3.5) n/a Blended Index n/a MSCI World Total Return Index n/a J.P. Morgan Global Government Bond Total Return Index n/a Class I (2.2) n/a Blended Index n/a MSCI World Total Return Index n/a J.P. Morgan Global Government Bond Total Return Index n/a Class O (2.3) 5.3 n/a n/a 9.8 Blended Index n/a n/a 12.7 MSCI World Total Return Index n/a n/a 15.3 J.P. Morgan Global Government Bond Total Return Index n/a n/a

12 SUMMARY OF INVESTMENT PORTFOLIO as at March 31, 18 Category % of Net Assets Category % of Net Assets Top 25 Holdings % of Net Assets Country allocation U.S.A Fund(s) U.K Canada Luxembourg Netherlands Japan Belgium France Mexico Switzerland India Germany Cash & Equivalents Ireland Sweden Portugal Austria Spain Other Net Assets (Liabilities).... Foreign Currency Forward Contracts... (.3) Sector allocation Foreign Government Bonds Corporate Bonds Fund(s) Industrials Health Care Consumer Staples Materials Information Technology Consumer Discretionary Financials Energy Cash & Equivalents Other Net Assets (Liabilities).... Foreign Currency Forward Contracts... (.3) Signature Corporate Bond Fund (Class I) United States Treasury Note/Bond 1.75% 9// United States Treasury Note/Bond 1.875% 8/31/ FTI Consulting Inc Ontex Group N.V SES S.A Merck & Co., Inc ICICI Bank Ltd., ADR HeidelbergCement AG NOW Inc Nutrien Ltd Nielsen Holdings PLC Varex Imaging Corp Oracle Corp United States Treasury Note/Bond 1.625% 2/15/ Boskalis Westminster N.V Cap Gemini S.A Lloyds Banking Group PLC Cash & Equivalents L Brands Inc United States Treasury Note/Bond.875% 5/31/ United States Treasury Note/Bond 1% 11// United States Treasury Note/Bond 2.5% 2/15/ Greencore Group PLC Santen Pharmaceutical Co., Ltd Total Net Assets (in $ s) $1,322,769 The summary of investment portfolio may change due to ongoing portfolio transactions of the Fund and updates will be available on a quarterly basis. A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, its future performance, strategies or prospects, and possible future Fund action. The words may, could, should, would, suspect, outlook, believe, plan, anticipate, estimate, expect, intend, forecast, objective, and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties, both about the Fund and general economic factors, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement made by the Fund. These factors include, but are not limited to, general economic, political and market factors in Canada, the United States and internationally, interest and foreign exchanges rates, global equity and capital markets, business competition, technological changes, changes in laws and regulations, judicial or regulatory judgments, legal proceedings and catastrophic events. The above list of important factors that may affect future results is not exhaustive. Before making any investment decisions, we encourage you to consider these and other factors carefully. All opinions contained in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.