l CAMI: Relative Value, approximately 35% l Picton Mahoney: Earnings Momentum, approximately 35% l Triasima: Core, approximately 20%

Transcription

1 Frontiers Canadian Equity Poo Annua Management Report of Fund Performance for the financia year ended August 31, 2015 A figures are reported in Canadian doars uness otherwise noted This annua management report of fund performance contains financia highights but does not contain the compete annua financia statements of the investment fund If you have not received a copy of the annua financia statements with this annua management report of fund performance, you can get a copy of the annua financia statements at your request, and at no cost, by caing us to-free at , by writing to us at Renaissance Investments, 1500 Robert-Bourassa Bouevard, Suite 800, Montrea, QC, H3A 3S6, by visiting the SEDAR website at sedarcom, or by visiting renaissanceinvestmentsca Unithoders may aso contact us using one of these methods to request a copy of the investment fund s proxy voting poicies and procedures, proxy voting discosure record, or quartery portfoio discosure Management Discussion of Fund Performance Investment Objective and Strategies Investment Objective: Frontiers Canadian Equity Poo (the Poo) seeks to achieve ong-term capita growth by investing in a diversified portfoio consisting primariy of equity securities of companies domicied in Canada Investment Strategies: The Poo invests primariy in common shares, may aso buy securities that are convertibe into common shares When making investment decisions, a combination of investment styes may be empoyed, such as growth- and vaue-oriented strategies Risk The Poo is a Canadian equity fund that is suitabe for ong-term investors who can toerate medium investment risk For the period ended August 31, 2015, the Poo s overa eve of risk remains as discussed in the simpified prospectus Resuts of Operations CIBC Asset Management Inc (CAMI, the Manager, orportfoio Advisor), Picton Mahoney Asset Management (Picton Mahoney), Triasima Portfoio Management Inc (Triasima), Connor, Cark & Lunn Investment Management Ltd (CC&L), and Foyston, Gordon & Payne Inc (Foyston) provide investment advice and investment management services to the Poo CAMI and these portfoio sub-advisors use different investment styes and the percentage of the Poo aocated to CAMI and each portfoio sub-advisor wi change from time to time Unti March 31, 2015: CAMI: A Cap, Traditiona Vaue, approximatey 40% Picton Mahoney: Mid-Large Cap, Traditiona Growth, approximatey 30% Triasima: A Cap, Core, approximatey 20% CC&L: Sma-Mid Cap, Quaity Growth, approximatey 10% Effective Apri 1, 2015: CAMI: Reative Vaue, approximatey 35% Picton Mahoney: Earnings Momentum, approximatey 35% Triasima: Core, approximatey 20% CC&L: Growth at a Reasonabe Price, approximatey 5% Foyston: Traditiona Vaue, approximatey 5% The commentary that foows provides a summary of the resuts of operations for the period ended August 31, 2015 A doar figures are expressed in thousands, uness otherwise indicated The Poo's net asset vaue decreased by 18% during the period, from $425,521 as at August 31, 2014 to $348,518 as at August 31, 2015 Net redemptions of $34,860 in the period, which incuded purchases of $5,198 due to rebaancing of a portfoio product that hods units of the Poo, and negative investment performance resuted in an overa decrease in net asset vaue Cass A units of the Poo posted a return of -125% for the period The Poo s benchmark, the S&P/TSX Composite Index (the benchmark), returned -87% for the same period The Poo s return is after the deduction of fees and expenses, unike the benchmark See Past Performance for the returns of other casses of units offered by the Poo The Canadian equity market decined over the period as commodity prices, particuary for crude oi, came under pressure as a resut of suppy and demand concerns Lower commodity prices ed to significant decines for resource-reated stocks and caused investors to move toward ess commodity-exposed sectors The decine in commodity prices, and ack of any recovery in those prices, aso increased concerns about a proonged economic downturn in Canada, which was refected in Canadian gross domestic product data in the first and second quarters of 2015

2 Frontiers Canadian Equity Poo In addition to oi price instabiity, the remova of quantitative easing in the US and the weakness of the Chinese economy (and devauation of the yuan) contributed to equity market voatiity At the same time, the US continued to show sow and steady economic growth, and the US doar strengthened significanty, which aso contributed to the weakness in commodity prices, namey god In the Reative Vaue component, individua detractors from performance incuded modest overweight aocations to Encana Corp and ShawCor Ltd Overweight exposures to the information technoogy and financias sectors and underweight exposure to the materias sector contributed to performance Individua contributors incuded arge overweight aocations to Eement Financia Corp and Agrium Inc, and a arge underweight aocation to Barrick God Corp CAMI added Eement Financia Corp to the Poo, and increased hodings in Progressive Waste Soutions Ltd, to increase exposure to the growing US economy The Poo s hodings in MEG Energy Corp were eiminated foowing commodity price decines and the weak outook for a sustainabe recovery CAMI decreased hodings in Roya Bank of Canada, The Toronto-Dominion Bank, and The Bank of Nova Scotia on concerns about ow commodity prices and their potentia negative impact on the Canadian economy In the Earnings Momentum component, moderate underweight exposure to the teecommunication services sector and sight underweight exposure to the heath care sector detracted from performance Individua detractors from performance incuded a sight underweight aocation to Vaeant Pharmaceuticas Internationa Inc and a sight overweight aocation to Legacy Oi + Gas Inc Vaeant benefited from a series of acquisitions that investors beieved were good for the company Legacy suffered from the dramatic decine in the price of oi The Earnings Momentum component s moderate overweight exposure to the information technoogy sector and arge overweight exposure to the consumer discretionary sector contributed to performance Picton Mahoney added Power Financia Corp to provide insurance exposure, which it prefers to bank exposure in the current environment, and Husky Energy Inc for its abiity to benefit from wider refining margins Picton Mahoney increased the Poo s hodings in Vaeant Pharmaceuticas, based on a series of transformative acquisitions, and Manuife Financia Corp, which provides the Poo with exposure to insurance markets in the US and deveoped Asia Picton Mahoney eiminated hodings in Canadian Natura Resources Ltd, to consoidate the Poo s energy exposure, and IGM Financia Inc, based on increasing pressure on its fee/margin structure Picton Mahoney decreased the Poo s hodings in Bank of Nova Scotia based on vauation concerns and to reduce its exposure to strugging Latin America Hodings in Gibson Energy Inc were aso trimmed based on the company s exposure to commodities In the Core component, a significant underweight exposure to the weak-performing energy sector and significant overweight exposures to the strong-performing consumer stapes and information technoogy sectors contributed to performance Individua contributors to performance incuded a significant overweight exposure to CCL Industries Inc, as its share price appreciated on strong performance and reduced costs Significant overweight exposures to Air Canada and Consteation Software Inc aso contributed Air Canada benefited from higher voumes, ower jet fue costs, and a ower cost structure Consteation software continues to make progress on its acquisition growth strategy in mission-critica software The Core component s significant underweight exposure to the strong-performing heath care and teecommunication services sectors detracted from performance Individua detractors incuded a significant overweight exposure to Enbridge Inc, as its share price decined on concerns about its pipeine business during the proonged downturn in energy prices Moderate overweight exposures to Home Capita Group Inc and Stantec Inc aso detracted from performance Home Capita s share price decined on concerns about a weaker Canadian housing market, whie Stantec s share price decined on ower service demand from Western Canada as a resut of ower energy prices Triasima added Linamar to the Poo, based on the strong performance of its aeria workstation division, and Kinaxis Inc, for the competitive edge it derives from its comprehensive product offering Triasima increased the Poo s hodings in The Toronto-Dominion Bank, based on its potentiay beneficia US exposure and continued strong performance from its capita markets and weath management divisions Triasima eiminated hodings in Canadian Natura Resources Ltd, based on the negative impact of faing oi prices and to reduce the Poo s energy exposure Triasima aso sod Canadian Pacific Raiway Ltd, as it beieves the company s growth profie is at risk Triasima decreased the Poo s hoding in The Bank of Nova Scotia, based on the increased risk of oan osses in its Western Canada and energy portfoio, and its arge exposure to poory performing Latin American markets In the Growth at a Reasonabe Price component, the significant underperformance of sma-capitaization stocks was the primary detractor from the Poo s performance Security seection in the materias sector and a sight overweight exposure to the energy sector detracted modesty from performance Individua detractors incuded sight overweight aocations to Tahoe Resources Inc and Edorado God Corp and a sight underweight aocation to Advantage Oi & Gas Ltd Tahoe s share price decined on potentia changes to the royaty structure for its Guatemaan mine Edorado encountered difficuties with its Greek mining operations Advantage significanty outperformed its energy sector peers The Growth at a Reasonabe Price component s moderate overweight exposure to the consumer discretionary and information technoogy sectors contributed to performance, as did security seection in the energy, industrias, consumer discretionary, and financias sectors Individua contributors incuded Coiers Internationa Group Inc, Concordia Heathcare Corp, and CCL Industries Inc Coiers share price appreciated after being spun out from FirstService Corp Concordia s share price rose sharpy as a resut of the scarcity of 2

3 Frontiers Canadian Equity Poo Canadian heath care stocks and an acquisition CC&L benefited from its exposure to the US recovery CC&L added Osisko God Royaties Ltd to the Poo and increased its hodings in DH Corp Osisko benefited from the royaty structure on its Canadian Maarctic mine, whie DH benefited from its growing exposure to the US financia services industry via strategic acquisitions CC&L sod Capita Power Corp, given the downward pressure on Aberta power prices, and decreased the Poo s hodings in Doarama Inc to take advantage of recent stock price strength In the Traditiona Vaue component, a significant underweight exposure to the energy sector and security seection in the energy and consumer stapes sectors contributed to performance Individua contributors incuded COM DEV Internationa Ltd, Bird Construction Inc, and Genworth Financia Inc COM DEV benefited from an agreement to expand one of its business units, Bird Construction won severa new contracts, and Genworth s share price rose after concerns abated regarding Canadian housing Stock seection within the materias sector was a significant detractor from the Traditiona Vaue component s performance, whie security seection in the financias sector moderatey detracted Individua detractors incuded Cafrac We Services Ltd, on energy sector weakness, Sherritt Internationa Corp, as a resut of nicke prices, and Major Driing Group Internationa Inc, as a resut of decreased mining sector activity Foyston added Canexus Corp to the Poo, based on its attractive vauation, and eiminated hodings in Moson Coors Brewing Co and Uni-Seect Inc, as each stock reached Foyston's estimate of fair vaue The Poo s higher portfoio turnover rate for the period was due to the addition of a portfoio sub-advisor and a resutant reaocation among the continuing portfoio sub-advisors Recent Deveopments Effective Apri 1, 2015, Foyston, Gordon & Payne Inc was appointed as a portfoio sub-advisor CIBC Asset Management Inc, Connor, Cark & Lunn Investment Management Ltd, Picton Mahoney Asset Management, and Triasima Portfoio Management Inc wi continue to provide portfoio management services to the Poo Internationa Financia Reporting Standards (IFRS) Investment companies that are pubicy accountabe enterprises or investment funds to which Nationa Instrument Investment Fund Continuous Discosure is appicabe, are required to adopt IFRS for the first time for interim financia reports and annua financia statements reating to annua periods beginning on or after January 1, 2014 As a resut, the Poo adopted IFRS as of September 1, 2014 and is pubishing its first annua financia statements, prepared in accordance with IFRS for the year ended August 31, 2015 The 2015 interim financia reports and annua financia statements incude 2014 comparative financia information and opening Statements of Financia Position as at September 1, 2013 As at August 31, 2015, the impact of the Poo's transition to IFRS is summarized as foows: Under IFRS, the Poo measures the fair vaue of its investments using the guidance in IFRS 13 Fair Vaue Measurement, which requires that if an asset or a iabiity has a bid price or an ask price, then its fair vaue is to be based on a price within the bid-ask spread that is most representative of fair vaue It aso aows the use of mid-market pricing or other pricing conventions that are used by market participants as a practica expedient for fair vaue measurements within a bid-ask spread The Poo has adopted accounting poicies for the vauation of investments to utiize mid-market prices that aign more cosey with the cacuation of net asset vaue (NAV) used to price unithoder transactions (Transaction NAV) IFRS 10 Consoidated Financia Statements provides an exception to the consoidation requirements and requires an investment entity to account for its subsidiaries at fair vaue through profit or oss The Manager has concuded that the Poo meets the definition of an investment entity as at August 31, 2015, August 31, 2014, September 1, 2013, and throughout the periods ended August 31, 2015 and August 31, 2014 Under Canadian generay accepted accounting principes (GAAP), the Poo accounted for its redeemabe units as equity Under IFRS, Internationa Accounting Standard 32 Financia Instruments Presentation (IAS 32) requires that units or shares of equity which incude a contractua obigation for the issuer to repurchase or redeem them for cash or another financia asset be cassified as a financia iabiity As at August 31, 2015, August 31, 2014 and September 1, 2013 the Poo s units did not meet the criteria in IAS 32 for cassification as equity and therefore have been recassified as financia iabiities on the Statements of Financia Position IFRS requires the presentation of a Statement of Cash Fows, incuding comparatives for 2014 The Poo has not previousy presented this statement as was permitted under Canadian GAAP Other recassifications, presentation differences, and additiona discosures are required in the financia statements to compy with IFRS Reated Party Transactions CIBC and its affiiates have the foowing roes and responsibiities with respect to the Poo, and receive the fees described beow in connection with their roes and responsibiities Manager, Trustee, and Portfoio Advisor of the Poo CAMI a whoy-owned subsidiary of CIBC, is the Manager, Trustee, and Portfoio Advisor of the Poo CAMI receives management fees with respect to the day-to-day business and operations of the Poo, cacuated based on the net asset vaue of each respective cass of units of the Poo as described in Management Fees As Trustee, CAMI hods tite to the property (cash and securities) of the Poo on behaf of its unithoders As Portfoio Advisor, CAMI provides, or arranges to provide, investment advice and portfoio management services to the Poo CAMI aso compensates deaers in connection with their marketing activities regarding the Poo From time to time, CAMI may provide seed capita to the Poo 3

4 Frontiers Canadian Equity Poo Distributor The CIBC Wood Gundy division of CIBC Word Markets Inc (CIBC WM) is a deaer through which units of the Poo are sod to investors CIBC WM is a whoy-owned subsidiary of CIBC CAMI may pay saes commissions and traiing commissions to the deaer in connection with the sae of units of the Poo CIBC WM may pay a portion of these saes commissions and traiing commissions to their advisors who se units of the Poo to investors Brokerage Arrangements and Soft Doars Portfoio Advisor and any portfoio sub-advisors make decisions, incuding the seection of markets and deaers and the negotiation of commissions, with respect to the purchase and sae of portfoio securities, certain derivative products (incuding futures) and the execution of portfoio transactions Brokerage business may be aocated by the Portfoio Advisor and any portfoio sub-advisors to CIBC WM and CIBC Word Markets Corp, each a subsidiary of CIBC CIBC WM and CIBC Word Markets Corp may aso earn spreads on the sae of fixed income securities, other securities, and certain derivative products (incuding forwards) to the Poo A spread is the difference between the bid and ask prices for a security in the appicabe marketpace, with respect to the execution of portfoio transactions The spread wi differ based upon various factors such as the nature and iquidity of the security CIBC WM and CIBC Word Markets Corp may furnish goods and services, other than order execution, to CAMI and portfoio sub-advisors when they process trades through them (referred to in the industry as soft-doar arrangements) These goods and services are paid for with a portion of brokerage commissions and assist portfoio sub-advisors with investment decision making services to the Poo or reate directy to the execution of portfoio transactions on behaf of the Poo The fees and spreads for services of the Custodian directy reated to the execution of portfoio transactions by the Poo are paid by CAMI and/or deaer(s) directed by CAMI, up to the amount of the credits generated under soft doar arrangements from trading on behaf of the Poo during that month In addition, CAMI may enter into commission recapture arrangements with certain deaers with respect to the Poo Any commission recaptured wi be paid to the Poo During the period, the Poo paid brokerage commissions and other fees of $87,492 to CIBC WM; the Poo did not pay any brokerage commissions or other fees to CIBC Word Markets Corp Spreads associated with fixed income and other securities are not ascertainabe and, for that reason, cannot be incuded when determining these amounts Poo Transactions The Poo may enter into one or more of the foowing transactions (the Reated Party Transactions) in reiance on the standing instructions issued by the Independent Review Committee (IRC): invest in or hod equity securities of CIBC or issuers reated to a portfoio sub-advisor; invest in or hod non-exchange-traded debt securities of CIBC or an issuer reated to CIBC in a primary offering and in the secondary market; make an investment in the securities of an issuer for which CIBC WM, CIBC Word Markets Corp, or any affiiate of CIBC (a Reated Deaer) acts as an underwriter during the offering of the securities at any time during the 60-day period foowing the competion of the offering of such securities (in the case of a private pacement offering, in accordance with the exemptive reief order granted by the Canadian securities reguatory authorities and in accordance with the poicies and procedures reating to such investment); purchase equity or debt securities from or se them to a Reated Deaer, where it is acting as principa; undertake currency and currency derivative transactions where a Reated Deaer is the counterparty; and purchase securities from or se securities to another investment fund or a managed account managed by the Manager or an affiiate of the Manager The IRC reviews the Reated Party Transactions for which they have issued standing instructions at east annuay The IRC is required to advise the Canadian securities reguatory authorities if it determines that an investment decision was not made in accordance with conditions of its approva Custodian CIBC Meon Trust Company is the custodian of the Poo (the Custodian) The Custodian hods a cash and securities for the Poo and ensures that those assets are kept separate from any other cash or securities that the custodian might be hoding The Custodian aso provides other services to the Poo incuding record-keeping and processing foreign exchange transactions The fees and spreads for the services of the Custodian directy reated to the execution of portfoio transactions by the Poo are paid by CAMI and/or deaer(s) directed by CAMI, up to the amount of the credits generated under soft doar arrangements from trading on behaf of the Poo during that month A other fees and spreads for the services of the Custodian are paid by the Manager and charged to the Poo on a recoverabe basis CIBC owns a 50% interest in the Custodian Service Provider CIBC Meon Goba Securities Services Company (CIBC GSS) provides certain services to the Poo, incuding securities ending, fund accounting and reporting, and portfoio vauation Such servicing fees are paid by the Manager and charged to the Poo on a recoverabe basis CIBC indirecty owns a 50% interest in CIBC GSS 4

5 Frontiers Canadian Equity Poo Financia Highights The foowing tabes show seected key financia information about the Poo and are intended to hep you understand the Poo s financia performance for the period ended August 31 The Poo's Net Assets per Unit¹ - Cass A Units Net Assets, beginning of period $ 2521 $ 2009 $ 1792 $ 2074 $ 1982 Increase (decrease) from operations: Tota revenue $ 055 $ 058 $ 054 $ 050 $ 048 Tota expenses (070) (067) (053) (052) (062) Reaized gains (osses) for the period (169) 187 Unreaized gains (osses) for the period (423) (012) (037) Tota increase (decrease) from operations 2 $ (318) $ 514 $ 220 $ (183) $ 136 Distributions: From income (excuding dividends) $ $ $ $ $ From dividends From capita gains 096 Return of capita Tota Distributions 3 $ $ $ $ 096 $ Net Assets, end of period $ 2207 $ 2521 $ 2006 $ 1792 $ This information is derived from the Poo's audited annua financia statements The Poo adopted IFRS on September 1, 2014 Previousy, the Poo prepared its financia statements in accordance with Canadian Generay Accepted Accounting Principes (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Poo measured fair vaues of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for ong positions and ask prices for short positions As such, the net assets per unit figure presented in the financia statements may differ from the net asset vaue cacuated for fund pricing purposes An expanation of these differences can be found in the notes to the financia statements issued prior to September 1, 2014 Upon adoption of IFRS, the Poo measures the fair vaue of its investments by using the cose market prices, where the cose market price fas within the bid-ask spread As such, the Poo's accounting poicies for measuring the fair vaue of investments in the financia statements are consistent with those used in measuring the net asset vaue for transactions with unithoders Accordingy, the opening net asset figure as at September 1, 2013 refects the adjusted amount in accordance with IFRS A figures presented for periods prior to September 1, 2013 were prepared in accordance with Canadian GAAP 2 Net assets and distributions are based on the actua number of units outstanding at the reevant time The tota increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additiona units of the Poo, or both Ratios and Suppementa Data - Cass A Units Tota Net Asset Vaue (000s) 4 $ 86,927 $ 104,035 $ 95,195 $ 109,013 $ 150,966 Number of Units Outstanding 4 3,939,069 4,126,229 4,739,529 6,072,893 7,264,035 Management Expense Ratio 5 277% 276% 277% 275% 275% Management Expense Ratio before waivers or absorptions 6 294% 294% 277% 275% 276% Trading Expense Ratio 7 023% 018% 020% 019% 016% Portfoio Turnover Rate % 5451% 5744% 7807% 3720% Net Asset Vaue per Unit $ 2207 $ 2521 $ 2009 $ 1795 $ This information is presented as at August 31 of the period(s) shown 5 Management expense ratio is based on the tota expenses of the fund (excuding commissions and other portfoio transaction costs), incurred by or aocated to a cass of units for the period shown, expressed as an annuaized percentage of the daiy average net asset vaue of that cass during the period 6 The decision to waive and/or absorb management fees and operating expenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating expenses may continue indefinitey or may be terminated at any time without notice to unithoders 7 The trading expense ratio represents tota commissions and other portfoio transaction costs before income taxes expressed as an annuaized percentage of the daiy average net asset vaue during the period Spreads associated with fixed income securities trading are not ascertainabe and, for that reason, are not incuded in the trading expense ratio cacuation 8 The portfoio turnover rate indicates how activey the portfoio advisor and/or portfoio sub-advisor manages the portfoio investmentsa portfoio turnover rate of 100% is equivaent to a fund buying and seing a of the securities in its portfoio once in the course of the period The higher a portfoio turnover rate in a period, the greater the trading costs payabe by a fund in the period, and the greater the chance of an investor receiving taxabe capita gains in the year There is not necessariy a reationship between a high turnover rate and the performance of a fund 5

6 Frontiers Canadian Equity Poo The Poo's Net Assets per Unit¹ - Cass C Units Net Assets, beginning of period $ 1275 $ 1014 $ 901 $ 1034 $ 980 Increase (decrease) from operations: Tota revenue $ 029 $ 030 $ 027 $ 025 $ 024 Tota expenses (026) (024) (019) (018) (022) Reaized gains (osses) for the period (089) 091 Unreaized gains (osses) for the period (251) (045) Tota increase (decrease) from operations 2 $ (188) $ 271 $ 116 $ (080) $ 048 Distributions: From income (excuding dividends) $ $ $ $ $ From dividends From capita gains 048 Return of capita Tota Distributions 3 $ $ 007 $ 003 $ 048 $ Net Assets, end of period $ 1125 $ 1275 $ 1013 $ 901 $ This information is derived from the Poo's audited annua financia statements The Poo adopted IFRS on September 1, 2014 Previousy, the Poo prepared its financia statements in accordance with Canadian Generay Accepted Accounting Principes (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Poo measured fair vaues of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for ong positions and ask prices for short positions As such, the net assets per unit figure presented in the financia statements may differ from the net asset vaue cacuated for fund pricing purposes An expanation of these differences can be found in the notes to the financia statements issued prior to September 1, 2014 Upon adoption of IFRS, the Poo measures the fair vaue of its investments by using the cose market prices, where the cose market price fas within the bid-ask spread As such, the Poo's accounting poicies for measuring the fair vaue of investments in the financia statements are consistent with those used in measuring the net asset vaue for transactions with unithoders Accordingy, the opening net asset figure as at September 1, 2013 refects the adjusted amount in accordance with IFRS A figures presented for periods prior to September 1, 2013 were prepared in accordance with Canadian GAAP 2 Net assets and distributions are based on the actua number of units outstanding at the reevant time The tota increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additiona units of the Poo, or both Ratios and Suppementa Data - Cass C Units Tota Net Asset Vaue (000s) 4 $ 8,945 $ 21,796 $ 35,982 $ 35,080 $ 39,459 Number of Units Outstanding 4 795,190 1,709,529 3,547,478 3,889,333 3,808,686 Management Expense Ratio 5 196% 196% 196% 196% 196% Management Expense Ratio before waivers or absorptions 6 222% 218% 203% 202% 204% Trading Expense Ratio 7 023% 018% 020% 019% 016% Portfoio Turnover Rate % 5451% 5744% 7807% 3720% Net Asset Vaue per Unit $ 1125 $ 1275 $ 1014 $ 902 $ This information is presented as at August 31 of the period(s) shown 5 Management expense ratio is based on the tota expenses of the fund (excuding commissions and other portfoio transaction costs), incurred by or aocated to a cass of units for the period shown, expressed as an annuaized percentage of the daiy average net asset vaue of that cass during the period 6 The decision to waive and/or absorb management fees and operating expenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating expenses may continue indefinitey or may be terminated at any time without notice to unithoders 7 The trading expense ratio represents tota commissions and other portfoio transaction costs before income taxes expressed as an annuaized percentage of the daiy average net asset vaue during the period Spreads associated with fixed income securities trading are not ascertainabe and, for that reason, are not incuded in the trading expense ratio cacuation 8 The portfoio turnover rate indicates how activey the portfoio advisor and/or portfoio sub-advisor manages the portfoio investmentsa portfoio turnover rate of 100% is equivaent to a fund buying and seing a of the securities in its portfoio once in the course of the period The higher a portfoio turnover rate in a period, the greater the trading costs payabe by a fund in the period, and the greater the chance of an investor receiving taxabe capita gains in the year There is not necessariy a reationship between a high turnover rate and the performance of a fund 6

7 Frontiers Canadian Equity Poo The Poo's Net Assets per Unit¹ - Cass I Units Net Assets, beginning of period $ 1240 $ 981 $ 870 $ 991 $ 932 Increase (decrease) from operations: Tota revenue $ 027 $ 028 $ 026 $ 024 $ 023 Tota expenses (012) (010) (005) (005) (006) Reaized gains (osses) for the period (081) 094 Unreaized gains (osses) for the period (166) (007) (029) Tota increase (decrease) from operations 2 $ (090) $ 267 $ 136 $ (069) $ 082 Distributions: From income (excuding dividends) $ $ $ $ $ From dividends From capita gains 046 Return of capita Tota Distributions 3 $ 020 $ 014 $ 012 $ 050 $ 003 Net Assets, end of period $ 1087 $ 1240 $ 980 $ 870 $ This information is derived from the Poo's audited annua financia statements The Poo adopted IFRS on September 1, 2014 Previousy, the Poo prepared its financia statements in accordance with Canadian Generay Accepted Accounting Principes (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Poo measured fair vaues of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for ong positions and ask prices for short positions As such, the net assets per unit figure presented in the financia statements may differ from the net asset vaue cacuated for fund pricing purposes An expanation of these differences can be found in the notes to the financia statements issued prior to September 1, 2014 Upon adoption of IFRS, the Poo measures the fair vaue of its investments by using the cose market prices, where the cose market price fas within the bid-ask spread As such, the Poo's accounting poicies for measuring the fair vaue of investments in the financia statements are consistent with those used in measuring the net asset vaue for transactions with unithoders Accordingy, the opening net asset figure as at September 1, 2013 refects the adjusted amount in accordance with IFRS A figures presented for periods prior to September 1, 2013 were prepared in accordance with Canadian GAAP 2 Net assets and distributions are based on the actua number of units outstanding at the reevant time The tota increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additiona units of the Poo, or both Ratios and Suppementa Data - Cass I Units Tota Net Asset Vaue (000s) 4 $ 7,980 $ 22,702 $ 3,302 $ 4,787 $ 5,720 Number of Units Outstanding 4 734,259 1,831, , , ,708 Management Expense Ratio 5 085% 085% 083% 077% 079% Management Expense Ratio before waivers or absorptions 6 100% 089% 083% 077% 079% Trading Expense Ratio 7 023% 018% 020% 019% 016% Portfoio Turnover Rate % 5451% 5744% 7807% 3720% Net Asset Vaue per Unit $ 1087 $ 1240 $ 981 $ 872 $ This information is presented as at August 31 of the period(s) shown 5 Management expense ratio is based on the tota expenses of the fund (excuding commissions and other portfoio transaction costs), incurred by or aocated to a cass of units for the period shown, expressed as an annuaized percentage of the daiy average net asset vaue of that cass during the period 6 The decision to waive and/or absorb management fees and operating expenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating expenses may continue indefinitey or may be terminated at any time without notice to unithoders 7 The trading expense ratio represents tota commissions and other portfoio transaction costs before income taxes expressed as an annuaized percentage of the daiy average net asset vaue during the period Spreads associated with fixed income securities trading are not ascertainabe and, for that reason, are not incuded in the trading expense ratio cacuation 8 The portfoio turnover rate indicates how activey the portfoio advisor and/or portfoio sub-advisor manages the portfoio investmentsa portfoio turnover rate of 100% is equivaent to a fund buying and seing a of the securities in its portfoio once in the course of the period The higher a portfoio turnover rate in a period, the greater the trading costs payabe by a fund in the period, and the greater the chance of an investor receiving taxabe capita gains in the year There is not necessariy a reationship between a high turnover rate and the performance of a fund 7

8 Frontiers Canadian Equity Poo The Poo's Net Assets per Unit¹ - Cass O Units Net Assets, beginning of period $ 1575 $ 1253 $ 1114 $ 1271 $ 1195 Increase (decrease) from operations: Tota revenue $ 035 $ 036 $ 034 $ 031 $ 029 Tota expenses (003) (003) Reaized gains (osses) for the period (109) 111 Unreaized gains (osses) for the period (252) (039) Tota increase (decrease) from operations 2 $ (145) $ 360 $ 171 $ (073) $ 101 Distributions: From income (excuding dividends) $ $ $ $ $ From dividends From capita gains 059 Return of capita Tota Distributions 3 $ 031 $ 035 $ 028 $ 074 $ 016 Net Assets, end of period $ 1387 $ 1575 $ 1251 $ 1114 $ This information is derived from the Poo's audited annua financia statements The Poo adopted IFRS on September 1, 2014 Previousy, the Poo prepared its financia statements in accordance with Canadian Generay Accepted Accounting Principes (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Poo measured fair vaues of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for ong positions and ask prices for short positions As such, the net assets per unit figure presented in the financia statements may differ from the net asset vaue cacuated for fund pricing purposes An expanation of these differences can be found in the notes to the financia statements issued prior to September 1, 2014 Upon adoption of IFRS, the Poo measures the fair vaue of its investments by using the cose market prices, where the cose market price fas within the bid-ask spread As such, the Poo's accounting poicies for measuring the fair vaue of investments in the financia statements are consistent with those used in measuring the net asset vaue for transactions with unithoders Accordingy, the opening net asset figure as at September 1, 2013 refects the adjusted amount in accordance with IFRS A figures presented for periods prior to September 1, 2013 were prepared in accordance with Canadian GAAP 2 Net assets and distributions are based on the actua number of units outstanding at the reevant time The tota increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additiona units of the Poo, or both Ratios and Suppementa Data - Cass O Units Tota Net Asset Vaue (000s) 4 $ 244,666 $ 276,988 $ 270,116 $ 313,871 $ 366,523 Number of Units Outstanding 4 17,634,726 17,584,233 21,559,880 28,133,077 28,775,329 Management Expense Ratio 5 000% 000% 000% 000% 000% Management Expense Ratio before waivers or absorptions 6 001% 001% 001% 001% 000% Trading Expense Ratio 7 023% 018% 020% 019% 016% Portfoio Turnover Rate % 5451% 5744% 7807% 3720% Net Asset Vaue per Unit $ 1387 $ 1575 $ 1253 $ 1116 $ This information is presented as at August 31 of the period(s) shown 5 Management expense ratio is based on the tota expenses of the fund (excuding commissions and other portfoio transaction costs), incurred by or aocated to a cass of units for the period shown, expressed as an annuaized percentage of the daiy average net asset vaue of that cass during the period 6 The decision to waive and/or absorb management fees and operating expenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating expenses may continue indefinitey or may be terminated at any time without notice to unithoders 7 The trading expense ratio represents tota commissions and other portfoio transaction costs before income taxes expressed as an annuaized percentage of the daiy average net asset vaue during the period Spreads associated with fixed income securities trading are not ascertainabe and, for that reason, are not incuded in the trading expense ratio cacuation 8 The portfoio turnover rate indicates how activey the portfoio advisor and/or portfoio sub-advisor manages the portfoio investmentsa portfoio turnover rate of 100% is equivaent to a fund buying and seing a of the securities in its portfoio once in the course of the period The higher a portfoio turnover rate in a period, the greater the trading costs payabe by a fund in the period, and the greater the chance of an investor receiving taxabe capita gains in the year There is not necessariy a reationship between a high turnover rate and the performance of a fund 8

9 Frontiers Canadian Equity Poo Management Fees The Poo, either directy or indirecty, pays an annua management fee to CAMI to cover the costs of managing the Poo Management fees are based on the net asset vaue of the Poo and are cacuated daiy and paid monthy Management fees are paid to CAMI in consideration for providing, or arranging for the provision of, management, distribution, and portfoio advisory services Advertising and promotiona expenses, office overhead expenses, traiing commissions, and the fees of the portfoio sub-advisor(s) are paid by CAMI out of the management fees received from the Poo The Poo is required to pay appicabe taxes on the management fees paid to CAMI Refer to the simpified prospectus for the maximum annua management fee rate For Cass O units, the management fee is negotiated with and paid by, or as directed by, unithoders or deaers and discretionary managers on behaf of unithoders Such Cass O management fee wi not exceed the Cass I unit management fee rate The foowing tabe shows a breakdown of the services received in consideration of the management fees, as a percentage of the management fees coected from the Poo for the period ended August 31, 2015 These amounts do not incude waived fees or absorbed expenses Cass A Units Cass C Units Cass I Units Saes and traiing commissions paid to deaers 6044% 5398% 000% Genera administration, investment advice, and profit 3956% 4602% 10000% Past Performance The performance data provided assumes reinvestment of distributions ony and does not take into account saes, redemption, distribution, or other optiona charges payabe by any unithoder that woud have reduced returns Past performance does not necessariy indicate how a fund wi perform in the future The Poo s returns are after the deduction of fees and expenses, and the difference in returns between casses of units is primariy due to differences in the management expense ratio See Financia Highights for the management expense ratio Year-by-Year Returns These bar charts show the annua performance of each cass of units of the Poo for each of the periods shown, and iustrate how the performance has changed from period to period The bar charts show, in percentage terms, how much an investment made on September 1 woud have increased or decreased by August 31, uness otherwise indicated Cass A Units a 2006 return is for the period from October 1, 2005 to August 31,

10 Frontiers Canadian Equity Poo Cass C Units a 2006 return is for the period from February 16, 2006 to August 31, 2006 Cass I Units a 2006 return is for the period from Apri 4, 2006 to August 31, 2006 Cass O Units a 2006 return is for the period from October 1, 2005 to August 31, 2006 Annua Compound Returns This tabe shows the annua compound return of each cass of units of the Poo for each indicated period ended on August 31, 2015 The annua compound return is aso compared to the Poo s benchmark(s) The Poo s benchmark is the S&P/TSX Composite Index 10

11 x Frontiers Canadian Equity Poo 1 Year 3 Years 5 Years 10 Years* or Since Inception* Inception Date Cass A units -125% 71% 32% 24% November 24, 1999 x S&P/TSX Composite Index -87% 83% 61% 56% Cass C units -118% 80% 41% 24% February 16, 2006 x S&P/TSX Composite Index -87% 83% 61% 47% Cass I units -108% 92% 53% 30% Apri 4, 2006 x S&P/TSX Composite Index -87% 83% 61% 44% Cass O units -100% 101% 61% 52% March 15, 2005 x S&P/TSX Composite Index -87% 83% 61% 56% * If a cass of units has been outstanding for ess than 10 years, the annua compound return since inception is shown S&P/TSX Composite Index is intended to represent the Canadian equity market and incudes the argest companies isted on the TSX A discussion of the reative performance of the Poo compared to its primary benchmark(s) can be found in Resuts of Operations 11

12 x x Frontiers Canadian Equity Poo Summary of Investment Portfoio (as at August 31, 2015) The summary of investment portfoio may change due to ongoing portfoio transactions of the investment fund A quartery update is avaiabe by visiting renaissanceinvestmentsca The Top Positions tabe shows a fund s 25 argest positions For funds with fewer than 25 positions in tota, a positions are shown Cash and cash equivaents are shown in tota as one position % of Net Asset Portfoio Breakdown Vaue Financias 333 Energy 153 Consumer Discretionary 110 Materias 110 Industrias 84 Information Technoogy 52 Consumer Stapes 48 Other Equities 48 Cash & Cash Equivaents 40 Teecommunication Services 31 Corporate Bonds 02 Other Assets, ess Liabiities -11 % of Net Asset Top Positions Vaue Toronto-Dominion Bank (The) 45 Roya Bank of Canada 45 Cash & Cash Equivaents 40 Manuife Financia Corp 36 Canadian Nationa Raiway Co 28 Suncor Energy Inc 25 Brookfied Asset Management Inc, Cass 'A' 23 Vaeant Pharmaceuticas Internationa Inc 22 Bank of Nova Scotia 21 Magna Internationa Inc, Cass 'A' 19 Sun Life Financia Inc 18 Progressive Waste Soutions Ltd 18 Gidan Activewear Inc 18 Eement Financia Corp, Subscription Receipts 17 Agrium Inc 16 Canadian Tire Corp Ltd, Cass 'A' 16 TELUS Corp 15 Lobaw Cos Ltd 15 Canadian Imperia Bank of Commerce 13 CCL Industries Inc, Cass 'B' 13 Power Financia Corp 13 Aimentation Couche-Tard Inc, Cass 'B' 12 Power Corp of Canada 12 Enbridge Inc 11 CGI Group Inc, Cass 'A' 11 12

13 The management report of fund performance may contain forward-ooking statements Forward-ooking statements incude statements that are predictive in nature, that depend upon or refer to future events or conditions, or that incude words such as expects, anticipates, intends, pans, beieves, estimates, or other simiar wording In addition, any statements that may be made concerning future performance, strategies, or prospects and possibe future actions taken by the fund, are aso forward-ooking statements These statements invove known and unknown risks, uncertainties, and other factors that may cause the actua resuts and achievements of the fund to differ materiay from those expressed or impied by such statements Such factors incude, but are not imited to: genera economic, market, and business conditions; fuctuations in securities prices, interest rates, and foreign currency exchange rates; changes in government reguations; and catastrophic events CIBC Asset Management Inc does not undertake, and specificay discaims, any obigation to update or revise any forward-ooking statements, whether as a resut of new information, future deveopments, or otherwise prior to the reease of the next management report of fund performance

14 Renaissance Investments 1500 Robert-Bourassa Bouevard, Suite 800 Montrea, Quebec H3A 3S Website renaissanceinvestmentsca CIBC Asset Management Inc, the manager and trustee of the Frontiers Poos, is a whoy-owned subsidiary of Canadian Imperia Bank of Commerce Pease read the Frontiers Poos simpified prospectus before investing To obtain a copy of the simpified prospectus, ca , emai us at info@renaissanceinvestmentsca, or ask your advisor Frontiers is a registered trademark of Canadian Imperia Bank of Commerce Renaissance Investments is a registered trademark of CIBC Asset Management Inc Renaissance Investments is offered by CIBC Asset Management Inc (201508)