Interim Management Report of Fund Performance

Transcription

1 Interim Management Report of Fund Performance DESJARDINS FUNDS As at March 31, 218 This Interim Management Report of Fund Performance contains financial highlights but does not contain the Interim Financial Reports or Audited Annual Financial Statements of the investment Fund. You can request a copy of the Interim Financial Reports or Annual Financial Statements, at no cost, by contacting your mutual fund sales representative, by calling , or toll-free at , by visiting desjardinsfunds.com and sedar.com, by ing us at info.fondsdesjardins@desjardins.com, or by writing us at 2 Complexe Desjardins, P.O. Box 9, Desjardins Station, Montréal, Québec H5B 1H5. You 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.

2 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 actions. 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 the 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 statements 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 exchange 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.

3 TRUST FUNDS INVESTMENT SOLUTIONS SocieTerra Balanced Portfolio (A-, T5-, I-, C-, R5-, F-, S5- AND Z5-CLASS UNITS) MANAGEMENT DISCUSSION OF FUND PERFORMANCE Results of Operations As at March 31, 218, the SocieTerra Balanced Portfolio (A-Class units) posted a 2.33% return, compared to 3.46% for its benchmark, composed of the FTSE TMX Canada Universe Bond Index (55%), the MSCI World Index (Total return 31%) and the S&P/TSX Composite Index (Total return 14%). The FTSE TMX Canada Universe Bond Index posted a 2.12% return for the same period. As opposed to the benchmark, the Fund s performance is net of fees and expenses. Please refer to the Past Performance section for the details of returns by class and to the Other Material Information section for more information on the benchmarks. Performance differences between classes of units are mainly due to management fees charged to each class. Equity The last six-month period was marked by two opposing trends. First, global equities performed exceptionally well during the fourth quarter of, ending a year of extraordinary gains. In fact, several records were hit last year, including an all-time low for the VIX (volatility index). The same upward momentum carried into January 218, but markets snapped back to reality in February. A brief downturn, which was unusual in that high-beta sectors were not affected as much as defensive sectors, was followed by a recovery that offset the totality of previous losses. That said, the period ended with a new outbreak of volatility: the uproar over the use of Facebook data and concerns sparked by President Trump s threatened trade tariffs had an even greater impact on IT and financials securities. Against this backdrop, global equity in developed markets (MSCI World) posted a return of 4.1% (in U.S. dollars) and was outpaced by those in emerging markets, which achieved gains of 8.8%. The European market stayed relatively flat at.2% (in U.S. dollars). Meanwhile, the United States, as represented by the S&P 5, was mostly spared (5.8% increase). Meanwhile, the Canadian S&P/TSX index ended the period with a slightly negative return of.3%. Globally, cyclical sectors dominated, with IT stocks closing the six-month period ahead of the rest. In contrast, defensive sectors ended the period in negative territory, with the biggest declines posted by telecommunications and utilities. Finally, foreign exchange markets saw the U.S. dollar depreciate against several major developed country currencies, especially the yen and the pound sterling, which rose against the U.S. currency by 5.8% and 4.6%, respectively. The Canadian dollar showed the weakest growth, falling by 3.%. Bonds Canadian fixed-income markets posted positive returns during the six-month period. During this time, risk assets outclassed government-backed securities, while growth continued to improve globally and remained stable in Canada. The yield on Government of Canada bonds totalled 1.41%, while Canadian provincial bonds reached 3.41%. Meanwhile, Canadian corporate bonds posted 1.72% yields. U.S. investment-grade and high-yield corporate bonds fell into negative territory, trailing behind their Canadian equivalents. In Canada, the yield curve lost approximately 5 basis points for 2- to 3-year maturities, as the short- and medium-term segments of the curve rose while longer-term interest rates fell. The benchmark Canadian 1-year bond only lost one basis point over the period, ending at 2.9%. Given the country s considerable GDP growth, the Bank of Canada hiked its interest rates by.25% to 1.25%. Recent Developments For the short term, caution is in order. The recent spike in volatility reflects the fears of investors, who are wondering how long the current bull market, which has lasted nine years, can continue. Uncertainty over a trade war and potential retaliation, as well as possible monetary tightening by various central banks, are also heightening these fears. Economic statistics for Canada were less encouraging than for the United States, with Canada posting 1.7% growth in the fourth quarter, compared to 2.9% for its southern neighbour. Growth for the first quarter is currently projected at 2.% for Canada and 2.4% for the United States. According to the most recent estimates, annual Canadian GDP growth is expected to reach approximately 2.2% for 218, while inflation should reach 2.1%. Related Party Transactions Desjardins Investments Inc. is the Fund s Manager pursuant to the administration agreement. The Manager ensures the daily administration of the Fund. It provides the Fund or makes sure the Fund is provided with all services (accounting, custody, portfolio management, record maintenance, transfer agent) required to function properly. The Fund pays management fees to the Manager, which are calculated on a daily basis with the net asset value of the Fund and paid weekly. These fees are shown in the Management Fees section of this Report. Management and administrative fees presented in the Statement of Comprehensive Income were incurred with the Manager of the Desjardins Funds. Desjardins Trust Inc., an entity belonging to the same group as the Manager, is the Fund s trustee and custodian. As the Fund s trustee, Desjardins Trust Inc. fees are paid by the Manager. The custodian fees of Desjardins Trust Inc. are paid by the Manager and are established based on market conditions. Desjardins Global Asset Management Inc. (DGAM) is the portfolio manager of the Fund. DGAM is an entity belonging to the same group as the Manager. DGAM s fees are entirely paid by the Manager. Northwest & Ethical Investments L.P. (NEILP) is the Manager of the NEI and Ethical Funds. NEILP is 5% owned by the Fédération des caisses Desjardins du Québec (the Fédération), an entity belonging to the same group as the Manager.

4 Accrued expenses payable (receivable) to the Fund s Manager are: MARCH 31 SEPTEMBER EXPENSES PAYABLE (RECEIVABLE) 33, ,65 During the period, the Fund received income from funds managed by related parties: MARCH 31 MARCH DISTRIBUTIONS FROM UNDERLYING FUNDS 31,674,59 21,48,347 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 last six-month period and for the past five years/periods, as applicable. For the six-month period ended March 31, 218 and fiscal years/periods ended September 3,, 216, 215 and 214, financial information is shown in accordance with International Financial Reporting Standards (IFRS), while the financial information for the previous years/periods is shown in accordance with Canadian generally accepted accounting principles as defined in Part V of the CPA. A-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 SEPTEMBER 3, 214 SEPTEMBER 3, 213 Net assets, beginning of period Income (4) Realized gains (losses) (4) Unrealized gains (losses) (.1).3.79 (1.25).9.49 Expenses (.16) (.31) (.31) (.34) (.32) (.29) Commissions and other portfolio transaction costs (2) N/A N/A N/A N/A N/A Total increase (decrease) from operations (3) From income (excluding dividends) From dividends From underlying funds distribution (4).1.3 N/A N/A N/A From capital gains Return of capital Total Distributions (5) Net Assets, End of Period T5-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 (4 MONTHS)* Net assets, beginning of period Income (4) Realized gains (losses) (4) Unrealized gains (losses) (.8).2.6 (.49) Expenses (.1) (.2) (.21) (.8) Commissions and other portfolio transaction costs (2) N/A N/A N/A N/A Total increase (decrease) from operations (3) (.48) From income (excluding dividends) From dividends From underlying funds distribution (4).7.4 N/A N/A From capital gains Return of capital Total Distributions (5) Net Assets, End of Period

5 I-CLASS SEPTEMBER 3, * Net assets, beginning of period Income (4) Realized gains (losses) (4).14.1 Unrealized gains (losses) (.1).3.52 Expenses Commissions and other portfolio transaction costs (2) N/A N/A N/A Total increase (decrease) from operations (3) From income (excluding dividends) From dividends From underlying funds distribution (4) From capital gains Return of capital Total Distributions (5) Net Assets, End of Period C-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 SEPTEMBER 3, 214 (11 MONTHS)* Net assets, beginning of period Income (4) Realized gains (losses) (4) Unrealized gains (losses) (.9).1.7 (1.23) (.3) Expenses (.11) (.23) (.22) (.24) (.2) Commissions and other portfolio transaction costs (2) N/A N/A N/A N/A N/A Total increase (decrease) from operations (3) From income (excluding dividends).1 From dividends.3.5 From underlying funds distribution (4) N/A N/A From capital gains Return of capital Total Distributions (5) Net Assets, End of Period R5-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 (4 MONTHS)* Net assets, beginning of period Income (4) Realized gains (losses) (4) Unrealized gains (losses) (.6).2.54 (.6) Expenses (.9) (.2) (.21) (.7) Commissions and other portfolio transaction costs (2) N/A N/A N/A N/A Total increase (decrease) from operations (3) (.19) From income (excluding dividends) From dividends From underlying funds distribution (4).8.5 N/A From capital gains Return of capital Total Distributions (5) Net Assets, End of Period

6 F-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 SEPTEMBER 3, 214 (11 MONTHS)* Net assets, beginning of period Income (4) Realized gains (losses) (4).1 (.3) Unrealized gains (losses) (.8).4.76 (.99).38 Expenses (.4) (.8) (.8) (.13) (.1) Commissions and other portfolio transaction costs (2) N/A N/A N/A N/A N/A Total increase (decrease) from operations (3) From income (excluding dividends).3.4 From dividends.8.4 From underlying funds distribution (4) N/A N/A From capital gains Return of capital Total Distributions (5) Net Assets, End of Period S5-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 (4 MONTHS)* Net assets, beginning of period Income (4) Realized gains (losses) (4) Unrealized gains (losses) (.7).1.54 (.6) Expenses (.5) (.1) (.11) (.4) Commissions and other portfolio transaction costs (2) N/A N/A N/A N/A Total increase (decrease) from operations (3) (.16) From income (excluding dividends).1 From dividends.1 From underlying funds distribution (4) N/A From capital gains Return of capital Total Distributions (5) Net Assets, End of Period

7 Z5-CLASS SEPTEMBER 3, * Net assets, beginning of period Income (4) Realized gains (losses) (4).13 (.2) Unrealized gains (losses) (.2) (.6).3 Expenses (.11) (.23) (.11) Commissions and other portfolio transaction costs (2) N/A N/A N/A Total increase (decrease) from operations (3).5 (.5).28 From income (excluding dividends) From dividends From underlying funds distribution (4).14.4 From capital gains.16.5 Return of capital.2.41 Total Distributions (5).5.5 Net Assets, End of Period (1) This information is derived from the Fund s unaudited interim financial statements and audited annual financial statements. The net assets per unit presented in the financial statements may differ from the net asset value calculated for fund pricing purposes. (2) From September 3, 214, commissions and other portfolio transaction costs are included in expenses. (3) Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of units outstanding over the financial period. (4) From September 3, 216, distributions from underlying funds are presented separately. Previously, those amounts were split between the different types of revenues. Revenue and realized gains (losses) were revised, if applicable. (5) Distributions were paid in cash or reinvested in additional units of the Fund. * Beginning of operations: T5-Class units in June 215. I-Class units in October 215. C-Class units in November 213. R5-Class units in June 215. F-Class units in November 213. S5-Class units in June 215. Z5-Class units in April 216. A-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 SEPTEMBER 3, 214 SEPTEMBER 3, 213 Total net asset value ( s of ) 1,84,756 1,71,45 951,873 75,58 599,386 44,97 Number of redeemable units outstanding 78,35,24 77,784,657 69,26,959 49,87,687 42,879,118 33,972,23 Management expense ratio (%) (1) Management expense ratio before waivers and absorptions (%) Trading expense ratio (%) (3) Portfolio turnover rate (%) (4) Net asset value per unit () T5-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 (4 MONTHS)* Total net asset value ( s of ) 3,136 2,697 2, Number of redeemable units outstanding 367,58 315,45 32,192 35,4 Management expense ratio (%) (1) Management expense ratio before waivers and absorptions (%) Trading expense ratio (%) (3) Portfolio turnover rate (%) (4) Net asset value per unit () I-CLASS SEPTEMBER 3, * Total net asset value ( s of ) 23,27 2,5 13,44 Number of redeemable units outstanding 2,325,663 2,22,29 1,326,22 Management expense ratio (%) (2) Management expense ratio before waivers and absorptions (%) Trading expense ratio (%) (3) Portfolio turnover rate (%) (4) Net asset value per unit ()

8 C-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 SEPTEMBER 3, 214 (11 MONTHS)* Total net asset value ( s of ) 3,945 3,276 1, Number of redeemable units outstanding 375, ,4 175,987 53,13 17,353 Management expense ratio (%) (1) Management expense ratio before waivers and absorptions (%) Trading expense ratio (%) (3) Portfolio turnover rate (%) (4) Net asset value per unit () R5-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 (4 MONTHS)* Total net asset value ( s of ) Number of redeemable units outstanding Management expense ratio (%) (1) Management expense ratio before waivers and absorptions (%) Trading expense ratio (%) (3) Portfolio turnover rate (%) (4) Net asset value per unit () F-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 SEPTEMBER 3, 214 (11 MONTHS)* Total net asset value ( s of ) 1,758 1, Number of redeemable units outstanding 239,2 172,337 9, ,3 Management expense ratio (%) (1) Management expense ratio before waivers and absorptions (%) Trading expense ratio (%) (3) Portfolio turnover rate (%) (4) Net asset value per unit () S5-CLASS SEPTEMBER 3, SEPTEMBER 3, 215 (4 MONTHS)* Total net asset value ( s of ) Number of redeemable units outstanding Management expense ratio (%) (1) Management expense ratio before waivers and absorptions (%) Trading expense ratio (%) (3) Portfolio turnover rate (%) (4) Net asset value per unit () Z5-CLASS SEPTEMBER 3, * Total net asset value ( s of ) Number of redeemable units outstanding 73,85 32,5 2,512 Management expense ratio (%) (1) Management expense ratio before waivers and absorptions (%) Trading expense ratio (%) (3) Portfolio turnover rate (%) (4) Net asset value per unit () (1) Management expense ratio is based on total expenses (including applicable taxes, but excluding commissions and other portfolio transaction costs and excluding withholding taxes) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period. (2) Management expense ratio relating to I-Class units is based on total expenses (including applicable taxes, but excluding commissions and other portfolio transaction costs and excluding withholding taxes, as well as management fees paid to the Manager, which may differ from one investor to another, as they are negotiated by each one of them directly with the Manager) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period. (3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period. (4) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio manager manages its portfolio investments. A portfolio turnover rate of 1% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher a fund s portfolio turnover rate in a period, the greater the trading costs payable by the Fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a fund. * Beginning of operations: T5-Class units in June 215. I-Class units in October 215. C-Class units in November 213. R5-Class units in June 215. F-Class units in November 213. S5-Class units in June 215. Z5-Class units in April 216.

9 Management Fees Management fees payable to the Manager by the SocieTerra Balanced Portfolio are calculated daily on the net asset value of the Fund at an annual rate of 1.82%. These fees are paid weekly. The major services paid by the management fees expressed as an approximate percentage of said management fees may be summarized as follows: Administration of the Fund, investment portfolio management and profit margin.87% Dealer compensation.85% Marketing expenses.1% I-CLASS PAST PERFORMANCE Performance data assumes that all distributions of each class of the Fund for the periods shown were reinvested in additional Fund units. However, it does not take into account purchase, redemption, investment or other optional charges, and returns would be lower if it did. 21i6 months * Beginning of operations on October 14, 215. C-CLASS 1 216* The past performance of each class of the Fund is not necessarily indicative of future performance. Annual Performance (%) 6.21 A-CLASS a6 months 29* * Beginning of operations on January 19, T5-CLASS * Beginning of operations on November 2, * c6 months R5-CLASS r56 months * Beginning of operations on June 4, * t56 months * Beginning of operations on June 4, * 216

10 F-CLASS 1 PORTFOLIO OVERVIEW Net Asset Value Mix (%) as at March 31, Net Asset Value Mix (%) as at March 31, f6 months * Beginning of operations on November 2, * Investment Funds 47.4 Growth Investment Funds 52.2 Fixed-Income Investment Funds.4 Cash and Cash Equivalents 99.8 Investment Funds 48.6 Growth Investment Funds 51.2 Fixed-Income Investment Funds.2 Cash and Cash Equivalents S5-CLASS s56 months NET ASSET VALUE Top Positions (Long Positions) * % 1. Desjardins SocieTerra Canadian Bond Fund, I-Class Desjardins SocieTerra Canadian Equity Fund, I-Class Desjardins SocieTerra American Equity Fund, I-Class NEI Ethical International Equity Fund, Series I Desjardins SocieTerra Environment Fund, I-Class Desjardins SocieTerra Environmental Bond Fund, I-Class Desjardins SocieTerra Cleantech Fund, I-Class Cash and Cash Equivalents.2 Total 1. * There is no short position in this Fund. * Beginning of operations on June 4, 215. Z5-CLASS z56 months 215* The Portfolio Overview may change due to ongoing Fund transactions. You can request copies of the quarterly update and other information regarding the Desjardins Funds, at no cost: by contacting your representative; or by calling , or toll-free at ; or at desjardinsfunds.com; by , at info.fondsdesjardins@desjardins.com; or through Desjardins Investments Inc. Desjardins Funds Customer Service 2 Complexe Desjardins P.O. Box 9, Desjardins Station Montréal, Québec H5B 1H5 Prospectus and other information about the underlying investment funds are available on the Internet at sedar.com. * Beginning of operations on April 12, * These graphs present the annual performance of each class of the Fund for each fiscal year shown and illustrate the evolution of each class of the Fund from one year to the next. The last column shows the total performance of each class of the Fund for the interim period ended March 31, 218. These graphs also indicate, in percentage terms, how the value of an investment made on the first day of each fiscal year would have evolved as of the last day of that fiscal year or interim period. Returns may differ from one category to another for a number of reasons, including if the category was not issued and outstanding for the entire period under review and because of the different levels of management fees and expenses.

11 OTHER MATERIAL INFORMATION A-Class units of this Fund are offered to all investors. The Fund s investment portfolio is the same for all its unit classes. T5-Class units of this Fund provide a monthly cash distribution consisting of net income, a non-taxable return of capital or a combination of both. They were designed for investors who wish to have an additional tax-advantaged income to complement their income from other sources. The Fund s investment portfolio is the same for all its unit classes. I-Class units of this Fund are offered to large investors who make the required minimum investment. The Fund s investment portfolio is the same for all its unit classes. C-Class units of this Fund are offered to investors who purchase units using an initial sales charge option, a deferred sales charge option or a low-load sales charge option. These units are offered only if the investor s dealer has reached a security agreement with the Fund s Manager. The Fund s investment portfolio is the same for all its unit classes. R5-Class units of this Fund are offered to investors who purchase units using an initial sales charge option, a deferred sales charge option or a low-load sales charge option. R5-Class units provide a monthly cash distribution consisting of net income, a non-taxable return of capital or a combination of both. They were designed for investors who wish to have an additional tax-advantaged income to complement their income from other sources. These units are offered only if the investor s dealer has reached a security agreement with the Fund s Manager. The Fund s investment portfolio is the same for all its unit classes. F-Class units of this Fund are offered to investors who compensate their dealer on a fee for service basis, who have a dealer-sponsored wrap account or who pay their dealer an annual fee and where the dealer does not receive trailing commissions. These units are offered only if the investor s dealer has reached a security agreement with the Fund s Manager. The Fund s investment portfolio is the same for all its unit classes. S5-Class units of this Fund are offered to investors who compensate their dealer on a fee for service basis, who have a dealer-sponsored wrap account or who pay their dealer an annual fee and where the dealer does not receive trailing commissions. S5-Class units provide a monthly cash distribution consisting of net income, a non-taxable return of capital or a combination of both. They were designed for investors who wish to have an additional tax-advantaged income to complement their income from other sources. These units are offered only if the investor s dealer has reached a security agreement with the Fund s Manager. The Fund s investment portfolio is the same for all its unit classes. Z5-Class units of this Fund feature an annual cash distribution composed of a net income, a non-taxable capital repayment, or a combination of both. These units were designed for investors seeking a fixed annual distribution and who have entered into an agreement with the Manager. The Fund s investment portfolio is the same for all its unit classes. FTSE TMX Global Debt Capital Markets Inc (FTDCM), FTSE International Limited (FTSE), the London Stock Exchange Group companies (the Exchange) or TSX INC. (TSX and together with FTDCM, FTSE and the Exchange, the Licensor Parties ). The Licensor Parties make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE TMX Canada Universe Bond Index (the Index) and/or the figure at which the said Indice stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSEDCM and all copyright in the Index values and constituent lists vest in FTDCM. The Licensor Parties shall not be liable (whether in negligence or otherwise) to any error in the Index and the Licensor Parties shall not be under any obligation to advise any person of any error therein. TMX is a trademark of TSX Inc. and is used under licence. FTSE is a trademark of the FTSE International Limited and is used by FTDCM under licence. S&P Indices are trademarks of The McGraw-Hill Companies, Inc. (S&P). This Fund is not sponsored, endorsed, sold or promoted by Standard & Poor s, a division of The McGraw-Hill Companies, Inc. (S&P). Standard & Poor s makes no representations with regard to the Fund s relevance. The Fund is not sponsored, endorsed, sold or promoted by Standard & Poor s, a division of The McGraw-Hill Companies, Inc. (S&P) or its third party licensors. Neither S&P nor its third party licensors makes any representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in generally or in the Fund particularly or the ability of the S&P/TSX Composite Index (the Index) to track general stock market performance. S&P s and its third party licensor s only relationship to Desjardins Investments Inc. is the licensing of certain trademarks and trade names of S&P and the third party licensors and of the Index which is determined, composed and calculated by S&P or its third party licensors without regard to Desjardins Investments Inc. or the Fund. S&P and its third party licensors have no obligation to take the needs of Desjardins Investments Inc. or the owners of the Fund into consideration in determining, composing or calculating the Index. Neither S&P nor its third party licensors is responsible for and has not participated in the determination of the prices and amount of the Fund or the timing of the issuance or sale of the Fund or in the determination or calculation of the equation by which the Fund is to be converted into cash. S&P has no obligation or liability in connection with the administration, marketing or trading of the Fund. Neither S&P, its affiliates nor their third party licensors guarantee the adequacy, accuracy, timeliness or completeness of the Index or any other data included therein or any communications, including but not limited to, oral or written communications (including electronic communications) with respect thereto. S&P, its affiliates and their third party licensors shall not be subject to any damages or liability for any errors, omissions or delays therein. S&P makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the brands, the Index or any data included therein. Without limiting any of the foregoing, in no event whatsoever shall S&P, its affiliates or their third party licensors be liable for any indirect, special, incidental, punitive or consequential damages, including but not limited to, loss of profits, trading losses, lost time or goodwill, even if they have been advised of the possibility of such damages, whether in contract, tort, strict liability or otherwise. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.