Renaissance International Dividend Fund. Interim Management Report of Fund Performance

Transcription

1 Renaissance Internationa Dividend Fund Interim Management Report of Fund Performance for the period ended February 28, 2018 A figures are reported in Canadian doars uness otherwise noted This interim management report of fund performance contains financia highights but does not contain either the compete interim or annua financia statements of the investment fund If you have not received a copy of the interim financia reports with this interim management report of fund performance, you can get a copy of the interim financia reports or annua financia statements at your request, and at no cost, by caing us to-free at FUND (3863), 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 Resuts of Operations The portfoio sub-advisor of Renaissance Internationa Dividend Fund (the Fund) is KBI Goba Investors Ltd (the sub-advisor) The commentary that foows provides a summary of the resuts of operations for the six-month period ended February 28, 2018 A doar figures are expressed in thousands, uness otherwise indicated The Fund's net asset vaue increased by 3% during the period, from $8,521 as at August 31, 2017 to $8,753 as at February 28, 2018 Positive investment performance was partiay offset by net redemptions of $261, resuting in an overa increase in net asset vaue Cass A units of the Fund posted a return of 58% for the period The Fund s benchmark, the MSCI EAFE Index (the benchmark), returned 96% for the same period The Fund s return is after the deduction of fees and expenses, unike the benchmark s return See Past Performance for the return of the other cass of units offered by the Fund Goba stock markets posted strong gains over the period, as the market ray of recent years continued Investor confidence was further strengthened by evidence of improving goba economic activity and the positive impact of that activity on corporate earnings Gains in equity and commodity markets were driven by a number of factors, incuding the successfu passage of corporate tax reform egisation in the US and strong economic growth in virtuay a major word economies Whie centra banks have started to take steps in response to strong goba economic growth, as evidenced by higher interest rates in the US, monetary poicy overa has remained favourabe for further economic growth US bond markets experienced sight decines over the period in expectation of increased fisca deficits and higher infation Stock seection in the banking, pharmaceutica and biotechnoogy, and commercia services and suppies industries detracted from the Fund s performance over the period Significant individua detractors from performance incuded Capita PLC, Imperia Brands PLC and Nordea Bank AB Capita strugged foowing a profit warning and dividend suspension These issues, combined with uncertainty around significant contract renewas coming due in the next few years, made the outook for the business increasingy uncertain The share price of Imperia Brands fe significanty over the period, as the potentia to be acquired became increasingy unikey after Japan Tobacco Inc s new chief executive officer announced pans to pursue deas in Southeast Asia and other markets where Japan Tobacco acks presence This news effectivey took Imperia Brands out of any potentia purchase pans Nordea decined after the company announced mixed quartery resuts Whie the company s dividend increase was higher than expected, the company s revenues were ower across the board In addition, the company strugged as persona banking decined in a countries and overa fee income came in beow expectations Stock seection in the transportation, teecommunication services, and technoogy and hardware industries contributed to the Fund s performance over the period Individua contributors to the Fund s performance incuded UPM-Kymmene Corp OYJ, ProSiebenSat1 Media SE and Daimer AG UPM-Kymmene benefited from stronger-than-expected quartery resuts, which were driven by strong operationa efficiency and ow maintenance costs In addition, the company announced a new growth project in Russia, as we as steps toward entering the sustainabe biochemicas business Proactive cost management, gradua capacity reduction in decining segments and the abiity to improve voume has ed to higher operating efficiencies and continued strong cash fow Historicay, the company s excess cash fow has been depoyed seectivey toward moderate growth and other operations that have heped to offset a structura decine in the company s paper business ProSiebenSat1 Media gained in response to key anayst upgrades ahead of the company s annua resuts, which were driven by expectations for improving advertising revenues and the unveiing of a new chief executive officer Daimer gained on positive quartery

2 Renaissance Internationa Dividend Fund resuts and management commentary that highighted a number of positives, incuding the profitabiity of the company s business in China, that its Mercedes product ine is in the midst of a strong product cyce and Daimer Truck s positive performance During the period, the sub-advisor eiminated the Fund s hodings in Bank Hapoaim Ltd, UBS Group AG and Standard Life Aberdeen PLC, whie trimming its hodings in Teenor ASA, Roya Mai PLC and Berkeey Group Hodings PLC The sub-advisor increased the Fund s weighting in Mitsubishi Corp, whie adding hodings in Atos SE, BT Group PLC, Natixis SA and WH Group Ltd Recent Deveopments Effective September 1, 2017, the annua management fee payabe was reduced from 200% to 170% in respect of Cass A units of the Fund, and from 100% to 095% in respect of Cass F units of the Fund Reated Party Transactions CIBC and its affiiates have the foowing roes and responsibiities with respect to the Fund, and receive the fees described beow in connection with their roes and responsibiities Manager, Trustee, and Portfoio Advisor of the Fund CAMI, a whoy-owned subsidiary of CIBC, is the Fund's Manager, Trustee, and Portfoio Advisor CAMI receives management fees with respect to the Fund's day-to-day business and operations, cacuated based on the net asset vaue of each respective cass of units of the Fund as described in Management Fees As Trustee, CAMI hods tite to the Fund's property (cash and securities) on behaf of its unithoders As Portfoio Advisor, CAMI provides, or arranges to provide, investment advice and portfoio management services to the Fund CAMI aso compensates deaers in connection with their marketing activities regarding the Fund From time to time, CAMI may invest in units of the Fund Distributor Deaers and other firms se units of the Fund to investors These deaers and other firms incude CAMI s reated deaers such as the CIBC Investor s Edge discount brokerage division of CIBC Investor Services Inc (CIBC ISI), the CIBC Imperia Service division of CIBC ISI, and the CIBC Wood Gundy division of CIBC Word Markets Inc (CIBC WM) CIBC ISI and CIBC WM are whoy-owned subsidiaries of CIBC CAMI may pay saes commissions and traiing commissions to these deaers and firms in connection with the sae of units of the Fund These deaers and other firms may pay a portion of these saes commissions and traiing commissions to their advisors who se units of the Fund to investors Brokerage Arrangements and Soft Doars CAMI generay deegates trading and execution authority to the portfoio sub-advisors and does not, in its capacity as portfoio advisor, receive any goods or services directy through soft doar arrangements The 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 and the execution of portfoio transactions Brokerage business may be aocated by the Portfoio Advisor and any portfoio sub-advisor 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 to the Fund 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 Deaers, incuding CIBC WM and CIBC Word Markets Corp, may furnish goods and services, other than order execution, to the Portfoio Advisor and any 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 the brokerage commissions and assist the Portfoio Advisor and any portfoio sub-advisor with investment decision-making services for the Fund or reate directy to the execution of portfoio transactions on behaf of the Fund As per the terms of the portfoio sub-advisory agreements, such soft doar arrangements are in compiance with appicabe aws In addition, the Manager may enter into commission recapture arrangements with certain deaers with respect to the Fund Any commission recaptured wi be paid to the Fund During the period, the Fund did not pay any brokerage commissions or other fees to CIBC WM or 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 Fund Transactions The Fund 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; 2

3 Renaissance Internationa Dividend Fund 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 At east annuay, the IRC reviews the Reated Party Transactions for which they have issued standing instructions The IRC is required to advise the Canadian securities reguatory authorities, after a matter has been referred to or reported to it by the Manager, if it determines that an investment decision was not made in accordance with conditions imposed by securities egisation or the IRC in any Reated Party Transactions requiring its approva Custodian CIBC Meon Trust Company is the custodian of the Fund (the Custodian) The Custodian hods a cash and securities for the Fund 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 Fund incuding record-keeping and processing of foreign exchange transactions The fees and spreads for services of the Custodian directy reated to the execution of portfoio transactions by the Fund 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 Fund during that month A other fees and spreads for the services of the Custodian are paid by the Manager and charged to the Fund 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 Fund, incuding securities ending, fund accounting and reporting, and portfoio vauation Such servicing fees are paid by the Manager and charged to the Fund on a recoverabe basis CIBC indirecty owns a 50% interest in CIBC GSS 3

4 Renaissance Internationa Dividend Fund Financia Highights The foowing tabes show seected key financia information about the Fund and are intended to hep you understand the Fund s financia performance for the period ended February 28, 2018 and August 31 of any other period(s) shown The Fund's Net Assets per Unit¹ - Cass A Units Net Assets, beginning of period $ 1408 $ 1290 $ 1325 $ 1244 $ 1019 $ 821 Increase (decrease) from operations: Tota revenue $ 020 $ 055 $ 052 $ 058 $ 062 $ 041 Tota expenses (017) (041) (037) (039) (036) (022) Reaized gains (osses) for the period (044) Unreaized gains (osses) for the period 025 (002) (014) (065) Tota increase (decrease) from operations 2 $ 082 $ 120 $ (043) $ 080 $ 204 $ 201 Distributions: From income (excuding dividends) $ $ $ $ $ $ From dividends From capita gains Return of capita Tota Distributions 3 $ $ $ $ $ $ Net Assets, end of period $ 1490 $ 1408 $ 1290 $ 1325 $ 1244 $ This information is derived from the Fund's audited annua and unaudited interim financia statements The Fund adopted IFRS on September 1, 2014 Previousy, the Fund 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 Fund 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 differs 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 prior to September 1, 2014 Upon adoption of IFRS, the Fund 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 Fund'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 Fund, or both Ratios and Suppementa Data - Cass A Units Tota Net Asset Vaue (000s) 4 $ 8,452 $ 8,272 $ 9,090 $ 10,495 $ 11,291 $ 7,001 Number of Units Outstanding 4 567, , , , , ,999 Management Expense Ratio 5 210%* 241% 241% 240% 241% 239% Management Expense Ratio before waivers or absorptions 6 376%* 426% 417% 400% 426% 479% Trading Expense Ratio 7 014%* 014% 014% 013% 016% 013% Portfoio Turnover Rate % 7393% 8251% 7460% 5545% 5881% Net Asset Vaue per Unit $ 1490 $ 1408 $ 1290 $ 1325 $ 1244 $ 1019 * Ratio has been annuaized 4 This information is presented as at February 28, 2018 and 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 investments A 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 4

5 Renaissance Internationa Dividend Fund The Fund's Net Assets per Unit¹ - Cass F Units a Net Assets, beginning of period $ 1724 $ 1561 $ 1586 $ 1474 $ 1194 $ 1151 b Increase (decrease) from operations: Tota revenue $ 024 $ 070 $ 062 $ 070 $ 085 $ 028 Tota expenses (012) (032) (028) (030) (029) (007) Reaized gains (osses) for the period (050) Unreaized gains (osses) for the period 052 (011) (002) (054) Tota increase (decrease) from operations 2 $ 132 $ 162 $ (018) $ 142 $ 243 $ 083 Distributions: From income (excuding dividends) $ $ $ $ $ $ From dividends From capita gains Return of capita Tota Distributions 3 $ $ $ $ $ $ Net Assets, end of period $ 1833 $ 1724 $ 1561 $ 1586 $ 1474 $ 1194 a Information presented is for the period from Apri 11, 2013 to August 31, 2013 b Represents the price on the first day in the period in which the cass became active 1 This information is derived from the Fund's audited annua and unaudited interim financia statements The Fund adopted IFRS on September 1, 2014 Previousy, the Fund 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 Fund 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 differs 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 prior to September 1, 2014 Upon adoption of IFRS, the Fund 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 Fund'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 Fund, or both Ratios and Suppementa Data - Cass F Units a Tota Net Asset Vaue (000s) 4 $ 301 $ 249 $ 154 $ 157 $ 201 $ 21 Number of Units Outstanding 4 16,441 14,420 9,894 9,907 13,658 1,781 Management Expense Ratio 5 109%* 130% 131% 131% 130% 130%* Management Expense Ratio before waivers or absorptions 6 251%* 279% 267% 255% 264% 180%* Trading Expense Ratio 7 014%* 014% 014% 013% 016% 013% Portfoio Turnover Rate % 7393% 8251% 7460% 5545% 5831% Net Asset Vaue per Unit $ 1833 $ 1724 $ 1561 $ 1586 $ 1474 $ 1194 a Information presented is for the period from Apri 11, 2013 to August 31, 2013 * Ratio has been annuaized 4 This information is presented as at February 28, 2018 and 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 investments A 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 Renaissance Internationa Dividend Fund The Fund's Net Assets per Unit¹ - Cass O Units a Net Assets, beginning of period $ 1125 $ 1000 $ 997 b Increase (decrease) from operations: Tota revenue $ 011 $ 042 $ 030 Tota expenses (001) (006) (004) Reaized gains (osses) for the period (034) Unreaized gains (osses) for the period Tota increase (decrease) from operations 2 $ 069 $ 125 $ Distributions: From income (excuding dividends) $ $ $ From dividends From capita gains Return of capita Tota Distributions 3 $ $ $ Net Assets, end of period $ 1194 $ 1125 $ 1000 a Information presented is for the period from October 30, 2015 to August 31, 2016 b Initia offering price 1 This information is derived from the Fund's audited annua and unaudited interim financia statements 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 Fund, or both Ratios and Suppementa Data - Cass O Units a Tota Net Asset Vaue (000s) 4 $ $ $ Number of Units Outstanding Management Expense Ratio 5 000%* 000% 000%* Management Expense Ratio before waivers or absorptions 6 000%* 000% 000%* Trading Expense Ratio 7 014%* 014% 014% Portfoio Turnover Rate % 7393% 8251% Net Asset Vaue per Unit $ 1194 $ 1125 $ 1000 a Information presented is for the period from October 30, 2015 to August 31, 2016 * Ratio has been annuaized 4 This information is presented as at February 28, 2018 and 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 investments A 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 Renaissance Internationa Dividend Fund Management Fees The Fund pays CAMI an annua management fee to cover the costs of managing the Fund Management fees are based on the Fund's net asset vaue 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 are paid by CAMI out of the management fees received from the Fund The Fund is required to pay appicabe taxes on the management fees paid to CAMI Refer to the simpified prospectus for the annua management fee rate for each cass of units 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 A 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 Fund for the period ended February 28, 2018 These amounts do not incude waived fees or absorbed expenses Cass A Units Cass F Units Saes and traiing commissions paid to deaers 000% 000% Genera administration, investment advice, and profit 10000% 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 Fund 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 Fund for each of the periods shown, and iustrate how the performance has changed from period to period These bar charts show, in percentage terms, how an investment made on September 1 woud have increased or decreased by August 31, uness otherwise indicated Cass A Units 40% 20% 0% -20% -133% -174% -66% -16% 00% 241% 221% 65% -27% 92% 58% -40% a a 2018 return is for the period from September 1, 2017 to February 28,

8 Renaissance Internationa Dividend Fund Cass F Units 40% 20% 0% 37% 234% 77% -16% 104% 63% -20% -40% 13 a b a 2013 return is for the period from Apri 11, 2013 to August 31, 2013 b 2018 return is for the period from September 1, 2017 to February 28, 2018 Cass O Units 20% 15% 125% 10% 5% 0% 03% 61% 16 a b a 2016 return is for the period from October 30, 2015 to August 31, 2016 b 2018 return is for the period from September 1, 2017 to February 28,

9 x x Renaissance Internationa Dividend Fund Summary of Investment Portfoio (as at February 28, 2018) 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 % of Net Asset Portfoio Breakdown Vaue Japan 241 United Kingdom 182 Austraia 99 France 82 Switzerand 74 Germany 71 Netherands 70 Other Equities 65 Spain 48 Finand 27 Sweden 26 Cash 15 % of Net Asset Top Positions Vaue Roya Dutch She PLC, Cass 'B' 33 Roche Hoding AG Genusscheine 27 HSBC Hodings PLC 26 Rio Tinto PLC 25 Siemens AG, Registered 24 Assicurazioni Generai SPA 22 Daimer AG, Registered 22 Novartis AG 21 Nesté SA, Registered 20 Repso SA 18 Nordea Bank AB 18 UPM-Kymmene Corp OYJ 16 Imperia Brands PLC 15 Cash 15 Sumitomo Mitsui Financia Group Inc 15 Natixis SA 15 Uniever PLC 14 Atos SE 13 ProSiebenSat1 Media SE 13 BNP Paribas SA 13 Commonweath Bank of Austraia 13 BAE Systems PLC 13 Danone 12 Marks & Spencer Group PLC 12 Bridgestone Corp 12 9

10 A note on forward-ooking statements 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 Forward-ooking statements are not guarantees of future performance 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 The above ist of important factors that may affect future resuts is not exhaustive Before making any investment decisions, we encourage you to consider these and other factors carefuy 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

11 Renaissance Investments 1500 Robert-Bourassa Bouevard, Suite 800 Montrea, Quebec H3A 3S FUND (3863) Website renaissanceinvestmentsca CIBC Asset Management Inc, the manager and trustee of the Renaissance Investments famiy of funds, is a whoy-owned subsidiary of Canadian Imperia Bank of Commerce Pease read the Renaissance Investments famiy of funds and Axiom Portfoios simpified prospectus before investing To obtain a copy of the simpified prospectus, ca FUND (3863), emai us at info@renaissanceinvestmentsca, or ask your advisor Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc 02407E (201802)