International Equity Value Corporate Class

Transcription

1 This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling , by writing to us at United Financial, 2 Queen Street East, Twentieth Floor, Toronto, ON, M5C 3G7 or by visiting our website at or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure. INVESTMENT OBJECTIVE AND STRATEGIES The primary investment objective of the (the Fund ) is to provide long-term capital appreciation primarily through investment in a diversified portfolio of equity and equity-related securities of international issuers which are believed to be undervalued relative to their perceived growth potential. Equity-related securities include convertible preferred shares, convertible debt obligations and warrants. The Fund also may invest in other mutual funds. The portfolio advisor will not invest in Canadian or U.S. issuers. Using both value-based and price-driven approaches, the portfolio advisor allocates the Fund s investments between regions based on an ongoing analysis of trends in international markets. When the portfolio advisor deems such investments appropriate, the assets of the Fund may be invested in short-term fixed income securities or cash equivalents. The Fund may use derivatives, but only as permitted by securities regulations. The Fund may also enter into securities-lending transactions, repurchase transactions and reverse repurchase transactions, to the extent permitted by securities regulations, to earn additional income. RISK There were no changes to the Fund over the period of this report that materially affected the overall level of risk associated with the Fund. This Fund is suitable for investors who can tolerate medium risk, want an investment that is focused on generating capital growth, and are planning to hold their investment for the medium and/or long term. RESULTS OF OPERATIONS The net asset value of the Fund increased by $63.1 million to $496.3 million from March 31, 17 to March 31, 18. The Fund had net sales of $33.2 million during. The portfolio s performance increased assets by $5.6 million. The Fund paid distributions totalling $.7 million. Class A shares returned 8.5% after fees and expenses for the one-year period ended March 31, 18. Over the same time period, the Fund s benchmark returned 11.7%. The benchmark is the MSCI EAFE Return Index. The performance of the Fund s other classes is substantially similar to that of Class A shares, except for differences in the structure of fees and expenses. For the returns of the Fund s other classes, please refer to the Past performance section. Holdings in financials, telecommunications and information technology outperformed, while consumer discretionary, energy and health care weighed on relative performance. In financials, AXA, a French insurer, plans to acquire XL Group for a 33% premium at the time of the offer, given its attractive insurance franchise, particularly in the U.S. In telecommunications, TDC accepted an offer from a group of Danish pension funds to buy it for a 26% premium at the time of the offer. In technology, Nintendo Co. Ltd. outperformed for the quarter driven by continued momentum for its Switch console. We think that the market continues to underappreciate the operating leverage in Nintendo s business model. In the consumer discretionary sector, Grupo Televisa SAB continues to recover from selfimposed issues in its Mexican advertising business, which should improve as the new pricing strategy takes effect. Energy holding Schlumberger Ltd., a global oilfield services company, has been pressured by concerns that a recovery in demand for international oilfield services (69% of revenue) will be weak even in a higher oil price environment. In health care, Sanofi upset investors by allocating capital to an acquisition (Bioverativ Inc.) that the market believes has a limited lifespan (i.e., hemophilia). However, we believe the business may have more resilience than expected. Positions sold during the period: Kasikornbank a major banking group in Thailand China Mengniu Dairy Co., Ltd. involved in the manufacture and distribution of dairy products in China Suzuki Motor Corp. a multinational automaker based in Japan Scor SE one of the world s largest reinsurers ING Group a Dutch multinational banking and financial services corporation Experian PLC a consumer credit agency KB Financial Group Inc. a leading banking franchise in South Korea Sandvik AB based in Sweden, provides tools and services to the metal cutting industry SAP SE a multinational company that makes enterprise software to manage business operations and customer relations Glencore PLC a multinational commodity trading and mining company Philip Morris International Inc. a multinational tobacco company The portfolio underperformed the MSCI EAFE Return Index for the 12 months ending March 31, 18. The fear that persisted in the aftermath of the Global Financial Crisis (GFC) has been replaced by complacency and growing excesses in many markets throughout 17 and continuing into early 18. Aggressive and largely synchronized unconventional monetary policies among the world s major central banks have been the primary fuel powering the rise in asset prices post the GFC; however, beginning in February, markets experienced an arguably long-overdue bout of volatility as investors began to focus more on the risk side of the risk/return relationship. New positions added during the period: Ambev SA Brazil s foremost brewer Scor SE one of the world s largest reinsurers Cielo SA a leading electronic payment processor in Brazil Euronext NV operates derivatives and equity exchanges in France and the Netherlands Yahoo Japan Corp. the leading internet media franchise in Japan Swiss Re Ltd. a Swiss-based reinsurance company Shire PLC a biopharmaceutical company that focuses on innovative medicines for rare diseases CIG

2 Trivago NV a leading hotel meta-search company Babcock International Group PLC a U.K.-based engineering services company that serves defense and civil clients BT Group PLC a leading communications company, serving the phone, broadband, TV, and mobile needs of the U.K. and customers in 17 countries RECENT DEVELOPMENTS Reflecting our value discipline, the portfolio s underlying exposures and risks have evolved, and we believe they are appropriate, considering the opportunities available in equity markets and their associated risks. Although it is possible that the prevailing complacency, narrow market leadership, and stretched valuations persist, we believe the risk associated with such an environment is asymmetric and heavily skewed to the downside. We believe the embedded value and distinctive investment theses underlying our investments are timely, sensible, and well suited to deliver superior risk-adjusted returns in what we believe will be an increasingly challenging environment. Effective April 3, 18, Karen Fisher became a member of the CI Board of Governors ( BOG ) and the Independent Review Committee ( IRC ) of the Fund. Meanwhile, Christopher Hopper resigned from the role as a member of the BOG and IRC. RELATED PARTY TRANSACTIONS Manager, Portfolio Advisor and Registrar CI Investments Inc. is the Manager, Portfolio Advisor and Registrar of the Fund. CI Investments Inc. is a subsidiary of CI Financial Corp. The Manager, in consideration for management fees, provided management services required in the day-to-day operations of the Fund. The Manager bears all of the operating expenses of the Fund (other than taxes, borrowing costs and new governmental fees) in return for a fixed administration fee. fee and fixed administration fee rates as at March 31, 18, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) A Shares E Shares E3 Shares E4 Shares E5 Shares ET8 Shares E3T8 Shares E4T8 Shares E5T8 Shares F Shares.9.22 F3 Shares F4 Shares.8.15 F5 Shares.77. Annual management fee rate (%) Annual fixed administration fee rate (%) FT8 Shares.9.22 F3T8 Shares F4T8 Shares.8.15 F5T8 Shares.77. I Shares Paid directly by investor - IT8 Shares Paid directly by investor - OF Shares W Shares Paid directly by investor.22 WT8 Shares Paid directly by investor.22 The Manager received $.5 million in management fees and $.7 million in fixed administration fees for. Fees Approximately 24% of total management fees were used to pay for sales and trailing commissions and other services required. The remaining 76% of management fees were used to pay for investment management and other general administration. Principal Distributor The Manager has the exclusive right to arrange for the distribution of shares of the Fund. Pursuant to a series of agreements, the right to distribute such shares has been granted, on a collective basis, to the following dealers, each of which is an affiliate of the Manager. Assante Capital Ltd. Assante Financial Ltd. Independent Review Committee The Fund received standing instructions from the Fund s Independent Review Committee with respect to the following related party transactions: a) trades in securities of CI Financial Corp.; b) purchases or sales of securities of an issuer from or to another investment fund managed by the Manager; c) purchases or sales of other investment funds managed by the Manager or their affiliates; and d) mergers involving the Fund and another fund managed by the Manager that is subject to National Instrument Investment Funds. The applicable standing instructions require that related party transactions be conducted in accordance with the Manager s policies and procedures and that the Manager advise the IRC of any material breach of a condition of the standing instructions. The standing instructions require, among other things, that investment decisions in respect of related party transactions (a) are free from any influence by an entity related to the Manager and without taking into account any consideration relevant to an entity related to the Manager; (b) represent the business judgment of the Manager uninfluenced by considerations other

3 than the best interests of the Fund; (c) are made in compliance with the Manager s policies and procedures; and (d) achieve a fair and reasonable result for the Fund. Transactions made by the Manager under the standing instructions are subsequently reviewed by the IRC on a quarterly basis to monitor compliance. The Fund relied on the IRC s standing instructions regarding related party transactions during this reporting year. 3

4 FINANCIAL HIGHLIGHTS The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the past five years, as applicable. Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ A Shares Commencement of operations October 22, 7 Mar. 31, (.31) (.5) (.31) - (.36) 9.51 Mar. 31, (.28) (.5) (.42) - (.47) 9. Mar. 31, (.28).89 (1.37) (.54) - (.4) (.37) - (.41) 8.15 Mar. 31, (.26) (.4) (.22) - (.26) 9.16 Mar. 31, (.23) (.6) - - (.6) 8.28 E Shares Commencement of operations September 12, 8 Mar. 31, (.35) (.7) (.42) - (.49) Mar. 31, (.) (.7) (.57) - (.64) Mar. 31, (.29) 1.17 (1.86) (.69) - (.6) (.51) - (.57) 11.9 Mar. 31, (.27) (.5) (.) - (.35) Mar. 31, (.24) (.8) - - (.8) E3 Shares Mar. 31, (.25).88 (.49).35 - (.5) (.33) - (.38).13 E4 Shares Mar. 31, 18.. (.23).86 (.55).28 - (.5) (.33) - (.38).15 E5 Shares Mar. 31, (.23).89 (.46).44 - (.5) (.33) - (.38).15 ET8 Shares Commencement of operations June 22, 11 Mar. 31, (.27) (.5) (.31) (.8) (1.16) 9.67 Mar. 31, (.25) (.6) (.46) (.88) (1.) 9.96 Mar. 31, (.26).8 (1.85) (1.5) - (.5) (.44) (.87) (1.36) 9.68 Mar. 31, (.27) (.5) (.28) (.9) (1.23) Mar. 31, (.27) (.9) - (.8) (.89) *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights. 4

5 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ E3T8 Shares Mar. 31, 18.. (.24).83 (.61).18 - (.5) (.) (.73) (1.8) 9.41 E4T8 Shares Mar. 31, (.23).81 (.23).56 - (.5) (.) (.73) (1.8) 9.42 E5T8 Shares Mar. 31, (.22).82 (.29).52 - (.5) (.) (.73) (1.8) 9.43 F Shares Mar. 31, (.15).86 (.13).79 - (.6) (.33) - (.39).23 F3 Shares Mar. 31, (.15).88 (.3).92 - (.6) (.33) - (.39).24 F4 Shares Mar. 31, (.14).93 (.7).97 - (.6) (.33) - (.39).25 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights. 5

6 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ F5 Shares Mar. 31, (.12).86 (.31).65 - (.6) (.33) - (.39).26 FT8 Shares Mar. 31, (.14).87 (.34).62 - (.5) (.31) (.73) (1.9) 9.51 F3T8 Shares Mar. 31, (.14).83 (.34).57 - (.5) (.31) (.73) (1.9) 9.51 F4T8 Shares Mar. 31, (.13).83 (.).61 - (.5) (.31) (.73) (1.9) 9.52 F5T8 Shares Mar. 31, (.12).83 (.).62 - (.5) (.31) (.73) (1.9) 9.53 I Shares Commencement of operations September 8, 8 Mar. 31, (.5) (.9) (.53) - (.62) Mar. 31, (.2) (.9) (.7) - (.79) Mar. 31, (2.23) (.57) - (.7) (.6) - (.67) Mar. 31, (.6) (.34) - (.) Mar. 31, (.) - - (.) *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights. 6

7 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Share ($) (1) (2) (4) Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ IT8 Shares Commencement of operations December 22, 11 Mar. 31, (.4) (.6) (.39) (.97) (1.42) 12.1 Mar. 31, (.2) (.7) (.55) (1.4) (1.66) 12.6 Mar. 31, (2.3) (.72) - (.6) (.52) (1.) (1.58) Mar. 31, (.5) (.) (1.) (1.35) Mar. 31, (.) - (.87) (.97) OF Shares Commencement of operations May 22, 8 Mar. 31, (.26) 1.7 (.25).81 - (.6) (.38) - (.44) Mar. 31, (.22) (.6) (.51) - (.57) 11.4 Mar. 31, (.21).83 (1.89) (1.) - (.5) (.45) - (.5) 9.78 Mar. 31, (.19) (.4) (.26) - (.).87 Mar. 31, (.17) (.7) - - (.7) 9.72 W Shares Commencement of operations October 22, 7 Mar. 31, (.7) (.7) (.41) - (.48) Mar. 31, (.4) (.7) (.54) - (.61) Mar. 31, (.3) 1.6 (1.69) (.39) - (.6) (.47) - (.53).25 Mar. 31, (.2) (.5) (.27) - (.32) Mar. 31, (.2) (.7) - - (.7) 9.85 WT8 Shares Commencement of operations June 22, 11 Mar. 31, (.6) (.6) (.33) (.84) (1.23).39 Mar. 31, (.4) (.6) (.48) (.9) (1.44).46 Mar. 31, (.3) 1.9 (1.74) (.41) - (.5) (.45) (.87) (1.37) 9.94 Mar. 31, (.3) (.5) (.28) (.88) (1.21) Mar. 31, (.3) (.9) - (.77) (.86) (1) This information is derived from the Fund s audited annual financial statements. (2) Net assets per share and per share are based on the actual number of shares outstanding for the relevant class at the relevant time. The increase (decrease) in net assets from operations per share is based on the weighted average number of shares outstanding for the relevant class over the fiscal year. (3) Dividends are automatically reinvested in additional shares of the Fund. (4) This information is provided for s ended March 31. 7

8 FINANCIAL HIGHLIGHTS (cont d) Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) after taxes (2) Effective HST rate for the year (2) Harmonized Trading Portfolio sales tax (2) (3) turnover rate (4) $ s s % % % % % % A Shares Commencement of operations October 22, 7 Mar. 31, Mar. 31, Mar. 31, Mar. 31, 15 1, Mar. 31, 14 1, E Shares Commencement of operations September 12, 8 Mar. 31, 18 17,8 1, Mar. 31, 17 24,319 1, Mar. 31, 16 18,297 1, Mar. 31, 15 22,5 1, Mar. 31, 14 18,893 1, E3 Shares Mar. 31, 18 5, E4 Shares Mar. 31, E5 Shares Mar. 31, ET8 Shares Commencement of operations June 22, 11 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section. 8

9 FINANCIAL HIGHLIGHTS (cont d) Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % E3T8 Shares Mar. 31, E4T8 Shares Mar. 31, E5T8 Shares Mar. 31, F Shares Mar. 31, 18 1, F3 Shares Mar. 31, 18 1, F4 Shares Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section. 9

10 FINANCIAL HIGHLIGHTS (cont d) Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % F5 Shares Mar. 31, FT8 Shares Mar. 31, F3T8 Shares Mar. 31, F4T8 Shares Mar. 31, F5T8 Shares Mar. 31, I Shares Commencement of operations September 8, 8 Mar. 31, ,33, Mar. 31, ,7 9, Mar. 31, 16 87,119 6, Mar. 31, 15 82,41 5, Mar. 31, 14 52,442 4, *Footnotes for the tables are found at the end of the Financial Highlights section.

11 FINANCIAL HIGHLIGHTS (cont d) Ratios and Supplemental Data (1) (5) net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % IT8 Shares Commencement of operations December 22, 11 Mar. 31, 18 3, Mar. 31, 17 2, Mar. 31, 16 1, Mar. 31, Mar. 31, OF Shares Commencement of operations May 22, 8 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, W Shares Commencement of operations October 22, 7 Mar. 31, ,519, Mar. 31, ,877 19, Mar. 31, , 17, Mar. 31, ,74 18, Mar. 31, ,85 17, WT8 Shares Commencement of operations June 22, 11 Mar. 31, 18 29,899 2, Mar. 31, 17 29,113 2, Mar. 31, 16 24,68 2, Mar. 31, 15 24,833 2, Mar. 31, 14 17,351 1, (1) This information is derived from the Fund s audited annual financial statements. (2) is calculated based on expenses charged to the Fund commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net assets for, including the Fund s proportionate share of any underlying fund(s) expenses, if applicable. The Effective HST tax rate is calculated using the attribution percentage for each province based on shareholder residency and can be different from 13%. (3) The trading represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net assets during, including the Fund s proportionate share of such expenses of any underlying fund(s), if applicable. (4) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of % is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the fiscal year. The higher a Fund s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in, and the greater the chance of an investor receiving taxable capital in. There is not necessarily a relationship between a higher turnover rate and the performance of a Fund. Portfolio turnover rate is calculated by dividing the lesser of the cost of purchases and the proceeds of sales of portfolio securities for, and excluding cash and short-term investments maturing in less than one year, and before assets acquired from a merger, if applicable, by the average of the monthly fair value of investments during. (5) This information is provided for s ended March

12 PAST PERFORMANCE This section describes how the Fund has performed in the past. Remember, past returns do not indicate how the Fund will perform in the future. The information shown assumes that made by the Fund in s shown were reinvested in additional shares of the relevant classes of the Fund. In addition, the information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. Year-by-Year Returns The following charts show the Fund s annual performance for each of s shown and illustrate how the Fund s performance has changed from year to year. In percentage terms, the charts show how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year, except where noted. A Shares E Shares ET8 Shares I Shares Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 IT8 Shares OF Shares W Shares WT8 Shares Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar return is for the period from September 12, 8 to March 31, return is for the period from June 22, 11 to March 31, return is for the period from September 8, 8 to March 31, return is for the period from December 22, 11 to March 31, return is for the period from May 22, 8 to March 31, 9.

13 Annual Compound Returns The following table shows the Fund s annual compound returns for each year indicated, compared to the MSCI EAFE Return Index. The MSCI EAFE Return Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States of America and Canada. The Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. A discussion of the performance of the Fund as compared to the benchmark is found in the Results of Operations section of this report. One Year (%) Three Years (%) Five Years (%) Ten Years (%) Since Inception (%) A Shares n/a MSCI EAFE Return Index n/a E Shares n/a 4.7 MSCI EAFE Return Index n/a 8.3 ET8 Shares n/a. MSCI EAFE Return Index n/a.3 I Shares n/a 7.3 MSCI EAFE Return Index n/a 8.3 IT8 Shares n/a 13.2 MSCI EAFE Return Index n/a.3 OF Shares n/a 3.4 MSCI EAFE Return Index n/a 5.3 W Shares n/a MSCI EAFE Return Index n/a WT8 Shares n/a 11.6 MSCI EAFE Return Index n/a.3 13

14 SUMMARY OF INVESTMENT PORTFOLIO as at March 31, 18 Category % of Net Assets Category % of Net Assets Top 25 Holdings % of Net Assets Country allocation Japan U.K Switzerland Germany Netherlands France Ireland Cash & Equivalents Jersey Island Denmark Bermuda Brazil Hong Kong Netherlands Antilles Israel Cayman Islands Sweden....9 India....9 Luxembourg....8 Other Net Assets (Liabilities)....7 Thailand....6 South Korea....5 Mexico....5 Russia....3 Sector allocation Financials....5 Health Care Information Technology....8 Consumer Staples....8 Telecommunication Services Materials Energy Cash & Equivalents Consumer Discretionary Industrials Other Net Assets (Liabilities)....7 Utilities....6 Cash & Equivalents GlaxoSmithKline PLC Chubb Ltd Astellas Pharma Inc TDC AS Linde AG Aon PLC Vodafone Group PLC, ADR Heineken N.V Tokio Marine Holdings Inc Sumitomo Mitsui Trust Holdings Inc Yahoo! Japan Corp Zurich Financial Services AG Henkel AG & Co., KGaA, Preferred, Non-Voting Shares Mitsubishi UFJ Financial Group Inc Willis Towers Watson PLC XL Group Ltd Roche Holding AG Medtronic PLC Sanofi Shire PLC Diageo PLC MS&AD Insurance Group Holdings Inc Nestle S.A., Registered Shares Akzo Nobel N.V Net Assets (in $ s) $496,326 The summary of investment portfolio may change due to ongoing portfolio transactions of the Fund and updates will be available on a quarterly basis. A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, its future performance, strategies or prospects, and possible future Fund action. The words may, could, should, would, suspect, outlook, believe, plan, anticipate, estimate, expect, intend, forecast, objective, and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties, both about the Fund and general economic factors, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement made by the Fund. These factors include, but are not limited to, general economic, political and market factors in Canada, the United States and internationally, interest and foreign exchanges rates, global equity and capital markets, business competition, technological changes, changes in laws and regulations, judicial or regulatory judgments, legal proceedings and catastrophic events. The above list of important factors that may affect future results is not exhaustive. Before making any investment decisions, we encourage you to consider these and other factors carefully. All opinions contained in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility. 14