National Bank Equity Managed Portfolio Fund Facts Documents

Transcription

1 National Bank Equity Managed Portfolio Fund Facts Documents Here are the Fund Facts Documents for the investments you made in your National Bank Managed Portfolio, which will be allocated to the Funds that make up the Managed Portfolio you selected based on your investor profile. Equity Managed Portfolio Allocation of the Funds Min Target Max Cash and Short Term 0% 0% 10% Fixed Income 0% 0% 10% Canadian and Global Equities 90% 100% 100% Fund Facts Documents NBI Canadian All Cap Equity Fund NBI Canadian Equity Growth Fund NBI Small Cap Fund NBI Global Equity Fund NBI SmartData U.S. Equity Fund NBI SmartData International Equity Fund NBI Diversified Emerging Markets Equity Fund NBI Canadian Index Fund NBI U.S. Currency Neutral Index Fund NBI International Currency Neutral Index Fund

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3 FUND FACTS May 14, 2018 NBI Canadian All Cap Equity Fund This document contains key information you should know about the NBI Canadian All Cap Equity Fund. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: NBC885 Date series started: October 15, 2001 Total value of fund on March 31, 2018: $768.2 million Management expense ratio (MER): 2.50% Fund manager: Portfolio manager: Distribution: Minimum investment: National Bank Investments Inc. ("NBI") CI Investments Inc. Net income and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). $500 (initial), $50 (additional), $25 (systematic) What does the fund invest in? The fund's investment objective is to ensure long-term capital growth. The fund invests directly, or through investments in securities of other mutual funds, in a portfolio comprised mainly of equity securities of Canadian companies. It is expected that investments in foreign securities will not exceed approximately 30% of the fund s assets. The charts below give you a snapshot of the fund s investments on March 31, The fund s investments will change over time. Top 10 Investments (as at March 31, 2018) 1. Cash, Money Market and Other Net Assets 11.3% 2. Tourmaline Oil Corp. 5.0% 3. TFI International Inc. 4.7% 4. Keyera Corp. 4.4% 5. Symantec Corp. 3.9% 6. Middleby Corp. 3.8% 7. George Weston Ltd. 3.2% 8. CCL Industries Inc., Class B 3.0% 9. Auto Trader Group PLC 2.9% 10. Boyd Group Income Fund 2.8% Total percentage of top 10 investments: 45.0 % Total number of investments: 40 Investment Mix (as at March 31, 2018) Asset Allocation Canadian Equity 58.7% US Equity 18.5% International Equity 11.5% Cash, Money Market and Other Net Assets 11.3% Sector Allocation Industrials 18.9% Energy 13.7% Cash, Money Market and Other Net Assets 11.3% Consumer Staples 11.2% Financials 10.7% Materials 9.9% Consumer Discretionary 9.7% Information Technology 9.4% Real Estate 2.0% Utilities 2.0% Health Care 1.2% How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Risk rating NBI has rated the volatility of this fund as medium. This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. Page 1 of 3

4 NBI Canadian All Cap Equity Fund How has the fund performed? This section tells you how securities of the fund have performed over the past 10 years. Returns are after expenses have been deducted. These expenses reduce the funds' returns. Year-by-year returns This chart shows how securities of the fund performed in each of the past 10 years. The fund dropped in value in 2 of the 10 years. The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future. 50 % 40 % 30 % 20 % 10 % 0 % -10 % -20 % -30 % -40 % -50 % 35.6% 23.3% 23.2% 18.1% 10.9% 11.1% 0.1% 2.2% -4.9% -34.5% Best and worst 3-month returns This table shows the best and worst returns for securities of the fund in a 3-month period over the past 10 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best Return 27.1% May 31, 2009 Your investment would rise to $1,271. Worst return -32.8% November 30, 2008 Your investment would drop to $672. Average return The annual compounded return of securities of the fund was 6.91% over the past 10 years. If you had invested $1,000 in this series 10 years ago, your investment would now be worth $1,951. Who is this fund for? Investors who: are looking to invest for the long term (at least five years); wish to add a Canadian equity fund to their portfolio. Don't buy this fund if you need a steady source of income from your investment. A word about tax In general, you ll have to pay income tax on any money you make on a fund. How much you pay depends on the tax laws where you live and whether or not you hold the fund in a registered plan, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). Keep in mind that if you hold your fund in a non-registered account, fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell units of the fund. The fees and expenses including any commissions can vary among series of the fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales Charges There are no charges when you purchase your securities through NBI or National Bank Direct Brokerage (a division of National Bank Financial Inc.). Other representative's firm may charge you a fee. 2. Fund expenses You don t pay these expenses directly. They affect you because they reduce the fund's returns. As of December 31, 2017, the fund's expenses were 2.60% of its value. This equals $26.03 for every $1,000 invested. Page 2 of 3

5 NBI Canadian All Cap Equity Fund How much does it cost? (cont d) Annual rate (as a % of the fund s value) Management expense ratio (MER) This is the total of the fund s management fee (including the trailing commission) and operating expenses (including fixed rate administration fee). NBI waived some of the fund's expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the fund's trading costs. 2.50% 0.10% Fund Expenses 2.60% More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and/or advice that your representative and their firm provide to you. NBI pays the trailing commission to your representative s firm. It is paid from the fund s management fee and is based on the value of your investment. The rate for this series of the fund is up to 1.00% of the value of your investment each year. This equals $10.00 each year for every $1,000 invested. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or convert securities of the fund. Fee Short-term trading fee What you pay 2% of the value of the securities you redeem or switch within 30 days of purchase may be charged by NBI. This fee goes to the fund. Other fees Registered Account termination fee, only if the registered investment account is with NBI. $100 What if I change my mind? Under the securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual fund securities within two business days after you receive a simplified prospectus or Fund Facts document; or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact NBI or your representative for a copy of the fund s simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund s legal documents. National Bank Investments Inc Robert-Bourassa Blvd. 10 th floor Montreal, Quebec H3B 2G7 Phone: Toll-free: investments@nbc.ca To learn more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at Page 3 of 3

6 FUND FACTS May 14, 2018 NBI Canadian Equity Growth Fund This document contains key information you should know about the NBI Canadian Equity Growth Fund. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: NBC887 Date series started: September 30, 1987 Total value of fund on March 31, 2018: $895.6 million Management expense ratio (MER): 2.47% Fund manager: Portfolio manager: Distribution: Minimum investment: National Bank Investments Inc. ("NBI") Mackenzie Financial Corporation Net income and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). $500 (initial), $50 (additional), $25 (systematic) What does the fund invest in? The fund aims to provide investors with superior investment returns over the long term, having regard for the safety of capital. The fund invests in a diversified portfolio of primarily Canadian equities. It is expected that investments in foreign securities will not exceed approximately 49% of the fund's net assets. The charts below give you a snapshot of the fund s investments on March 31, The fund s investments will change over time. Top 10 Investments (as at March 31, 2018) 1. Royal Bank of Canada 5.2% 2. TELUS Corp. 4.9% 3. CCL Industries Inc., Class B 4.9% 4. Metro Inc. 4.4% 5. CAE Inc. 4.3% 6. Aon PLC 4.2% 7. Heineken NV 4.2% 8. Accenture PLC, Class A 4.1% 9. Stryker Corp. 4.0% 10. Booking Holdings Inc. 3.8% Total percentage of top 10 investments: 44.0 % Total number of investments: 36 Investment Mix (as at March 31, 2018) Sector Allocation Financials 18.0% Health Care 13.6% Information Technology 12.7% Industrials 12.4% Consumer Staples 11.2% Consumer Discretionary 10.6% Materials 8.3% Energy 5.8% Telecommunication Services 4.9% Cash, Money Market and Other Net Assets 2.5% How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Risk rating NBI has rated the volatility of this fund as medium. This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. Page 1 of 3

7 NBI Canadian Equity Growth Fund How has the fund performed? This section tells you how securities of the fund have performed over the past 10 years. Returns are after expenses have been deducted. These expenses reduce the funds' returns. Year-by-year returns This chart shows how securities of the fund performed in each of the past 10 years. The fund dropped in value in 4 of the 10 years. The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future. 50 % 40 % 30 % 20 % 10 % 0 % -10 % -20 % -30 % -40 % -50 % 36.2% 14.9% 14.4% 15.0% 11.5% 2.1% -1.7% -5.5% -15.8% -34.6% Best and worst 3-month returns This table shows the best and worst returns for securities of the fund in a 3-month period over the past 10 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best Return 27.3% May 31, 2009 Your investment would rise to $1,273. Worst return -32.6% November 30, 2008 Your investment would drop to $674. Average return The annual compounded return of securities of the fund was 2.34% over the past 10 years. If you had invested $1,000 in this series 10 years ago, your investment would now be worth $1,261. Who is this fund for? Investors who: are looking to invest for the long term (at least five years); wish to add a growth component to their portfolio. Don't buy this fund if you need a steady source of income from your investment. A word about tax In general, you ll have to pay income tax on any money you make on a fund. How much you pay depends on the tax laws where you live and whether or not you hold the fund in a registered plan, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). Keep in mind that if you hold your fund in a non-registered account, fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell units of the fund. The fees and expenses including any commissions can vary among series of the fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales Charges There are no charges when you purchase your securities through NBI or National Bank Direct Brokerage (a division of National Bank Financial Inc.). Other representative's firm may charge you a fee. 2. Fund expenses You don t pay these expenses directly. They affect you because they reduce the fund's returns. As of December 31, 2017, the fund's expenses were 2.62% of its value. This equals $26.22 for every $1,000 invested. Page 2 of 3

8 NBI Canadian Equity Growth Fund How much does it cost? (cont d) Annual rate (as a % of the fund s value) Management expense ratio (MER) This is the total of the fund s management fee (including the trailing commission) and operating expenses (including fixed rate administration fee). NBI waived some of the fund's expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the fund's trading costs. 2.47% 0.15% Fund Expenses 2.62% More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and/or advice that your representative and their firm provide to you. NBI pays the trailing commission to your representative s firm. It is paid from the fund s management fee and is based on the value of your investment. The rate for this series of the fund is up to 1.25% of the value of your investment each year. This equals $12.50 each year for every $1,000 invested. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or convert securities of the fund. Fee Short-term trading fee What you pay 2% of the value of the securities you redeem or switch within 30 days of purchase may be charged by NBI. This fee goes to the fund. Other fees Registered Account termination fee, only if the registered investment account is with NBI. $100 What if I change my mind? Under the securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual fund securities within two business days after you receive a simplified prospectus or Fund Facts document; or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact NBI or your representative for a copy of the fund s simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund s legal documents. National Bank Investments Inc Robert-Bourassa Blvd. 10 th floor Montreal, Quebec H3B 2G7 Phone: Toll-free: investments@nbc.ca To learn more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at Page 3 of 3

9 FUND FACTS May 14, 2018 NBI Small Cap Fund This document contains key information you should know about the NBI Small Cap Fund. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: NBC841 Date series started: February 25, 1988 Total value of fund on March 31, 2018: $947.3 million Management expense ratio (MER): 2.53% Fund manager: Portfolio manager: Distribution: Minimum investment: National Bank Investments Inc. ("NBI") Fiera Capital Corporation Net income and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). $500 (initial), $50 (additional), $25 (systematic) What does the fund invest in? The fund's investment objective is to provide long-term capital growth and preservation. The fund invests primarily in common shares of companies chosen for their growth potential. The fund may also invest in money market instruments and securities of Canadian federal and provincial governments. The fund may invest approximately 25% of its assets in foreign equities. The charts below give you a snapshot of the fund s investments on March 31, The fund s investments will change over time. Top 10 Investments (as at March 31, 2018) 1. NBI Money Market Fund, Series O 6.0% 2. FirstService Corp. 4.3% 3. Goeasy Ltd. 4.1% 4. AG Growth International Inc. 4.0% 5. Richelieu Hardware Ltd. 3.7% 6. Altus Group Ltd. 3.5% 7. Héroux-Devtek Inc. 3.5% 8. TFI International Inc. 3.3% 9. Enghouse Systems Ltd. 3.2% 10. ECN Capital Corp. 3.1% Total percentage of top 10 investments: 38.7 % Total number of investments: 47 Investment Mix (as at March 31, 2018) Sector Allocation Energy 18.5% Industrials 16.7% Materials 16.0% Consumer Discretionary 14.5% Real Estate 9.0% Cash, Money Market and Other Net Assets 6.6% Information Technology 6.2% Financials 5.4% Utilities 2.6% Consumer Staples 2.0% Health Care 1.7% Bonds 0.8% How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Risk rating NBI has rated the volatility of this fund as medium to high. This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. Page 1 of 3

10 NBI Small Cap Fund How has the fund performed? This section tells you how securities of the fund have performed over the past 10 years. Returns are after expenses have been deducted. These expenses reduce the funds' returns. Year-by-year returns This chart shows how securities of the fund performed in each of the past 10 years. The fund dropped in value in 4 of the 10 years. The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future. 100 % 80 % 60 % 40 % 20 % 0 % -20 % -40 % -60 % -80 % -100 % 69.0% 21.0% 25.2% 13.1% 18.1% 5.3% -3.1% -4.3% -16.7% -37.6% Best and worst 3-month returns This table shows the best and worst returns for securities of the fund in a 3-month period over the past 10 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best Return 32.3% May 31, 2009 Your investment would rise to $1,323. Worst return -36.3% November 30, 2008 Your investment would drop to $637. Average return The annual compounded return of securities of the fund was 5.45% over the past 10 years. If you had invested $1,000 in this series 10 years ago, your investment would now be worth $1,700. Who is this fund for? Investors who: are looking to invest for the long term (at least five years); wish to add an aggressive growth component to a fully diversified portfolio. A word about tax In general, you ll have to pay income tax on any money you make on a fund. How much you pay depends on the tax laws where you live and whether or not you hold the fund in a registered plan, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). Keep in mind that if you hold your fund in a non-registered account, fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell units of the fund. The fees and expenses including any commissions can vary among series of the fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales Charges There are no charges when you purchase your securities through NBI or National Bank Direct Brokerage (a division of National Bank Financial Inc.). Other representative's firm may charge you a fee. 2. Fund expenses You don t pay these expenses directly. They affect you because they reduce the fund's returns. As of December 31, 2017, the fund's expenses were 2.72% of its value. This equals $27.15 for every $1,000 invested. Page 2 of 3

11 NBI Small Cap Fund How much does it cost? (cont d) Annual rate (as a % of the fund s value) Management expense ratio (MER) This is the total of the fund s management fee (including the trailing commission) and operating expenses (including fixed rate administration fee). NBI waived some of the fund's expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the fund's trading costs. 2.53% 0.19% Fund Expenses 2.72% More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and/or advice that your representative and their firm provide to you. NBI pays the trailing commission to your representative s firm. It is paid from the fund s management fee and is based on the value of your investment. The rate for this series of the fund is up to 1.25% of the value of your investment each year. This equals $12.50 each year for every $1,000 invested. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or convert securities of the fund. Fee Short-term trading fee What you pay 2% of the value of the securities you redeem or switch within 30 days of purchase may be charged by NBI. This fee goes to the fund. Other fees Registered Account termination fee, only if the registered investment account is with NBI. $100 What if I change my mind? Under the securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual fund securities within two business days after you receive a simplified prospectus or Fund Facts document; or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact NBI or your representative for a copy of the fund s simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund s legal documents. National Bank Investments Inc Robert-Bourassa Blvd. 10 th floor Montreal, Quebec H3B 2G7 Phone: Toll-free: investments@nbc.ca To learn more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at Page 3 of 3

12 FUND FACTS May 14, 2018 NBI Global Equity Fund This document contains key information you should know about the NBI Global Equity Fund. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: NBC867 Date series started: January 28, 2000 Total value of fund on March 31, 2018: $1,798.4 million Management expense ratio (MER): 2.85% Fund manager: Portfolio manager: Distribution: Minimum investment: National Bank Investments Inc. ("NBI") Fiera Capital Corporation Net income and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). $500 (initial), $50 (additional), $25 (systematic) What does the fund invest in? The fund s investment objective is to achieve long-term capital growth. It builds a diversified portfolio of common and preferred shares listed on recognized stock exchanges. The charts below give you a snapshot of the fund s investments on March 31, The fund s investments will change over time. Top 10 Investments (as at March 31, 2018) 1. Moody's Corp. 5.8% 2. Keyence Corp. 5.5% 3. MasterCard Inc., Class A 4.6% 4. Johnson & Johnson 4.1% 5. Becton Dickinson and Co. 3.9% 6. Diageo PLC 3.3% 7. Unilever NV, GDR 3.3% 8. Sherwin-Williams Co./The 3.1% 9. MSCI Inc. 3.1% 10. Nestlé SA 3.0% Total percentage of top 10 investments: 39.7 % Total number of investments: 37 Investment Mix (as at March 31, 2018) Geographic Allocation United States 58.5% Switzerland 12.3% United Kingdom 10.5% Japan 7.8% Other countries 4.6% Netherlands 3.3% Taiwan 2.8% Cash, Money Market and Other Net Assets 0.2% Sector Allocation Industrials 20.7% Information Technology 19.8% Financials 18.4% Consumer Discretionary 14.5% Consumer Staples 13.9% Health Care 12.5% Cash, Money Market and Other Net Assets 0.2% How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Risk rating NBI has rated the volatility of this fund as medium. This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. Page 1 of 3

13 NBI Global Equity Fund How has the fund performed? This section tells you how securities of the fund have performed over the past 10 years. Returns are after expenses have been deducted. These expenses reduce the funds' returns. Year-by-year returns This chart shows how securities of the fund performed in each of the past 10 years. The fund dropped in value in 2 of the 10 years. The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future. 50 % 40 % 30 % 20 % 10 % 0 % -10 % -20 % -30 % -40 % -50 % 33.6% 18.1% 20.3% 14.1% 13.4% 2.4% 2.9% 0.0% -5.3% -29.8% Best and worst 3-month returns This table shows the best and worst returns for securities of the fund in a 3-month period over the past 10 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best Return 14.1% April 30, 2017 Your investment would rise to $1,141. Worst return -19.8% November 30, 2008 Your investment would drop to $802. Average return The annual compounded return of securities of the fund was 6.77% over the past 10 years. If you had invested $1,000 in this series 10 years ago, your investment would now be worth $1,925. Who is this fund for? Investors who: are looking to invest for the long term (at least five years); are seeking to diversify their investments with exposure to global markets; want to hedge against a drop in the value of the Canadian dollar. Don't buy this fund if you need a steady source of income from your investment. A word about tax In general, you ll have to pay income tax on any money you make on a fund. How much you pay depends on the tax laws where you live and whether or not you hold the fund in a registered plan, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). Keep in mind that if you hold your fund in a non-registered account, fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell units of the fund. The fees and expenses including any commissions can vary among series of the fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales Charges There are no charges when you purchase your securities through NBI or National Bank Direct Brokerage (a division of National Bank Financial Inc.). Other representative's firm may charge you a fee. 2. Fund expenses You don t pay these expenses directly. They affect you because they reduce the fund's returns. As of December 31, 2017, the fund's expenses were 2.91% of its value. This equals $29.14 for every $1,000 invested. Page 2 of 3

14 NBI Global Equity Fund How much does it cost? (cont d) Annual rate (as a % of the fund s value) Management expense ratio (MER) This is the total of the fund s management fee (including the trailing commission) and operating expenses (including fixed rate administration fee). NBI waived some of the fund's expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the fund's trading costs. 2.85% 0.06% Fund Expenses 2.91% More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and/or advice that your representative and their firm provide to you. NBI pays the trailing commission to your representative s firm. It is paid from the fund s management fee and is based on the value of your investment. The rate for this series of the fund is up to 1.25% of the value of your investment each year. This equals $12.50 each year for every $1,000 invested. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or convert securities of the fund. Fee Short-term trading fee What you pay 2% of the value of the securities you redeem or switch within 30 days of purchase may be charged by NBI. This fee goes to the fund. Other fees Registered Account termination fee, only if the registered investment account is with NBI. $100 What if I change my mind? Under the securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual fund securities within two business days after you receive a simplified prospectus or Fund Facts document; or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact NBI or your representative for a copy of the fund s simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund s legal documents. National Bank Investments Inc Robert-Bourassa Blvd. 10 th floor Montreal, Quebec H3B 2G7 Phone: Toll-free: investments@nbc.ca To learn more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at Page 3 of 3

15 FUND FACTS May 14, 2018 NBI SmartData U.S. Equity Fund Advisor Series This document contains key information you should know about the NBI SmartData U.S. Equity Fund. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: ISC: NBC490 DSC: NBC590 LSC: NBC690 Date series started: November 22, 2007 Total value of fund on April 30, 2018: $884.6 million Management expense ratio (MER): 2.15% Fund manager: Portfolio manager: Distribution: Minimum investment: National Bank Investments Inc. ("NBI") Goldman Sachs Asset Management, L.P. Net income and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). $500 (initial), $50 (additional), $25 (systematic) What does the fund invest in? The fund's investment objective is to provide long-term capital growth. The fund invests directly, or through investments in securities of other mutual funds, in a portfolio mainly composed of equities of U.S. companies. The charts below give you a snapshot of the fund s investments on April 30, The fund s investments will change over time. Top 10 Investments (as at April 30, 2018) 1. Amazon.com Inc. 2.8% 2. Apple Inc. 2.8% 3. Microsoft Corp. 2.2% 4. Johnson & Johnson 2.0% 5. Facebook Inc., Class A 1.9% 6. Chevron Corp. 1.5% 7. Alphabet Inc., Class A 1.4% 8. Alphabet Inc., Class C 1.4% 9. Boeing Co. 1.3% 10. Merck & Co. Inc. 1.2% Total percentage of top 10 investments: 18.5 % Total number of investments: 200 Investment Mix (as at April 30, 2018) Sector Allocation Information Technology 24.4% Health Care 14.7% Consumer Discretionary 14.2% Financials 14.0% Industrials 9.8% Energy 7.3% Consumer Staples 6.2% Real Estate 3.3% Materials 2.3% Utilities 1.7% Telecommunication Services 1.2% Cash, Money Market and Other Net Assets 0.9% How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Risk rating NBI has rated the volatility of this fund as medium. This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. Page 1 of 4

16 NBI SmartData U.S. Equity Fund Advisor Series How has the fund performed? This section tells you how Advisor Series securities of the fund have performed over the past 10 years. Returns are after expenses have been deducted. These expenses reduce the funds' returns. Year-by-year returns This chart shows how Advisor Series securities of the fund performed in each of the past 10 years. The fund dropped in value in 2 of the 10 years. The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future. 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % -10 % -20 % -30 % -40 % -50 % -60 % -70 % 43.8% 13.0% 15.2% 15.9% 10.4% 6.7% 8.2% 1.4% -1.0% -20.0% Best and worst 3-month returns This table shows the best and worst returns for Advisor Series securities of the fund in a 3-month period over the past 10 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best Return 37.0% August 31, 2009 Your investment would rise to $1,370. Worst return -40.8% February 28, 2009 Your investment would drop to $592. Average return The annual compounded return of Advisor Series securities of the fund was 8.71% over the past 10 years. If you had invested $1,000 in this series 10 years ago, your investment would now be worth $2,305. Who is this fund for? Investors who: are looking to invest for the long term (at least five years); are looking to diversify their investments through exposure to the U.S. market. Don't buy this fund if you need a steady source of income from your investment. A word about tax In general, you ll have to pay income tax on any money you make on a fund. How much you pay depends on the tax laws where you live and whether or not you hold the fund in a registered plan, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). Keep in mind that if you hold your fund in a non-registered account, fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell Advisor Series units of the fund. The fees and expenses including any commissions can vary among series of the fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales Charges You have to choose a sales charge option when you buy securities of the fund. Ask about the pros and cons of each option. Page 2 of 4

17 NBI SmartData U.S. Equity Fund Advisor Series How much does it cost? (cont d) Sales charge option Initial sales charge Deferred sales charge Low sales charge What you pay In percent (%) In dollars ($) 0% to 5% of the amount you buy $0 to $50 on every $1,000 you buy If you sell within: 1 year of buying 6.0% 2 years of buying 5.5% 3 years of buying 5.0% 4 years of buying 4.5% 5 years of buying 3.0% 6 years of buying 1.5% After 6 years 0% If you sell within: 1 year of buying 3.0% 2 years of buying 2.5% 3 years of buying 2.0% After 3 years 0% Upon redemption $0 to $60 on every $1,000 of securities purchased Upon redemption $0 to $30 on every $1,000 of securities purchased How it works You negotiate the fees with your representative. We deduct the fees from the amount you are investing and pay it to your representative's firm. There are no fees when you purchase securities through NBI or National Bank Direct Brokerage (a division of National Bank Financial Inc.). We pay your representative's firm a commission equal to 5% of the amount you invest. You do not pay any fee unless you redeem your securities within six years of their purchase. The redemption fees are only charged if you request the redemption of more than 10% of the securities you hold within the same calendar year. You cannot carry forward any unused free redemption securities to the next year. The redemption fees are based on the initial cost of your securities and the amount of time you hold them. The redemption fees are at a fixed rate. They are deducted from the value of the securities sold and goes to NBI. There are no redemption fees when you switch securities for securities of another NBI Fund bought under the deferred sales charge option. The deferred sales charge schedule will be based on the date that the original securities were purchased. We pay your representative's firm a commission equal to 2.5% of the amount you invest. You do not pay any fee unless you redeem your securities within three years of their purchase. The redemption fees are based on the initial cost of your securities and the amount of time you hold them. The redemption fees are at a fixed rate. They are deducted from the value of the securities sold and goes to NBI. There are no redemption fees when you switch securities for securities of another NBI Fund bought under the low sales charge option. The low sales charge schedule will be based on the date that the original securities were purchased. 2. Fund expenses You don t pay these expenses directly. They affect you because they reduce the fund's returns. As of December 31, 2017, the fund's expenses were 2.18% of its value. This equals $21.85 for every $1,000 invested. Annual rate (as a % of the fund s value) Management expense ratio (MER) This is the total of the fund s management fee (including the trailing commission) and operating expenses (including fixed rate administration fee). NBI waived some of the fund's expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the fund's trading costs. 2.15% 0.03% Fund Expenses 2.18% Page 3 of 4

18 NBI SmartData U.S. Equity Fund Advisor Series How much does it cost? (cont d) More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and/or advice that your representative and their firm provide to you. NBI pays the trailing commission to your representative s firm. It is paid from the fund s management fee and is based on the value of your investment. The rate depends on the sales charge option you choose. Sales charge option Initial sales charge Deferred sales charge Low sales charge Up to 1.00% of the value of your investment each year. Amount of trailing commission In percent (%) In dollars ($) Up to 0.50% of the value of your investment each year within the first six years. Up to 1.00% of the value of your investment each year for the following years for new purchase after May 14, 2015, excluding securities purchased under a systematic investment plan started before May 14, 2015 and reinvested distributions. For switches, the trailing commission schedule applicable is the one in force at the time of the initial purchase. Up to 0.50% of the value of your investment each year within the first three years. Up to 1.00% of the value of your investment each year for the following years. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or convert securities of the fund. Maximum of $10.00 each year on every $1,000 invested. Maximum of $5.00 each year on every $1,000 invested. Maximum of $10.00 each year on every $1,000 invested. Maximum of $5.00 each year on every $1,000 invested. Maximum of $10.00 each year on every $1,000 invested. Fee Short-term trading fee Switch fee Conversion fee What you pay 2% of the value of the securities you redeem or switch within 30 days of purchase may be charged by NBI. This fee goes to the fund. There are no fees when you switch securities through NBI or National Bank Direct Brokerage (a division of National Bank Financial Inc.). If you switch securities through another representative's firm, you may have to pay fees of up to 2% of the value of the securities. You negotiate these fees with your representative. There are no fees when you convert securities through NBI or National Bank Direct Brokerage (a division of National Bank Financial Inc.). If you convert securities through another representative's firm, you may have to pay fees of up to 2% of the value of the securities. You negotiate these fees with your representative. Other fees Registered Account termination fee, only if the registered investment account is with NBI. $100 What if I change my mind? Under the securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual fund securities within two business days after you receive a simplified prospectus or Fund Facts document; or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact NBI or your representative for a copy of the fund s simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund s legal documents. National Bank Investments Inc Robert-Bourassa Blvd. 10 th floor Montreal, Quebec H3B 2G7 Phone: Toll-free: investments@nbc.ca To learn more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at Page 4 of 4