Investors Mutual of Canada

Transcription

1 Interim Management Report of Fund Performance FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER, 18 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as expects, anticipates, intends, plans, believes, estimates or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Report of Fund Performance. This interim Management Report of Fund Performance contains financial highlights, but does not contain the complete interim financial report or audited annual financial statements of the investment fund. If the interim financial report of your investment fund did not accompany the mailing of this report, you may receive a copy of it or the audited annual financial statements, or annual Management Report of Fund Performance, at your request, and at no cost, by calling ( if you live in Québec) or by writing to us at 447 Portage Avenue, Winnipeg, Manitoba, R3B 3H5 (1, boulevard Robert-Bourassa, bureau, Montréal (Québec), H3A 2A6 if you live in Québec), or by visiting our website at or SEDAR at Securityholders may also use 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. Every effort has been made to ensure that the information contained in this Report is accurate as of September, 18 (except when stated otherwise), however, the Fund cannot guarantee the accuracy or the completeness of this material. Please refer to the Fund s Prospectus and audited annual financial statements for more information. References to Consultant or Consultants mean Representative or Representatives in Québec. For current net asset values per security for the Fund and for more recent information on general market events, please visit our website at CAUTION REGARDING FUTURE PERFORMANCE Sales commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund s offering documents before investing. The indicated rates of return are the historical annual compounded total returns including changes in security value and reinvestment of all distributions (except for fee rebates) and do not take into account sales, redemption, distribution or optional charges, advisory fees payable directly by securityholders in certain series, or income taxes payable by any investor that would have reduced returns. Mutual funds are not guaranteed. Their values change frequently and past performance may not be repeated. Copyright Investors Group Inc. 18 TM Trademarks, including IG Wealth Management, are owned by IGM Financial Inc. and licensed to its subsidiary corporations.

2 Management Discussion of Fund Performance This management discussion of Fund performance presents views of the portfolio management team about the significant factors and developments during the past six months that have affected the Fund s performance and outlook since March 31, 18, the Fund s most recent fiscal year-end. This report should be read in conjunction with the annual Management Report of Fund Performance for the year ended March 31, 18. Please read the Caution Regarding Forward-looking Statements located on the first page of this document. Results of Operations CHANGES IN NET ASSETS The Fund s net assets decreased by 6.3% during the period to $2.2 billion. This change was comprised primarily of gains from operations of $132.5 million and a decrease of $28.8 million due to net securityholder activity. FEES AND EXPENSES The management expense ratios (MERs) for all series are generally similar to the MERs for the 12-month period ended March 31, 18, except for Series Tnl and Tjnl, which are higher primarily due to changes in their respective applicable Harmonized Sales Tax rates. Total expenses paid also vary period to period as a result of changes in average assets in each series. Average net assets of the Fund for the period were $2.3 billion, an increase of 14.7% compared to the period ended September, 17. INVESTMENT PERFORMANCE In accordance with National Instrument 81-6, the following comparison to broad-based indices has been included to help you understand the Fund s performance relative to the general performance of the markets. However, the portfolio management team cautions that the Fund s mandate may be different from the indices shown. Also, it is important to note that investors cannot invest in an index. Indirect investments in an index are available; however, there are fees and transaction costs and other variables that will impact returns when investing in these products. Index returns included in the comparison below do not reflect these costs and variables. For the returns of all series and for longer-term performance of the Fund, see the Past Performance section of this report. Performance will vary by series primarily because fees and expenses may differ between series, or because securities of a series were not issued and outstanding for the entire reporting period. See Series Information for the annual expense rates for each series. For the six-month period ended September, 18, the Series B securities returned 5.3% (after deducting fees and expenses paid by the Fund). In comparison, the S&P/TSX Composite Index Total Return returned 6.2% and the FTSE TMX Canada Universe Bond Index Total Return returned -.4%. The S&P/TSX Composite Index Total Return advanced over the period, reaching a record high in early July. However, the index drifted lower during the rest of the summer as North American Free Trade Agreement (NAFTA) renegotiations weighed on investor sentiment. The health care sector was the top performer, driven by shares of cannabis companies in advance of Canadian marijuana legalization. The industrials and information technology sectors were also strong performers. Sectors affected by trade uncertainty and weak commodity prices lagged. The materials sector, particularly metals and mining companies, lost ground as commodity prices retreated because of strength in the U.S. dollar and concerns that economic growth in China is slowing. Government bond prices fell and yields increased over the period, resulting in a slightly negative FTSE TMX Canada Universe Bond Index Total Return. The Bank of Canada raised its benchmark overnight interest rate to 1.5% from 1.25%. Inflation accelerated during the period, which usually leads to further central bank rate increases. However, the Bank of Canada continued to take a gradual approach to rate hikes, especially amid uncertainty about NAFTA renegotiations. This caution dampened the rise of long-term bond yields relative to short-term yields. Even so, long-term government bonds underperformed short-term and mid-term government bonds. Investment-grade corporate debt outperformed government bonds. The Fund s equity component outperformed the equity index. Stock selection in the consumer discretionary sector and investment decisions in the materials and information technology sectors contributed positively to relative performance. Stock selection in the industrials and financials sectors detracted from relative performance. The Fund s investments in the U.S. and the U.K. contributed positively to relative returns as they outperformed Canadian investments. The Fund s fixed-income component performed in line with the fixed-income index. Recent Developments (BASED ON INFORMATION AS AT OCTOBER 21, 18) The portfolio management team is positive about the outlook for corporate earnings. Rising interest rates are likely to create headwinds for stocks and support from recent U.S. tax reforms is likely to ease. However, the portfolio management team believes earnings will remain strong and an economic downturn over the next 12 to 18 months is unlikely. The portfolio management team believes the Canadian equity market is becoming increasingly attractive, particularly when valuation measures are considered. Continued synchronized global economic growth is likely to support earnings growth and share prices. In the equity component of the Fund, the largest sector increase over the period was in the consumer discretionary sector. There were minor declines in energy, financials, materials and information technology sector holdings. The Fund s asset allocation favoured equities over fixed-income investments at the end of the period. Other Developments CHANGES IN THE INVESTORS GROUP FUNDS INDEPENDENT REVIEW COMMITTEE Recently, Peggy Dowdall-Logie and Louis-Daniel Gauvin replaced Jean Lamarre and Robert Tessier as members of the Investors Group Funds Independent Review Committee and Russell Goodman was appointed Chair. UPCOMING MERGER The Manager proposes to merge IG Mackenzie Ivy Canadian Balanced Fund (the Terminating Fund) into this Fund, effective on or about February 8, 19, subject to receipt of the necessary securityholder and regulatory approvals. A meeting to obtain approval from the Terminating Fund s securityholders in respect of the merger will be held on or about December 4, 18. Aside from increasing the size of the Fund, the merger is not expected to significantly impact the operations of the Fund.

3 Related Party Transactions I.G. Investment Management, Ltd. is the Manager, Trustee and Portfolio Advisor of the Fund. The Fund is offered through the Consultants of Investors Group Financial Services Inc. and Investors Group Securities Inc., together referred to as the Distributors. The Manager, Portfolio Advisor, Distributors and Trustee are, indirectly, wholly owned subsidiaries of IGM Financial Inc. The following sub-advisor provided investment services to the Fund: Mackenzie Financial Corporation Mackenzie Financial Corporation is a wholly owned subsidiary of IGM Financial Inc. The Fund paid a management fee to the Manager and Portfolio Advisor for management and portfolio advisory services (see Management Fees). The Fund also paid the Manager an administration fee and in exchange the Manager paid the operating costs and expenses of the Fund, except for certain specified costs. The Fund paid the Distributors a service fee as compensation for providing or arranging for the provision of services to the Fund, including the issue or allotment of securities. A portion of the service fee for Series C and Tc is rebated by the Distributors to the Fund, for distribution to Series C and Tc securityholders quarterly, as outlined in the Prospectus. The Trustee is responsible for the overall direction of the affairs of the Fund. The Fund paid the Trustee a fee for its services. See Series Information for the annual rates paid by each series (as a percent of average net assets) for these fees. Securityholders in Series Tu and U also pay an advisory fee directly to Investors Group. This fee is not included in the Fund s expenses. Certain other investment funds, distributed by Investors Group, and other qualified investors may invest in Series P or S of this Fund. As at September, 18, these series comprised approximately 35.4% of the Fund s net assets. All such transactions in the Fund are executed in accordance with standing instructions approved by the Investors Group Funds Independent Review Committee and based on the net asset value per security determined in accordance with the stated policies of the Fund on each transaction day. As at September, 18, the Fund invests in other funds also managed by the Manager or affiliates of the Manager. These investments are in accordance with the standing instructions on conflict of interest matters approved by the Investors Group Funds Independent Review Committee. Investors Group has an investment in the Fund which, at September, 18, was $1,524 for Series Tnl, $1,99 for Series Tc, $1,551 for Series Tjnl and $147,319 for Series U. IGM Financial Inc. is a subsidiary of Power Financial Corporation and Power Corporation of Canada. Companies related to Power Financial Corporation are therefore considered affiliates of the Manager. As at September, 18, the Fund held the following investments in companies affiliated with the Manager: preferred shares of Power Financial Corporation valued at $7,91, and preferred shares of Power Corporation of Canada valued at $4,144,76. These investments are in accordance with standing instructions approved by the Investors Group Funds Independent Review Committee and represent, in aggregate,.5% of the Fund s net assets. Management Fees The Fund pays a management fee, and this fee, paid by each series, is calculated as a percentage of the net asset value of the series at the close of each business day (see Series Information for rates payable by each series). Generally, management fees pay the costs incurred to provide investment advisory and management services, as well as distributionrelated services provided by the Distributors. However, in the case of Series U and Tu, securityholders pay the Distributors an advisory fee (separate from the management fee) directly. Therefore, the management fee in those series is used for investment advisory and management services only. For all other retail series (i.e. which excludes Series F, P and S, if issued), approximately 58% of management fees paid during the period was used for investment advisory and management services, and approximately 42% related to distribution-related services. This may vary by series. Approximately 62% of the total fees paid by the Fund for the period related to services provided by the Manager, Trustee and Portfolio Advisor, and approximately 38% related to services provided by the Distributors.

4 Summary of Investment Portfolio AT SEPTEMBER, 18 The largest positions of the Fund (up to 25) at the end of the period, and the major asset classes in which the Fund was invested, are indicated below. This summary of investment portfolio may change due to ongoing portfolio transactions. The Fund s summary of investment portfolio will be updated as at the end of the next quarter. Please see the front page for information about how it can be obtained. Summary of Top 25 Long Positions % of net assets The Toronto-Dominion Bank 6.1 Royal Bank of Canada 6.1 Air Canada 2.9 Entertainment One Ltd. 2.8 Canadian Natural Resources Ltd. 2.8 JPMorgan Chase & Co. 2.8 Microsoft Corp. 2.5 Province of Ontario 2.9% Manulife Financial Corp. 2.3 Shaw Communications Inc. Class B non-voting 2.3 FedEx Corp. 2.2 Alphabet Inc. Class A 2.2 Canadian Pacific Railway Ltd. 2.1 Loblaw Companies Ltd. 2.1 The Bank of Nova Scotia 2.1 Nutrien Ltd. 2. Suncor Energy Inc. 2. Verizon Communications Inc. 2. Comcast Corp. Class A 1.9 Investors Mortgage and Short Term Income Fund Series P 1.8 Johnson & Johnson 1.7 Raytheon Co. 1.4 Brookfield Asset Management Inc. Class A limited voting 1.4 Apple Inc. 1.4 TransCanada Corp Summary of Top 25 Short Positions* % of net assets CBOT U.S. Year Treasury Note (4.4) OSE Japan Year Bond (.8) Currency Option EUR/NOK - (5.2) * Short positions comprise short futures contracts and written currency options. Summary of Composition of the Portfolio PORTFOLIO ALLOCATION % of net assets Long Positions Equities 78.7 Bonds 19.1 Mutual Funds 1.8 Cash and cash equivalents Short Positions Bonds (5.2) Other net assets (liabilities) 5.6 Total. EQUITIES COUNTRY ALLOCATION Canada 5.7 United States 27.6 Other SECTOR ALLOCATION Financials 22.7 Energy 12.7 Industrials 11.7 Consumer Discretionary 9.7 Information Technology 7.4 Health Care 4.3 Materials 4. Consumer Staples 3.4 Telecommunication Services BONDS SECTOR ALLOCATION Corporate 9.6 Provincial Governments 5.5 Other (1.2) 13.9

5 Series Information AT SEPTEMBER, 18 Inception Management Service Administration Trustee Series date fee (%) fee (%) fee (%) fee (%) Series A n/a Series B n/a Series C n/a 1.9 up to Series Jdsc 7/13/ Series Jnl 7/13/ Series P 7/2/ Series S 9/8/ Series Tdsc 7/13/ Series Tnl 7/13/ Series Tc 7/13/ up to Series Tjdsc 7/13/ Series Tjnl 7/13/ Series Tu 7/12/ Series U 7/12/ The fee rates in the table above are rounded to two decimals. Inception dates of the series are shown if within ½ years. Clients in Series C and Tc are entitled to a full or partial rebate of the service fee based on their asset levels held in the Fund and in other Investors Group funds as outlined in the Fund s Prospectus.

6 Past Performance It is important to remember that past performance doesn t necessarily indicate future performance. The returns presented below: assume that all distributions, except for fee rebates, are reinvested into the Fund; do not include sales charges, income taxes, optional expenses or advisory fees payable directly by securityholders in certain series, that reduce returns; show performance based on Canadian dollar returns; and show performance for the six-month period ended September, 18 and for each of the past financial years, or since the series started. Financial years are as follows: - 9 six months ended March 31 - to 18 nths ended March 31 Inception dates of the series within these periods are shown in Series Information. Performance during these periods may have been impacted by the following events: Effective July 1,, the administration fees for Series A and B decreased by.2% to.17%. Effective June, 12, the annual management fee rate for Series A and B decreased by.% to 1.7% and for Series C the rate decreased by.% to 1.9%. Effective June, 12, the annual service fee rate for Series B decreased by.5% to.4%. Effective January 1, 17, the annual management fee rate for Series Tu and U decreased by.% to.6%. Effective January 1, 17, the annual service fee rate for Series B, Jnl, Tnl and Tjnl decreased by.% to.%. Year-by-Year Returns These bar charts show how much an investment in securities made on the first day of each financial year would have increased or decreased by the end of the respective period. For the first year of a series, the percentage shown will be the actual return of the series from its inception date. The charts illustrate how the Fund s performance has changed over time. SERIES A - - SERIES B - - SERIES C - - SERIES Jdsc 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (16.4) (.4) (2.3).7 (.5) 5.3 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (16.5) (.6) (2.4).6 (.5) 5.3 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (16.5) (.6) (2.7).2 (.9) /9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (2.) 11. (.2) 5.4 SERIES Jnl - - 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (2.1).9 (.2) 5.4

7 YEAR-BY-YEAR RETURNS (continued) SERIES P - - 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % SERIES Tjdsc - - 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (2.1).9 (.2) 5.4 SERIES S - - 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % SERIES Tjnl - - 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (1.8) 11. (.2) 5.4 SERIES Tdsc - - 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (2.4).6 (.5) 5.3 SERIES Tu - - 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (.8) SERIES Tnl - - 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (2.4).5 (.5) 5.2 SERIES U - - 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (.9) SERIES Tc - - 3/9 3/ 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 9/18 % (2.7).2 (.8) 5.1

8 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 six-month period ended September, 18 and up to the past five financial years. Footnotes are presented after Ratios and Supplemental Data. Net Assets per Security 1 SERIES A SERIES B Sep. (in $) beginning of period Sep. (in $) beginning of period Total revenue Total expenses (.25) (.5) (.49) (.5) (.52) (.47) for the period for the period.94 (.74).2 (2.17) (.7).65 operations 1.3 (.8) 1.99 (.48) (excluding dividends) - - (.1) (.3) - - From dividends (.3) (.13) (.19) (.15) (.22) (.15) From capital gains - (.24) (.71) (1.35) (1.11) - Return of capital distributions (.3) (.37) (.91) (1.53) (1.33) (.15) at period end Total revenue Total expenses (.25) (.49) (.49) (.51) (.53) (.48) for the period for the period.93 (.73).2 (2.14) (.7).65 operations 1.2 (.7) 1.95 (.5) (excluding dividends) - - (.1) (.2) (.1) - From dividends (.2) (.12) (.18) (.14) (.21) (.14) From capital gains - (.24) (.69) (1.33) (1.9) - Return of capital distributions (.2) (.36) (.88) (1.49) (1.31) (.14) at period end SERIES C Sep. (in $) beginning of period Total revenue Total expenses (.24) (.49) (.48) (.49) (.5) (.45) for the period for the period.92 (.71).2 (2.12) (.7).64 operations 1. (.7) 1.93 (.49) (excluding dividends) - - (.1) (.2) (.1) - From dividends - (.8) (.14) (.13) (.19) (.11) From capital gains - (.22) (.65) (1.32) (1.8) - Return of capital distributions - (.) (.8) (1.47) (1.28) (.11) at period end SERIES Jdsc JDSC Sep. (in $) beginning of period Total revenue Total expenses (.13) (.27) (.26) (.26) (.27) (.25) for the period for the period.57 (.45).1 (1.31) (.4).39 operations.64 (.1) 1.24 (.26) (excluding dividends) - - (.1) (.2) - - From dividends (.3) (.) (.14) (.11) (.15) (.11) From capital gains - (.16) (.43) (.83) (.67) - Return of capital distributions (.3) (.26) (.58) (.96) (.82) (.11) at period end

9 Net Assets per Security 1 (continued) SERIES Jnl JNL Sep. (in $) beginning of period Total revenue Total expenses (.13) (.26) (.26) (.27) (.29) (.26) for the period for the period.57 (.45).1 (1.31) (.4).38 operations.64 (.1) 1.23 (.27) (excluding dividends) - - (.1) (.2) - - From dividends (.3) (.) (.13) (.) (.14) (.) From capital gains - (.16) (.43) (.82) (.67) - Return of capital distributions (.3) (.26) (.57) (.94) (.81) (.) at period end SERIES P Sep. (in $) beginning of period Total revenue Total expenses - (.1) (.1) (.1) (.1) (.1) for the period for the period.53 (.41).1 (1.22) (.4).49 operations (excluding dividends) - - (.2) (.5) (.1) - From dividends (.15) (.28) (.) (.34) (.28) (.21) From capital gains - (.) (.47) (.83) (.62) - Return of capital distributions (.15) (.48) (.79) (1.22) (.91) (.21) at period end SERIES S SERIES Tdsc TDSC Sep. (in $) beginning of period Sep. (in $) beginning of period.28. n/a n/a n/a n/a Total revenue n/a n/a n/a n/a 2 Total expenses (.) (.12) n/a n/a n/a n/a for the period.5.8 n/a n/a n/a n/a for the period.5.34 n/a n/a n/a n/a operations n/a n/a n/a n/a (excluding dividends) - - n/a n/a n/a n/a From dividends (.5) (.6) n/a n/a n/a n/a From capital gains - (.13) n/a n/a n/a n/a Return of capital - - n/a n/a n/a n/a distributions (.5) (.19) n/a n/a n/a n/a at period end.8.28 n/a n/a n/a n/a Total revenue Total expenses (.13) (.26) (.26) (.27) (.29) (.26) for the period for the period.46 (.38).1 (1.19) (.4).39 operations.5 (.5) 1.4 (.27) (excluding dividends) (.1) (.1) - From dividends (.1) (.7) (.11) (.9) (.24) (.9) From capital gains - (.11) (.37) (.73) (.61) - Return of capital (.19) (.34) (.31) (.36) (.23) (.36) distributions (.) (.52) (.79) (1.19) (1.9) (.45) at period end

10 Net Assets per Security 1 (continued) SERIES Tnl TNL Sep. (in $) beginning of period Total revenue Total expenses (.13) (.26) (.27) (.28) (.29) (.26) for the period for the period.47 (.37).2 (1.19) (.4).37 operations.5 (.3) 1.3 (.28) (excluding dividends) (.1) (.1) - From dividends (.1) (.8) (.) (.9) (.23) (.9) From capital gains - (.11) (.36) (.72) (.62) - Return of capital (.19) (.33) (.33) (.36) (.23) (.36) distributions (.) (.52) (.79) (1.18) (1.9) (.45) at period end SERIES Tc TC Sep. (in $) beginning of period Total revenue Total expenses (.11) (.24) (.24) (.27) (.28) (.25) for the period for the period.46 (.37).1 (1.18) (.4).37 operations.51 (.3) 1.3 (.27) (excluding dividends) (.1) (.1) - From dividends - (.6) (.8) (.9) (.22) (.7) From capital gains - (.11) (.35) (.71) (.61) - Return of capital (.) (.34) (.34) (.36) (.24) (.38) distributions (.) (.51) (.77) (1.17) (1.8) (.45) at period end SERIES Tjdsc TJDSC Sep. (in $) beginning of period Total revenue Total expenses (.11) (.23) (.23) (.24) (.26) (.24) for the period for the period.47 (.38).1 (1.18) (.4).37 operations.52 (.2) 1.6 (.23) (excluding dividends) (.2) (.1) - From dividends (.3) (.) (.14) (.11) (.26) (.) From capital gains - (.12) (.38) (.73) (.62) - Return of capital (.18) (.33) (.) (.36) (.23) (.37) distributions (.21) (.55) (.82) (1.22) (1.12) (.47) at period end SERIES Tjnl TJNL Sep. (in $) beginning of period Total revenue Total expenses (.) (.) (.23) (.22) (.26) (.26) for the period for the period.47 (.37).1 (1.19) (.5).37 operations (.23) (excluding dividends) (.2) (.1) - From dividends (.2) (.11) (.14) (.11) (.26) (.9) From capital gains - (.12) (.37) (.73) (.61) - Return of capital (.19) (.32) (.) (.36) (.24) (.38) distributions (.21) (.55) (.81) (1.22) (1.12) (.47) at period end

11 Net Assets per Security 1 (continued) SERIES Tu TU Sep. (in $) beginning of period Total revenue Total expenses (.5) (.11) (.11) (.11) (.11) (.7) for the period for the period.46 (.37).1 (1.13) (.4).35 operations (.13) (excluding dividends) - - (.1) (.4) (.2) - From dividends (.8) (.21) (.23) (.21) (.35) (.14) From capital gains - (.12) (.37) (.74) (.59) - Return of capital (.13) (.22) (.) (.22) (.13) (.23) distributions (.21) (.55) (.81) (1.21) (1.9) (.37) at period end SERIES U Sep. (in $) beginning of period Total revenue Total expenses (.5) (.11) (.11) (.12) (.12) (.8) for the period for the period.52 (.41).1 (1.) (.4).35 operations (.11) (excluding dividends) - - (.2) (.3) (.1) - From dividends (.) (.) (.22) (.22) (.21) (.15) From capital gains - (.17) (.42) (.79) (.6) - Return of capital distributions (.) (.37) (.66) (1.4) (.82) (.15) at period end Ratios and Supplemental Data SERIES A Sep ($ s) 316, , , ,362 3,7 346,727 outstanding ( s) 15,633 17,531,767 12,123 14,675 17,115 expense ratio (%) or absorptions (%) ratio (%) rate (%) SERIES B Sep ($ s) 46,51 45,356 23,518 19,395 22,736 23,981 outstanding ( s) 2,299 2,382 1,6 1,52 1,113 1,199 expense ratio (%) or absorptions (%) ratio (%) rate (%) SERIES C Sep ($ s) 418, ,42 379,482 48,272 69,545 74,266 outstanding ( s) 21,224 23,521 19,748 22,468,176 37,323 expense ratio (%) or absorptions (%) ratio (%) rate (%)

12 Ratios and Supplemental Data (continued) SERIES Jdsc JDSC Sep ($ s) 351,6 371, , , ,629 14,282 outstanding ( s) 28,617 31,842 28,788 33,247 21,377 11,464 expense ratio (%) or absorptions (%) ratio (%) rate (%) SERIES S Sep ($ s) 67,848 69,45 n/a n/a n/a n/a outstanding ( s) 6,28 6,758 n/a n/a n/a n/a expense ratio (%) n/a n/a n/a n/a or absorptions (%) n/a n/a n/a n/a ratio (%).8.13 n/a n/a n/a n/a rate (%) n/a n/a n/a n/a SERIES JNL Jnl Sep ($ s) 25,455 23,38 16,374 13,174,583 8,113 outstanding ( s) 2,78 2,8 1,373 1, expense ratio (%) or absorptions (%) ratio (%) rate (%) SERIES Tdsc TDSC Sep ($ s) outstanding ( s) expense ratio (%) or absorptions (%) ratio (%) rate (%) SERIES P Sep ($ s) 716,54 814, , , , ,484 outstanding ( s) 63,51 75,388 8,3 82,68 78,458 72,946 expense ratio (%) or absorptions (%) ratio (%) rate (%) SERIES Tnl TNL Sep ($ s) outstanding ( s) expense ratio (%) or absorptions (%) ratio (%) rate (%)

13 Ratios and Supplemental Data (continued) SERIES Tc TC Sep ($ s) outstanding ( s) expense ratio (%) or absorptions (%) ratio (%) rate (%) SERIES Tu TU Sep ($ s) outstanding ( s) expense ratio (%) or absorptions (%) ratio (%) rate (%) SERIES Tjdsc TJDSC Sep ($ s) outstanding ( s) expense ratio (%) or absorptions (%) ratio (%) rate (%) SERIES U Sep ($ s) 27,67 257, ,552 61,358 36,193 8,439 outstanding ( s) 24,154 24,179,596 5,949 3, expense ratio (%) or absorptions (%) ratio (%) rate (%) SERIES Tjnl TJNL Sep ($ s) outstanding ( s) expense ratio (%) or absorptions (%) ratio (%) rate (%)

14 1 These calculations are prescribed by securities regulations and are not intended to be a reconciliation between opening and closing net assets per security. This information is derived from the Fund s audited annual financial statements and unaudited September, 18 interim financial report presented in accordance with IFRS. Net asset values presented are consistent with the net asset values calculated in accordance with securities regulations for the purchase and redemption of the Fund s securities (pricing net asset values) and as such, pricing net asset values are not separately disclosed. 2 Commissions and other portfolio transaction costs are included in total expenses. 3 Net asset value and distributions are based on the actual number of securities outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of securities outstanding over the financial period. In the period a series is established, the financial information is provided from the date of inception to the end of the period. 4 Distributions were paid in cash, reinvested in additional securities of the Fund, or both. 5 ratio (MER) is based on total expenses, excluding commissions and other portfolio transaction costs, income taxes, and withholding taxes, for the stated period and is expressed as an annualized percentage of daily average net assets during the period, except as noted. In the period a series is established, the MER is annualized from the date of inception to the end of the period. Where a Fund directly or indirectly via derivative contract invests in securities of an Underlying Fund, the MERs presented for the Fund include the portion of MERs of the Underlying Fund(s) attributable to this investment. Any income distributions received from exchange-traded funds (ETFs) managed by affiliates of the Manager, with the intention of offsetting fees paid within those ETFs but which are not considered to be duplicative fees under regulatory requirements, are treated as waived expenses for MER purposes. Certain expenses that are non-recurring and/or otherwise uncertain as to their future timing and amount have not been annualized. For Series C and Tc, the service fees are divided by the assets attributable to Series C and Tc on the days on which the fee is charged. The MERs presented for Series C and Tc represent the maximum MER applicable to an account because service fee rebates have not been offset against service fees. Clients in Series C and Tc are entitled to a full or partial rebate of service fees based on their asset levels held in the Fund and in other Investors Group funds as outlined in the Fund s Prospectus. The rebate is distributed as a return of capital distribution to securityholders and is required to be reinvested in additional Series C and Tc securities. 6 The trading expense ratio (TER) represents total commissions and other portfolio transaction costs incurred as an annualized percentage of daily average net assets during the period. Where a Fund invests in securities of an Underlying Fund, the TERs presented for the Fund include the portion of TERs of the Underlying Fund(s) attributable to this investment. 7 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 period. Generally, the higher a Fund s portfolio turnover rate in a period, the greater the trading costs payable by it in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a Fund. Transactions incurred to realign the Fund s portfolio after a fund merger, if any, are excluded from the portfolio turnover rate. There were no such transactions related to the September 17 merger.