MACKENZIE USD GLOBAL TACTICAL BOND FUND

Transcription

1 Interim Unaudited Financial Statements For the Six-Month Period Ended September 30, 2017 These Interim Unaudited Financial Statements do not contain the Interim Management Report of Fund Performance ( MRFP ) of the investment fund. You may obtain a copy of the Interim MRFP, at no cost, by contacting us using one of the methods noted under Fund Formation and Series Information or by visiting the SEDAR website at Copies of the Annual Financial Statements or Annual MRFP may also be obtained, at no cost, using any of the methods outlined above. 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. NOTICE OF NO AUDITOR REVIEW OF THE INTERIM FINANCIAL STATEMENTS Mackenzie Financial Corporation, the Manager of the Fund, appoints independent auditors to audit the Fund s Annual Financial Statements. Under Canadian securities laws (National Instrument ), if an auditor has not reviewed the Interim Financial Statements, this must be disclosed in an accompanying notice. The Fund s independent auditors have not performed a review of these Interim Financial Statements in accordance with standards established by the Chartered Professional Accountants of Canada.

2 STATEMENTS OF FINANCIAL POSITION In thousands of U.S. dollars (except per security figures) As at Sep. 30 Mar (Audited) $ $ ASSETS Current assets Investments at fair value 9,762 8,805 Cash and cash equivalents Accrued interest receivable Accounts receivable for investments sold Accounts receivable for securities issued 40 Margin on futures contracts Unrealized gains on derivative contracts Total assets 10,227 9,384 LIABILITIES Current liabilities Accounts payable for investments purchased Accounts payable for securities redeemed 11 Liability for options written 3 Unrealized losses on derivative contracts Total liabilities Net assets attributable to securityholders 10,001 9,072 Net assets attributable to securityholders per series (note 3) Series A Series D 2 2 Series F 2,589 2,900 Series F Series FB 2 2 Series FB5 2 2 Series PW 1,340 1,117 Series PWF 4,955 3,715 Series PWF6 184 Series PWFB 1 Series PWFB5 1 Series PWT6 1 Series PWX Series SC Series S6 2 2 Series T6 1 1 Sep. 30 Mar (Audited) $ $ Net assets attributable to securityholders per security (note 3) Series A Series D Series F Series F Series FB Series FB Series PW Series PWF Series PWF Series PWFB 9.99 Series PWFB Series PWT Series PWX Series SC Series S Series T The accompanying notes are an integral part of these financial statements.

3 STATEMENTS OF COMPREHENSIVE INCOME For the periods ended September 30 (note 1) In thousands of U.S. dollars (except per security figures) 2017 $ 2016 $ Income Dividends 4 Interest income Other changes in fair value of investments Net realized gain (loss) (466) (29) Net unrealized gain (loss) Total income (loss) Expenses (note 6) Management fees Management fee rebates (1) Administration fees 8 8 Interest charges 1 Commissions and other portfolio transaction costs 5 5 Independent Review Committee fees Other 1 1 Expenses before amounts absorbed by Manager Expenses absorbed by Manager Net expenses Increase (decrease) in net assets attributable to securityholders from operations before tax Foreign withholding taxes Foreign income taxes paid (recovered) Increase (decrease) in net assets attributable to securityholders from operations Increase (decrease) in net assets attributable to securityholders from operations per series Series A 7 12 Series D Series F Series F6 1 4 Series FB Series FB5 Series PW 15 5 Series PWF Series PWF6 2 Series PWFB Series PWFB5 Series PWT6 Series PWX 6 2 Series SC 5 15 Series S6 Series T $ 2016 $ Increase (decrease) in net assets attributable to securityholders from operations per security Series A Series D Series F Series F Series FB Series FB Series PW Series PWF Series PWF Series PWFB 0.15 Series PWFB Series PWT Series PWX Series SC Series S Series T The accompanying notes are an integral part of these financial statements.

4 STATEMENTS OF CHANGES IN FINANCIAL POSITION For the periods ended September 30 (note 1) In thousands of U.S. dollars Series A Series D Series F Series F6 Series FB NET ASSETS ATTRIBUTABLE TO SECURITYHOLDERS $ $ $ $ $ Beginning of period ,900 1, Increase (decrease) in net assets from operations Distributions paid to securityholders: Investment income (2) (4) (39) (32) (1) Capital gains Return of capital (2) Management fee rebates Total distributions paid to securityholders (2) (4) (39) (32) (3) Security transactions: Proceeds from securities issued ,043 2,214 Reinvested distributions Value of securities redeemed (124) (354) (5) (1,382) (659) (188) (30) Total security transactions (122) (249) (307) 1,585 (188) (28) Total increase (decrease) in net assets (117) (241) (311) 1,629 (187) (27) End of period ,589 3, Increase (decrease) in fund securities (note 7): Securities Securities Securities Securities Securities Securities outstanding beginning of period Issued Reinvested distributions 3 3 Redeemed (12) (36) (1) (143) (67) (13) (2) Securities outstanding end of period Series FB5 Series PW Series PWF Series PWF6 Series PWFB NET ASSETS ATTRIBUTABLE TO SECURITYHOLDERS $ $ $ $ $ Beginning of period 2 1 1, ,715 2,030 Increase (decrease) in net assets from operations Distributions paid to securityholders: Investment income (19) (3) (79) (46) (3) Capital gains Return of capital (3) Management fee rebates (1) Total distributions paid to securityholders (19) (3) (80) (46) (6) Security transactions: Proceeds from securities issued ,685 5, Reinvested distributions Value of securities redeemed (9) (498) (1,419) (5) Total security transactions ,254 3, Total increase (decrease) in net assets ,240 3, End of period 2 1 1, ,955 5, Increase (decrease) in fund securities (note 7): Securities Securities Securities Securities Securities Securities outstanding beginning of period Issued Reinvested distributions Redeemed (1) (51) (144) Securities outstanding end of period The accompanying notes are an integral part of these financial statements.

5 STATEMENTS OF CHANGES IN FINANCIAL POSITION (cont d) For the periods ended September 30 (note 1) In thousands of U.S. dollars Series PWFB5 Series PWT6 Series PWX Series SC Series S6 NET ASSETS ATTRIBUTABLE TO SECURITYHOLDERS $ $ $ $ $ Beginning of period Increase (decrease) in net assets from operations Distributions paid to securityholders: Investment income (1) (5) (6) Capital gains Return of capital Management fee rebates Total distributions paid to securityholders (1) (5) (6) Security transactions: Proceeds from securities issued Reinvested distributions Value of securities redeemed (5) (45) (388) (423) Total security transactions 1 1 (5) (34) (107) (190) Total increase (decrease) in net assets (33) (107) (181) End of period Increase (decrease) in fund securities (note 7): Securities Securities Securities Securities Securities Securities outstanding beginning of period Issued Reinvested distributions Redeemed (5) (41) (43) Securities outstanding end of period Series T6 Total NET ASSETS ATTRIBUTABLE TO SECURITYHOLDERS $ $ Beginning of period 1 1 9,072 5,660 Increase (decrease) in net assets from operations Distributions paid to securityholders: Investment income (147) (93) Capital gains Return of capital (3) (2) Management fee rebates (1) Total distributions paid to securityholders (151) (95) Security transactions: Proceeds from securities issued 3,429 8,177 Reinvested distributions Value of securities redeemed (2,604) (2,930) Total security transactions 943 5,332 Total increase (decrease) in net assets 929 5,474 End of period ,001 11,134 Increase (decrease) in fund securities (note 7): Securities Securities outstanding beginning of period Issued Reinvested distributions Redeemed Securities outstanding end of period The accompanying notes are an integral part of these financial statements.

6 STATEMENTS OF CASH FLOWS For the periods ended September 30 (note 1) In thousands of U.S. dollars 2017 $ 2016 $ Cash flows from operating activities Net increase (decrease) in net assets attributable to securityholders from operations Adjustments for: Net realized loss (gain) on investments Change in net unrealized loss (gain) on investments (468) (167) Purchase of investments (7,112) (8,865) Proceeds from sale and maturity of investments 6,052 4,390 Change in accrued interest receivable 1 (31) Change in margin on futures contracts 155 (73) Change in liability for options written (3) Net cash from operating activities (772) (4,480) Cash flows from financing activities Proceeds from redeemable securities issued 1,787 8,173 Payments on redemption of redeemable securities (933) (2,903) Distributions paid net of reinvestments (33) (10) Net cash from financing activities 821 5,260 Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Effect of exchange rate fluctuations on cash and cash equivalents 3 Cash and cash equivalents at end of period 163 1,009 Cash Cash equivalents 973 Cash and cash equivalents at end of period 163 1,009 Supplementary disclosures on cash flow from operating activities: Dividends received 4 Foreign taxes paid Interest received Interest paid 1 The accompanying notes are an integral part of these financial statements.

7 SCHEDULE OF INVESTMENTS As at September 30, 2017 Country Sector Par Value/ No. of Shares/Units Average Cost Fair Value BONDS 407 International Inc. 3.60% Callable Canada Corporate - Non Convertible CAD 20, Algonquin Power & Utilities Corp. 4.65% Canada Corporate - Non Convertible CAD 40, Alimentation Couche-Tard Inc. 3.06% Callable 2024 Canada Corporate - Non Convertible CAD 30, Allied Properties REIT 3.93% Canada Corporate - Non Convertible CAD 10, AltaLink LP 3.72% Callable MTN Canada Corporate - Non Convertible CAD 32, Amazon.com Inc. 3.80% Callable 2024 United States Corporate - Non Convertible 75, Anheuser-Busch InBev Finance Inc. 2.65% Callable 2021 Belgium Corporate - Non Convertible 100, Anheuser-Busch InBev Finance Inc. 3.30% Callable 2022 Belgium Corporate - Non Convertible 80, Anheuser-Busch InBev Finance Inc. 2.60% Callable 2024 Belgium Corporate - Non Convertible CAD 20, Arch Merger Sub Inc. 8.50% Callable 2020 United States Corporate - Non Convertible 10, Argentine Bonos del Tesoro 21.20% Argentina Foreign Governments ARS 1,000, Asian Development Bank 6.00% Supra - National n/a INR 1,750, Asian Development Bank 6.45% Supra - National n/a INR 1,130, AT&T Inc. 3.83% United States Corporate - Non Convertible CAD 150, AT&T Inc. 2.85% Callable 2023 United States Corporate - Non Convertible 50, Aviva PLC 4.50% United Kingdom Corporate - Non Convertible CAD 20, Bank of America Corp. F/R Callable 2022 United States Corporate - Non Convertible CAD 40, Bank of America Corp. F/R Callable 2024 United States Corporate - Non Convertible CAD 30, Bank of Montreal 2.27% Canada Corporate - Non Convertible CAD 50, Bank of Montreal 2.70% DPNT Canada Corporate - Non Convertible CAD 10, The Bank of Nova Scotia 1.90% DPNT Canada Corporate - Non Convertible CAD 30, bcimc Realty Corp. 3.00% Callable 2026 Canada Corporate - Non Convertible CAD 10, Bell Canada 3.60% Callable Series MTN Canada Corporate - Non Convertible CAD 20, BMW Canada Inc. 1.88% Germany Corporate - Non Convertible CAD 10, Brookfield Renewable Energy Partners ULC 3.75% Callable 2025 Canada Corporate - Non Convertible CAD 10, Brookfield Renewable Energy Partners ULC 3.63% Callable 2026 Canada Corporate - Non Convertible CAD 30, Bruce Power LP 3.00% Callable 2024 Canada Corporate - Non Convertible CAD 20, Caisse Centrale Desjardins 2.09% Canada Corporate - Non Convertible CAD 70, Calpine Corp. 6.00% Callable 2017 United States Corporate - Non Convertible 10, Calpine Corp. 5.50% Callable 2019 United States Corporate - Non Convertible 10, Camelot Finance SA 7.88% Callable 2019 Luxembourg Corporate - Non Convertible 20, Can Am Construction Inc./Canada Term Loan B 1st Lien F/R Canada Term Loans 9, Canada Goose Inc. Term Loan 1st Lien F/R Canada Term Loans 10, Canadian Imperial Bank of Commerce 1.55% Callable 2017 Canada Corporate - Non Convertible 60, Canadian Imperial Bank of Commerce 3.42% Callable 2021 Canada Corporate - Non Convertible CAD 10, Canadian Imperial Bank of Commerce 2.30% DPNT Canada Corporate - Non Convertible CAD 10, Canadian Western Bank 2.74% DPNT Canada Corporate - Non Convertible CAD 10, Capital Power Corp. 4.28% Callable 2024 Canada Corporate - Non Convertible CAD 40, Careerbuilder LLC Term Loan 1st Lien F/R United States Term Loans 10, CD&R Waterworks Merger Sub LLC 6.13% Callable 2020 United States Corporate - Non Convertible 5,

8 SCHEDULE OF INVESTMENTS (cont d) As at September 30, 2017 Country Sector Par Value/ No. of Shares/Units Average Cost Fair Value BONDS (cont d) Chartwell Retirement Residences 3.79% Callable 2023 Canada Corporate - Non Convertible CAD 20, CHS/Community Health Systems Inc. 5.13% United States Corporate - Non Convertible 10, City of Oslo 2.35% Norway Foreign Governments NOK 1,000, Commonwealth of Bahamas 5.75% Bahamas Foreign Governments 40, Commonwealth of Bahamas 6.95% Bahamas Foreign Governments 265, Communications Sales & Leasing Inc. Term Loan B 1st Lien F/R United States Term Loans 43, ConvergeOne Holdings Corp. Term Loan B 1st Lien F/R United States Term Loans 10, Cooperatieve Rabobank U.A. F/R Netherlands Corporate - Non Convertible SEK 1,000, Danske Bank AS F/R Denmark Corporate - Non Convertible SEK 1,000, Deutsche Bank AG of New York F/R Germany Corporate - Non Convertible 75, Digicert Holdings Inc. Term Loan 1st Lien F/R United States Term Loans 50, Dynegy Inc. 8.13% Callable 2020 United States Corporate - Non Convertible 30, EagleTree-Carbide Acquisition Corp. Term Loan 1st Lien F/R United States Term Loans 10, Enbridge Inc. 4.77% Callable Canada Corporate - Non Convertible CAD 100, Enbridge Inc. 4.00% Callable 2023 Canada Corporate - Non Convertible 60, Enbridge Inc. 3.20% Callable 2027 Canada Corporate - Non Convertible CAD 10, Enbridge Inc. 4.57% Canada Corporate - Non Convertible CAD 20, Enbridge Inc. 5.37% Callable 2027 Canada Corporate - Non Convertible CAD 70, EnerCare Solutions Inc. 3.38% Callable 2022 Canada Corporate - Non Convertible CAD 20, EnerCare Solutions Inc. 3.99% Callable 2023 Canada Corporate - Non Convertible CAD 20, European Bank for Reconstruction & Development 6.00% Supra - National n/a INR 3,500, Fairfax Financial Holdings Ltd. 8.30% Canada Corporate - Non Convertible 20, The Fédération des Caisses Desjardins du Québec 2.39% Canada Corporate - Non Convertible CAD 30, Fortified Trust 1.67% Canada Corporate - Non Convertible CAD 30, Frontier Communications Corp. Term Loan B 1st Lien F/R United States Term Loans 19, Frontier Communications Corp. 9.25% United States Corporate - Non Convertible 100, Gaz Metro Inc. 1.52% Canada Corporate - Non Convertible CAD 10, General Electric Capital Corp. F/R United States Corporate - Non Convertible SEK 1,000, General Electric Co. 8.35% United States Corporate - Non Convertible MXN 1,000, General Motors Financial of Canada Ltd. 2.60% United States Corporate - Non Convertible CAD 20, Gibson Energy Inc. 5.25% Callable 2020 REGS Canada Corporate - Non Convertible CAD 10, Gibson Energy Inc. 5.25% Callable 2020 Canada Corporate - Non Convertible CAD 10, The Goldman Sachs Group Inc. 5.20% United States Corporate - Non Convertible NZD 200, The Goldman Sachs Group Inc. F/R Callable 2026 United States Corporate - Non Convertible 100, Government of Canada 2.75% Canada Federal Government CAD 10, Government of Canada 1.50% Canada Federal Government CAD 220, Government of Canada 2.50% Canada Federal Government CAD 20, Government of Ireland 1.00% Ireland Foreign Governments EUR 125, Government of Mexico 10.00% Mexico Foreign Governments MXN 4,600, Government of Netherlands 0.50% Netherlands Foreign Governments EUR 245, Government of Portugal 5.13% Portugal Foreign Governments 85, Government of Romania 3.63% Romania Foreign Governments EUR 50, Government of Romania 2.88% Romania Foreign Governments EUR 35,

9 SCHEDULE OF INVESTMENTS (cont d) As at September 30, 2017 Country Sector Par Value/ No. of Shares/Units Average Cost Fair Value BONDS (cont d) Government of Turkey 9.40% Turkey Foreign Governments TRL 300, Government of Turkey 10.60% Turkey Foreign Governments TRL 350, Government of Turkey 11.00% Turkey Foreign Governments TRL 400, Granite REIT Holdings LP 3.87% Callable 2023 Canada Corporate - Non Convertible CAD 20, Green Plains Inc. Term Loan B 1st Lien F/R United States Term Loans 10, GST AutoLeather Inc. Term Loan B 1st Lien F/R United States Term Loans 60, H&R Real Estate Investment Trust 2.92% Canada Corporate - Non Convertible CAD 50, Heathrow Funding Ltd. 4.00% United Kingdom Corporate - Non Convertible CAD 100, Hennessy Capital Acquisition Corp. II Term Loan 1st Lien F/R United States Term Loans 19, Hydro One Inc. 3.72% Canada Corporate - Non Convertible CAD 10, Hyster-Yale Group Inc. Term Loan B 1st Lien F/R United States Term Loans 9, Innocor Inc. Term Loan 1st Lien F/R United States Term Loans 9, Inter Pipeline Ltd. 2.73% Callable 2024 Canada Corporate - Non Convertible CAD 10, Inter Pipeline Ltd. 3.48% Callable 2026 Canada Corporate - Non Convertible CAD 10, International Finance Corp. 6.30% Supra - National n/a INR 15,500, iqor US Inc. Term Loan B 1st Lien F/R United States Term Loans 122, Jane Street Group LLC Term Loan B 1st Lien F/R United States Term Loans 10, KEMET Corp. Term Loan B 1st Lien F/R United States Term Loans 19, Kommunalbanken AS F/R Norway Foreign Governments NZD 50, Kraft Heinz Foods Co. 3.00% Callable 2026 United States Corporate - Non Convertible 50, Laurentian Bank of Canada 3.00% Canada Corporate - Non Convertible CAD 30, LifeMiles Ltd. Term Loan B 1st Lien F/R Colombia Term Loans 10, Lockheed Martin Corp. 3.55% Callable 2025 United States Corporate - Non Convertible 50, Manulife Bank of Canada 2.08% Canada Corporate - Non Convertible CAD 30, Manulife Financial Corp. F/R Callable 2024 Canada Corporate - Non Convertible CAD 30, Mattamy Group Corp. 6.50% Callable 2020 Canada Corporate - Non Convertible CAD 15, McAfee LLC Term Loan B 1st Lien F/R United States Term Loans 50, McDonald s Corp. 3.13% Callable 2025 United States Corporate - Non Convertible CAD 40, Mexican Bonos 5.00% Mexico Foreign Governments MXN 3,500, Mexican Bonos 7.75% Mexico Foreign Governments MXN 4,000, Mexican Udibonos Inflation Indexed Bonds 4.50% Mexico Foreign Governments MXN 300, Mexican Udibonos Inflation Linked Bonds 4.00% Mexico Foreign Governments MXN 250, Mitsubishi UFJ Financial Group Inc. 2.67% Japan Corporate - Non Convertible 50, Molson Coors International LP 2.25% United States Corporate - Non Convertible CAD 80, Molson Coors International LP 2.84% Callable 2023 United States Corporate - Non Convertible CAD 90, Morgan Stanley 3.13% United States Corporate - Non Convertible CAD 100, Morgan Stanley 3.00% United States Corporate - Non Convertible CAD 40, Nykredit Realkredit AS 1.00% Denmark Corporate - Non Convertible DKK 950, OMERS Realty Corp. 3.24% Callable 2027 Canada Corporate - Non Convertible CAD 40, Ontario Power Generation Inc. 3.32% Callable 2027 Canada Corporate - Non Convertible CAD 20, OPB Finance Trust 2.98% Canada Provincial Governments CAD 20, Paradigm Acquisition Corp. Term Loan 1st Lien F/R United States Term Loans 48, Parkland Fuel Corp. 5.75% Callable 2019 Canada Corporate - Non Convertible CAD 50, Pembina Pipeline Corp. 2.99% Callable 2023 Canada Corporate - Non Convertible CAD 42, Pembina Pipeline Corp. 3.71% Callable 2026 Canada Corporate - Non Convertible CAD 10, PepsiCo Inc. 2.15% Callable 2024 United States Corporate - Non Convertible CAD 10, PNI Canada Acquireco Corp. Term Loan B 1st Lien F/R Canada Term Loans 10, Province of Manitoba 2.85% Canada Provincial Governments CAD 40, Province of Ontario 2.40% Canada Provincial Governments CAD 20,

10 SCHEDULE OF INVESTMENTS (cont d) As at September 30, 2017 Country Sector Par Value/ No. of Shares/Units Average Cost Fair Value BONDS (cont d) Province of Ontario 2.60% Canada Provincial Governments CAD 70, QCP SNF West 8.125% Callable 2019 United States Corporate - Non Convertible 20, Queensland Treasury Corp. 2.75% Australia Foreign Governments AUD 250, Rackspace Hosting Inc. 8.63% Callable 2019 United States Corporate - Non Convertible 30, Realkredit Danmark AS 1.00% Denmark Corporate - Non Convertible DKK 600, Realkredit Danmark AS 1.00% Denmark Corporate - Non Convertible DKK 2,350, Republic of Poland F/R Poland Foreign Governments PLN 350, Rite Aid Corp. 6.13% Callable 2018 United States Corporate - Non Convertible 10, Rogers Communications Inc. 4.00% Canada Corporate - Non Convertible CAD 100, Royal Bank of Canada 2.33% DPNT Canada Corporate - Non Convertible CAD 10, Royal Bank of Canada 4.65% GMTN Canada Corporate - Non Convertible 20, Sage Automotive Holdings Inc. Term Loan 1st Lien F/R United States Term Loans 49, Saputo Inc. 1.94% Callable 2022 Canada Corporate - Non Convertible CAD 10, Source Energy Services Canada LP 10.50% Callable 2018 Canada Corporate - Non Convertible CAD 41, Staples Inc. Term Loan 1st Lien F/R United States Term Loans 10, State of Israel 2.00% Israel Foreign Governments ILS 500, Superior Plus LP 5.25% Callable 2020 Canada Corporate - Non Convertible CAD 10, Sydney Airport Finance Co. Pty. Ltd. 3.63% Callable 2026 Australia Corporate - Non Convertible 70, Talen Energy Supply LLC 9.50% Callable 2020 United States Corporate - Non Convertible 30, Thomson Reuters Corp. 4.35% United States Corporate - Non Convertible CAD 100, T-Mobile USA Inc. 6.50% Callable 2019 United States Corporate - Non Convertible 20, The Toronto-Dominion Bank 1.91% DPNT Canada Corporate - Non Convertible CAD 30, The Toronto-Dominion Bank F/R Callable 2024 Canada Corporate - Non Convertible CAD 30, TransCanada Pipelines Ltd. 3.39% Callable 2027 Canada Corporate - Non Convertible CAD 30, TransCanada Trust F/R Callable 2027 Canada Corporate - Non Convertible CAD 30, Traverse Midstream Partners LLC Term Loan B 1st Lien F/R United States Term Loans 10, Treasury Corp. of Victoria 3.00% Australia Foreign Governments AUD 200, Tronox Blocked Borrower LLC Term Loan B 1st Lien F/R United States Term Loans 3, Tronox Pigments Holland BV Term Loan B 1st Lien F/R Netherlands Term Loans 6, Uber Technologies Inc. Term Loan B 1st Lien F/R United States Term Loans 19, United States Treasury 2.13% United States Foreign Governments 200, United States Treasury 0.38% United States Foreign Governments 300, United States Treasury 0.89% United States Foreign Governments 150, United States Treasury 3.00% United States Foreign Governments 50, Ventas Canada Finance Ltd. 2.55% Callable 2023 United States Corporate - Non Convertible CAD 20, Verizon Communications Inc. 5.15% United States Corporate - Non Convertible 50, Verizon Communications Inc. 2.63% Callable 2026 United States Corporate - Non Convertible 50, Videotron Ltee 5.75% Callable 2020 Canada Corporate - Non Convertible CAD 10, Volkswagen Financial Services NV 1.75% Germany Corporate - Non Convertible GBP 50, Wells Fargo & Co. 2.09% United States Corporate - Non Convertible CAD 100, Wells Fargo & Co. 2.98% United States Corporate - Non Convertible CAD 60, YRC Worldwide Inc. Term Loan 1st Lien F/R United States Term Loans 9, Total bonds 9,522 9,560

11 SCHEDULE OF INVESTMENTS (cont d) As at September 30, 2017 Country Sector Par Value/ No. of Shares/Units Average Cost Fair Value EQUITIES AltaGas Ltd. Pfd. Series K Canada Energy 1, Brookfield Asset Management Inc. Pfd. Series 46 Canada Real Estate 1, Brookfield Asset Management Inc. Pfd. Series 48 Canada Real Estate Brookfield Renewable Partners LP Pfd. Series 11 Canada Utilities 1, Source Energy Services Ltd. Private Placement United States Energy TransAlta Corp. Pfd. Series A Canada Utilities 1, TransCanada Corp. Pfd. Series 15 Canada Energy 2, Total equities OPTIONS Options purchased (see schedule of options purchased) 16 4 Total options 16 4 MUTUAL FUNDS Mackenzie Unconstrained Fixed Income Fund Series R Canada Mutual Funds 5, Total mutual funds Transaction costs (1) Total investments 9,719 9,762 Derivative instruments (see schedule of derivative instruments) 59 Liability for options written (see schedule of options written) Cash and cash equivalents 163 Other assets less liabilities 17 Total net assets 10,001

12 SUMMARY OF INVESTMENT PORTFOLIO September 30, 2017 Portfolio Allocation % of NAV Bonds 97.3 Bonds 95.6 Long futures 1.6 Short futures 0.1 Equities 1.6 Other assets (liabilities) 0.7 Mutual funds 0.4 Purchased currency options 0.0 Written currency options (0.0) March 31, 2017 Portfolio Allocation % of NAV Bonds 96.8 Bonds 94.8 Long futures 1.8 Purchased options 0.3 Written options (0.0) Short futures (0.1) Other assets (liabilities) 1.9 Equities 1.5 Mutual funds 0.4 Cash and short-term investments (0.6) Regional Allocation % of NAV United States 34.6 Canada 19.0 Mexico 9.1 Denmark 7.7 Other 4.9 Netherlands 4.2 Australia 4.1 Bahamas 3.3 Turkey 2.9 Belgium 2.0 Norway 1.6 United Kingdom 1.5 Ireland 1.5 Germany 1.5 Israel 1.4 Other assets (liabilities) 0.7 Regional Allocation % of NAV United States 34.3 Canada 13.6 Denmark 7.6 Other 7.6 Mexico 7.1 Poland 4.9 Bermuda 4.1 Netherlands 4.1 Bahamas 3.6 Ireland 2.9 Portugal 2.6 Italy 2.2 France 2.1 Brazil 2.0 Other assets (liabilities) 1.9 Cash and short-term investments (0.6) Sector Allocation % of NAV Corporate bonds 45.8 Foreign government bonds 38.5 Term loans 6.4 Supra-national bonds 3.4 Federal bonds 2.0 Provincial bonds 1.2 Energy 0.9 Other assets (liabilities) 0.7 Utilities 0.4 Mutual funds 0.4 Financials 0.3 Sector Allocation % of NAV Foreign government bonds 46.2 Corporate bonds 34.9 Term loans 12.1 Supra-national bonds 2.0 Other assets (liabilities) 1.9 Other 1.8 Energy 0.9 Federal bonds 0.8 Cash and short-term investments (0.6)

13 SCHEDULE OF OPTIONS PURCHASED As at September 30, 2017 Underlying Interest Number of Contracts Option Type Expiration Date Strike Price $ Premium Paid Fair Value Currency Put Option AUD/NZD 950,000 Put Nov. 24, 2017 AUD Currency Call Option USD/CNH 1,000,000 Call Mar. 1, 2018 USD Total options 16 4 SCHEDULE OF OPTIONS WRITTEN As at September 30, 2017 Underlying Interest Number of Contracts Option Type Expiration Date Strike Price $ Premium Received Fair Value Currency Written Call Option USD/CNH (750,000) Written Call Mar. 1, 2018 USD 7.75 (6) Total options (6)

14 SCHEDULE OF DERIVATIVE INSTRUMENTS As at September 30, 2017 Schedule of Futures Contracts Number of Contracts Type of Contract Expiration Date Average Rate of Contracts Notional Value* Unrealized Gains (Losses) (4) 10 Year Swedish Government Bond Futures December 2017 Dec. 14, SEK (727) 8 (6) Eurex Euro-BOBL Futures December 2017 Dec. 17, EUR (930) 4 Unrealized Gains (1,657) 12 1 CME Ultra Term United States Treasury Bond Futures December 2017 Dec. 19, USD 165 (2) Unrealized (Losses) 165 (2) Total futures contracts (1,492) 10 *Notional value represents the exposure to the underlying instruments as at September 30, 2017 Schedule of Forward Currency Contracts Counterparty Credit Rating Bought ($ 000s) Sold ($ 000s) Settlement Date Contract Cost Current Fair Value Unrealized Gains (Losses) AA 53 U.S. dollar (67) Australian dollar Oct. 5, 2017 (53) (52) 1 AA 47 British pound (61) U.S. dollar Oct. 5, AA 96 U.S. dollar (748) Norwegian krone Oct. 5, 2017 (96) (94) 2 AA 48 U.S. dollar (384) Swedish krona Oct. 5, 2017 (48) (47) 1 AA 135 U.S. dollar (129) Swiss franc Oct. 5, 2017 (135) (134) 1 AA 55 Euro (63) U.S. dollar Oct. 6, AA 128 U.S. dollar (1,015) Norwegian krone Nov. 3, 2017 (128) (128) AA 189 U.S. dollar (259) New Zealand dollar Nov. 29, 2017 (189) (187) 2 AA 649 U.S. dollar (4,030) Danish krone Dec. 1, 2017 (649) (642) 7 AA 484 U.S. dollar (8,705) Mexican peso Dec. 1, 2017 (484) (473) 11 AA 51 U.S. dollar (938) Mexican peso Dec. 1, 2017 (51) (51) AA 125 U.S. dollar (1,010) Swedish krona Dec. 6, 2017 (125) (124) 1 AA 146 U.S. dollar (2,640) Mexican peso Dec. 8, 2017 (146) (143) 3 AA 2,004 U.S. dollar (2,470) Canadian dollar Dec. 22, 2017 (2,004) (1,980) 24 AA 507 U.S. dollar (627) Canadian dollar Dec. 22, 2017 (507) (503) 4 AA 11 U.S. dollar (14) Canadian dollar Dec. 22, 2017 (11) (11) A 245 U.S. dollar (4,400) Mexican peso Dec. 22, 2017 (245) (239) 6 A 51 U.S. dollar (938) Mexican peso Dec. 22, 2017 (51) (51) AA 67 U.S. dollar (50) British pound Jan. 10, 2018 (67) (67) A 180 U.S. dollar (149) Euro Jan. 26, 2018 (180) (178) 2 Unrealized Gains 69 AA 64 Canadian dollar (52) U.S. dollar Oct. 5, AA 25 Euro (30) U.S. dollar Oct. 5, AA 8,048 Japanese yen (74) U.S. dollar Oct. 5, (2) AA 91 New Zealand dollar (66) U.S. dollar Oct. 5, AA 99 U.S. dollar (88) Euro Oct. 6, 2017 (99) (104) (5) A 61 Australian dollar (49) U.S. dollar Oct. 25, (1) A 292 U.S. dollar (385) Australian dollar Oct. 25, 2017 (292) (302) (10) A 89 U.S. dollar (114) Australian dollar Oct. 25, 2017 (89) (89) AA 347 U.S. dollar (295) Euro Oct. 27, 2017 (347) (349) (2) Unrealized (Losses) (20) Total forward currency contracts 49 Total derivative instruments at fair value 59

15 NOTES TO FINANCIAL STATEMENTS 1. Fiscal Periods and General Information The information provided in these financial statements and notes thereto is for the six-month periods ended or as at September 30, 2017 and 2016, except for the comparative information presented in the Statements of Financial Position and notes thereto, which is as at March 31, 2017, as applicable. In the year a Fund or series is established or reinstated, period represents the period from inception or reinstatement. Refer to Note 9 for the formation date of the Fund and the inception date of each series. The Fund is organized as an open-ended mutual fund trust established under the laws of the Province of Ontario pursuant to a Declaration of Trust as amended and restated from time to time. The address of the Fund s registered office is 180 Queen Street West, Toronto, Ontario, Canada. The Fund is authorized to issue an unlimited number of units (referred to as security or securities ) of multiple series. Series of the Fund are available for sale under Simplified Prospectus or exempt distribution options. Mackenzie Financial Corporation ( Mackenzie ) is the manager of the Fund and is wholly owned by IGM Financial Inc., a subsidiary of Power Financial Corporation, which itself is a subsidiary of Power Corporation of Canada. The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company (collectively, the Related Insurance Companies ) are wholly owned by Great-West Lifeco Inc., which is also a subsidiary of Power Financial Corporation. Investments in companies within the Power Group of companies held by the Fund are identified in the Schedule of Investments. 2. Basis of Preparation and Presentation These unaudited interim financial statements ( financial statements ) have been prepared in accordance with International Financial Reporting Standards ( IFRS ), including International Accounting Standard ( IAS ) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ( IASB ). These financial statements were prepared using the same accounting policies, critical accounting judgments and estimates as applied in the Fund s most recent audited annual financial statements for the year ended March 31, A summary of the Fund s significant accounting policies under IFRS is presented in Note 3. These financial statements are presented in U.S. dollars, which is the Fund s functional and presentation currency, and rounded to the nearest thousand unless otherwise indicated. These financial statements are prepared on a going concern basis using the historical cost basis, except for financial assets and liabilities that have been measured at fair value. These financial statements were authorized for issue by the Board of Directors on November 14, Standards issued but not yet effective for the current accounting year, as applicable, are described in Note Significant Accounting Policies (a) Financial instruments Financial instruments include financial assets and liabilities such as debt and equity securities, open-ended investment funds and derivatives. The Fund classifies and measures financial instruments in accordance with IFRS 9, Financial Instruments ( IFRS 9 ). Upon initial recognition, financial instruments are classified as fair value through profit or loss ( FVTPL ). All financial instruments are recognized in the Statement of Financial Position when the Fund becomes a party to the contractual requirements of the instrument. Financial assets are derecognized when the right to receive cash flows from the instrument has expired or the Fund has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognized when the obligation is discharged, cancelled and expires. As such, investment purchase and sale transactions are recorded as of the trade date. Financial instruments are subsequently measured at FVTPL with changes in fair value recognized in the Statement of Comprehensive Income Net unrealized gain (loss). The Fund s redeemable securities contain multiple dissimilar contractual obligations and therefore meet the criteria for classification as financial liabilities under IAS 32, Financial Instruments: Presentation. The Fund s obligation for net assets attributable to securityholders is presented at the redemption amount. Realized and unrealized gains and losses on investments are calculated based on the weighted average cost of investments and exclude commissions and other portfolio transaction costs, which are separately reported in the Statement of Comprehensive Income Commissions and other portfolio transaction costs. Gains and losses arising from changes in the fair value of the investments are included in the Statement of Comprehensive Income for the period in which they arise. The Fund accounts for its holdings in unlisted open-ended investment funds and exchange-traded funds, if any, at fair value through profit and loss. Mackenzie has concluded that any unlisted open-ended investment fund and exchange-traded funds in which the Fund invests, do not meet either the definition of a structured entity or the definition of an associate.

16 NOTES TO FINANCIAL STATEMENTS 3. Significant Accounting Policies (cont d) (b) Fair value measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments listed on a public securities exchange or traded on an over-the-counter market are valued on the basis of the last traded market price or close price recorded by the security exchange on which the security is principally traded, where this price falls within the quoted bid-ask spread for the investment. In circumstances where this price is not within the bid-ask spread, Mackenzie determines the point within the bid-ask spread that is most representative of fair value based on the specific facts and circumstances. Mutual fund securities of an underlying fund are valued on a business day at the price calculated by the manager of such underlying fund in accordance with the constating documents of such underlying fund. Unlisted or non-exchange traded investments, or investments where a last sale or close price is unavailable or investments for which market quotations are, in Mackenzie s opinion, inaccurate, unreliable, or not reflective of all available material information, are valued at their fair value as determined by Mackenzie using appropriate and accepted industry valuation techniques including valuation models. The fair value determined using valuation models requires the use of inputs and assumptions based on observable market data including volatility and other applicable rates or prices. In limited circumstances, the fair value may be determined using valuation techniques that are not supported by observable market data. The cost of investments is determined on a weighted average cost basis. Cash and cash equivalents which includes cash on deposit with financial institutions and short term investments that are readily convertible to cash, are subject to an insignificant risk of changes in value, and are used by the Fund in the management of short-term commitments. Cash and cash equivalents are reported at fair value which closely approximates their amortized cost due to their nature of being highly liquid and having short terms to maturity. Bank overdraft positions are presented under current liabilities as bank indebtedness in the Statement of Financial Position. The Fund may use derivatives (such as written options, futures, forward contracts, swaps or customized derivatives) to hedge against losses caused by changes in securities prices, interest rates or exchange rates. The Fund may also use derivatives for non-hedging purposes in order to invest indirectly in securities or financial markets, to gain exposure to other currencies, to seek to generate additional income, and/or for any other purpose considered appropriate by the Fund s portfolio manager(s), provided that the use of the derivative is consistent with the Fund s investment objectives. Any use of derivatives will comply with Canadian mutual fund laws, subject to the regulatory exemptions granted to the Fund, as applicable. Refer to Exemptions from National Instrument in the Annual Information Form of the Fund for further details, including the complete conditions of these exemptions, as applicable. Valuations of derivative instruments are carried out daily, using normal exchange reporting sources for exchange-traded derivatives and specific broker enquiry for over-the-counter derivatives. The value of forward contracts is the gain or loss that would be realized if, on the valuation date, the positions were to be closed out. The change in value of forward contracts is included in the Statement of Comprehensive Income Other changes in fair value of investments Net unrealized gain (loss). The value of futures contracts or swaps fluctuates daily, and cash settlements made daily, where applicable, by the Fund are equal to the unrealized gains or losses on a mark to market basis. These unrealized gains or losses are recorded and reported as such until the Fund closes out the contract or the contract expires. Margin paid or deposited in respect of futures contracts or swaps is reflected as a receivable in the Statement of Financial Position Margin on futures contracts or swaps. Any change in the variation margin requirement is settled daily. Premiums received from writing options are included in the Statement of Financial Position as a liability and subsequently adjusted daily to fair value. If a written option expires unexercised, the premium received is recognized as a realized gain. If a written call option is exercised, the difference between the proceeds of the sale plus the value of the premium, and the cost of the security is recognized as a realized gain or loss. If a written put option is exercised, the cost of the security acquired is the exercise price of the option less the premium received. Refer to the Schedule of Derivative Instruments and Schedule of Options Purchased/Written, as applicable, included in the Schedule of Investments for a listing of derivative and options positions as at September 30, (c) Income recognition Interest income from interest bearing investments is recognized using the effective interest method. Dividends are accrued as of the ex-dividend date. Realized gains or losses on the sale of investments, including foreign exchange gains or losses on such investments, are calculated on an average cost basis. Distributions received from an underlying fund are included in interest income, dividend income, realized gains (losses) on sale of investments or fee rebate income, as appropriate. Income, realized gains (losses) and unrealized gains (losses) are allocated daily among the series on a pro-rata basis.

17 NOTES TO FINANCIAL STATEMENTS 3. Significant Accounting Policies (cont d) (d) Commissions and other portfolio transaction costs Commissions and other portfolio transaction costs are costs incurred to acquire, issue or dispose of financial assets or liabilities. They include fees and commissions paid to agents, advisers, brokers and dealers. Commissions may be paid to brokerage firms which provide (or pay for) certain services, other than order execution, which may include investment research, analysis and reports, and databases or software in support of these services. Where applicable and ascertainable, the value of third-party services that were paid for by brokers during the periods is disclosed in Note 9. The value of certain proprietary services provided by brokers cannot be reasonably estimated. (e) Securities lending, repurchase and reverse repurchase transactions The Fund is permitted to enter into securities lending, repurchase and reverse repurchase transactions as set out in the Fund s Simplified Prospectus. These transactions involve the temporary exchange of securities for collateral with a commitment to redeliver the same securities on a future date. Securities lending transactions are administered by Canadian Imperial Bank of Commerce (the Securities Lending Agent ). The value of cash or securities held as collateral must be at least 102% of the fair value of the securities loaned, sold or purchased. Income is earned from these transactions in the form of fees paid by the counterparty and, in certain circumstances, interest paid on cash or securities held as collateral. Income earned from these transactions is included in the Statement of Comprehensive Income Securities lending income and recognized when earned. Note 9 summarizes the details of securities loaned and collateral received, as well as a reconciliation of securities lending income, if applicable. (f) Offsetting Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position only when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. In the normal course of business, the Fund enters into various master netting agreements or similar agreements that do not meet the criteria for offsetting in the Statement of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts. Note 9 summarizes the details of such offsetting, if applicable. Income and expenses are not offset in the Statement of Comprehensive Income unless required or permitted to by an accounting standard, as specifically disclosed in the IFRS policies of the Fund. (g) Foreign currency The functional and presentation currency of the Fund is U.S. dollars. Foreign currency purchases and sales of investments and foreign currency dividend and interest income and expenses are translated to U.S. dollars at the rate of exchange prevailing at the time of the transactions. Foreign exchange gains (losses) on purchases and sales of foreign currencies are included in the Statement of Comprehensive Income Net realized gain (loss). The fair value of investments and other assets and liabilities, denominated in foreign currencies, are translated to U.S. dollars at the rate of exchange prevailing on each business day. (h) Net assets attributable to securityholders per security (i) (j) Net assets attributable to securityholders per security is computed by dividing the net assets attributable to securityholders of a series of securities on a business day by the total number of securities of the series outstanding on that day. Net asset value per security The daily Net Asset Value ( NAV ) of an investment fund may be calculated without reference to IFRS as per the Canadian Securities Administrators ( CSA ) regulations. The difference between NAV and Net assets attributable to securityholders (as reported in the financial statements), if any, is mainly due to differences in fair value of investments and other financial assets and liabilities. Refer to Note 9 for the Fund s NAV per security. Increase (decrease) in net assets attributable to securityholders from operations per security Increase (decrease) in net assets attributable to securityholders from operations per security in the Statement of Comprehensive Income represents the increase (decrease) in net assets attributable to securityholders from operations for the period, divided by the weighted average number of securities outstanding during the period. (k) Mergers The Fund applies the acquisition method of accounting for Fund mergers. Under this method, one of the Funds in each merger is identified as the acquiring Fund, and is referred to as the Continuing Fund, and the other Fund involved in the merger is referred to as the Terminated Fund. This identification is based on the comparison of the relative net asset values of the Funds as well as consideration of the continuation of such aspects of the Continuing Fund as: investment advisors; investment objectives and practices; type of portfolio securities; and management fees and expenses.