CI International Value Corporate Class

Transcription

1 This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling , by writing to us at CI Investments Inc., 2 Queen Street East, Twentieth Floor, Toronto, ON, M5C 3G7 or by visiting our website at or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure. INVESTMENT OBJECTIVE AND STRATEGIES The objective of the CI International Value Corporate Class (the Fund ) is to obtain maximum long-term capital growth. It invests primarily in equity and equity-related securities of companies whose primary operations are outside of North America. The Fund may make significant investments in any country including emerging markets and emerging industries of any market. The portfolio advisor uses techniques such as fundamental analysis to assess growth potential. This means evaluating the financial condition and management of a company, its industry and the overall economy. The portfolio advisor analyzes financial data, assesses the quality of management, and conducts company interviews. The Fund may use derivatives, but only as permitted by securities regulations. In order to earn additional income, the Fund may also enter into securities lending transactions, repurchase transactions and reverse repurchase transactions, to the extent permitted by securities regulations. RISK There were no changes to the Fund over the period of this report that materially affected the overall level of risk associated with the Fund. The Fund is suitable for investors who want to invest in foreign companies, are investing for the medium and/or long term, and can tolerate medium risk. RESULTS OF OPERATIONS The net asset value of the Fund increased by $84.3 million to $593.7 million from March 31, 217 to March 31, 218. The Fund had net sales of $57. million during. The portfolio s performance increased assets by $48.8 million. The Fund paid distributions totalling $21.5 million. Class A shares returned 8.8% after fees and expenses for the one-year period ended March 31, 218. Over the same time period, the Fund s benchmark returned 11.7%. The benchmark is the MSCI EAFE Return Index. The performance of the Fund s other classes is substantially similar to that of Class A shares, except for differences in the structure of fees and expenses. For the returns of the Fund s other classes, please refer to the Past performance section. Holdings in financials, telecommunications, and consumer staples outperformed, while consumer discretionary, health care, and energy weighed on relative performance. In financials, AXA SA, a French insurer, plans to acquire XL Group Ltd. for a 33% premium at the time of the offer, given its attractive insurance franchise, particularly in the U.S. In telecommunications, TDC accepted an offer from a group of Danish pension funds to buy it for a 26% premium at the time of the offer. In consumer staples, Heineken NV shares advanced as investors continued to take note of its high and accelerating volume growth and coinciding margin expansion, despite investment in advertising and promotion. In the consumer discretionary sector, Grupo Televisa SAB continues to recover from self-inflicted issues in its Mexican advertising business, which should improve as the new pricing strategy takes effect. In health care, Sanofi upset investors by allocating capital to an acquisition (Bioverativ Inc.) the market believes has a limited lifespan (i.e., hemophilia). However, we believe the business may have more resilience than expected. Energy holding Schlumberger Ltd., a global oilfield services company, has been pressured by concerns that a recovery in demand for international oilfield services (69% of revenue) will be weak even in a higher oil price environment. Positions sold during the period: Kasikornbank a major banking group in Thailand China Mengniu Dairy Co., Ltd. involved in the manufacture and distribution of dairy products in China Suzuki Motor Corp. a multinational automaker based in Japan Scor SE one of the world s largest reinsurers ING Group a Dutch multinational banking and financial services corporation Experian SA a consumer credit agency KB Financial Group Inc. a leading banking franchise in South Korea Sandvik AB based in Sweden, provides tools and services to the metal cutting industry SAP SE a multinational company that makes enterprise software to manage business operations and customer relations Glencore PLC a multinational commodity trading and mining company Philip Morris International Inc. a multinational tobacco company The Fund underperformed the MSCI World Return Index for the 12 months ending March 31, 218. The fear that persisted in the aftermath of the Global Financial Crisis (GFC) has been replaced by complacency and growing excesses in many markets throughout 217 and continuing into early 218. Aggressive and largely synchronized unconventional monetary policies among the world s major central banks have been the primary fuel powering the rise in asset prices post the GFC, however, beginning in February, markets experienced an arguably long-overdue bout of volatility as investors began to focus more on the risk side of the risk/return relationship. New positions over the period include the following: Ambev SA Brazil s foremost brewer Scor SE one of the world s largest reinsurers Cielo SA the leading electronic payment processor in Brazil Euronext NV operates derivatives and equity exchanges in France and the Netherlands Yahoo Japan Corp. the leading internet media franchise in Japan Swiss Re Ltd. a Swiss-based reinsurance company CIG - 25

2 Shire PLC a biopharmaceutical company that focuses on innovative medicines for rare diseases Trivago NV a leading hotel meta-search company Babcock International Group PLC a U.K.-based engineering services company that serves defense and civil clients BT Group PLC a leading communications company, serving the phone, broadband, TV, and mobile needs of the U.K. and customers in 17 countries RECENT DEVELOPMENTS Reflecting our value discipline, the portfolio s underlying exposures and risks have evolved, and we believe they are appropriate, considering the opportunities available in equity markets and their associated risks. Although it is possible that the prevailing complacency, narrow market leadership, and stretched valuations persist, we believe the risk associated with such an environment is asymmetric and heavily skewed to the downside. Instead, we believe the embedded value and distinctive investment theses underlying our investments are timely, sensible, and well suited to deliver superior risk-adjusted returns in what we believe will be an increasingly challenging environment. Effective November 3, 217, the Fund acquired all assets of CI International Corporate Class. Effective April 3, 218, Karen Fisher became a member of the CI Board of Governors ( BOG ) and the Independent Review Committee ( IRC ) of the Fund. Meanwhile, Christopher Hopper resigned from the role as a member of the BOG and IRC. RELATED PARTY TRANSACTIONS Manager, Portfolio Advisor and Registrar CI Investments Inc. is the Manager, Portfolio Advisor and Registrar of the Fund. CI Investments Inc. is a subsidiary of CI Financial Corp. The Manager, in consideration for management fees, provides management services required in the day-to-day operations of the Fund. The Manager bears all of the operating expenses of the Fund (other than taxes, borrowing costs and new governmental fees) in return for a fixed administration fee. fee and fixed administration fee rates as at March 31, 218, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) A Shares A1 Shares A2 Shares A3 Shares A4 Shares A5 Shares AT5 Shares AT8 Shares A1T8 Shares Annual management fee rate (%) Annual fixed administration fee rate (%) A3T8 Shares A4T8 Shares A5T8 Shares E Shares EF Shares EFT5 Shares EFT8 Shares ET5 Shares ET8 Shares F Shares F1 Shares F2 Shares.9.21 F3 Shares F4 Shares.8.12 F5 Shares.7.1 FT8 Shares F1T8 Shares F2T8 Shares.9.21 F3T8 Shares F4T8 Shares.8.12 F5T8 Shares.7.1 I Shares Paid directly by investor - IT8 Shares Paid directly by investor - O Shares Paid directly by investor.15 OT5 Shares Paid directly by investor.15 OT8 Shares Paid directly by investor.15 P Shares Paid directly by investor.22 W Shares Paid directly by investor.22 WT8 Shares Paid directly by investor.22 The Manager received $8.9 million in management fees and $1. million in fixed administration fees for. Fees Approximately 26% of total management fees were used to pay for sales and trailing commissions. The remaining 74% of management fees were used for investment management and other general administration. A2T8 Shares

3 Independent Review Committee The Fund received standing instructions from the Fund s Independent Review Committee with respect to the following related party transactions: a) trades in securities of CI Financial Corp.; b) purchases or sales of securities of an issuer from or to another investment fund managed by the Manager; c) purchases or sales of other investment funds managed by the Manager or their affiliates; and d) mergers involving the Fund and another fund managed by the Manager that is subject to National Instrument Investment Funds. The applicable standing instructions require that related party transactions be conducted in accordance with the Manager s policies and procedures and that the Manager advise the IRC of any material breach of a condition of the standing instructions. The standing instructions require, among other things, that investment decisions in respect of related party transactions (a) are free from any influence by an entity related to the Manager and without taking into account any consideration relevant to an entity related to the Manager; (b) represent the business judgment of the Manager uninfluenced by considerations other than the best interests of the Fund; (c) are made in compliance with the Manager s policies and procedures; and (d) achieve a fair and reasonable result for the Fund. Transactions made by the Manager under the standing instructions are subsequently reviewed by the IRC on a quarterly basis to monitor compliance. The Fund relied on the IRC s standing instructions regarding related party transactions during this reporting year.

4 FINANCIAL HIGHLIGHTS The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the past five years, as applicable. Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ A Shares Commencement of operations July 23, 1996 Mar. 31, (.44) 1.62 (.23) (.9) (.51) - (.6) Mar. 31, (.38) (.7) (.72) - (.79) Mar. 31, (.37) 1.19 (2.9) (.91) - (.6) (.64) - (.7) Mar. 31, (.35) (.6) (.5) - (.56) Mar. 31, (.32) (.11) - - (.11) A1 Shares Mar. 31, (.25).95 (.2).73 - (.6) (.32) - (.38) A2 Shares Mar. 31, (.24).98 (.1).95 - (.6) (.32) - (.38) A3 Shares Mar. 31, (.24).95 (.4).55 - (.6) (.32) - (.38) A4 Shares Mar. 31, (.24).91 (.4).51 - (.6) (.32) - (.38) A5 Shares Mar. 31, (.22).89 (.13).77 - (.6) (.32) - (.38) *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

5 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ AT5 Shares Commencement of operations December 22, 211 Mar. 31, (.34) 1.25 (.19).99 - (.7) (.37) (.59) (1.3) Mar. 31, (.31) (.5) (.56) (.63) (1.24) Mar. 31, (.32).99 (1.75) (.78) - (.5) (.53) (.61) (1.19) 11.1 Mar. 31, (.31) (.5) (.43) (.61) (1.9) 13.5 Mar. 31, (.3) (.1) - (.54) (.64) AT8 Shares Commencement of operations December 22, 211 Mar. 31, (.28) 1.1 (.16).81 - (.6) (.31) (.81) (1.18) 9.7 Mar. 31, (.27) (.5) (.48) (.88) (1.41) 1.2 Mar. 31, (.28).89 (1.57) (.69) - (.4) (.46) (.88) (1.38) 9.78 Mar. 31, (.29) (.5) (.39) (.92) (1.36) Mar. 31, (.28) (.1) - (.84) (.94) A1T8 Shares Mar. 31, (.24).9 (.25).63 - (.5) (.3) (.73) (1.8) A2T8 Shares Mar. 31, (.24).91 (.36).52 - (.5) (.3) (.73) (1.8) A3T8 Shares Mar. 31, (.23).91 (.36).53 - (.5) (.3) (.73) (1.8) A4T8 Shares Mar. 31, (.22).91 (.36).54 - (.5) (.3) (.73) (1.8) *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

6 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ A5T8 Shares Mar. 31, (.21).91 (.36).55 - (.5) (.3) (.73) (1.8) E Shares Mar. 31, (.26).94 (.13).79 - (.6) (.31) - (.37) 9.87 Mar. 31, (.23) (.4) (.45) - (.49) 9.41 Mar. 31, (.14).14 (.43) (.3) - (.4) (.4) - (.44) 8.41 EF Shares Mar. 31, (.16) 1. (.17).91 - (.6) (.32) - (.38) 1.16 Mar. 31, (.13) (.4) (.46) - (.5) 9.58 Mar. 31, (.7).21 (.27).4 - (.4) (.4) - (.44) 8.48 EFT5 Shares Mar. 31, (.14).9 (.13).85 - (.5) (.28) (.44) (.77) 8.85 Mar. 31, (.12) (.4) (.42) (.46) (.92) 8.77 Mar. 31, (.7).19 (1.31) (1.6) - (.4) (.39) (.33) (.76) 8.18 EFT8 Shares Mar. 31, (.13).84 (.12).79 - (.5) (.26) (.67) (.98) 8.13 Mar. 31, (.12) (.4) (.39) (.72) (1.15) 8.3 Mar. 31, (.7).19 (1.3) (1.5) - (.4) (.38) (.52) (.94) 8. ET5 Shares Mar. 31, (.24).88 (.12).73 - (.5) (.27) (.43) (.75) 8.59 Mar. 31, (.22) (.4) (.41) (.46) (.91) 8.6 Mar. 31, (.14).19 (1.31) (1.13) - (.4) (.38) (.33) (.75) 8.12 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

7 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ ET8 Shares Mar. 31, (.22).81 (.12).67 - (.5) (.25) (.66) (.96) 7.88 Mar. 31, (.21) (.4) (.39) (.72) (1.15) 8.14 Mar. 31, (.14).19 (1.3) (1.12) - (.3) (.38) (.52) (.93) 7.94 F Shares Commencement of operations July 31, 21 Mar. 31, (.33) 1.93 (.36) (.11) (.62) - (.73) Mar. 31, (.27) (.8) (.88) - (.96) Mar. 31, (.24) 1.75 (1.77).2 - (.7) (.77) - (.84) Mar. 31, (.22) (.7) (.59) - (.66) 18.7 Mar. 31, (.2) (.13) - - (.13) 16.3 F1 Shares Mar. 31, (.16) 1.6 (.22).93 - (.6) (.32) - (.38) F2 Shares Mar. 31, (.15).98 (.5) (.6) (.32) - (.38) F3 Shares Mar. 31, (.14).97 (.21).78 - (.6) (.32) - (.38) F4 Shares Mar. 31, (.13).98 (.35).76 - (.6) (.32) - (.38) *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

8 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ F5 Shares Mar. 31, (.12).95 (.38).67 - (.6) (.32) - (.38) FT8 Shares Commencement of operations July 28, 217 Mar. 31, (.12).7 (.14).59 - (.6) (.31) (.53) (.9) F1T8 Shares Commencement of operations July 28, 217 Mar. 31, (.11).7 (.14).6 - (.6) (.31) (.53) (.9) F2T8 Shares Commencement of operations July 28, 217 Mar. 31, (.11).7 (.14).6 - (.6) (.31) (.53) (.9) F3T8 Shares Commencement of operations July 28, 217 Mar. 31, (.1).7 (.14).61 - (.6) (.31) (.53) (.9) F4T8 Shares Commencement of operations July 28, 217 Mar. 31, (.9).7 (.14).62 - (.6) (.31) (.53) (.9) *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

9 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ F5T8 Shares Commencement of operations July 28, 217 Mar. 31, (.9).7 (.14).62 - (.6) (.31) (.53) (.9) I Shares Commencement of operations September 27, 26 Mar. 31, (.5) 1.66 (.22) (.1) (.53) - (.63) Mar. 31, (.2) (.7) (.74) - (.81) 15.6 Mar. 31, (2.3) (.54) - (.6) (.64) - (.7) Mar. 31, (.6) (.49) - (.55) Mar. 31, (.11) - - (.11) IT8 Shares Commencement of operations December 22, 211 Mar. 31, (.3) 1.8 (.16) (.6) (.33) (.86) (1.25) 1.52 Mar. 31, (.2) (.5) (.5) (.91) (1.46) 1.59 Mar. 31, (1.6) (.42) - (.4) (.48) (.89) (1.41) 1.8 Mar. 31, (.5) (.39) (.9) (1.34) 11.9 Mar. 31, (.9) - (.8) (.89) O Shares Commencement of operations July 26, 213 Mar. 31, (.7) 1.43 (.22) (.8) (.46) - (.54) Mar. 31, (.4) (.6) (.64) - (.7) Mar. 31, (.2).72 (2.43) (1.45) - (.5) (.56) - (.61) Mar. 31, (.2) (.5) (.42) - (.47) 12.9 Mar. 31, (.1) (.9) - - (.9) OT5 Shares Mar. 31, (.4).92 (.13).97 - (.5) (.29) (.45) (.79) 9.12 Mar. 31, (.3) (.4) (.42) (.47) (.93) 8.93 Mar. 31, (.1).19 (1.32) (1.1) - (.4) (.39) (.33) (.76) 8.23 OT8 Shares Mar. 31, (.4).77 (.5).88 - (.5) (.27) (.68) (1.) 8.37 Mar. 31, (.3) (.4) (.4) (.73) (1.17) 8.44 Mar. 31, (.1).27 (1.32) (.91) - (.4) (.38) (.52) (.94) 8.5 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

10 Net Assets per Share ($) (1) (2) (4) Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ P Shares Mar. 31, (.5).96 (.38).75 - (.6) (.33) - (.39) W Shares Commencement of operations July 27, 217 Mar. 31, (.5).77 (.18).69 - (.6) (.33) - (.39) WT8 Shares Commencement of operations July 27, 217 Mar. 31, (.4).75 (.18).68 - (.6) (.31) (.53) (.9) (1) This information is derived from the Fund s audited annual financial statements. (2) Net assets per share and per share are based on the actual number of shares outstanding for the relevant class at the relevant time. The increase (decrease) in net assets from operations per share is based on the weighted average number of shares outstanding for the relevant class over the fiscal year. (3) Dividends are automatically reinvested in additional shares of the Fund. (4) This information is provided for s ended March 31.

11 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) after taxes (2) Effective HST rate for the year (2) Harmonized Trading Portfolio sales tax (2) (3) turnover rate (4) $ s s % % % % % % A Shares Commencement of operations July 23, 1996 Mar. 31, ,44 29, Mar. 31, ,717 27, Mar. 31, ,742 33, Mar. 31, ,333 32, Mar. 31, ,498 32, A1 Shares Mar. 31, 218 6, A2 Shares Mar. 31, 218 1, A3 Shares Mar. 31, A4 Shares Mar. 31, A5 Shares Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

12 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % AT5 Shares Commencement of operations December 22, 211 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, AT8 Shares Commencement of operations December 22, 211 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, A1T8 Shares Mar. 31, A2T8 Shares Mar. 31, A3T8 Shares Mar. 31, A4T8 Shares Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

13 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % A5T8 Shares Mar. 31, E Shares Mar. 31, 218 1, Mar. 31, Mar. 31, EF Shares Mar. 31, Mar. 31, Mar. 31, EFT5 Shares Mar. 31, Mar. 31, Mar. 31, EFT8 Shares Mar. 31, Mar. 31, Mar. 31, ET5 Shares Mar. 31, Mar. 31, Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

14 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % ET8 Shares Mar. 31, Mar. 31, Mar. 31, F Shares Commencement of operations July 31, 21 Mar. 31, 218 1, Mar. 31, Mar. 31, 216 1, Mar. 31, 215 5, Mar. 31, 214 4, F1 Shares Mar. 31, F2 Shares Mar. 31, F3 Shares Mar. 31, F4 Shares Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

15 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % F5 Shares Mar. 31, FT8 Shares Commencement of operations July 28, 217 Mar. 31, F1T8 Shares Commencement of operations July 28, 217 Mar. 31, F2T8 Shares Commencement of operations July 28, 217 Mar. 31, F3T8 Shares Commencement of operations July 28, 217 Mar. 31, F4T8 Shares Commencement of operations July 28, 217 Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

16 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % F5T8 Shares Commencement of operations July 28, 217 Mar. 31, I Shares Commencement of operations September 27, 26 Mar. 31, ,622 5, Mar. 31, ,664 5, Mar. 31, ,32 1, Mar. 31, 215 4, Mar. 31, 214 2, IT8 Shares Commencement of operations December 22, 211 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, O Shares Commencement of operations July 26, 213 Mar. 31, , Mar. 31, 217 4, Mar. 31, 216 4, Mar. 31, Mar. 31, OT5 Shares Mar. 31, Mar. 31, Mar. 31, OT8 Shares Mar. 31, Mar. 31, Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

17 Ratios and Supplemental Data (1) (5) net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % P Shares Mar. 31, W Shares Commencement of operations July 27, 217 Mar. 31, WT8 Shares Commencement of operations July 27, 217 Mar. 31, (1) This information is derived from the Fund s audited annual financial statements. (2) is calculated based on expenses charged to the Fund commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net assets for, including the Fund s proportionate share of any underlying fund(s) expenses, if applicable. The Effective HST tax rate is calculated using the attribution percentage for each province based on shareholder residency and can be different from 13%. (3) The trading represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net assets during, including the Fund s proportionate share of such expenses of any underlying fund(s), if applicable. (4) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 1% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the fiscal year. The higher a Fund s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in, and the greater the chance of an investor receiving taxable capital in. There is not necessarily a relationship between a higher turnover rate and the performance of a Fund. Portfolio turnover rate is calculated by dividing the lesser of the cost of purchases and the proceeds of sales of portfolio securities for, and excluding cash and short-term investments maturing in less than one year, and before assets acquired from a merger, if applicable, by the average of the monthly fair value of investments during. (5) This information is provided for s ended March 31.

18 PAST PERFORMANCE This section describes how the Fund has performed in the past. Remember, past returns do not indicate how the Fund will perform in the future. The information shown assumes that made by the Fund in s shown were reinvested in additional shares of the relevant classes of the Fund. In addition, the information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. Year-by-Year Returns The following charts show the Fund s annual performance for each of s shown and illustrate how the Fund s performance has changed from year to year. In percentage terms, the charts show how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year, except where noted. A Shares AT5 Shares AT8 Shares E Shares Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 216 Mar. 217 Mar. 218 EF Shares EFT5 Shares EFT8 Shares ET5 Shares Mar. 216 Mar. 217 Mar. 218 Mar. 216 Mar. 217 Mar. 218 Mar. 216 Mar. 217 Mar. 218 Mar. 216 Mar. 217 Mar. 218 ET8 Shares F Shares I Shares IT8 Shares Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 216 Mar. 217 Mar. 218 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 Mar. 218 O Shares OT5 Shares OT8 Shares Mar. 216 Mar. 217 Mar. 218 Mar. 216 Mar. 217 Mar. 218

19 1 212 return is for the period from December 22, 211 to March 31, return is for the period from July 29, 215 to March 31, return is for the period from July 26, 213 to March 31,

20 Annual Compound Returns The following table shows the Fund s annual compound returns for each year indicated, compared to the MSCI EAFE Return Index. The MSCI EAFE Return Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States of America and Canada. The Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. A discussion of the performance of the Fund as compared to the benchmark is found in the Results of Operations section of this report. One Year (%) Three Years (%) Five Years (%) Ten Years (%) Since Inception (%) A Shares n/a MSCI EAFE Return Index n/a AT5 Shares n/a 1. MSCI EAFE Return Index n/a 1.3 AT8 Shares n/a 1. MSCI EAFE Return Index n/a 1.3 E Shares 8.9 n/a n/a n/a 4.8 MSCI EAFE Return Index 11.7 n/a n/a n/a 5.2 EF Shares 1.1 n/a n/a n/a 5.9 MSCI EAFE Return Index 11.7 n/a n/a n/a 5.2 EFT5 Shares 9.9 n/a n/a n/a 5.8 MSCI EAFE Return Index 11.7 n/a n/a n/a 5.2 EFT8 Shares 9.9 n/a n/a n/a 5.8 MSCI EAFE Return Index 11.7 n/a n/a n/a 5.2 ET5 Shares 8.8 n/a n/a n/a 4.6 MSCI EAFE Return Index 11.7 n/a n/a n/a 5.2 ET8 Shares 8.7 n/a n/a n/a 4.6 MSCI EAFE Return Index 11.7 n/a n/a n/a 5.2 F Shares n/a MSCI EAFE Return Index n/a I Shares n/a MSCI EAFE Return Index n/a IT8 Shares n/a 11.2 MSCI EAFE Return Index n/a 1.3 O Shares n/a n/a 12.7 MSCI EAFE Return Index n/a n/a 11.6 OT5 Shares 11.1 n/a n/a n/a 6.9 MSCI EAFE Return Index 11.7 n/a n/a n/a 5.2 OT8 Shares 11.2 n/a n/a n/a 6.9 MSCI EAFE Return Index 11.7 n/a n/a n/a 5.2 2

21 SUMMARY OF INVESTMENT PORTFOLIO as at March 31, 218 Category % of Net Assets Category % of Net Assets Top 25 Holdings % of Net Assets Country allocation Japan U.K Switzerland Germany Netherlands France Ireland Canada Jersey Island Brazil Denmark Bermuda Cash & Equivalents Hong Kong Netherlands Antilles Israel Other Net Assets (Liabilities) Mexico Cayman Islands....9 Sweden....9 India....9 U.S.A Luxembourg....8 Thailand....6 South Korea....5 Russia....3 Sector allocation Financials Health Care Information Technology Consumer Staples Telecommunication Services Materials Energy Consumer Discretionary Industrials Cash & Equivalents Other Net Assets (Liabilities) Utilities....5 GlaxoSmithKline PLC Astellas Pharma Inc Chubb Ltd Aon PLC Heineken N.V Yahoo! Japan Corp Tokio Marine Holdings Inc Linde AG Sumitomo Mitsui Trust Holdings Inc TDC AS Vodafone Group PLC, ADR Zurich Financial Services AG Thomson Reuters Corp XL Group Ltd Willis Towers Watson PLC Roche Holding AG Mitsubishi UFJ Financial Group Inc Sanofi Henkel AG & Co., KGaA, Preferred, Non-Voting Shares Shire PLC Medtronic PLC Diageo PLC Cash & Equivalents Nestle S.A., Registered Shares MS&AD Insurance Group Holdings Inc Net Assets (in $ s) $593,68 The summary of investment portfolio may change due to ongoing portfolio transactions of the Fund and updates will be available on a quarterly basis. A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, its future performance, strategies or prospects, and possible future Fund action. The words may, could, should, would, suspect, outlook, believe, plan, anticipate, estimate, expect, intend, forecast, objective, and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties, both about the Fund and general economic factors, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement made by the Fund. These factors include, but are not limited to, general economic, political and market factors in Canada, the United States and internationally, interest and foreign exchanges rates, global equity and capital markets, business competition, technological changes, changes in laws and regulations, judicial or regulatory judgments, legal proceedings and catastrophic events. The above list of important factors that may affect future results is not exhaustive. Before making any investment decisions, we encourage you to consider these and other factors carefully. All opinions contained in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.