NBI Private Wealth Management Balanced Profile Fund Facts Documents

Transcription

1 NBI Private Wealth Management Balanced Profile Fund Facts Documents Here are the Fund Facts Documents for the investments you made in NBI Private Wealth Management, which will be allocated to the Private Portfolios that make up the Profile you selected based on your investor profile. Balanced Profile Allocation of the Private Portfolios Min Target Max Cash and Short Term 0% 0% 10% Fixed Income 30% 40% 50% Canadian and Global Equities 50% 60% 70% Fund Facts Documents NBI Canadian Bond Private Portfolio NBI Corporate Bond Private Portfolio NBI Non-Traditional Fixed Income Private Portfolio NBI High Yield Bond Private Portfolio NBI Canadian Preferred Equity Private Portfolio NBI Tactical Fixed Income Private Portfolio NBI Canadian Equity Private Portfolio NBI Canadian High Conviction Equity Private Portfolio NBI Canadian Small Cap Equity Private Portfolio NBI U.S. Equity Private Portfolio NBI U.S. High Conviction Equity Private Portfolio NBI International Equity Private Portfolio NBI International High Conviction Equity Private Portfolio NBI Tactical Equity Private Portfolio NBI Non-Traditional Capital Appreciation Private Portfolio NBI Emerging Markets Equity Private Portfolio NBI Real Assets Private Portfolio

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3 FUND FACTS May 14, 2018 NBI Canadian Bond Private Portfolio This document contains key information you should know about the NBI Canadian Bond Private Portfolio. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at The fund offers certain series by way of private placement since April 20, 2000, and by way of prospectus since May 21, Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: NBC204 Date series started: October 30, 2015 Total value of fund on March 31, 2018: $2,661.3 million Management expense ratio (MER): 0.17% Fund manager: Portfolio manager: Distribution: National Bank Investments Inc. ("NBI") Fiera Capital Corporation Net income, end of each month and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). Minimum investment: $250,000 (initial), $100 (additional), $100 (systematic) What does the fund invest in? The fund's investment objective is to provide a high level of current income and sustained capital growth. The fund invests, directly or through investments in securities of other mutual funds, in a portfolio consisting primarily of Canadian government and Canadian corporate bonds. It is expected that investments in debt securities of foreign companies will not exceed approximately 40% of the fund's assets. The charts below give you a snapshot of the fund s investments on March 31, The fund s investments will change over time. Top 10 Investments (as at March 31, 2018) 1. Province of Ontario, 2.60%, due June 2, % 2. Canada Housing Trust, 2.35%, due September 15, % 3. Province of Ontario, 3.50%, due June 2, % 4. Canada Housing Trust, 1.75%, due June 15, % 5. Canada Housing Trust, 1.90%, due September 15, % 6. Canada Housing Trust, 1.95%, due December 15, % 7. Province of Alberta, 2.55%, due June 1st, % 8. Province of Ontario, 2.85%, due June 2, % 9. Province of Quebec, 2.75%, due September 1st, % 10. Canada Housing Trust, 2.35%, due June 15, % Total percentage of top 10 investments: 29.0 % Total number of investments: 447 How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Investment Mix (as at March 31, 2018) Asset Allocation Canadian Corporate Bonds 41.1% Provincial Bonds 24.4% Federal Bonds 19.5% Municipal Bonds 7.0% US Bonds 3.2% Mortgage Backed Securities 2.6% Asset Backed Securities 1.3% Foreign Bonds 0.1% Cash, Money Market and Other Net Assets 0.8% Risk rating NBI has rated the volatility of this fund as low. This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. Page 1 of 3

4 NBI Canadian Bond Private Portfolio How has the fund performed? This section tells you how securities of the fund have performed over the past 2 years. Returns are after expenses have been deducted. These expenses reduce the fund s returns. Year-by-year returns This chart shows how securities of the fund performed in each of the past 2 years. The series did not drop in value. The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future. 3.5 % 3.0 % 2.5 % 2.0 % 1.5 % 1.0 % 0.5 % 0.0 % -0.5 % -1.0 % -1.5 % -2.0 % -2.5 % -3.0 % -3.5 % 2.3% 1.3% Best and worst 3-month returns This table shows the best and worst returns for securities of the fund in a 3-month period over the past 2 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best Return 2.5% July 31, 2016 Your investment would rise to $1,025. Worst return -2.0% July 31, 2017 Your investment would drop to $980. Average return The annual compounded return of securities of the fund was 1.90% since its inception. If you had invested $1,000 in this series since inception, your investment would now be worth $1,046. Who is this fund for? Investors who: are looking to invest for the short to medium term (at least one year); wish to add a source of interest income to their portfolio. A word about tax In general, you ll have to pay income tax on any money you make on a fund. How much you pay depends on the tax laws where you live and whether or not you hold the fund in a registered plan, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). Keep in mind that if you hold your fund in a non-registered account, fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell units of the fund. The fees and expenses including any commissions can vary among series of the fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales Charges There are no charges when you purchase your securities through NBI. 2. Fund expenses You don t pay these expenses directly. They affect you because they reduce the fund's returns. As of December 31, 2017, the fund's expenses were 0.17% of its value. This equals $1.74 for every $1,000 invested. Page 2 of 3

5 NBI Canadian Bond Private Portfolio How much does it cost? (cont d) Annual rate (as a % of the fund s value) Management expense ratio (MER) This is the total of the fund s management fee (including the trailing commission) and operating expenses (including fixed rate administration fee). NBI waived some of the fund's expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the fund's trading costs. 0.17% 0.00% Fund Expenses 0.17% More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and/or advice that your representative and their firm provide to you. NBI pays the trailing commission to your representative s firm. It is paid from the fund s service fees and is based on the value of your investment. The rate for this series of the fund is up to 0.51% of the value of your investment each year. This equals $5.10 each year for every $1,000 invested. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or convert securities of the fund. Fee Short-term trading fee Service fees What you pay 2% of the value of the securities you redeem or switch within 30 days of purchase may be charged by NBI. This fee goes to the fund. securities are only offered to investors who use the NBI Private Wealth Management Service. You pay the service fees directly to NBI according to a declining scale based on the total market value of your investments. The applicable rates are as follows: First $250, % Next $250, % In excess of $500, % Other fees Registered Account termination fee, only if the registered investment account is with NBI. $100 What if I change my mind? Under the securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual fund securities within two business days after you receive a simplified prospectus or Fund Facts document; or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact NBI or your representative for a copy of the fund s simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund s legal documents. National Bank Investments Inc Robert-Bourassa Blvd. 10 th floor Montreal, Quebec H3B 2G7 Phone: Toll-free: investments@nbc.ca To learn more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at Page 3 of 3

6 FUND FACTS May 14, 2018 NBI Corporate Bond Private Portfolio This document contains key information you should know about the NBI Corporate Bond Private Portfolio. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at The fund offers certain series by way of private placement since November 20, 2001, and by way of prospectus since May 21, Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: NBC205 Date series started: October 30, 2015 Total value of fund on March 31, 2018: $807.5 million Management expense ratio (MER): 0.17% Fund manager: Portfolio manager: Distribution: National Bank Investments Inc. ("NBI") Fiera Capital Corporation Net income, end of each month and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). Minimum investment: $250,000 (initial), $100 (additional), $100 (systematic) What does the fund invest in? The fund s investment objective is to provide long-term capital growth and to generate high current income. The fund invests, directly or through investments in securities of other mutual funds, in a portfolio consisting primarily of investment-grade debt securities of Canadian companies. The fund may invest approximately 40% of its assets in foreign debt securities. The charts below give you a snapshot of the fund s investments on March 31, The fund s investments will change over time. Top 10 Investments (as at March 31, 2018) 1. Bank of Nova Scotia, Floating, due March 30, % 2. Caisse Centrale Desjardins du Québec, 2.44%, due July 17, % 3. Bank of Montreal, 2.12%, due March 16, % 4. Capital Desjardins Inc., 5.19%, due May 5, % 5. Royal Bank of Canada, 1.97%, due March 2, % 6. AltaLink Investments LP, 2.24%, due March 7, % 7. Loblaw Companies Ltd., 3.75%, due March 12, % 8. Laurentian Bank of Canada, 2.50%, due January 23, % 9. Canadian Imperial Bank of Commerce, Floating, due April 4, % 10. Canadian Natural Resources Ltd., 3.42%, due December 1st, % Total percentage of top 10 investments: 16.4 % Total number of investments: 246 How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Investment Mix (as at March 31, 2018) Asset Allocation Corporate Bonds 89.0% Municipal Bonds 5.3% US Bonds 3.6% Cash, Money Market and Other Net Assets 1.0% Federal Bonds 0.7% Mortgage Backed Securities 0.2% Asset Backed Securities 0.2% Risk rating NBI has rated the volatility of this fund as low. Credit Quality AAA 1.9% AA 6.8% A 33.1% BBB 50.4% BB and Below 7.8% This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. Page 1 of 3

7 NBI Corporate Bond Private Portfolio How has the fund performed? This section tells you how securities of the fund have performed over the past 2 years. Returns are after expenses have been deducted. These expenses reduce the fund s returns. Year-by-year returns This chart shows how securities of the fund performed in each of the past 2 years. The series did not drop in value. The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future. 6 % 5 % 4 % 3 % 2 % 1 % 0 % -1 % -2 % -3 % -4 % -5 % -6 % 4.6% 3.1% Best and worst 3-month returns This table shows the best and worst returns for securities of the fund in a 3-month period over the past 2 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best Return 3.3% May 31, 2016 Your investment would rise to $1,033. Worst return -2.5% July 31, 2017 Your investment would drop to $975. Average return The annual compounded return of securities of the fund was 3.77% since its inception. If you had invested $1,000 in this series since inception, your investment would now be worth $1,093. Who is this fund for? Investors who: are looking to invest for the medium to long term (at least three years); want to receive interest income regularly; want to diversify your investment by taking advantage of corporate debt securities. A word about tax In general, you ll have to pay income tax on any money you make on a fund. How much you pay depends on the tax laws where you live and whether or not you hold the fund in a registered plan, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). Keep in mind that if you hold your fund in a non-registered account, fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell units of the fund. The fees and expenses including any commissions can vary among series of the fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales Charges There are no charges when you purchase your securities through NBI. 2. Fund expenses You don t pay these expenses directly. They affect you because they reduce the fund's returns. As of December 31, 2017, the fund's expenses were 0.17% of its value. This equals $1.72 for every $1,000 invested. Page 2 of 3

8 NBI Corporate Bond Private Portfolio How much does it cost? (cont d) Annual rate (as a % of the fund s value) Management expense ratio (MER) This is the total of the fund s management fee (including the trailing commission) and operating expenses (including fixed rate administration fee). NBI waived some of the fund's expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the fund's trading costs. 0.17% 0.00% Fund Expenses 0.17% More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and/or advice that your representative and their firm provide to you. NBI pays the trailing commission to your representative s firm. It is paid from the fund s service fees and is based on the value of your investment. The rate for this series of the fund is up to 0.51% of the value of your investment each year. This equals $5.10 each year for every $1,000 invested. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or convert securities of the fund. Fee Short-term trading fee Service fees What you pay 2% of the value of the securities you redeem or switch within 30 days of purchase may be charged by NBI. This fee goes to the fund. securities are only offered to investors who use the NBI Private Wealth Management Service. You pay the service fees directly to NBI according to a declining scale based on the total market value of your investments. The applicable rates are as follows: First $250, % Next $250, % In excess of $500, % Other fees Registered Account termination fee, only if the registered investment account is with NBI. $100 What if I change my mind? Under the securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual fund securities within two business days after you receive a simplified prospectus or Fund Facts document; or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact NBI or your representative for a copy of the fund s simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund s legal documents. National Bank Investments Inc Robert-Bourassa Blvd. 10 th floor Montreal, Quebec H3B 2G7 Phone: Toll-free: investments@nbc.ca To learn more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at Page 3 of 3

9 FUND FACTS May 14, 2018 NBI Non-Traditional Fixed Income Private Portfolio This document contains key information you should know about the NBI Non-Traditional Fixed Income Private Portfolio. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: NBC248 Date series started: October 28, 2015 Total value of fund on March 31, 2018: $563.4 million Management expense ratio (MER): 0.98% Fund manager: Portfolio manager: Distribution: National Bank Investments Inc. ("NBI") National Bank Trust Inc. Net income, end of each month and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). Minimum investment: $250,000 (initial), $100 (additional), $100 (systematic) What does the fund invest in? The fund's investment objective is to provide current income while focusing on capital preservation. The fund invests directly, or through investments in securities of other mutual funds, in a portfolio composed mainly of fixed-income securities of issuers around the world selected using different nontraditional investment strategies. The charts below give you a snapshot of the fund s investments on March 31, The fund s investments will change over time. Top 10 Investments (as at March 31, 2018) 1. RP Strategic Income Plus Fund, Class O 35.4% 2. NBI Global Tactical Bond Fund, Series O US 17.4% 3. NBI Unconstrained Fixed Income Fund, Series O 16.8% 4. Manulife Strategic Income Fund, Series I 15.3% 5. AGF Floating Rate Income Fund, Series O 14.7% 6. Cash, Money Market and Other Net Assets 0.4% Total percentage of top 10 investments: % Total number of investments: 5 Investment Mix (as at March 31, 2018) Term Allocation Under one year 82.7% From 1 year to 5 years 4.4% From 5 years to 10 years 7.0% More than 10 years 5.9% Credit Quality AAA 10.6% AA 8.8% A 26.9% BBB 34.7% BB and Below 19.0% How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Risk rating NBI has rated the volatility of this fund as low to medium. This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. Page 1 of 3

10 NBI Non-Traditional Fixed Income Private Portfolio How has the fund performed? This section tells you how securities of the fund have performed over the past 2 years. Returns are after expenses have been deducted. These expenses reduce the fund s returns. Year-by-year returns This chart shows how securities of the fund performed in each of the past 2 years. The series did not drop in value. The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future. 5 % 4 % 3 % 2 % 1 % 0 % -1 % -2 % -3 % -4 % -5 % 3.8% 3.5% Best and worst 3-month returns This table shows the best and worst returns for securities of the fund in a 3-month period over the past 2 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best Return 2.8% July 31, 2016 Your investment would rise to $1,028. Worst return -1.3% November 30, 2016 Your investment would drop to $987. Average return The annual compounded return of securities of the fund was 2.82% since its inception. If you had invested $1,000 in this series since inception, your investment would now be worth $1,069. Who is this fund for? Investors who: are looking to invest for the medium term (at least three years); are looking to diversify your investments by participating in global markets. A word about tax In general, you ll have to pay income tax on any money you make on a fund. How much you pay depends on the tax laws where you live and whether or not you hold the fund in a registered plan, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). Keep in mind that if you hold your fund in a non-registered account, fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell units of the fund. The fees and expenses including any commissions can vary among series of the fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales Charges There are no charges when you purchase your securities through NBI. 2. Fund expenses You don t pay these expenses directly. They affect you because they reduce the fund's returns. As of December 31, 2017, the fund's expenses were 1.00% of its value. This equals $10.02 for every $1,000 invested. Page 2 of 3

11 NBI Non-Traditional Fixed Income Private Portfolio How much does it cost? (cont d) Annual rate (as a % of the fund s value) Management expense ratio (MER) This is the total of the fund s management fee (including the trailing commission) and operating expenses (including fixed rate administration fee). NBI waived some of the fund's expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the fund's trading costs. 0.98% 0.02% Fund Expenses 1.00% More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and/or advice that your representative and their firm provide to you. NBI pays the trailing commission to your representative s firm. It is paid from the fund s service fees and is based on the value of your investment. The rate for this series of the fund is up to 0.51% of the value of your investment each year. This equals $5.10 each year for every $1,000 invested. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or convert securities of the fund. Fee Short-term trading fee Service fees What you pay 2% of the value of the securities you redeem or switch within 30 days of purchase may be charged by NBI. This fee goes to the fund. securities are only offered to investors who use the NBI Private Wealth Management Service. You pay the service fees directly to NBI according to a declining scale based on the total market value of your investments. The applicable rates are as follows: First $250, % Next $250, % In excess of $500, % Other fees Registered Account termination fee, only if the registered investment account is with NBI. $100 What if I change my mind? Under the securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual fund securities within two business days after you receive a simplified prospectus or Fund Facts document; or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact NBI or your representative for a copy of the fund s simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund s legal documents. National Bank Investments Inc Robert-Bourassa Blvd. 10 th floor Montreal, Quebec H3B 2G7 Phone: Toll-free: investments@nbc.ca To learn more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at Page 3 of 3

12 FUND FACTS May 14, 2018 NBI High Yield Bond Private Portfolio This document contains key information you should know about the NBI High Yield Bond Private Portfolio. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at The fund offers certain series by way of private placement since June 26, 2003, and by way of prospectus since October 30, Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: NBC206 Date series started: October 30, 2015 Total value of fund on March 31, 2018: $587.2 million Management expense ratio (MER): 0.39% Fund manager: Portfolio manager: Distribution: National Bank Investments Inc. ("NBI") Fiera Capital Corporation Net income, end of each month and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). Minimum investment: $250,000 (initial), $100 (additional), $100 (systematic) What does the fund invest in? The fund's investment objective is to provide a high level of long-term income. The fund invests directly, or through investments in securities of other mutual funds, in a portfolio composed mainly of high-yield debt securities of issuers around the world. The charts below give you a snapshot of the fund s investments on March 31, The fund s investments will change over time. Top 10 Investments (as at March 31, 2018) 1. NBI Money Market Fund, Series O 2.8% 2. MGM Resorts International, 7.75%, due March 15, % 3. HCA Inc., 5.88%, due March 15, % 4. DISH DBS Corp., 5.88%, due July 15, % 5. Sprint Corp., 7.63%, due February 15, % 6. CCO Holdings Capital Corp., 5.13%, due February 15, % 7. SLM Corp., 6.13%, due March 25, % 8. Level 3 Financing Inc., 5.13%, due May 1st, % 9. XPO Logistics Inc., 6.50%, due June 15, % 10. Frontier Communications Corp., 8.75%, due April 15, % Total percentage of top 10 investments: 16.1 % Total number of investments: 169 How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Investment Mix (as at March 31, 2018) Asset Allocation US Bonds 61.9% Foreign Bonds 20.2% Corporate Bonds 12.9% Cash, Money Market and Other Net Assets 3.7% Exchange Traded Funds 1.0% Common Shares 0.2% Provincial Bonds 0.1% Risk rating NBI has rated the volatility of this fund as low to medium. Credit Quality AAA 2.4% AA 0.4% A 1.2% BBB 5.8% BB and Below 90.2% This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. Page 1 of 3

13 NBI High Yield Bond Private Portfolio How has the fund performed? This section tells you how securities of the fund have performed over the past 2 years. Returns are after expenses have been deducted. These expenses reduce the fund s returns. Year-by-year returns This chart shows how securities of the fund performed in each of the past 2 years. The series did not drop in value. The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future. 25 % 20 % 15 % 10 % 5 % 0 % -5 % -10 % -15 % -20 % -25 % 15.6% 6.3% Best and worst 3-month returns This table shows the best and worst returns for securities of the fund in a 3-month period over the past 2 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best Return 8.5% May 31, 2016 Your investment would rise to $1,085. Worst return -6.6% January 31, 2016 Your investment would drop to $934. Average return The annual compounded return of securities of the fund was 6.61% since its inception. If you had invested $1,000 in this series since inception, your investment would now be worth $1,167. Who is this fund for? Investors who: are looking to invest for the long term (at least five years); wish to add a source of interest income to their portfolio; want to diversify your investment by taking advantage of high yield debt securities. A word about tax In general, you ll have to pay income tax on any money you make on a fund. How much you pay depends on the tax laws where you live and whether or not you hold the fund in a registered plan, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). Keep in mind that if you hold your fund in a non-registered account, fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell units of the fund. The fees and expenses including any commissions can vary among series of the fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales Charges There are no charges when you purchase your securities through NBI. 2. Fund expenses You don t pay these expenses directly. They affect you because they reduce the fund's returns. As of December 31, 2017, the fund's expenses were 0.39% of its value. This equals $3.88 for every $1,000 invested. Page 2 of 3

14 NBI High Yield Bond Private Portfolio How much does it cost? (cont d) Annual rate (as a % of the fund s value) Management expense ratio (MER) This is the total of the fund s management fee (including the trailing commission) and operating expenses (including fixed rate administration fee). NBI waived some of the fund's expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the fund's trading costs. 0.39% 0.00% Fund Expenses 0.39% More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and/or advice that your representative and their firm provide to you. NBI pays the trailing commission to your representative s firm. It is paid from the fund s service fees and is based on the value of your investment. The rate for this series of the fund is up to 0.51% of the value of your investment each year. This equals $5.10 each year for every $1,000 invested. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or convert securities of the fund. Fee Short-term trading fee Service fees What you pay 2% of the value of the securities you redeem or switch within 30 days of purchase may be charged by NBI. This fee goes to the fund. securities are only offered to investors who use the NBI Private Wealth Management Service. You pay the service fees directly to NBI according to a declining scale based on the total market value of your investments. The applicable rates are as follows: First $250, % Next $250, % In excess of $500, % Other fees Registered Account termination fee, only if the registered investment account is with NBI. $100 What if I change my mind? Under the securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual fund securities within two business days after you receive a simplified prospectus or Fund Facts document; or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact NBI or your representative for a copy of the fund s simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund s legal documents. National Bank Investments Inc Robert-Bourassa Blvd. 10 th floor Montreal, Quebec H3B 2G7 Phone: Toll-free: investments@nbc.ca To learn more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at Page 3 of 3

15 FUND FACTS May 14, 2018 NBI Canadian Preferred Equity Private Portfolio This document contains key information you should know about the NBI Canadian Preferred Equity Private Portfolio. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at The fund offers certain series by way of private placement since June 26, 2003, and by way of prospectus since October 30, Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: NBC208 Date series started: October 30, 2015 Total value of fund on March 31, 2018: $1,050.1 million Management expense ratio (MER): 0.29% Fund manager: Portfolio manager: Distribution: National Bank Investments Inc. ("NBI") Fiera Capital Corporation Net income and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). Minimum investment: $250,000 (initial), $100 (additional), $100 (systematic) What does the fund invest in? The fund's investment objective is to provide dividend income while focusing on capital preservation. The fund invests directly, or through investments in securities of other mutual funds, in a portfolio composed mainly of preferred shares of Canadian companies. It is expected that investments in foreign securities will not exceed approximately 30% of the fund s assets. The charts below give you a snapshot of the fund s investments on March 31, The fund s investments will change over time. Top 10 Investments (as at March 31, 2018) 1. Canadian Imperial Bank of Commerce, 4.40%, Series % 2. Toronto-Dominion Bank, 3.60%, Series 7 1.8% 3. National Bank of Canada, 5.40%, Series % 4. Cash, Money Market and Other Net Assets 1.5% 5. Toronto-Dominion Bank, 4.85%, Series % 6. Royal Bank of Canada, 3.60%, Series BD 1.5% 7. Bank of Nova Scotia, 2.39%, Series % 8. Toronto-Dominion Bank, 3.90%, Series 1 1.2% 9. Brookfield Renewable Power Inc., 4.40%, Series 1.2% 10. Bank of Nova Scotia, 4.85%, Series % Total percentage of top 10 investments: 15.5 % Total number of investments: 265 How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Investment Mix (as at March 31, 2018) Sector Allocation Financials 53.8% Energy 24.1% Utilities 8.6% Telecommunication Services 6.5% Real Estate 3.2% Cash, Money Market and Other Net Assets 1.9% Foreign Bonds 0.9% Consumer Staples 0.8% Consumer Discretionary 0.2% Risk rating NBI has rated the volatility of this fund as low to medium. This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. Page 1 of 3

16 NBI Canadian Preferred Equity Private Portfolio How has the fund performed? This section tells you how securities of the fund have performed over the past 2 years. Returns are after expenses have been deducted. These expenses reduce the fund s returns. Year-by-year returns This chart shows how securities of the fund performed in each of the past 2 years. The series did not drop in value. The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future. 25 % 20 % 15 % 10 % 5 % 0 % -5 % -10 % -15 % -20 % -25 % 9.2% 15.8% Best and worst 3-month returns This table shows the best and worst returns for securities of the fund in a 3-month period over the past 2 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best Return 12.1% May 31, 2016 Your investment would rise to $1,121. Worst return -10.4% February 29, 2016 Your investment would drop to $896. Average return The annual compounded return of securities of the fund was 10.58% since its inception. If you had invested $1,000 in this series since inception, your investment would now be worth $1,275. Who is this fund for? Investors who: are looking to invest for the medium term (at least three years); want to receive dividend income regularly. A word about tax In general, you ll have to pay income tax on any money you make on a fund. How much you pay depends on the tax laws where you live and whether or not you hold the fund in a registered plan, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). Keep in mind that if you hold your fund in a non-registered account, fund distributions are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? The following tables show the fees and expenses you could pay to buy, own and sell units of the fund. The fees and expenses including any commissions can vary among series of the fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds and investments that may be suitable for you at a lower cost. 1. Sales Charges There are no charges when you purchase your securities through NBI. 2. Fund expenses You don t pay these expenses directly. They affect you because they reduce the fund's returns. As of December 31, 2017, the fund's expenses were 0.33% of its value. This equals $3.30 for every $1,000 invested. Page 2 of 3

17 NBI Canadian Preferred Equity Private Portfolio How much does it cost? (cont d) Annual rate (as a % of the fund s value) Management expense ratio (MER) This is the total of the fund s management fee (including the trailing commission) and operating expenses (including fixed rate administration fee). NBI waived some of the fund's expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the fund's trading costs. 0.29% 0.04% Fund Expenses 0.33% More about the trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the fund. It is for the services and/or advice that your representative and their firm provide to you. NBI pays the trailing commission to your representative s firm. It is paid from the fund s service fees and is based on the value of your investment. The rate for this series of the fund is up to 0.51% of the value of your investment each year. This equals $5.10 each year for every $1,000 invested. 3. Other fees You may have to pay other fees when you buy, hold, sell, switch or convert securities of the fund. Fee Short-term trading fee Service fees What you pay 2% of the value of the securities you redeem or switch within 30 days of purchase may be charged by NBI. This fee goes to the fund. securities are only offered to investors who use the NBI Private Wealth Management Service. You pay the service fees directly to NBI according to a declining scale based on the total market value of your investments. The applicable rates are as follows: First $250, % Next $250, % In excess of $500, % Other fees Registered Account termination fee, only if the registered investment account is with NBI. $100 What if I change my mind? Under the securities law in some provinces and territories, you have the right to: withdraw from an agreement to buy mutual fund securities within two business days after you receive a simplified prospectus or Fund Facts document; or cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the simplified prospectus, annual information form, Fund Facts document or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact NBI or your representative for a copy of the fund s simplified prospectus and other disclosure documents. These documents and the Fund Facts make up the fund s legal documents. National Bank Investments Inc Robert-Bourassa Blvd. 10 th floor Montreal, Quebec H3B 2G7 Phone: Toll-free: investments@nbc.ca To learn more about investing in mutual funds, see the brochure Understanding mutual funds, which is available on the website of the Canadian Securities Administrators at Page 3 of 3

18 FUND FACTS May 14, 2018 NBI Tactical Fixed Income Private Portfolio This document contains key information you should know about the NBI Tactical Fixed Income Private Portfolio. You can find more detailed information in the fund s simplified prospectus. Ask your representative for a copy, contact the manager, National Bank Investments Inc. ("NBI"), at or send an to investments@nbc.ca or visit our website at Before you invest in any fund, consider how the fund would work with your other investments and your tolerance for risk. Quick facts Fund code: NBC297 Date series started: October 27, 2017 Total value of fund on March 31, 2018: $87.7 million Management expense ratio (MER): 0.60% Fund manager: Portfolio manager: Distribution: National Bank Investments Inc. ("NBI") National Bank Trust Inc. Net income, end of each month and net realized capital gains for the year, December (automatically reinvested in additional securities, unless the investor chooses differently). Minimum investment: $250,000 (initial), $100 (additional), $100 (systematic) What does the fund invest in? The fund s investment objective is to achieve current income. The fund invests tactically, directly or through investments in securities of other mutual funds, in a portfolio composed mainly of global fixed-income securities. The charts below give you a snapshot of the fund s investments on March 31, The fund s investments will change over time. Top 10 Investments (as at March 31, 2018) 1. SPDR, Barclays High Yield Bond ETF 38.0% 2. ishares Canadian Corporate Bond Index ETF 37.2% 3. BMO Aggregate Bond Index ETF 12.5% 4. ishares, Canadian Universe Bond Index ETF 12.5% 5. Cash, Money Market and Other Net Assets -0.2% Total percentage of top 10 investments: % Total number of investments: 4 Investment Mix (as at March 31, 2018) Asset Allocation Canadian Bonds 62.2% Global Bonds 38.0% Cash, Money Market and Other Net Assets -0.2% How risky is it? The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund s returns change over time. This is called volatility. In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Risk rating NBI has rated the volatility of this fund as low. This rating is based on how much the fund s returns have changed from year to year. It doesn t tell you how volatile the fund will be in the future. This rating can change over time. A fund with a low risk rating can still lose money. LOW LOW TO TO For more information about the risk rating and specific risks that can affect the fund s returns, see the Risk section of the fund s simplified prospectus. No guarantees Like most mutual funds, this fund doesn t have any guarantees. You may not get back the money you invest. How has the fund performed? This section tells you how securities of the fund have performed since inception. Returns are after expenses have been deducted. These expenses reduce the fund s returns. Year-by-year returns The year-by-year returns are not available for the as it has not been distributed to the public under a simplified prospectus for a full calendar year. Best and worst 3-month returns The best and worst returns over a 3-month period for the are not available as it has not completed a full calendar year of performance. Average return The average return is not available for as it has not been distributed to the public under a simplified prospectus for 12 consecutive months. Page 1 of 3