Investors Global Dividend Fund

Transcription

1 Annual Management Report of Fund Performance FOR THE PERIOD ENDED MARCH 31, 218 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as expects, anticipates, intends, plans, believes, estimates or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Report of Fund Performance. This annual Management Report of Fund Performance contains financial highlights, but does not contain the complete audited annual financial statements of the investment fund. If the audited annual financial statements of your investment fund did not accompany the mailing of this report, you may receive a copy of them, at your request, and at no cost, by calling ( if you live in Québec) or by writing to us at 447 Portage Avenue, Winnipeg, Manitoba, R3B 3H5 (21, boulevard Robert-Bourassa, bureau 2, Montréal (Québec), H3A 2A6 if you live in Québec), or by visiting our website at or SEDAR at Securityholders may also use one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure. Every effort has been made to ensure that the information contained in this Report is accurate as of March 31, 218 (except when stated otherwise), however, the Fund cannot guarantee the accuracy or the completeness of this material. Please refer to the Fund s Prospectus and audited annual financial statements for more information. References to Consultant or Consultants mean Representative or Representatives in Québec. For current net asset values per security for the Fund and for more recent information on general market events, please visit our website at CAUTION REGARDING FUTURE PERFORMANCE Sales commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund s offering documents before investing. The indicated rates of return are the historical annual compounded total returns including changes in security value and reinvestment of all distributions (except for fee rebates) and do not take into account sales, redemption, distribution or optional charges, advisory fees payable directly by securityholders in certain series, or income taxes payable by any investor that would have reduced returns. Mutual funds are not guaranteed. Their values change frequently and past performance may not be repeated. Copyright Investors Group Inc. 218 Trademarks, including Investors Group, are owned by IGM Financial Inc. and licensed to its subsidiary corporations.

2 Management Discussion of Fund Performance This management discussion of Fund performance presents views of the portfolio management team about the significant factors and developments during the past year that have affected the Fund s performance and outlook. Please read the Caution Regarding Forward-looking Statements located on the first page of this document. Investment Objective and Strategies The Fund has three principal objectives. These are: to obtain above-average income yield on its investments; to protect the value of its investments; and to achieve long-term capital appreciation consistent with the fulfillment of the first two objectives. To achieve the Fund s investment objective, the Fund will be actively managed in order to take full advantage of changing market conditions. The Fund will primarily select global dividend paying common stock. The Fund may also invest in other investments without geographic restrictions such as income trusts, bonds, convertible debentures and preferred shares. Risk The overall level of risk of investing in the Fund remains as discussed in the Prospectus, and is not expected to have significantly increased or decreased as a result of operations during the period. Accordingly, the Fund also remains suitable for the same investors as discussed in the Prospectus. Results of Operations CHANGES IN NET ASSETS The Fund s net assets decreased by 7.1% during the period to $1.1 billion. This change was comprised primarily of gains from operations of $26.1 million and a decrease of $111.4 million due to net securityholder activity. FEES AND EXPENSES The management expense ratios (MERs) are generally similar to the MERs for the 12-month period ended March 31, 217, except for Series B, Jnl, Tjnl, Tu and U, which are lower primarily due to reductions in their fee rates, and Series Tjdsc, which is higher primarily due to changes in its applicable Harmonized Sales Tax rate. Total expenses paid also vary period to period as a result of changes in average assets in each series. Average net assets of the Fund for the period were $1.2 billion, a decrease of 1.% compared to the period ended March 31, 217. INVESTMENT PERFORMANCE In accordance with National Instrument 81-6, the following comparison to broad-based indices has been included to help you understand the Fund s performance relative to the general performance of the markets. However, the portfolio management team cautions that the Fund s mandate may be different from the indices shown. For a description of the indices, see Annual Compound Returns. Also, it is important to note that investors cannot invest in an index. Indirect investments in an index are available; however, there are fees and transaction costs and other variables that will impact returns when investing in these products. Index returns included in the comparison below do not reflect these costs and variables. In addition, unlike the indices, this Fund may be subject to valuation adjustments as outlined in the Fund s valuation policies as it relates to non-north American equities held either directly or indirectly by the Fund. A fair value adjustment can either positively or negatively impact the Fund s rate of return. For the returns of all series and for longer-term performance of the Fund, see the Past Performance section of this report. Performance will vary by series primarily because fees and expenses may differ between series, or because securities of a series were not issued and outstanding for the entire reporting period. See Series Information for the annual expense rates for each series. For the year ended March 31, 218, the Series B securities returned 1.4% (after deducting fees and expenses paid by the Fund). In comparison, the MSCI World Index Total Return (Net) $ CAD returned.% and the FTSE TMX Canada Universe Bond Index Total Return returned 1.4%. The MSCI World Index Total Return (Net) $ CAD advanced as most major equity markets benefitted from improving economic data and corporate earnings growth. A strong second half for U.S. equities, driven by corporate tax reform, added to market optimism. Inflation fears in the U.S. triggered a brief correction in February, and rising global trade tensions caused stocks to again retreat as the period ended. Asia Pacific equities posted the strongest gains, driven by ongoing global economic expansion, especially in China. Japan and Europe, which experienced their best economic performance in years, saw stock market gains restrained by stronger currencies. Short-term and mid-term government bond prices fell and yields increased over the period as the Bank of Canada raised its benchmark overnight interest rate three times, taking it to 1.25% from.5%. (Bond prices fall as yields rise.) Slowing economic growth in late 217 caused the central bank to remain cautious about further rate moves, which kept long-term rates in check while short-term rates rose sharply. As a result, long-term government bonds advanced, outperforming short-term and mid-term bonds. Corporate bonds outperformed government bonds due to narrower credit spreads and higher interest income, resulting in positive total returns across all bond maturities. The Fund s equity investments underperformed the equity index. Stock selection in the information technology sector and investment decisions in the consumer staples sector detracted from relative performance. Stock selection in the financials sector contributed positively to relative performance. Stock selection in the U.S. and the United Kingdom detracted from relative performance, while stock selection in Germany and investment decisions in the Netherlands contributed. The Fund s fixed-income component underperformed the fixedincome index. Both the Fund s corporate and government bonds underperformed the index. Recent Developments (BASED ON INFORMATION AS AT APRIL 2, 218) The Fund s portfolio underwent significant restructuring as the Fund transitioned to a new sub-advisor. Equity investments in the financials and information technology sectors were increased, while exposure to the energy and telecommunication services sectors was reduced. Following the transition, the Fund maintained a consistent investment mix. The equity portfolio management team believes that, given its long-term time horizon and focus on high-quality companies, the Fund may ultimately benefit from market volatility, of which the portfolio management team will continue to attempt to take advantage. The fixed-income portfolio management team expects to maintain a shorter duration for the Fund relative to the index as yields appear poised to move higher.

3 Related Party Transactions I.G. Investment Management, Ltd. is the Manager and Trustee, and, until October 23, 217, I.G. International Management Limited was the Portfolio Advisor of the Fund. The Fund is offered through the Consultants of Investors Group Financial Services Inc. and Investors Group Securities Inc., together referred to as the Distributors. The Manager, Portfolio Advisor, Distributors and Trustee are, indirectly, wholly owned subsidiaries of IGM Financial Inc. Effective October 23, 217, the Manager replaced I.G. International Management Limited as Portfolio Advisor and the following sub-advisor was retained to provide investment services to the Fund: Mackenzie Financial Corporation Mackenzie Financial Corporation is, indirectly, a wholly owned subsidiary of IGM Financial Inc. The Fund paid a management fee to the Manager and Portfolio Advisor for management and portfolio advisory services (see Management Fees). The Fund also paid the Manager an administration fee and in exchange the Manager paid the operating costs and expenses of the Fund, except for certain specified costs. The Fund paid the Distributors a service fee as compensation for providing or arranging for the provision of services to the Fund, including the issue or allotment of securities. A portion of the service fee for Series C and Tc is rebated by the Distributors to the Fund, for distribution to Series C and Tc securityholders quarterly, as outlined in the Prospectus. The Trustee is responsible for the overall direction of the affairs of the Fund. The Fund paid the Trustee a fee for its services. See Series Information for the annual rates paid by each series (as a percent of average net assets) for these fees. Securityholders in Series Tu and U also pay an advisory fee directly to Investors Group. This fee is not included in the Fund s expenses. Certain other investment funds, distributed by Investors Group, and other qualified investors may invest in Series F of this Fund. As at March 31, 218, this series comprised approximately 17.2% of the Fund s net assets. All such transactions in the Fund are executed in accordance with standing instructions approved by the Investors Group Funds Independent Review Committee and based on the net asset value per security determined in accordance with the stated policies of the Fund on each transaction day. No commissions or other transaction fees were paid by the Fund in relation to these transactions. As at March 31, 218, the Fund invests in other funds also managed by the Manager or affiliates of the Manager. These investments are in accordance with the standing instructions on conflict of interest matters approved by the Investors Group Funds Independent Review Committee. There is no duplication of management or other fees, and no commissions or redemption fees were paid by the Fund in relation to these transactions. IGM Financial Inc. maintains a defined benefit employee pension plan and is the pension plan sponsor. The pension plan is a separate trust and its assets are invested in various mutual funds managed by the Manager. As at March 31, 218, the pension plan held securities valued at $27,614,747 in Series C of the Fund. Investors Group has an investment in the Fund which, at March 31, 218, was $1,72 for Series Tjdsc, $1,77 for Series Tjnl and $229,636 for Series U. Management Fees The Fund pays Investors Group a management fee. The management fee paid by each series is calculated as a percentage of the net asset value of the series, as of the close of business on each business day (see Series Information for rates payable by each series). Generally, management fees are used to pay costs incurred in providing investment advisory and management services and in part for distribution-related services provided by the Distributors. Securityholders in Series U and Tu pay an advisory fee directly to the Distributors for distribution-related services and therefore the management fee in those series is for investment advisory and management services only. For all other retail series (i.e. which excludes Series F, P and S, if issued), approximately 58% of management fees paid during the period represents investment advisory and management services, and approximately 42% represents distribution-related services. This may vary by series. Approximately 59% of the total fees paid by the Fund for the period relates to services provided by the Manager, Trustee and Portfolio Advisor, and approximately 41% relates to services provided by the Distributors.

4 Summary of Investment Portfolio AT MARCH 31, 218 The largest positions of the Fund (up to 25) at the end of the period, and the major asset classes in which the Fund was invested, are indicated below. This summary of investment portfolio may change due to ongoing portfolio transactions. The Fund s summary of investment portfolio will be updated as at the end of the next quarter. Please see the front page for information about how it can be obtained. Summary of Top 25 Long Positions % of net assets Cash and cash equivalents 3.2 Canada Housing Trust No % Canada Housing Trust No % Government of Canada.5% Canada Housing Trust No % Microsoft Corp. 2. Canada Housing Trust No % Deutsche Boerse AG 1.8 Safran SA 1.8 Nestle SA Reg. 1.8 Becton, Dickinson and Co. 1.7 JPMorgan Chase & Co. 1.7 Broadcom Ltd. 1.6 Air Liquide SA 1.6 Allergan PLC 1.5 Sabre Corp. 1.5 Philip Morris International Inc. 1.4 British American Tobacco PLC 1.4 Koninklijke Philips NV 1.4 Bayer AG 1.4 Wells Fargo & Co. 1.4 CME Group Inc. 1.3 Heineken Holding NV A 1.3 Investors Mortgage and Short Term Income Fund Series P 1.3 Oracle Corp Summary of Top 25 Short Positions* % of net assets CME Ultra Long Term U.S. Treasury Bond Future (.4) * Short positions comprise short futures contracts. Summary of Composition of the Portfolio PORTFOLIO ALLOCATION % of net assets Long Positions Equities 75.5 Bonds 19.5 Mutual Funds 1.3 Cash and cash equivalents Short Positions Bonds (.4) Other net assets (liabilities).9 Total. EQUITIES REGIONAL ALLOCATION United States 39.4 Europe ex U.K United Kingdom 6. Pacific ex Japan 4.3 Japan 3.3 Latin America SECTOR ALLOCATION Information Technology 14.8 Financials 14. Industrials 13. Consumer Staples 11.4 Health Care.1 Consumer Discretionary 6. Energy 3. Materials 2.6 Telecommunication Services BONDS NET CURRENCY EXPOSURE Canadian dollars 17.8 Other SECTOR ALLOCATION Federal Government 12.2 Foreign Governments 3.4 Corporate 2. Other

5 Series Information AT MARCH 31, 218 Inception Management Service Administration Trustee Series date fee (%) fee (%) fee (%) fee (%) Series A n/a Series B n/a Series C n/a 2. up to Series F 7/2/ Series Jdsc 7/13/ Series Jnl 7/13/ Series Tdsc 7/13/ Series Tnl 7/13/ Series Tc 7/13/ up to Series Tjdsc 7/13/ Series Tjnl 7/13/ Series Tu 7/12/ Series U 7/12/ The fee rates in the table above are rounded to two decimals. Inception dates of the series are shown if within years. Clients in Series C and Tc are entitled to a full or partial rebate of the service fee based on their asset levels held in the Fund and in other Investors Group funds as outlined in the Fund s Prospectus. Until December 31, 216, the annual management fee rate for Series Tu and U was.85%. Until December 31, 216, the annual service fee rate for Series B, Jnl, Tnl and Tjnl was.4%.

6 Past Performance It is important to remember that past performance doesn t necessarily indicate future performance. The returns presented below: assume that all distributions, except for fee rebates, are reinvested into the Fund; do not include sales charges, income taxes, optional expenses or advisory fees payable directly by securityholders in certain series, that reduce returns; show performance based on Canadian dollar returns; and show performance for each of the past financial years, or since the series started. Financial years are as follows: - 29 six months ended March 31-2 to 218 nths ended March 31 Inception dates of the series within these periods are shown in Series Information. Performance during these periods may have been impacted by the following events: Effective July 1, 2, the administration fees for Series A and B decreased by.1% to.19%. Effective June 3, 212, the annual management fee rate for Series A and B decreased by.15% to 1.85%. Effective June 3, 212, the annual service fee rate for Series B decreased by.5% to.4%. Effective January 1, 217, the annual management fee rate for Series Tu and U decreased by.% to.75%. Effective January 1, 217, the annual service fee rate for Series B, Jnl, Tnl and Tjnl decreased by.% to.3%. Year-by-Year Returns These bar charts show how much an investment in securities made on the first day of each financial year would have increased or decreased by the end of the respective period. For the first year of a series, the percentage shown will be the actual return of the series from its inception date. The charts illustrate how the Fund s performance has changed over time. SERIES A 2 - % (18.5) (5.8) SERIES B 2 - % (18.6) (5.9) SERIES C 2 - % (18.6) (6.) SERIES F 2 - % SERIES Jdsc 2 - %

7 YEAR-BY-YEAR RETURNS (continued) SERIES Jnl 2 - % SERIES Tjnl 2 - % SERIES Tdsc 2 - % SERIES Tu 2 - % SERIES Tnl 2 - % SERIES U 2 - % SERIES Tc 2 - % SERIES Tjdsc 2 - %

8 Annual Compound Returns The following table compares the historical annual compound returns for each series with the index (or indices) shown below, for the periods shown ending March 31, 218. For a discussion of the Fund s recent performance relative to the index (or indices), see Results of Operations. Since (%) 1 yr 3 yrs 5 yrs yrs inception Series A n/a Series B n/a Series C n/a Series F n/a n/a.7 Series Jdsc n/a 9.8 Series Jnl n/a 9.7 Series Tdsc n/a 9.4 Series Tnl n/a 9.4 Series Tc n/a 9.1 Series Tjdsc n/a 9.9 Series Tjnl n/a 9.7 Series Tu n/a n/a 9.2 Series U n/a n/a 9.2 MSCI World Index Total Return (Net) $ CAD FTSE TMX Canada Universe Bond Index Total Return The annual compound return for the index presented in the table corresponds to the inception dates for Series Jdsc, Jnl, Tdsc, Tnl, Tc, Tjdsc and Tjnl. The comparative annual compound return for the index since the inception of each of the remaining series is as follows: Series F: 14.7%; Series Tu and U: 14.2%. 2 The annual compound return for the index presented in the table corresponds to the inception dates for Series Jdsc, Jnl, Tdsc, Tnl, Tc, Tjdsc and Tjnl. The comparative annual compound return for the index since the inception of each of the remaining series is as follows: Series F: 3.5%; Series Tu and U: 3.5%. The MSCI World Index Total Return (Net) $ CAD is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of 23 developed markets. The FTSE TMX Canada Universe Bond Index Total Return is designed to be a broad measure of the Canadian investmentgrade fixed-income market weighted by market cap.

9 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 financial years. Footnotes are presented after Ratios and Supplemental Data. Net Assets per Security 1 SERIES A SERIES B (in $) beginning of period (in $) beginning of period Total revenue Total expenses (.28) (.27) (.26) (.24) (.22) for the period for the period (1.33).3 (.9) operations (excluding dividends) (.6) (.7) (.8) (.14) (.13) From dividends Return of capital distributions (.6) (.7) (.8) (.14) (.13) at period end Total revenue Total expenses (.27) (.28) (.26) (.25) (.22) for the period for the period (1.32).4 (.7) operations (excluding dividends) (.6) (.6) (.7) (.13) (.13) From dividends Return of capital distributions (.6) (.6) (.7) (.13) (.13) at period end SERIES C SERIES F (in $) beginning of period (in $) beginning of period Total revenue Total expenses (.24) (.25) (.24) (.22) (.21) for the period for the period (1.29).4 (.7) operations (excluding dividends) (.5) (.5) (.8) (.13) (.12) From dividends Return of capital distributions (.5) (.5) (.8) (.13) (.12) at period end Total revenue Total expenses (.1) (.2) (.1) (.1) (.2) for the period for the period (1.8).5 (.12) operations (excluding dividends) (.28) (.32) (.43) (.32) (.2) From dividends (.3) (.1) (.1) (.1) (.2) Return of capital distributions (.31) (.33) (.44) (.33) (.22) at period end

10 Net Assets per Security 1 (continued) SERIES Jdsc JDSC SERIES Jnl JNL (in $) beginning of period (in $) beginning of period Total revenue Total expenses (.37) (.37) (.35) (.32) (.29) for the period for the period (2.2).6 (.12) operations (excluding dividends) (.) (.13) (.14) (.22) (.21) From dividends (.1) Return of capital distributions (.11) (.13) (.14) (.22) (.21) at period end Total revenue Total expenses (.37) (.37) (.36) (.33) (.31) for the period for the period (2.1).6 (.13) operations (excluding dividends) (.) (.12) (.15) (.22) (.2) From dividends (.1) Return of capital distributions (.11) (.12) (.15) (.22) (.2) at period end SERIES Tdsc TDSC (in $) beginning of period Total revenue Total expenses (.37) (.37) (.37) (.35) (.31) for the period for the period (1.73).3 (.11) operations (excluding dividends) (.7) (.8) (.23) (.18) (.15) From dividends Return of capital (.47) (.49) (.32) (.34) (.31) distributions (.54) (.57) (.55) (.52) (.46) at period end SERIES Tnl TNL (in $) beginning of period Total revenue Total expenses (.37) (.38) (.36) (.34) (.31) for the period for the period (1.7).3 (.9) operations (excluding dividends) (.7) (.8) (.24) (.19) (.15) From dividends Return of capital (.47) (.49) (.31) (.33) (.31) distributions (.54) (.57) (.55) (.52) (.46) at period end

11 Net Assets per Security 1 (continued) SERIES Tc TC (in $) beginning of period Total revenue Total expenses (.34) (.35) (.34) (.32) (.29) for the period for the period (1.67).4 (.11) operations (excluding dividends) (.6) (.7) (.23) (.19) (.14) From dividends Return of capital (.47) (.5) (.31) (.33) (.32) distributions (.53) (.57) (.54) (.52) (.46) at period end SERIES Tjnl TJNL (in $) beginning of period Total revenue Total expenses (.32) (.32) (.34) (.31) (.29) for the period for the period (1.69).4 (.) operations (excluding dividends) (.8) (.) (.25) (.2) (.17) From dividends (.1) Return of capital (.48) (.5) (.33) (.35) (.32) distributions (.57) (.6) (.58) (.55) (.49) at period end SERIES Tjdsc TJDSC SERIES Tu TU (in $) (in $) beginning of period Total revenue Total expenses (.31) (.31) (.3) (.28) (.26) for the period for the period (1.71).3 (.11) operations (excluding dividends) (.9) (.) (.25) (.24) (.17) From dividends (.1) Return of capital (.48) (.51) (.33) (.31) (.32) distributions (.58) (.61) (.58) (.55) (.49) at period end beginning of period Total revenue Total expenses (.14) (.16) (.16) (.14) (.) for the period for the period (1.57).5 (.) operations (excluding dividends) (.15) (.19) (.34) (.27) (.12) From dividends (.2) (.1) (.1) (.1) (.1) Return of capital (.35) (.35) (.17) (.21) (.22) distributions (.52) (.55) (.52) (.49) (.35) at period end

12 Net Assets per Security 1 (continued) SERIES U (in $) beginning of period Total revenue Total expenses (.15) (.17) (.16) (.15) (.) for the period for the period (1.75).5 (.).4.9 operations (excluding dividends) (.17) (.2) (.26) (.25) (.16) From dividends (.2) (.1) (.1) (.1) (.1) Return of capital distributions (.19) (.21) (.27) (.26) (.17) at period end Ratios and Supplemental Data SERIES A ($ s) 25,52 249, , , ,7 outstanding ( s) 19,539 23,998 28,2 3,734 33,268 expense ratio (%) or absorptions (%) SERIES B ($ s) 5,92 42,863 33,638 31,389 28,177 outstanding ( s) 4,99 4,168 3,521 3,339 3,28 expense ratio (%) or absorptions (%) SERIES C ($ s) 29, , ,252 43, ,984 outstanding ( s) 28,57 33,774 38,554 46,35 55,454 expense ratio (%) or absorptions (%)

13 Ratios and Supplemental Data (continued) SERIES F SERIES Tdsc TDSC ($ s) 191,928 25, ,37 26, ,149 outstanding ( s) 13,56 14,739 14,85 16,295 15,615 expense ratio (%) or absorptions (%) ($ s) outstanding ( s) expense ratio (%) or absorptions (%) SERIES Jdsc JDSC ($ s) 23, ,43 278,18 18,366 94,3 outstanding ( s) 12,775 16,65 18,977 12,522 7,177 expense ratio (%) or absorptions (%) SERIES Tnl TNL ($ s) outstanding ( s) expense ratio (%) or absorptions (%) SERIES Jnl JNL ($ s) 28,741 29,231 24,871 15,185 9,484 outstanding ( s) 1,87 1,856 1,71 1, expense ratio (%) or absorptions (%) SERIES Tc TC ($ s) outstanding ( s) expense ratio (%) or absorptions (%)

14 Ratios and Supplemental Data (continued) SERIES Tjdsc TJDSC ($ s) outstanding ( s) expense ratio (%) or absorptions (%) SERIES U ($ s) 145,946 7,143 26,695 14,757 4,263 outstanding ( s),542 5,146 2,119 1, expense ratio (%) or absorptions (%) SERIES Tjnl TJNL ($ s) outstanding ( s) expense ratio (%) or absorptions (%) SERIES Tu TU ($ s) outstanding ( s) expense ratio (%) or absorptions (%)

15 1 These calculations are prescribed by securities regulations and are not intended to be a reconciliation between opening and closing net assets per security. This information is derived from the Fund s audited annual financial statements presented in accordance with IFRS. Net asset values presented are consistent with the net asset values calculated in accordance with securities regulations for the purchase and redemption of the Fund s securities (pricing net asset values) and as such, pricing net asset values are not separately disclosed. 2 Commissions and other portfolio transaction costs are included in total expenses. 3 Net asset value and distributions are based on the actual number of securities outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of securities outstanding over the financial period. In the period a series is established, the financial information is provided from the date of inception to the end of the period. 4 Distributions were paid in cash, reinvested in additional securities of the Fund, or both. 5 ratio (MER) is based on total expenses, excluding commissions and other portfolio transaction costs, income taxes, and withholding taxes, for the stated period and is expressed as an annualized percentage of daily average net assets during the period, except as noted. In the period a series is established, the MER is annualized from the date of inception to the end of the period. Where a Fund directly or indirectly via derivative contract invests in securities of an Underlying Fund, the MERs presented for the Fund include the portion of MERs of the Underlying Fund(s) attributable to this investment. Correspondingly, the MERs presented for the Fund exclude any management or other fees that are waived as a result of its investment in the Underlying Fund(s). Certain expenses that are non-recurring and/or otherwise uncertain as to their future timing and amount have not been annualized. For Series C and Tc, the service fees are divided by the assets attributable to Series C and Tc on the days on which the fee is charged. The MERs presented for Series C and Tc represent the maximum MER applicable to an account because service fee rebates have not been offset against service fees. Clients in Series C and Tc are entitled to a full or partial rebate of service fees based on their asset levels held in the Fund and in other Investors Group funds as outlined in the Fund s Prospectus. The rebate is distributed as a return of capital distribution to securityholders and is required to be reinvested in additional Series C and Tc securities. 6 The trading expense ratio (TER) represents total commissions and other portfolio transaction costs incurred as an annualized percentage of daily average net assets during the period. Where a Fund invests in securities of an Underlying Fund, the TERs presented for the Fund include the portion of TERs of the Underlying Fund(s) attributable to this investment. 7 The Fund s portfolio turnover rate indicates how actively the Fund s Portfolio Advisor manages its portfolio investments. A portfolio turnover rate of % is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. Generally, the higher a Fund s portfolio turnover rate in a period, the greater the trading costs payable by it in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a Fund. Transactions incurred to realign the Fund s portfolio after a fund merger, if any, are excluded from the portfolio turnover rate.

16 Memo