Canadian Fixed Income Pool

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 United Financial, 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 Canadian Fixed Income Pool (the Fund ) seeks to maximize performance through current income and capital appreciation while maintaining safety of capital primarily through investments in liquid securities of or guaranteed by the Government of Canada or any province thereof, obligations of and deposits in interest-bearing accounts in any chartered bank or trust company, in government or corporate bonds and debentures, in mortgages or in other fixed income investments and preferred stock. Despite the hawkish tone of central bankers across the developed world, global financial conditions remained incredibly supportive and risk assets continued to outperform. This, perhaps, gave the U.S. Federal Reserve (Fed) the confidence to continue its tightening path and policymakers reiterated their support for a gradual approach to raising interest rates. Even after three interest rate hikes and the initiation of balance sheet normalization by the Fed, the 10-year U.S. rate ended the year at 2.46%. Weak inflation expectations only nudged up moderately in the fourth quarter, which helped rates remain range bound in The portfolio adviser employs various analytical tools to identify investments that offer value on a relative basis by analyzing variables such as economic growth, rate of inflation, monetary policy and interest rate and yield curve expectations. The portfolio is expected to have an investment grade credit rating and investments in foreign securities will generally be no more than 49% of the Fund s assets. In Canada, the central bank raised interest rates twice in 2017 and remained concerned about valuations in the housing market and elevated household debt, which makes the economy more sensitive to higher future interest rates. The 10-year Canadian interest rate declined 0.07% in the fourth quarter to end the year at 2.04%, 0.36% over 2017 starting levels. This Fund may use derivatives, but only as permitted by securities regulations. This Fund may also enter into securities lending transactions, repurchase transactions and reverse repurchase transactions, to the extent permitted by securities regulations, to earn additional income. RISK The risks of investing in the Fund remain as discussed in the prospectus. This Fund is suitable for investors who want a low risk investment with the potential for capturing some capital growth and have a short and/or medium investment horizon. RESULTS OF OPERATIONS The net asset value of the Fund increased by $336.4 million to $2,694.4 million from December 31, 2016 to December 31, The Fund had net sales of $284.4 million for the year. The portfolio s performance increased assets by $52.0 million. Class W units returned 2.6% after fees and expenses for the one-year period ended December 31, Over the same time period, the Fund s benchmark returned 2.5%. The benchmark is the FTSE TMX Canada Universe Bond Total Return Index. The performance of the Fund s other classes is substantially similar to that of Class W units, 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. Signature Global Asset Management 2017 began with geopolitical tensions, fear of trade protectionism and the risk of the far right dominating European politics. The consensus expectations of a pick-up in wage growth, higher inflation, a stronger U.S. dollar and 10-year U.S. rates at 3% did not materialize through the year. Instead, momentum trades, low volatility, tighter spreads and tax reforms in the U.S. were the main stories in Elsewhere, the European central bank ended 2017 on an optimistic note, raising its growth forecast for the next two years. However, underlying inflation in Europe, as well as in Japan, continues to fall short of central bank targets. Furthermore, the Bank of England took back its post-referendum emergency interest rate cut and hiked interest rates 0.25% as inflation in the U.K reached a 5-year high. As rates were hiked in developed markets, rates in some emerging economies facing low inflation, such as Brazil and Indonesia, were cut in 2017 to stimulate their economies. However, in Mexico, despite the NAFTA overhang, the central bank tightened five times in 2017 to counter inflation that hit a 16-year high. The Fund slightly outperformed its benchmark for the year. The total return of the portfolio was primarily driven by the net compression of government and corporate credit spreads, partly offset by the weakening of shorter maturity Canadian bonds relative to longer maturities. On a relative-to-benchmark basis, duration and yield curve positioning subtracted the most from portfolio alpha, as the Canadian term structure flattened sharply in the wake of a hawkish shift from the Bank of Canada and our underweight position in longer maturity Canadian bonds hindered performance. This weakness was only partly offset by the outperformance of our U.S. duration positions relative to their Canadian counterparts, with residual U.S. dollar exposure also subtracting from portfolio alpha. Portfolio foreign currency exposure is actively managed through a hedging overlay. Within the spread product domain, exposure to corporate credit, U.S. agency mortgages and emerging market spreads were beneficial for alpha. These positives outweighed the negative impact of our underweight government credit position, which occurred amid a material tightening of spreads in that sector. CIG

2 The portfolio remains underweight duration relative to the benchmark, primarily concentrated in the 20-year portion of the yield curve. Provincial bonds are used to manage this yield curve exposure, while collecting better income. In the spread product space, we are overweight corporate credit, underweight agency debt and hold positions in U.S.-dollar investment grade emerging market sovereign debt, agency mortgages and inflation-linked bonds. During the year we reduced exposure to BBB-rated securities by about 10% in favour of securities rated single-a or higher. In the current environment we believe it is prudent to maintain a high level of portfolio quality, as spreads have become compressed and we will look for periods of market pullback to rotate back into higher-yielding securities. Portfolio sensitivity to credit spreads was increased moderately to offset the loss of yield from holding high-quality bonds. Late in the year, we added Canadian duration mainly in longer maturities and shifted exposure toward this area of the yield curve from shorter maturity Canadian bonds. In addition, we increased our U.S. inflation-linked bond positions following earlier reductions, moving this exposure from the Canadian market via sales of federal debt. Lawrence Park Asset Management Despite a sharp flattening of the Canadian rate curve in the fourth quarter, bond returns generally remained lackluster in The FTSE TMX Canadian Universe Bond Index returned just 2.5% while the FTSE TMX Canadian Corporate Bond Index returned 2.8%. Two quick interest rate hikes by the Bank of Canada in July and September caught the market off guard pushing yields higher particularly in the short-end. Meanwhile the Fed managed three interest rate hikes, with the last coming in December. Both central banks forecast additional hikes in 2018, suggesting that at least the short-end of the interest rate curve will continue to move higher and suppress returns. RECENT DEVELOPMENTS Signature Global Asset Management Policy interest rates in the United States and Canada are expected to rise gradually in Markets have currently priced in four interest rate hikes for Canada and two for the U.S. over the coming year. Global growth continues to be strong, but weak inflation will put central banks to the test especially if the Fed tightens monetary policy too quickly. It also remains to be seen how Fed policy will change, if at all, under Jerome Powell, the new chairperson of the Fed starting in February A number of downside risks, such as missteps by the current U.S. administration, a correction in asset valuations, international trade concerns amidst NAFTA renegotiation and ever-changing U.S. trade policy, continue to persist. Elections in multiple emerging countries such as Mexico, Brazil and Colombia, could give rise to idiosyncratic risks and create opportunities. Perhaps more significantly for bond investors, the Fed commenced balance sheet reduction, a program which will take a number of years to complete and will result in up to U.S.$50 billion of additional treasury and mortgage-backed bonds sold into the market per month. Although well anticipated, we still believe it will contribute to the overall normalization of interest rates in coming quarters. Meanwhile, corporate credit spreads finished the year at multi-year heights, reflecting strong demand for income assets. Despite the shift toward monetary policy normalization, Canadian and international investors have continued to demand corporate credit as a replacement for traditional rate-sensitive fixed-income instruments. During the year, the portfolio returned 5.12%, which exceeded the total return of the FTSE TMX Canadian Corporate Bond Index. Our approach of maintaining low rate duration and focusing on credit-based returns is designed to reduce volatility and diversify from traditional fixed income. We generally expect that the Fund will outperform traditional bond strategies during periods of rising interest rates and underperform during periods of falling interest rates. The overall tone in Canadian corporate bond spreads has continued to be particularly strong since the start of The portfolio is approximately 80% invested in Canadian fixed-income securities, with the balance invested in U.S. and European bank and corporate bonds. Currency hedges are strictly maintained to reduce exchange rate sensitivity on foreign holdings. The yield curve in the U.S. is the flattest it has been since the financial crisis in and we remain cautious in positioning our portfolios as the bond market begins to signal a decline in growth expectations. Lawrence Park Asset Management Credit trading remains technically strong as global growth forecasts rise and recent U.S. tax reform has led to modestly lower expectations of supply. Spreads are at multi-year tights and high yield has become compressed. The gradual normalization of interest rates is proving an ongoing headwind for bond-based strategies. In this environment we anticipate our focus on high-quality investment-grade credit with interest rate and currency hedges in place will continue to offer an attractive, low-volatility solution for risk averse investors. RELATED PARTY TRANSACTIONS Manager, Trustee and Portfolio Advisor CI Investments Inc. is the Manager, Trustee and Portfolio Advisor of the Fund. CI Investments Inc. is a subsidiary of CI Financial Corp. The Manager, in consideration of management fees, provided 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. Management fee and fixed administration fee rates as at December 31, 2017, for each of the classes are shown below: European banks continue to be among the strongest performers in the portfolio. European bank capital notes rallied sharply through the summer and in some cases generated total returns in excess of 20% for the year. We continue to see good relative value in these positions, although the opportunity for outsized returns has diminished. Other notable performers in the portfolio include holdings in the Canadian health care and consumer finance sectors. Annual management fee rate (%) Annual fixed administration fee rate (%) Class A Class E Class E

3 Annual management fee rate (%) Annual fixed administration fee rate (%) Class E Class E Class F Class F Class F Class F Class I Paid directly by investor - Class OF Class W Paid directly by investor 0.17 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. The Manager received $12.9 million in management fees and $2.2 million in fixed administration fees for the year. Management Fees Approximately 19% of total management fees were used to pay for sales and trailing commissions and other services required. The remaining 81% of management fees were used to pay for investment management and other general administration. Principal Distributor The Manager has the exclusive right to arrange for the distribution of units of the Fund. Pursuant to a series of agreements, the right to distribute such units has been granted, on a collective basis, to the following dealers, each of which is an affiliate of the Manager. Assante Capital Management Ltd. Assante Financial Management Ltd. Inter-Fund Trading Inter-fund trading occurs when a Fund purchases or sells a security of any issuer from or to another Fund managed by the Manager. These transactions are executed through market intermediaries and under prevailing market terms and conditions. The Independent Review Committee reviews such transactions during scheduled meetings. During the year ended December 31, 2017 the Fund executed inter-fund trades. Independent Review Committee The Fund received standing instructions from the Fund s Independent Review Committee ( IRC ) 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. 3

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 Unit ($) (1) (2) (4) * Increase (decrease) from operations: Distributions: Total Realized Unrealized Total increase From net investment Net assets Net assets at the beginning Total expenses (excluding gains (losses) for gains (losses) for (decrease) from income (excluding From From capital Total at the end of the year of year (2) revenue distributions) the year the year operations (2) dividends) dividends (2, 3) gains Return of capital distributions shown (2) $ $ $ $ $ $ $ $ $ $ $ $ Class A Commencement of operations December 28, 2006 Dec. 31, (0.31) 0.10 (0.17) Dec. 31, (0.31) 0.14 (0.03) Dec. 31, (0.31) (0.08) (0.02) Dec. 31, (0.30) Dec. 31, (0.29) (0.07) (0.28) (0.19) Class E Commencement of operations September 10, 2008 Dec. 31, (0.27) 0.10 (0.12) Dec. 31, (0.26) 0.14 (0.07) Dec. 31, (0.26) (0.08) (0.08) Dec. 31, (0.25) Dec. 31, (0.24) (0.11) (0.22) (0.13) Class E3 Dec. 31, (0.13) 0.03 (0.27) (0.14) Class E4 Dec. 31, (0.13) 0.05 (0.30) (0.15) Class E5 Dec. 31, (0.12) 0.05 (0.26) (0.09) Class F Dec. 31, (0.06) 0.04 (0.17) *Footnotes for the tables are found at the end of the Net Assets per Unit section of the Financial Highlights.

5 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Unit ($) (1) (2) (4) * Increase (decrease) from operations: Distributions: Total Realized Unrealized Total increase From net investment Net assets Net assets at the beginning Total expenses (excluding gains (losses) for gains (losses) for (decrease) from income (excluding From From capital Total at the end of the year of year (2) revenue distributions) the year the year operations (2) dividends) dividends (2, 3) gains Return of capital distributions shown (2) $ $ $ $ $ $ $ $ $ $ $ $ Class F3 Dec. 31, (0.06) 0.03 (0.09) Class F4 Dec. 31, (0.05) 0.02 (0.12) Class F5 Dec. 31, (0.05) 0.04 (0.28) (0.06) Class I Commencement of operations September 17, 2008 Dec. 31, (0.25) Dec. 31, (0.08) Dec. 31, (0.10) (0.10) Dec. 31, Dec. 31, (0.11) (0.27) Class OF Commencement of operations May 23, 2008 Dec. 31, (0.18) 0.13 (0.32) Dec. 31, (0.17) Dec. 31, (0.17) (0.10) (0.06) Dec. 31, (0.17) Dec. 31, (0.16) (0.08) (0.34) (0.12) Class W Commencement of operations November 15, 1961 Dec. 31, (0.04) 0.16 (0.31) Dec. 31, (0.04) 0.24 (0.10) Dec. 31, (0.04) (0.14) (0.10) Dec. 31, (0.04) Dec. 31, (0.04) (0.14) (0.40) *Footnotes for the tables are found at the end of the Net Assets per Unit section of the Financial Highlights.

6 FINANCIAL HIGHLIGHTS (cont d) (1) This information is derived from the Fund s audited annual financial statements. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant class at the relevant time. The increase (decrease) in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant class over the fiscal year. (3) Distributions are automatically reinvested in additional units of the Fund. (4) This information is provided for the years ended December 31.

7 FINANCIAL HIGHLIGHTS (cont d) Ratios and Supplemental Data (1) (5) * Total net assets (5) Number of units outstanding (5) Management expense ratio before taxes (2) Harmonized sales tax (2) Management expense ratio after taxes (2) Effective HST rate for the year Trading (%) (2) expense ratio (3) Portfolio turnover rate (4) $000 s 000 s % % % % % % Class A Commencement of operations December 28, 2006 Dec. 31, ,027 1, Dec. 31, ,020 1, Dec. 31, ,262 2, Dec. 31, ,681 3, Dec. 31, ,592 3, Class E Commencement of operations September 10, 2008 Dec. 31, ,580 43, Dec. 31, ,367 56, Dec. 31, ,224 49, Dec. 31, ,391 44, Dec. 31, ,253 34, Class E3 Dec. 31, ,067 15, Class E4 Dec. 31, ,192 2, Class E5 Dec. 31, , Class F Dec. 31, ,198 1, *Footnotes for the tables are found at the end of the Financial Highlights section.

8 FINANCIAL HIGHLIGHTS (cont d) Ratios and Supplemental Data (1) (5) * Total net assets (5) Number of units outstanding (5) Management expense ratio before taxes (2) Harmonized sales tax (2) Management expense ratio after taxes (2) Effective HST rate for the year Trading (%) (2) expense ratio (3) Portfolio turnover rate (4) $000 s 000 s % % % % % % Class F3 Dec. 31, , Class F4 Dec. 31, , Class F5 Dec. 31, Class I Commencement of operations September 17, 2008 Dec. 31, ,387,176 87, Dec. 31, ,088,314 70, Dec. 31, ,028 61, Dec. 31, ,259 52, Dec. 31, ,050 39, Class OF Commencement of operations May 23, 2008 Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Class W Commencement of operations November 15, 1961 Dec. 31, ,313 21, Dec. 31, ,970 22, Dec. 31, ,295 22, Dec. 31, ,845 22, Dec. 31, ,272 21, *Footnotes for the tables are found at the end of the Financial Highlights section.

9 FINANCIAL HIGHLIGHTS (cont d) (1) This information is derived from the Fund s audited annual financial statements. (2) Management expense ratio is calculated based on expenses charged to the Fund (excluding commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net assets for the year, 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 unitholder residency and can be different from 13%. (3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net assets during the year, 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 100% 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 the year, and the greater the chance of an investor receiving taxable capital gains in the year. 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 the year, 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 the year. (5) This information is provided for the years ended December 31.

10 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 distributions made by the Fund in the years shown were reinvested in additional units 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 the years 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. Class A Class E Class I Class OF Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Class W Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec return is for the period from September 10, 2008 to December 31, return is for the period from September 17, 2008 to December 31, return is for the period from May 23, 2008 to December 31, 2008.

11 Annual Compound Returns The following table shows the Fund s annual compound returns for each year indicated, compared to the FTSE TMX Canada Universe Bond Total Return Index. The FTSE TMX Canada Universe Bond Total Return Index is a market capitalization weighted index that measures the performance of the Canadian investment-grade fixed income market. The Index consists of fixed rate bonds denominated in Canadian dollars, with a remaining effective term to maturity of at least one year, rated BBB or higher. The Index is comprised of four main credit or borrower categories: bonds issued by the Government of Canada (including Crown Corporations), Provincial bonds (including provincially-guaranteed securities), Municipal bonds and Corporate bonds. The Corporate sector is further divided into sub-sectors based on major industry groups: Financial, Communication, Industrial, Energy, Infrastructure, Real Estate and Securitization. The Corporate sector is also divided into sub-indices based on credit rating: a combined AAA/AA sector, a single A sector and a BBB sector. 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 (%) Class A n/a FTSE TMX Canada Universe Bond Total Return Index n/a Class E n/a 3.0 FTSE TMX Canada Universe Bond Total Return Index n/a 4.8 Class I n/a 5.1 FTSE TMX Canada Universe Bond Total Return Index n/a 4.8 Class OF n/a 3.8 FTSE TMX Canada Universe Bond Total Return Index n/a 4.6 Class W n/a FTSE TMX Canada Universe Bond Total Return Index n/a 11

12 SUMMARY OF INVESTMENT PORTFOLIO as at December 31, 2017 Category % of Net Assets Category % of Net Assets Top 25 Holdings % of Net Assets Country allocation Long Positions Canada U.S.A Cash & Equivalents Short-Term Investments U.K Exchange-Traded Funds Other Net Assets (Liabilities) Mexico Switzerland Indonesia Cayman Islands Colombia Luxembourg France Netherlands Ireland Brazil Bermuda Jersey Island Argentina Peru Foreign Currency Forward Contracts Turkey Russia British Virgin Islands Panama Hungary South Africa Spain Australia Marshall Islands Germany Belgium Philippines Italy Bahamas Austria Interest Rate Swaps St. Lucia Future Contracts Total Long Positions Sector allocation Long Positions Corporate Bonds Provincial Bonds Canadian Government Bonds Cash & Equivalents Foreign Government Bonds Asset-Backed Securities Short-Term Investments Financials Exchange-Traded Funds Other Net Assets (Liabilities) Energy Utilities Foreign Currency Forward Contracts Real Estate Private Placements Telecommunication Services Warrants Consumer Staples Interest Rate Swaps Health Care Industrials Preferred Shares Materials Future Contracts Total Long Positions Short Positions Future Contracts Total Short Positions Cash & Equivalents Province of Ontario 2.85% 06/02/ Government of Canada 1% 09/01/ Province of Ontario 3.5% 06/02/ Province of Ontario 2.4% 06/02/ Province of Ontario 2.6% 06/02/ Province of Quebec 2.5% 09/01/ Province of Quebec 3% 09/01/ Province of Quebec 3.75% 09/01/ Province of Ontario 2.8% 06/02/ Province of Quebec 2.75% 09/01/ Government of Canada 1.25% 11/01/ Short-Term Investments Government of Canada 2.75% 12/01/ Province of Quebec 2.75% 09/01/ Province of Quebec 3.5% 12/01/ Province of British Columbia 3.2% 06/18/ Province of Quebec 3.5% 12/01/ Province of British Columbia 6.35% 06/18/ Province of Ontario 2.6% 06/02/ Sobeys Inc., 3.52% 08/08/ ishares iboxx $ Investment Grade Corporate Bond ETF United States Treasury Inflation Indexed Bonds 0.125% 04/15/ United States Treasury Note/Bond 2.25% 11/15/ Government of Canada 2.75% 12/01/ Total Net Assets (in $000 s) $2,694,435 Short Positions Future Contracts Total Short Positions 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. 12