US EQUITY GROWTH 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 pool. 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 pool s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure. INVESTMENT OBJECTIVE AND STRATEGIES US Equity Growth Pool seeks to provide long-term capital appreciation primarily through investing in a diversified portfolio of equity and equity-related securities of US issuers. Equity-related securities include convertible preferred shares, convertible debt obligations and warrants. The portfolio advisor utilizes a growth-oriented approach emphasizing bottom-up security selection. When deciding to buy or sell an investment, the portfolio advisor looks for companies based on what it considers to be a capability to generate above-average growth in corporate earnings. The portfolio advisor selects the companies by: identifying sources of growth, profit potential, competitive advantage, market share growth and dominance in its market segment, in addition to its ability to respond to changing market conditions and to seize expansion opportunities. As a natural byproduct of the bottom-up securities selection approach, the portfolio advisor may choose to concentrate its investments in certain industry sectors. The Pool may use derivatives, but only as permitted by securities regulations. This Pool 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 Pool remain as discussed in the prospectus. This Pool is suitable for investors who can tolerate medium risk, want an investment that is focused on generating capital growth and are planning to hold their investment for the medium and/or long term. RESULTS OF OPERATIONS The Pool s net asset value increased by $5.0 million to $43.6 million from December 31, 2011 to December 31, The Pool had net redemptions of $0.6 million for the period, while the portfolio s performance increased assets by $5.6 million. The Pool s one year return for Class A units, Class E units, Class F units, Class I and Class W units was 13.0%, 13.6%, 14.1%, 16.4% and 16.1%, respectively, compared to the return of the benchmark of 13.5% for the same period. The benchmark is the S&P 500 Total Return Index. Wellington Management Company, LLP During the 12 months ended December 31, 2012, the Pool posted a positive absolute return and performed in line with its benchmark. U.S. equities bolted higher in the first quarter of 2012 as the S&P 500 Index rose to its highest level since May Better-than-expected corporate earnings, generally improving economic data, and improved consumer confidence helped to offset a continued slump in housing. Early in the quarter, a strong employment report and robust manufacturing activity provided a tailwind for stocks. The rally continued in February as the unemployment rate fell to 8.3%, its lowest level since February 2009, and fourth quarter GDP was up by a revised 3.0% annual rate. Consumer confidence climbed to a one-year high as solid job growth and rising stock prices helped to keep Americans optimistic in the face of surging gasoline prices. Stocks rose again in March, albeit at a slightly slower pace, as the services sector grew at the fastest pace in a year and the U.S. leading economic indicators rose by the most in 11 months, a sign that the world s largest economy is gaining momentum. Following the strong first quarter, equities retreated in April, fell sharply in May, and recovered modestly in June. Fears surrounding European sovereign debt took centre stage. In particular, increased concerns that Greece may exit the Eurozone and fears regarding the banking crisis in Spain underpinned a rise in risk aversion among investors. A lackluster U.S. jobs report, a heightened level of political uncertainty in France and Greece, and a host of Spanish and Italian bank downgrades by Moody s dampened investor enthusiasm for equities. As the overall markets slowed, traditionally more defensive industries returned to favour while more cyclical industries and companies experienced stronger sell-offs. In the third quarter, equities resumed their ascent, led by central bank interventions around the globe. Although Europe continued to struggle through economic and structural challenges, investors risk appetites surged after the European Central Bank (ECB) announced a comprehensive plan, including direct purchases of government bonds in the open market. Additionally, the U.S. Federal Reserve s announcement of a third round of quantitative easing (QE3) was positively received by the market, boosting stock prices. Despite ongoing concerns regarding a global economic slowdown, investors were emboldened by better-than-feared corporate earnings and newfound strength in the U.S. housing market. U.S. equities posted a modest quarterly gain, but finished the year with a solid return of over 16%. Despite strong housing data and an encouraging drop in the unemployment rate, investors focused on disappointing corporate revenue results. Investors enthusiasm was also curbed by worries that the divisive political atmosphere in Washington might prevent Congress from reaching a deal on the fiscal cliff. The Fed provided a boost to equities after announcing further monetary accommodation and shifts in its policy regarding rate guidance. CIG

2 The Federal Open Market Committee said that rates will remain near zero as long as unemployment remains above 6.5% and inflation remains in check. The U.S. economy grew at a 3.1% annual rate in the third quarter, surpassing previous GDP estimates of 2.7% growth. For the 12-month period ended December 31, 2012, growth stocks underperformed and large cap stocks outperformed their smaller peers. of this risk is expected to come from stock selection decisions. The country and sector exposures are residuals from a bottom-up stock selection process and are not explicit management decisions. The portfolio s largest overweight sectors as of December 31, 2012 were health care and energy, while financials and materials were the largest underweight sectors. Stock selection in the health care, industrials, and information technology sectors contributed to performance, while stock selection in the energy, consumer discretionary, and materials sectors detracted from returns. Deckers Outdoor Corp. (-28.2%), Occidental Petroleum Corp. (-17.8%), and Activision Blizzard, Inc. (-14.5%) were some of the largest detractors from relative performance for the period. Deckers Outdoor, a designer and marketer of fashion-oriented footwear, underperformed as elevated inventory levels of UGG boots and waning customer demand led to price reductions of this important contributor to the company s profits. Occidental Petroleum, an exploration and production company, underperformed because of recent concerns over performance in California, and skepticism over large investments in Texas and the Middle East. These concerns are overdone in our view and we continue to own the stock. Activision Blizzard, an electronic entertainment company, had shares decline after the company reported disappointing second quarter earnings due to lower subscriptions for World of Warcraft. We believe the company has a successful track record of bringing to market popular games and its pipeline of products is well positioned to support earnings growth beyond consensus expectations. International Financial Reporting Standards As previously confirmed by the Canadian Accounting Standards Board ( AcSB ), most Canadian publicly accountable entities adopted International Financial Reporting Standards ( IFRS ), as published by the International Accounting Standards Board, on January 1, However, the AcSB has allowed most investment funds to defer adoption of IFRS until fiscal years beginning on or after January 1, Accordingly, the Pool will adopt IFRS for its fiscal period beginning January 1, 2014, and will issue its initial financial statements in accordance with IFRS, including comparative information, for the interim period ending June 30, RELATED PARTY TRANSACTIONS Manager and Trustee CI Investments Inc. is the Manager and Trustee of the Pool. 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 Pool. The Manager bears all of the operating expenses of the Pool (other than taxes, borrowing costs and new governmental fees) in return for a fixed administration fee. Top contributors to relative performance included Regeneron Pharmaceuticals, Inc. (+201.5%), Gilead Sciences, Inc. (+75.6%), and Intel Corp. (-24.4%). Shares of Regeneron Pharmaceuticals, a biopharmaceutical company, moved higher as sales momentum for Eylea, the company s approved macular degeneration drug, continued and investors raised their outlooks for sales in the newly approved markets of Japan and Europe. Gilead Sciences, a biotechnology company, outperformed after positive results for a phase III study indicated that Gilead may have the simplest, most active, best tolerated, and possibly the first all-oral combination regimen for chronic hepatitis C. Gilead is competitively positioned to grow as a global major player in the hepatitis C treatment market, and we continue to own the stock. Intel, the leading manufacturer of semiconductor chips, had shares decline because of reduced PC demand in emerging markets and a server product rollout that was not enough to offset lower demand. Not holding the stock contributed to benchmark-relative returns. RECENT DEVELOPMENTS Wellington Management Company, LLP The portfolio focuses on stock selection as the key driver of returns and uses quantitative portfolio construction techniques to build a portfolio insulated from factors that may cause serious underperformance versus the benchmark, and to avoid surprises from unintended, uncompensated risks. These factors are closely scrutinized and monitored for their impact on overall portfolio risk. The majority Management fee and fixed administration fee rates as at December 31, 2012, for each of the classes are shown below: The Manager received $0.3 million in management fees and $0.1 million in fixed administration fees for the period. Management Fees Approximately 23% of total management fees were used to pay for sales and trailing commissions and other services required. The remaining 77% of management fees were used to pay for investment management and other general administration. Annual management fee rate (%) Annual fixed administration fee rate (%) Class A Class E Class F Class I Paid directly by investors Paid directly Class W by investors 0.21

3 Principal Distributor The Manager has the exclusive right to arrange for the distribution of units of the Pool. 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. Broker Commissions During the period, the Pool did not pay brokerage commissions to The Bank of Nova Scotia or its subsidiaries. The Bank of Nova Scotia has a significant interest in CI Financial Corp., the parent company of CI Investments Inc. Independent Review Committee The Pool received standing instructions from the Board of Governors ( BoG ) in its capacity as the Independent Review Committee ( IRC ) with respect to the following Related Party Transactions: a) trades in securities of CI Financial Corp. and The Bank of Nova Scotia; b) purchases or sales of securities of an issuer from or to another investment fund managed by the Manager (referred to as Inter-Fund Trades ); and c) mergers of funds with another fund that is subject to National Instrument ( Fund Mergers ). The applicable standing instructions require that Related Party Transactions be conducted in accordance with the Manager s policies and procedures. The Manager is required to advise the BoG of any material breach of a condition of the standing instructions. The standing instructions require, among other things, that the investment decision in respect to Related Party Transactions (a) are made by the Manager free from any influence by any entities related to the Manager and without taking into account any consideration to any affiliate of the Manager; (b) represent the business judgment of the Manager uninfluenced by considerations other than the best interests of the Pool; and (c) are made in compliance with the Manager s policies and procedures. Transactions made by the Manager under the standing instructions are subsequently reviewed by the BoG on a quarterly basis to monitor compliance. The Pool relied on the BoG s standing instructions regarding Related Party Transactions during this reporting period.

4 FINANCIAL HIGHLIGHTS The following tables show selected key financial information about the Pool and are intended to help you understand the Pool s financial performance for the past five years, as applicable. The Ratios & Supplemental Data shown below are based on Net Asset Values. The Pool s Net Assets per Unit ($) (1) (2) * Class A (Commencement of operations December 28, 2006) Net assets, beginning of year (1, 7) Increase (decrease) in operations: Total revenue Total expenses Realized gains (losses) for the year Unrealized gains (losses) for the year Total increase (decrease) from operations (2) Year Ended Year Ended Year Ended Year Ended Year Ended December 31, 2012 December 31, 2011 December 31, 2010 December 31, 2009 December 31, 2008 $ $ $ $ $ (0.29) (0.26) (0.23) (0.20) (0.22) (0.05) (1.58) 0.80 (0.62) (0.80) (2.51) Distributions: From income (excluding dividends) From dividends From capital gains Return of capital Total annual distributions (2, 3) Net assets at end of year shown (2, 7) Ratios & Supplemental Data Total net asset value ($000 s) (7) Number of units outstanding (000 s) Portfolio turnover rate (%) (5) Trading expense ratio (%) (6) Net asset value per unit ($) (7) 7,539 9,668 14,365 17,015 14, ,101 1,644 2,135 2, Management Expense Ratio Management expense ratio before taxes (%) (4) Goods and services tax (GST)/Harmonized sales tax (HST) (%) (4) Management expense ratio after taxes (%) (4) GST/Effective HST Rate, for the prior calendar year or period (%) (4) *Footnotes for the tables are found at the end of the Financial Highlights section.

5 FINANCIAL HIGHLIGHTS (cont d) The Pool s Net Assets per Unit ($) (1) (2) * Class E (Commencement of operations October 16, 2008) Net assets, beginning of year (1, 7) Increase (decrease) in operations: Total revenue Total expenses Realized gains (losses) for the year Unrealized gains (losses) for the year Total increase (decrease) from operations (2) Period from Year Ended Year Ended Year Ended Year Ended Inception to December 31, 2012 December 31, 2011 December 31, 2010 December 31, 2009 December 31, 2008 $ $ $ $ $ (0.37) (0.34) (0.30) (0.26) (0.05) (0.77) 0.89 (1.15) Distributions: From income (excluding dividends) From dividends From capital gains Return of capital Total annual distributions (2, 3) Net assets at end of year shown (2, 7) Ratios & Supplemental Data Total net asset value ($000 s) (7) Number of units outstanding (000 s) Portfolio turnover rate (%) (5) Trading expense ratio (%) (6) Net asset value per unit ($) (7) 9,705 3,895 2, Management Expense Ratio Management expense ratio before taxes (%) (4) Goods and services tax (GST)/Harmonized sales tax (HST) (%) (4) Management expense ratio after taxes (%) (4) GST/Effective HST Rate, for the prior calendar year or period (%) (4) *Footnotes for the tables are found at the end of the Financial Highlights section.

6 FINANCIAL HIGHLIGHTS (cont d) The Pool s Net Assets per Unit ($) (1) (2) * Class F (Commencement of operations May 22, 2008) Net assets, beginning of year (1, 7) Increase (decrease) in operations: Total revenue Total expenses Realized gains (losses) for the year Unrealized gains (losses) for the year Total increase (decrease) from operations (2) Period from Year Ended Year Ended Year Ended Year Ended Inception to December 31, 2012 December 31, 2011 December 31, 2010 December 31, 2009 December 31, 2008 $ $ $ $ $ (0.24) (0.21) (0.18) (0.15) (0.09) (0.13) (1.89) (0.51) (0.28) 1.75 (1.85) Distributions: From income (excluding dividends) From dividends From capital gains Return of capital Total annual distributions (2, 3) Net assets at end of year shown (2, 7) Ratios & Supplemental Data Total net asset value ($000 s) (7) Number of units outstanding (000 s) Portfolio turnover rate (%) (5) Trading expense ratio (%) (6) Net asset value per unit ($) (7) , Management Expense Ratio Management expense ratio before taxes (%) (4) Goods and services tax (GST)/Harmonized sales tax (HST) (%) (4) Management expense ratio after taxes (%) (4) GST/Effective HST Rate, for the prior calendar year or period (%) (4) *Footnotes for the tables are found at the end of the Financial Highlights section.

7 FINANCIAL HIGHLIGHTS (cont d) The Pool s Net Assets per Unit ($) (1) (2) * Class I (Commencement of operations November 7, 2008) Net assets, beginning of year (1, 7) Increase (decrease) in operations: Total revenue Total expenses Realized gains (losses) for the year Unrealized gains (losses) for the year Total increase (decrease) from operations (2) Period from Year Ended Year Ended Year Ended Year Ended Inception to December 31, 2012 December 31, 2011 December 31, 2010 December 31, 2009 December 31, 2008 $ $ $ $ $ (0.15) 0.86 (1.22) Distributions: From income (excluding dividends) From dividends From capital gains Return of capital Total annual distributions (2, 3) Net assets at end of year shown (2, 7) Ratios & Supplemental Data Total net asset value ($000 s) (7) Number of units outstanding (000 s) Portfolio turnover rate (%) (5) Trading expense ratio (%) (6) Net asset value per unit ($) (7) 4,406 2,015 1, Management Expense Ratio Management expense ratio before taxes (%) (4) Goods and services tax (GST)/Harmonized sales tax (HST) (%) (4) Management expense ratio after taxes (%) (4) GST/Effective HST Rate, for the prior calendar year or period (%) (4) *Footnotes for the tables are found at the end of the Financial Highlights section.

8 FINANCIAL HIGHLIGHTS (cont d) The Pool s Net Assets per Unit ($) (1) (2) Class W (Commencement of operations May 1, 2000) Net assets, beginning of year (1, 7) Increase (decrease) in operations: Total revenue Total expenses Realized gains (losses) for the year Unrealized gains (losses) for the year Total increase (decrease) from operations (2) Year Ended Year Ended Year Ended Year Ended Year Ended December 31, 2012 December 31, 2011 December 31, 2010 December 31, 2009 December 31, 2008 $ $ $ $ $ (0.02) (0.01) (0.01) (0.01) (0.01) (0.06) (0.95) 0.52 (0.40) (0.63) (1.54) Distributions: From income (excluding dividends) From dividends From capital gains Return of capital Total annual distributions (2, 3) Net assets at end of year shown (2, 7) Ratios & Supplemental Data Total net asset value ($000 s) (7) Number of units outstanding (000 s) Portfolio turnover rate (%) (5) Trading expense ratio (%) (6) Net asset value per unit ($) (7) 21,913 23,021 30,592 41,574 50,306 3,229 3,938 5,405 8,273 12, Management Expense Ratio Management expense ratio before taxes (%) (4) Goods and services tax (GST)/Harmonized sales tax (HST) (%) (4) Management expense ratio after taxes (%) (4) GST/Effective HST Rate, for the prior calendar year or period (%) (4) (1) This information is derived from the Pool s audited annual financial statements. The net assets per unit presented in the financial statements differs from the net asset value calculated for Pool pricing purposes. An explanation of these differences can be found in the notes to the financial statements or in footnote (7) below. (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 Pool. (4) Management expense ratio is calculated based on expenses charged to the Pool (excluding commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net asset value for the period. As of July 1, 2010, Ontario combined the federal goods and services tax ( GST - 5%) with the provincial retail sales tax ( PST - 8%). The combination resulted in a Harmonized sales tax ( HST ) rate of 13%. The Effective HST tax rate is calculated using the attribution percentage for each province based on unitholder residency and can be different from 13%. For any particular year, the rate shown will be prorated based on the different rates in effect during that year. For the year ended December 31, 2010, the rate applied is 5% for the period January 1, 2010 to June 30, 2010 and the Pool s Effective HST rate for the period from July 1, 2010 to December 31, The rate shown for the year ended December 31, 2010 is the time weighted average of these rates. Beginning January 1, 2011, the HST rate is based on the residency of the unitholder. (5) The Pool s portfolio turnover rate indicates how actively the Pool s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Pool buying and selling all of the securities in its portfolio once in the course of the fiscal year. The higher a Pool s portfolio turnover rate in a year, the greater the trading costs payable by the Pool 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 Pool. 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. (6) The trading expense ratio represents total commissions and other portfolio transaction costs disclosed in the statements of operations expressed as an annualized percentage of daily average net asset value of the Pool during the year. (7) Section 14.2 of National Instrument requires the net assets of an investment fund to be calculated using the fair value of the fund s assets and liabilities. Canadian GAAP requires a different valuation method for calculating net assets for financial reporting purposes. For the purpose of processing unitholder transactions, net assets are calculated based on the closing market price (referred to as Net Asset Value ), while for financial statement purposes net assets are calculated based on bid/ask price (referred to as Net Assets ).

9 PAST PERFORMANCE This section describes how the Pool has performed in the past. Remember, past returns do not indicate how the Pool will perform in the future. The information shown assumes that distributions made by the Pool in the years shown were reinvested in additional units of the relevant classes of the Pool. 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 Pool s annual performance for each of the years shown and illustrate how the Pool 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 Dec. 2006* Dec Dec Dec Dec Dec Dec *For the period from December 28, 2006 to December 31, **For the period from October 16, 2008 to December 31, Dec. 2008* Dec Dec Dec Dec Dec. 2008** Dec Dec. 2008** Dec Dec Dec Dec Dec Dec Dec Class A Class E Annual Compound Returns The following table shows the Pool s annual compound returns for each period indicated, compared to the Standard & Poor s 500 Total Return Index ( S&P 500 Total Return Index ). The Standard & Poor s 500 Total Return Index ( S&P 500 Total Return Index ) is an index composed of 500 stocks weighted by capitalization and representing all major U.S. industries. The Index is a broad measure of the stock performance of the largest U.S. companies with market capitalization in excess of US$ 4 billion. A discussion of the performance of the Pool as compared to the benchmark is found in the Results of Operations section of this report. Class A One Three Five Ten Since Year Years Years Years Inception US Equity Growth Pool (%) N/A -0.1 S&P 500 Total Return Index (%) N/A -0.4 Class E US Equity Growth Pool (%) N/A N/A 11.7 S&P 500 Total Return Index (%) N/A N/A 7.3 Class F US Equity Growth Pool (%) N/A N/A 4.3 S&P 500 Total Return Index (%) N/A N/A 2.7 Class I US Equity Growth Pool (%) N/A N/A 12.8 S&P 500 Total Return Index (%) N/A N/A 8.9 Class W US Equity Growth Pool (%) N/A S&P 500 Total Return Index (%) N/A *For the period from May 22, 2008 to December 31, **For the period from November 7, 2008 to December 31, Class F Class I Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Class W

10 SUMMARY OF INVESTMENT PORTFOLIO as at December 31, 2012 Portfolio Breakdown Percentage of Category Net Asset Value (%) Portfolio Breakdown (cont d) Percentage of Category Net Asset Value (%) Top 25 Holdings Percentage of Security Name Net Asset Value (%) Country allocation U.S.A Ireland 3.9 Cash & Equivalents 1.5 U.K. 0.9 Singapore 0.4 Canada 0.4 Other Net Assets (Liabilities) 0.2 Sector allocation Information Technology 30.8 Consumer Discretionary 17.6 Health Care 13.3 Consumer Staples 12.5 Industrials 11.3 Energy 5.1 Materials 3.1 Financials 2.6 Exchange-Traded Funds 2.0 Cash & Equivalents 1.5 Other Net Assets (Liabilities) 0.2 Apple Inc. 6.3 Oracle Corp. 3.1 PepsiCo Inc. 2.5 Philip Morris International Inc. 2.5 Google Inc., Class A 2.3 McDonald s Corp. 2.2 ishares Russell 1000 Growth Index Fund 2.0 Accenture PLC 1.9 Amazon.com Inc. 1.9 Gilead Sciences Inc. 1.9 Starbucks Corp. 1.8 QUALCOMM Inc. 1.7 United Technologies Corp. 1.6 Cash & Equivalents 1.5 Lowe s Co., Inc. 1.5 Costco Wholesale Corp. 1.5 EMC Corp. 1.5 Eli Lilly and Co. 1.5 Viacom Inc., Class B 1.4 Walgreen Co. 1.4 Altria Group Inc. 1.3 Illinois Tool Works Inc. 1.3 CVS Caremark Corp. 1.3 Watson Pharmaceuticals Inc. 1.3 Mastercard Inc., Class A 1.3 Total Net Asset Value (in $000 s) $43,624 The summary of investment portfolio may change due to ongoing portfolio transactions of the Pool and updates are available on a quarterly basis. A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Pool, its future performance, strategies or prospects, and possible future Pool 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 Pool 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 Pool. 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.