MACKENZIE IVY FOREIGN EQUITY FUND

Transcription

1 Interim Management Report of Fund Performance For the Six-Month Period Ended September 30, This Interim Management Report of Fund Performance contains financial highlights but does not contain either the interim financial report or annual financial statements of the investment fund. You may obtain a copy of the interim financial report or annual financial statements, at no cost, by contacting us using one of the methods noted under Fund Formation and Series Information or by visiting the SEDAR website 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. Every effort has been made to ensure that the information contained in this report is accurate as of the dates indicated in the report; however, the Fund cannot guarantee the accuracy or the completeness of this material. For more information, please refer to the Fund s Simplified Prospectus, Annual Information Form and Fund Facts, which may also be obtained, at no cost, using any of the methods outlined above. For the Fund s current net asset values per security and for more recent information on general market events, please visit our website. A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements that reflect our current expectations or forecasts of future events. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as expects, anticipates, intends, plans, believes, estimates, preliminary, typical and other similar expressions. In addition, these statements may relate to future corporate actions, future financial performance of a fund or a security and their future investment strategies and prospects. Forward-looking statements are inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual events, results, performance or prospects to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, the volatility of global equity and capital markets, business competition, technological change, changes in government regulations, changes in securities laws and regulations, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events and the ability of Mackenzie to attract or retain key employees. The foregoing list of important risks, uncertainties and assumptions is not exhaustive. Please consider these and other factors carefully and do not place undue reliance on forward-looking statements. The forward-looking information contained in this report is current only as of the date of this report. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.

2 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, Management Discussion of Fund Performance November 14, This Management Discussion of Fund Performance presents the portfolio management team s view on the significant factors and developments during the period ended September 30,, that have affected the Fund s performance and outlook. If the Fund was established during the period, period represents the period from inception to the end of the fiscal period. For information on the Fund s longer-term performance, as applicable, please refer to the Past Performance section of the report. In this report, Mackenzie refers to Mackenzie Financial Corporation, the manager of the Fund. In addition, net asset value ( NAV ) refers to the value of the Fund as calculated for transaction purposes, on which the discussion of Fund performance is based. Results of Operations Investment Performance The performance of the Fund s Series A and Quadrus Series securities is discussed below. The performance of all series is shown in the Past Performance section of the report. Where series returns differ, it is primarily because different levels of fees and expenses were charged to each series, or because securities of a series were not issued and outstanding for the entire reporting period. Please refer to the Fund Formation and Series Information section of this report for the varying management and administration fees payable by each series. During the period, the Fund s Series A and Quadrus Series securities returned 4.6% (after deducting fees and expenses paid by the series). This compares with the MSCI World (Net) Index return of 2.3%. All index and series returns are calculated on a total return basis in Canadian dollar terms. Investors cannot invest in the index without incurring fees, expenses and commissions, which are not reflected in the index returns. Global economic growth was positive over the period as a range of indicators suggested that expansion is under way in most developed nations. Despite geopolitical tensions with respect to North Korea, global equity markets rose in response to increasing corporate earnings. Given improved growth and lower deflation risks, the European Central Bank hinted that it may tighten its accommodative monetary policy by further reducing asset purchases. Within the MSCI World (Net) Index, Austria, Denmark and Norway were the strongest performers in Canadian dollar terms, while Israel and Australia were the only countries with negative returns. From a sector perspective, information technology, materials and industrials were the strongest performers, while telecommunication services, consumer staples and energy were the weakest. The Fund underperformed the index due to its cash position as equity markets rose, as well as stock selection in the consumer discretionary sector. Stock selection in industrials and health care and an underweight position in information technology also detracted. On a country level, stock selection in the United States negatively affected performance. Conversely, stock selection in consumer staples and in Canada contributed to performance, as did the Fund s lack of exposure to the energy sector. The Fund did not hedge its foreign currency exposure, which detracted from absolute performance as several currencies depreciated relative to the Canadian dollar. Over the period, portfolio activity and market effect resulted in decreased exposure to equities and a higher cash position. At a country level, exposure to Hong Kong and Germany increased the most, while exposure to Switzerland, France and the United States declined. In terms of sectors, exposure to industrials increased, while exposure to consumer discretionary decreased. Changes to the portfolio included a new position in CK Hutchison Holdings Ltd. and the elimination of the position in Compagnie Financiere Richemont SA. Net Assets The Fund s NAV declined by 3.5% to $4.4 billion at September 30,, from $4.6 billion at March 31,. This change was composed primarily of $192.8 million in net losses (after including dividend and interest income) from investment performance, after deducting fees and expenses, and $31.3 million in net sales. See Other Related Party Transactions for the percentage of the Fund s NAV owned by Mackenzie, affiliates of Mackenzie and funds managed by Mackenzie. As a result of these investments, the Fund is subject to large transaction risk as discussed in the Prospectus. Mackenzie manages this risk to reduce the possibility of any adverse effect on the Fund or on its investors, through such processes as requiring advance notice of large redemptions. At September 30,, Mackenzie had received no such notices. Fees and Expenses The annualized management expense ratio ( MER ) for Series A of 2.50% during the period ended September 30,, was unchanged from the MER for the year ended March 31,. The annualized MER for Quadrus Series of 2.54% during the period ended September 30,, was unchanged from the annualized MER for the period ended March 31,. The MERs (before and after waivers or absorptions, if any) for each series are presented in the Financial Highlights section of this report. Recent Developments In the portfolio management team s view, equity markets remain expensive given what the team believes are elevated valuation multiples on peak or near-peak company profitability levels as measured by operating margins. This results in more expensive valuations, which led the team to trim positions in some holdings. The Fund s cash position therefore remained elevated at the end of the period.

3 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, Related Party Transactions The following arrangements result in fees paid by the Fund to Mackenzie or to companies affiliated with the Fund. Management and Administration Services For each applicable series, the Fund paid management fees and administration fees to Mackenzie at the annual rates specified under Fund Formation and Series Information in this report and as more fully described in the Prospectus. In return for the administration fees, Mackenzie pays all costs and expenses (other than certain specified fund costs) required to operate the Fund that are not otherwise included in management fees. See also Management Fees. Past Performance The following bar charts present the performance of each series of the Fund for each of the fiscal periods shown. The charts show, in percentage terms, how much an investment made on the first day of each fiscal period, or on the series inception or reinstatement date, as applicable, would have increased or decreased by the last day of the fiscal period presented. Series inception or reinstatement dates can be found under Fund Formation and Series Information. Other Related Party Transactions Investment funds managed by Mackenzie invest in Series R securities of the Fund on a prospectus-exempt basis in accordance with the investment objectives of those funds. Series S securities are also issued on a prospectus-exempt basis to London Life Insurance Company, The Great- West Life Assurance Company and The Canada Life Assurance Company (collectively, the Related Insurance Companies ), all of which are companies affiliated with Mackenzie. At September 30,, the Related Insurance Companies owned 20.1% of the Fund s NAV, and funds managed by Mackenzie owned 1.8% of the Fund s NAV. All related party transactions are based on the NAV per security on each transaction day. The Fund did not rely on an approval, positive recommendation or standing instruction from the Mackenzie Funds Independent Review Committee with respect to any related party transactions. At September 30,, Mackenzie had an investment of $2.9 million in the Fund (0.1% of the Fund s NAV).

4 MACKENZIE IVY FOREIGN EQUITY FUND INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30,

5 MACKENZIE IVY FOREIGN EQUITY FUND INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30,

6 MACKENZIE IVY FOREIGN EQUITY FUND INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30,

7 MACKENZIE IVY FOREIGN EQUITY FUND INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30,

8 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, Summary of Investment Portfolio at September 30, Portfolio Allocation % of NAV Equities 71.9 Cash and short-term investments 28.0 Other assets (liabilities) 0.1 Regional Allocation % of NAV United States 37.6 Cash and short-term investments 28.0 Australia 6.0 Japan 5.2 Sweden 4.4 United Kingdom 3.9 Canada 3.8 South Korea 2.6 Hong Kong 2.5 France 2.1 Switzerland 1.5 Belgium 1.3 Germany 1.0 Other assets (liabilities) 0.1 Sector Allocation % of NAV Cash and short-term investments 28.0 Consumer discretionary 18.9 Consumer staples 13.2 Industrials 11.7 Health care 11.6 Financials 7.4 Information technology 5.3 Materials 3.8 Other assets (liabilities) 0.1 The Fund did not hedge its foreign currency exposure at the end of the period. Top 25 Holdings Issuer % of NAV Cash and short-term investments 28.0 Hennes & Mauritz AB 4.4 Oracle Corp. 4.2 W.W. Grainger Inc. 3.8 Brookfield Asset Management Inc. 3.8 Amcor Ltd. 3.8 Henry Schein Inc. 3.4 Nike Inc. 3.3 Seven & i Holdings Co. Ltd. 3.1 Omnicom Group Inc. 3.0 Johnson & Johnson 2.9 United Parcel Service Inc. (UPS) 2.8 Hyundai Motor Co. 2.6 CK Hutchison Holdings Ltd. 2.5 Sonic Healthcare Ltd. 2.3 Costco Wholesale Corp. 2.2 Bridgestone Corp. 2.1 Publicis Groupe SA 2.1 The Procter & Gamble Co. 2.0 Danaher Corp. 2.0 U.S. Bancorp 1.9 Admiral Group PLC 1.8 Aggreko PLC 1.5 Nestlé SA 1.5 Samsonite International SA 1.3 Top long positions as a percentage of total net asset value 92.3 The Fund held no short positions at the end of the period. The investments and percentages may have changed since September 30,, due to the ongoing portfolio transactions of the Fund. Quarterly updates of holdings are available within 60 days of the end of each quarter except for March 31, the Fund s fiscal year-end, when they are available within 90 days.

9 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, 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 each of the fiscal periods presented below. If during the period a fund or series was established or reinstated, period represents the period from inception or reinstatement to the end of that fiscal period. Series inception or reinstatement dates can be found under Fund Formation and Series Information. THE FUND S NET ASSETS PER SECURITY ($) 1 Series A Net assets, beginning of period Total revenue Total expenses 4 (0.55) (1.10) (1.13) (1.06) (1.01) (0.80) Realized gains (losses) for the period Unrealized gains (losses) for the period (2.68) 0.70 (3.03) operations 2 (2.01) (excluding dividends) (0.03) (0.07) (0.12) (0.13) (0.09) From dividends (0.02) (0.02) (0.01) (0.03) From capital gains (1.03) (3.25) (1.36) (1.90) (0.32) Return of capital Total annual distributions 3 (1.08) (3.34) (1.49) (2.06) (0.41) Net assets, end of period Series AR Net assets, beginning of period n/a Total revenue n/a Total expenses 4 (0.16) (0.32) (0.32) (0.30) (0.13) n/a Realized gains (losses) for the period n/a Unrealized gains (losses) for the period (0.77) 0.20 (0.85) n/a operations 2 (0.62) n/a (excluding dividends) (0.01) (0.02) (0.02) n/a From dividends (0.01) n/a From capital gains (0.28) (0.54) (0.19) (0.04) n/a Return of capital n/a Total annual distributions 3 (0.30) (0.56) (0.21) (0.04) n/a Net assets, end of period n/a Series D Net assets, beginning of period n/a Total revenue n/a Total expenses 4 (0.10) (0.20) (0.20) (0.19) (0.06) n/a Realized gains (losses) for the period n/a Unrealized gains (losses) for the period (0.76) 0.20 (0.83) n/a operations 2 (0.53) n/a (excluding dividends) (0.01) (0.02) (0.02) n/a From dividends (0.01) n/a From capital gains (0.40) (0.67) (0.31) (0.01) n/a Return of capital n/a Total annual distributions 3 (0.42) (0.69) (0.33) (0.01) n/a Net assets, end of period n/a Series E Net assets, beginning of period n/a Total revenue n/a Total expenses 4 n/a (0.22) (0.23) (0.22) (0.21) (0.15) Realized gains (losses) for the period n/a Unrealized gains (losses) for the period n/a 0.28 (1.22) operations 2 n/a (excluding dividends) n/a (0.01) (0.05) (0.07) (0.06) (0.06) From dividends n/a (0.01) (0.01) (0.01) (0.02) From capital gains n/a (0.63) (1.91) (0.78) (1.01) (0.18) Return of capital n/a Total annual distributions 3 n/a (0.65) (1.97) (0.86) (1.09) (0.24) Net assets, end of period n/a (1) These calculations are prescribed by securities regulations and are not intended to be a reconciliation between opening and closing net assets per security. Information for the fiscal periods ended after March 31,, is derived from the Fund s unaudited interim financial report and audited annual financial statements prepared in accordance with International Financial Reporting Standards ( IFRS ). Information for any previous fiscal periods is derived from the Fund s audited annual financial statements prepared in accordance with Canadian generally accepted accounting principles as defined in Part V of the Chartered Professional Accountants Handbook ( Canadian GAAP ). The net assets per security presented in the financial statements may differ from the net asset value per security calculated for fund pricing purposes. An explanation of these differences can be found in the Notes to Financial Statements. (2) Net assets 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 fiscal period. (3) Distributions were paid in cash/reinvested in additional securities of the Fund, or both. (4) Effective April 1,, commissions and other portfolio transaction costs are included in total expenses. For any previous fiscal periods, these costs were reported within realized and unrealized gains (losses) for the purposes of these tables.

10 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) Series F Net assets, beginning of period Total revenue Total expenses 4 (0.08) (0.16) (0.17) (0.16) (0.16) (0.12) Realized gains (losses) for the period Unrealized gains (losses) for the period (0.73) 0.19 (0.82) operations 2 (0.50) (excluding dividends) (0.01) (0.03) (0.04) (0.03) (0.04) From dividends (0.01) (0.01) From capital gains (0.42) (0.89) (0.43) (0.48) (0.13) Return of capital Total annual distributions 3 (0.44) (0.92) (0.47) (0.52) (0.17) Net assets, end of period Series F8 Net assets, beginning of period Total revenue Total expenses 4 (0.07) (0.15) (0.16) (0.17) (0.18) (0.15) Realized gains (losses) for the period Unrealized gains (losses) for the period (0.63) 0.17 (0.80) operations 2 (0.43) (excluding dividends) (0.01) (0.02) (0.03) (0.03) (0.04) From dividends (0.01) (0.01) From capital gains (0.38) (0.63) (0.32) (0.53) (0.12) Return of capital (0.41) (0.90) (0.90) (0.91) (0.81) (0.78) Total annual distributions 3 (0.41) (1.30) (1.55) (1.26) (1.38) (0.94) Net assets, end of period Series FB Net assets, beginning of period n/a n/a n/a Total revenue n/a n/a n/a Total expenses 4 (0.07) (0.14) (0.06) n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a Unrealized gains (losses) for the period (0.64) 0.17 (0.29) n/a n/a n/a operations 2 (0.60) n/a n/a n/a (excluding dividends) (0.01) n/a n/a n/a From dividends (0.01) n/a n/a n/a From capital gains (0.36) (0.02) n/a n/a n/a Return of capital n/a n/a n/a Total annual distributions 3 (0.38) (0.02) n/a n/a n/a Net assets, end of period n/a n/a n/a Series FB5 Net assets, beginning of period n/a n/a n/a Total revenue n/a n/a n/a Total expenses 4 (0.10) (0.21) (0.10) n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a Unrealized gains (losses) for the period (0.88) 0.24 (0.43) n/a n/a n/a operations 2 (0.58) n/a n/a n/a (excluding dividends) (0.02) n/a n/a n/a From dividends (0.01) n/a n/a n/a From capital gains (0.50) (0.18) n/a n/a n/a Return of capital (0.35) (0.74) (0.32) n/a n/a n/a Total annual distributions 3 (0.35) (1.27) (0.50) n/a n/a n/a Net assets, end of period n/a n/a n/a

11 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) Series G Net assets, beginning of period Total revenue Total expenses 4 (0.17) (0.34) (0.36) (0.34) (0.33) (0.26) Realized gains (losses) for the period (0.06) Unrealized gains (losses) for the period (1.08) 0.28 (1.23) operations 2 (0.76) (excluding dividends) (0.01) (0.03) (0.06) (0.06) (0.06) From dividends (0.01) (0.01) (0.01) (0.02) From capital gains (0.51) (1.59) (0.69) (1.01) (0.23) Return of capital Total annual distributions 3 (0.53) (1.63) (0.76) (1.09) (0.29) Net assets, end of period Series I Net assets, beginning of period Total revenue Total expenses 4 (0.10) 0.02 (0.18) (0.17) (0.17) (0.14) Realized gains (losses) for the period Unrealized gains (losses) for the period (0.70) 0.18 (0.79) operations 2 (0.48) (excluding dividends) (0.01) (0.03) (0.04) (0.04) (0.05) From dividends (0.01) (0.01) From capital gains (0.38) (0.98) (0.44) (0.61) (0.15) Return of capital Total annual distributions 3 (0.40) (1.01) (0.48) (0.66) (0.20) Net assets, end of period Series J Net assets, beginning of period Total revenue Total expenses 4 (0.18) (0.35) (0.36) (0.34) (0.32) (0.25) Realized gains (losses) for the period Unrealized gains (losses) for the period (0.95) 0.25 (1.08) operations 2 (0.69) (excluding dividends) (0.01) (0.03) (0.04) (0.04) (0.03) From dividends (0.01) (0.01) (0.01) (0.01) From capital gains (0.40) (1.34) (0.60) (0.61) (0.07) Return of capital Total annual distributions 3 (0.42) (1.38) (0.65) (0.66) (0.10) Net assets, end of period Series OJ Net assets, beginning of period Total revenue Total expenses 4 (0.17) (0.30) (0.37) (0.34) (0.32) (0.27) Realized gains (losses) for the period (0.67) Unrealized gains (losses) for the period (1.02) 0.27 (1.17) operations 2 (0.74) (excluding dividends) (0.01) (0.04) (0.05) (0.07) (0.07) From dividends (0.01) (0.01) (0.01) (0.01) From capital gains (0.46) (1.59) (0.59) (0.99) (0.27) Return of capital Total annual distributions 3 (0.48) (1.64) (0.65) (1.07) (0.34) Net assets, end of period

12 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) Series O Net assets, beginning of period Total revenue Total expenses 4 (0.01) (0.01) (0.01) (0.01) Realized gains (losses) for the period Unrealized gains (losses) for the period (0.81) 0.21 (0.93) operations 2 (0.45) (excluding dividends) (0.02) (0.04) (0.05) (0.06) (0.06) From dividends (0.01) (0.01) (0.01) (0.01) From capital gains (0.65) (1.59) (0.68) (0.83) (0.22) Return of capital Total annual distributions 3 (0.68) (1.64) (0.74) (0.90) (0.28) Net assets, end of period Series O6 Net assets, beginning of period n/a n/a n/a Total revenue n/a n/a n/a Total expenses 4 (0.01) n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a Unrealized gains (losses) for the period (0.87) 0.24 (0.22) n/a n/a n/a operations 2 (0.48) n/a n/a n/a (excluding dividends) (0.03) n/a n/a n/a From dividends (0.01) n/a n/a n/a From capital gains (0.71) n/a n/a n/a Return of capital (0.42) (0.88) (0.23) n/a n/a n/a Total annual distributions 3 (0.42) (1.63) (0.23) n/a n/a n/a Net assets, end of period n/a n/a n/a Series PW Net assets, beginning of period n/a Total revenue n/a Total expenses 4 (0.14) (0.28) (0.29) (0.27) (0.11) n/a Realized gains (losses) for the period n/a Unrealized gains (losses) for the period (0.78) 0.20 (0.86) n/a operations 2 (0.58) n/a (excluding dividends) (0.01) (0.02) (0.02) n/a From dividends (0.01) n/a From capital gains (0.32) (0.73) (0.23) (0.03) n/a Return of capital n/a Total annual distributions 3 (0.34) (0.75) (0.25) (0.03) n/a Net assets, end of period n/a Series PWF Net assets, beginning of period n/a Total revenue n/a Total expenses 4 (0.07) (0.14) (0.15) (0.13) (0.05) n/a Realized gains (losses) for the period n/a Unrealized gains (losses) for the period (0.76) 0.20 (0.83) n/a operations 2 (0.52) n/a (excluding dividends) (0.01) (0.02) (0.04) n/a From dividends (0.01) n/a From capital gains (0.46) (0.71) (0.33) (0.07) n/a Return of capital n/a Total annual distributions 3 (0.48) (0.73) (0.37) (0.07) n/a Net assets, end of period n/a

13 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) Series PWF8 Net assets, beginning of period n/a n/a n/a n/a n/a Total revenue 0.15 n/a n/a n/a n/a n/a Total expenses 4 (0.08) n/a n/a n/a n/a n/a Realized gains (losses) for the period 0.12 n/a n/a n/a n/a n/a Unrealized gains (losses) for the period (0.90) n/a n/a n/a n/a n/a operations 2 (0.71) n/a n/a n/a n/a n/a (excluding dividends) n/a n/a n/a n/a n/a From dividends n/a n/a n/a n/a n/a From capital gains n/a n/a n/a n/a n/a Return of capital (0.60) n/a n/a n/a n/a n/a Total annual distributions 3 (0.60) n/a n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a n/a Series PWFB Net assets, beginning of period n/a n/a n/a n/a n/a Total revenue 0.10 n/a n/a n/a n/a n/a Total expenses 4 (0.06) n/a n/a n/a n/a n/a Realized gains (losses) for the period 0.12 n/a n/a n/a n/a n/a Unrealized gains (losses) for the period (0.61) n/a n/a n/a n/a n/a operations 2 (0.45) n/a n/a n/a n/a n/a (excluding dividends) n/a n/a n/a n/a n/a From dividends n/a n/a n/a n/a n/a From capital gains n/a n/a n/a n/a n/a Return of capital n/a n/a n/a n/a n/a Total annual distributions 3 n/a n/a n/a n/a n/a Net assets, end of period 9.57 n/a n/a n/a n/a n/a Series PWFB5 Net assets, beginning of period n/a n/a n/a n/a n/a Total revenue 0.15 n/a n/a n/a n/a n/a Total expenses 4 (0.06) n/a n/a n/a n/a n/a Realized gains (losses) for the period 0.20 n/a n/a n/a n/a n/a Unrealized gains (losses) for the period (0.90) n/a n/a n/a n/a n/a operations 2 (0.61) n/a n/a n/a n/a n/a (excluding dividends) n/a n/a n/a n/a n/a From dividends n/a n/a n/a n/a n/a From capital gains n/a n/a n/a n/a n/a Return of capital (0.38) n/a n/a n/a n/a n/a Total annual distributions 3 (0.38) n/a n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a n/a Series PWT6 Net assets, beginning of period n/a n/a n/a n/a n/a Total revenue 0.15 n/a n/a n/a n/a n/a Total expenses 4 (0.16) n/a n/a n/a n/a n/a Realized gains (losses) for the period 0.30 n/a n/a n/a n/a n/a Unrealized gains (losses) for the period (0.90) n/a n/a n/a n/a n/a operations 2 (0.61) n/a n/a n/a n/a n/a (excluding dividends) n/a n/a n/a n/a n/a From dividends n/a n/a n/a n/a n/a From capital gains n/a n/a n/a n/a n/a Return of capital (0.45) n/a n/a n/a n/a n/a Total annual distributions 3 (0.45) n/a n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a n/a

14 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) Series PWT8 Net assets, beginning of period n/a n/a n/a n/a n/a Total revenue 0.15 n/a n/a n/a n/a n/a Total expenses 4 (0.16) n/a n/a n/a n/a n/a Realized gains (losses) for the period 0.29 n/a n/a n/a n/a n/a Unrealized gains (losses) for the period (0.90) n/a n/a n/a n/a n/a operations 2 (0.62) n/a n/a n/a n/a n/a (excluding dividends) n/a n/a n/a n/a n/a From dividends n/a n/a n/a n/a n/a From capital gains n/a n/a n/a n/a n/a Return of capital (0.60) n/a n/a n/a n/a n/a Total annual distributions 3 (0.60) n/a n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a n/a Series PWX Net assets, beginning of period n/a Total revenue n/a Total expenses 4 (0.01) (0.01) (0.01) n/a Realized gains (losses) for the period n/a Unrealized gains (losses) for the period (0.76) 0.20 (0.84) n/a operations 2 (0.47) n/a (excluding dividends) (0.02) (0.03) (0.03) n/a From dividends (0.01) n/a From capital gains (0.61) (0.96) (0.32) (0.08) n/a Return of capital n/a Total annual distributions 3 (0.64) (0.99) (0.35) (0.08) n/a Net assets, end of period n/a Series R Net assets, beginning of period Total revenue Total expenses 4 (0.01) (0.01) (0.01) (0.02) Realized gains (losses) for the period Unrealized gains (losses) for the period (1.03) 0.27 (1.18) operations 2 (0.57) (excluding dividends) (0.02) (0.04) (0.08) (0.06) (0.10) From dividends (0.02) (0.01) (0.01) (0.01) From capital gains (0.82) (1.88) (0.88) (0.95) (0.34) Return of capital Total annual distributions 3 (0.86) (1.93) (0.97) (1.02) (0.44) Net assets, end of period Series S Net assets, beginning of period Total revenue Total expenses 4 (0.01) (0.01) (0.02) (0.02) (0.02) Realized gains (losses) for the period Unrealized gains (losses) for the period (1.23) 0.32 (1.39) operations 2 (0.68) (excluding dividends) (0.02) (0.04) (0.08) (0.07) (0.11) From dividends (0.02) (0.01) (0.01) (0.02) (0.01) From capital gains (0.98) (2.03) (1.00) (1.06) (0.41) Return of capital Total annual distributions 3 (1.02) (2.08) (1.09) (1.15) (0.53) Net assets, end of period

15 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) Series T6 Net assets, beginning of period Total revenue Total expenses 4 (0.17) (0.35) (0.37) (0.37) (0.36) (0.30) Realized gains (losses) for the period Unrealized gains (losses) for the period (0.81) 0.22 (1.00) operations 2 (0.60) (excluding dividends) (0.01) (0.03) (0.05) (0.03) (0.04) From dividends (0.01) (0.01) From capital gains (0.32) (0.93) (0.48) (0.44) (0.11) Return of capital (0.39) (0.83) (0.84) (0.84) (0.74) (0.70) Total annual distributions 3 (0.39) (1.17) (1.80) (1.37) (1.22) (0.85) Net assets, end of period Series T8 Net assets, beginning of period Total revenue Total expenses 4 (0.12) (0.25) (0.28) (0.29) (0.29) (0.25) Realized gains (losses) for the period Unrealized gains (losses) for the period (0.57) 0.16 (0.74) operations 2 (0.44) (excluding dividends) (0.01) (0.03) (0.03) (0.03) (0.02) From dividends (0.01) From capital gains (0.23) (0.75) (0.37) (0.43) (0.09) Return of capital (0.38) (0.82) (0.84) (0.87) (0.77) (0.76) Total annual distributions 3 (0.38) (1.06) (1.62) (1.27) (1.24) (0.87) Net assets, end of period Quadrus Series Net assets, beginning of period n/a n/a n/a n/a Total revenue n/a n/a n/a n/a Total expenses 4 (0.12) (0.18) n/a n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a n/a Unrealized gains (losses) for the period (0.61) 0.11 n/a n/a n/a n/a operations 2 (0.53) 0.61 n/a n/a n/a n/a (excluding dividends) (0.01) n/a n/a n/a n/a From dividends (0.01) n/a n/a n/a n/a From capital gains (0.36) n/a n/a n/a n/a Return of capital n/a n/a n/a n/a Total annual distributions 3 (0.38) n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a H Series Net assets, beginning of period n/a n/a n/a n/a Total revenue n/a n/a n/a n/a Total expenses 4 (0.06) (0.09) n/a n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a n/a Unrealized gains (losses) for the period (0.63) 0.12 n/a n/a n/a n/a operations 2 (0.50) 0.75 n/a n/a n/a n/a (excluding dividends) (0.01) n/a n/a n/a n/a From dividends (0.01) n/a n/a n/a n/a From capital gains (0.25) n/a n/a n/a n/a Return of capital n/a n/a n/a n/a Total annual distributions 3 (0.27) n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a

16 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) H5 Series Net assets, beginning of period n/a n/a n/a n/a Total revenue n/a n/a n/a n/a Total expenses 4 (0.08) (0.16) n/a n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a n/a Unrealized gains (losses) for the period (0.87) 0.17 n/a n/a n/a n/a operations 2 (0.56) 0.63 n/a n/a n/a n/a (excluding dividends) (0.01) n/a n/a n/a n/a From dividends (0.01) n/a n/a n/a n/a From capital gains (0.63) n/a n/a n/a n/a Return of capital (0.35) (0.55) n/a n/a n/a n/a Total annual distributions 3 (0.35) (1.20) n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a L Series Net assets, beginning of period n/a n/a n/a n/a Total revenue n/a n/a n/a n/a Total expenses 4 (0.11) (0.16) n/a n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a n/a Unrealized gains (losses) for the period (0.62) 0.12 n/a n/a n/a n/a operations 2 (0.57) 0.62 n/a n/a n/a n/a (excluding dividends) (0.01) n/a n/a n/a n/a From dividends (0.01) n/a n/a n/a n/a From capital gains (0.33) n/a n/a n/a n/a Return of capital n/a n/a n/a n/a Total annual distributions 3 (0.35) n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a L5 Series Net assets, beginning of period n/a n/a n/a n/a Total revenue n/a n/a n/a n/a Total expenses 4 (0.14) (0.20) n/a n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a n/a Unrealized gains (losses) for the period (0.87) 0.18 n/a n/a n/a n/a operations 2 (0.77) 0.70 n/a n/a n/a n/a (excluding dividends) (0.02) n/a n/a n/a n/a From dividends (0.01) n/a n/a n/a n/a From capital gains (0.60) n/a n/a n/a n/a Return of capital (0.35) (0.55) n/a n/a n/a n/a Total annual distributions 3 (0.35) (1.18) n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a N Series Net assets, beginning of period n/a n/a n/a n/a Total revenue n/a n/a n/a n/a Total expenses 4 n/a n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a n/a Unrealized gains (losses) for the period (0.62) 0.12 n/a n/a n/a n/a operations 2 (0.44) 0.86 n/a n/a n/a n/a (excluding dividends) (0.01) n/a n/a n/a n/a From dividends (0.01) n/a n/a n/a n/a From capital gains (0.46) n/a n/a n/a n/a Return of capital n/a n/a n/a n/a Total annual distributions 3 (0.48) n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a

17 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) N5 Series Net assets, beginning of period n/a n/a n/a n/a Total revenue n/a n/a n/a n/a Total expenses 4 (0.01) n/a n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a n/a Unrealized gains (losses) for the period (0.89) 0.17 n/a n/a n/a n/a operations 2 (0.72) 2.07 n/a n/a n/a n/a (excluding dividends) (0.02) n/a n/a n/a n/a From dividends (0.01) n/a n/a n/a n/a From capital gains (0.72) n/a n/a n/a n/a Return of capital (0.35) (0.55) n/a n/a n/a n/a Total annual distributions 3 (0.35) (1.30) n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a D5 Series Net assets, beginning of period n/a n/a n/a n/a Total revenue n/a n/a n/a n/a Total expenses 4 (0.17) (0.27) n/a n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a n/a Unrealized gains (losses) for the period (0.85) 0.16 n/a n/a n/a n/a operations 2 (0.79) 0.77 n/a n/a n/a n/a (excluding dividends) (0.01) n/a n/a n/a n/a From dividends (0.02) n/a n/a n/a n/a From capital gains (0.83) n/a n/a n/a n/a Return of capital (0.34) (0.55) n/a n/a n/a n/a Total annual distributions 3 (0.34) (1.41) n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a QF Series Net assets, beginning of period n/a n/a n/a n/a Total revenue n/a n/a n/a n/a Total expenses 4 (0.07) (0.10) n/a n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a n/a Unrealized gains (losses) for the period (0.62) 0.12 n/a n/a n/a n/a operations 2 (0.50) 0.83 n/a n/a n/a n/a (excluding dividends) (0.01) n/a n/a n/a n/a From dividends (0.01) n/a n/a n/a n/a From capital gains (0.41) n/a n/a n/a n/a Return of capital n/a n/a n/a n/a Total annual distributions 3 (0.43) n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a QF5 Series Net assets, beginning of period n/a n/a n/a n/a Total revenue n/a n/a n/a n/a Total expenses 4 (0.09) (0.14) n/a n/a n/a n/a Realized gains (losses) for the period n/a n/a n/a n/a Unrealized gains (losses) for the period (0.88) 0.17 n/a n/a n/a n/a operations 2 (0.15) 1.16 n/a n/a n/a n/a (excluding dividends) (0.01) n/a n/a n/a n/a From dividends (0.01) n/a n/a n/a n/a From capital gains (0.63) n/a n/a n/a n/a Return of capital (0.35) (0.55) n/a n/a n/a n/a Total annual distributions 3 (0.35) (1.20) n/a n/a n/a n/a Net assets, end of period n/a n/a n/a n/a

18 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, RATIOS AND SUPPLEMENTAL DATA Series A Total net asset value ($000) 1, 2 2,065,100 2,463,689 2,402,839 2,211,265 1,972,655 1,460,929 Securities outstanding (000) 1 49,327 56,127 56,118 50,025 50,193 42,973 Management expense ratio (%) waivers or absorptions (%) Trading expense ratio (%) Portfolio turnover rate (%) Net asset value per security ($) Series AR Total net asset value ($000) 1, 2 23,275 20,554 10,108 2, n/a Securities outstanding (000) 1 1,935 1, n/a Management expense ratio (%) n/a waivers or absorptions (%) n/a Trading expense ratio (%) n/a Portfolio turnover rate (%) n/a Net asset value per security ($) n/a Series D Total net asset value ($000) 1, 2 4,893 5,075 3,835 2, n/a Securities outstanding (000) n/a Management expense ratio (%) n/a waivers or absorptions (%) n/a Trading expense ratio (%) n/a Portfolio turnover rate (%) n/a Net asset value per security ($) n/a Series E Total net asset value ($000) 1, 2 n/a 2,231 2,875 3,585 4,413 4,922 Securities outstanding (000) 1 n/a Management expense ratio (%) 3 n/a waivers or absorptions (%) 3 n/a Trading expense ratio (%) 4 n/a Portfolio turnover rate (%) 5 n/a Net asset value per security ($) 2 n/a Series F Total net asset value ($000) 1, 2 406, , , , ,903 77,885 Securities outstanding (000) 1 35,481 37,346 25,285 18,090 14,911 8,675 Management expense ratio (%) waivers or absorptions (%) Trading expense ratio (%) Portfolio turnover rate (%) Net asset value per security ($) Series F8 Total net asset value ($000) 1, 2 5,086 6,026 3,252 1, Securities outstanding (000) Management expense ratio (%) waivers or absorptions (%) Trading expense ratio (%) Portfolio turnover rate (%) Net asset value per security ($) (1) This information is provided as at the end of the fiscal period shown. (2) The net asset value figures presented in this table are used for fund pricing and calculating returns by series. For any fiscal periods prior to the adoption of IFRS, the net asset values may differ from the figures in the annual financial statements, and the net asset value per security in this table may differ from the end of period figure in the Fund s Net Assets per Security table in this section. This difference is due to the requirements of Canadian GAAP. The adoption of IFRS for the fiscal periods ended after March 31,, has eliminated the difference between the net asset value and net assets per security, in most cases. (3) Management expense ratio is based on total expenses (excluding commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period. If in the period a series was established or reinstated, the management expense ratio is annualized from the date of inception or reinstatement. Mackenzie and Quadrus may waive or absorb operating expenses at their discretion and stop waiving or absorbing such expenses at any time without notice. (4) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period. (5) 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 period. The higher a fund s portfolio turnover rate in a period, the greater the trading costs payable by the fund in the period, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. The portfolio turnover rate is not provided when the Fund is less than one year old. The value of any trades to realign the Fund s portfolio after a fund merger, if any, is excluded from the portfolio turnover rate.

19 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, RATIOS AND SUPPLEMENTAL DATA (cont d) Series FB Total net asset value ($000) 1, 2 1, n/a n/a n/a Securities outstanding (000) n/a n/a n/a Management expense ratio (%) n/a n/a n/a waivers or absorptions (%) n/a n/a n/a Trading expense ratio (%) n/a n/a n/a Portfolio turnover rate (%) n/a n/a n/a Net asset value per security ($) n/a n/a n/a Series FB5 Total net asset value ($000) 1, n/a n/a n/a Securities outstanding (000) 1 n/a n/a n/a Management expense ratio (%) n/a n/a n/a waivers or absorptions (%) n/a n/a n/a Trading expense ratio (%) n/a n/a n/a Portfolio turnover rate (%) n/a n/a n/a Net asset value per security ($) n/a n/a n/a Series G Total net asset value ($000) 1, 2 3,724 4,031 4,209 4,664 4,831 5,132 Securities outstanding (000) Management expense ratio (%) waivers or absorptions (%) Trading expense ratio (%) Portfolio turnover rate (%) Net asset value per security ($) Series I Total net asset value ($000) 1, 2 9,590 10,751 10,672 10,355 9,775 8,004 Securities outstanding (000) Management expense ratio (%) waivers or absorptions (%) Trading expense ratio (%) Portfolio turnover rate (%) Net asset value per security ($) Series J Total net asset value ($000) 1, 2 3,115 3,473 3,462 4,031 4,498 2,812 Securities outstanding (000) Management expense ratio (%) waivers or absorptions (%) Trading expense ratio (%) Portfolio turnover rate (%) Net asset value per security ($) Series OJ Total net asset value ($000) 1, Securities outstanding (000) Management expense ratio (%) waivers or absorptions (%) Trading expense ratio (%) Portfolio turnover rate (%) Net asset value per security ($) Series O Total net asset value ($000) 1, 2 310, , , , , ,690 Securities outstanding (000) 1 24,509 24,519 30,736 37,501 33,370 28,611 Management expense ratio (%) waivers or absorptions (%) Trading expense ratio (%) Portfolio turnover rate (%) Net asset value per security ($) Series O6 Total net asset value ($000) 1, n/a n/a n/a Securities outstanding (000) 1 n/a n/a n/a Management expense ratio (%) 3 n/a n/a n/a waivers or absorptions (%) 3 n/a n/a n/a Trading expense ratio (%) n/a n/a n/a Portfolio turnover rate (%) n/a n/a n/a Net asset value per security ($) n/a n/a n/a

20 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the Period Ended September 30, RATIOS AND SUPPLEMENTAL DATA (cont d) Series PW Total net asset value ($000) 1, 2 351, ,932 98,992 56,595 16,218 n/a Securities outstanding (000) 1 29,202 11,726 8,042 4,534 1,487 n/a Management expense ratio (%) n/a waivers or absorptions (%) n/a Trading expense ratio (%) n/a Portfolio turnover rate (%) n/a Net asset value per security ($) n/a Series PWF Total net asset value ($000) 1, 2 189, ,794 58,194 22,991 7,992 n/a Securities outstanding (000) 1 15,935 9,283 4,821 1, n/a Management expense ratio (%) n/a waivers or absorptions (%) n/a Trading expense ratio (%) n/a Portfolio turnover rate (%) n/a Net asset value per security ($) n/a Series PWF8 Total net asset value ($000) 1, 2 1,854 n/a n/a n/a n/a n/a Securities outstanding (000) n/a n/a n/a n/a n/a Management expense ratio (%) n/a n/a n/a n/a n/a waivers or absorptions (%) n/a n/a n/a n/a n/a Trading expense ratio (%) n/a n/a n/a n/a n/a Portfolio turnover rate (%) n/a n/a n/a n/a n/a Net asset value per security ($) n/a n/a n/a n/a n/a Series PWFB Total net asset value ($000) 1, n/a n/a n/a n/a n/a Securities outstanding (000) 1 63 n/a n/a n/a n/a n/a Management expense ratio (%) n/a n/a n/a n/a n/a waivers or absorptions (%) n/a n/a n/a n/a n/a Trading expense ratio (%) n/a n/a n/a n/a n/a Portfolio turnover rate (%) n/a n/a n/a n/a n/a Net asset value per security ($) n/a n/a n/a n/a n/a Series PWFB5 Total net asset value ($000) 1, 2 1 n/a n/a n/a n/a n/a Securities outstanding (000) 1 n/a n/a n/a n/a n/a Management expense ratio (%) n/a n/a n/a n/a n/a waivers or absorptions (%) n/a n/a n/a n/a n/a Trading expense ratio (%) n/a n/a n/a n/a n/a Portfolio turnover rate (%) n/a n/a n/a n/a n/a Net asset value per security ($) n/a n/a n/a n/a n/a Series PWT6 Total net asset value ($000) 1, 2 1,124 n/a n/a n/a n/a n/a Securities outstanding (000) 1 81 n/a n/a n/a n/a n/a Management expense ratio (%) n/a n/a n/a n/a n/a waivers or absorptions (%) n/a n/a n/a n/a n/a Trading expense ratio (%) n/a n/a n/a n/a n/a Portfolio turnover rate (%) n/a n/a n/a n/a n/a Net asset value per security ($) n/a n/a n/a n/a n/a Series PWT8 Total net asset value ($000) 1, 2 1,615 n/a n/a n/a n/a n/a Securities outstanding (000) n/a n/a n/a n/a n/a Management expense ratio (%) n/a n/a n/a n/a n/a waivers or absorptions (%) n/a n/a n/a n/a n/a Trading expense ratio (%) n/a n/a n/a n/a n/a Portfolio turnover rate (%) n/a n/a n/a n/a n/a Net asset value per security ($) n/a n/a n/a n/a n/a Series PWX Total net asset value ($000) 1, 2 16,371 15,209 11,668 7,201 1,361 n/a Securities outstanding (000) 1 1,377 1, n/a Management expense ratio (%) n/a waivers or absorptions (%) n/a Trading expense ratio (%) n/a Portfolio turnover rate (%) n/a Net asset value per security ($) n/a