Cambridge Canadian Dividend Corporate Class

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 CI Investments Inc., 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 The investment objective of the Cambridge Canadian Dividend Corporate Class (the Fund ) is to provide primarily a predictable stream of income and, secondarily, modest longterm capital appreciation, by investing in an actively managed portfolio of primarily Canadian stocks. To fulfill its objective, the investment policy of the Fund is to invest, directly or indirectly, a majority of the Fund s total assets in a diversified portfolio of primarily Canadian stocks and equivalent securities with high dividend yields that have predictable levels of profitability and earnings which facilitate dividend growth. The following commentary pertains to the results of operations of the underlying fund. Strong economic growth, which became increasingly synchronized across developed and emerging markets, propelled global equities during the 12-month period. Global gross domestic product rose nearly 4%, and ongoing corporate earnings growth continued to stoke investor confidence. Stock markets worldwide generally posted double-digit total returns, led by Asian and emerging markets. Canadian stocks underperformed, however, held back by the anticipation of rising interest rates and continuing underperformance in the energy sector. The portfolio advisor attempts to provide superior and modest long-term capital appreciation, by selecting a base of mature companies with predictable and growing levels of profitability. More specifically, the portfolio advisor looks for companies with earnings growth, because rising earnings mean a current income stream and often the growth of a company s stock price. The portfolio advisor s approach uses both quantitative and qualitative tools to build an income-oriented portfolio. Quantitative information is supplemented with an in-depth knowledge of the companies in each industry and its economic requirements. The Fund may invest a maximum of 3% of its assets (book value) in foreign securities. Stock market sentiment remained positive through most of the period. As wore on and markets reached historic highs, it became increasingly difficult to find attractive risk-return investment opportunities. The combination of elevated expectations and high valuations led to relatively high cash positions across many Cambridge portfolios as 218 began. However, the markets soon became volatile and beginning in late January, the U.S. market suffered its first official correction in more than a year, plunging 1% in less than two weeks. The S&P/TSX Composite Index, meantime, lost 8%, although it had less ground to give up as its leading up to the correction had been smaller. The Fund may use derivatives, but only as permitted by securities regulations. In order to earn additional income, the Fund may also enter into securities lending transactions, repurchase transactions and reverse repurchase transactions, to the extent permitted by securities regulations. While corporate earnings continued to accelerate through the end of the period, investor sentiment became cautious, with the focus turning to tightening financial conditions and higher interest rates. Rising trade tensions between the United States and China caused further angst. RISK There were no changes to the Fund over the period of this report that materially affected the overall level of risk associated with the Fund. The Fund is suitable for investors who want income and the potential for modest capital appreciation, are investing for the medium and/or long term and can tolerate medium risk. RESULTS OF OPERATIONS The net asset value of the Fund increased by $11.7 million to $124.8 million from March 31, 217 to March 31, 218. The Fund had net sales of $14. million during. The portfolio s performance increased assets by $3.1 million. The Fund paid distributions totalling $5.4 million. Class A shares returned 2.3% after fees and expenses for the one-year period ended March 31, 218. Over the same time period, the Fund s benchmark returned 1.7%. The benchmark is the S&P/TSX Composite Return Index. Central banks around the world responded to the accelerating economic backdrop by raising short-term interest rates. In mid-march, the U.S. Federal Reserve (Fed) increased its benchmark rate one-quarter of a percentage point to 1.5%. The Bank of Canada had raised its benchmark lending rate to 1.25% two months earlier. The Fund outperformed the benchmark in large part due to its strong stock selection in the energy and industrials sectors. Its significant overweight exposure to consumer staples detracted from relative performance. The portfolio was underweighted in financials and overweight in real estate. Exposure to the consumer sectors decreased during the period, while energy, utilities and financial were increased. The portfolio s largest sectors continued to be energy, financials and consumer staples. The performance of the Fund s other classes is substantially similar to that of Class A shares, 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. Among individual securities, Viper Energy Partners LP made the largest individual contribution to relative performance, while Walgreens Boots Alliance Inc. and George Weston were the biggest detractors. CIG

2 RECENT DEVELOPMENTS As rising short-term interest rates filter through the global economy, we will be watching for signs of slowing economic growth. This may be somewhat offset by the benefits of U.S. tax reform, which should stimulate capital spending and support economic growth in the second half of 218 and beyond. In Canada, housing and consumer debt levels will be closely monitored as these could make the domestic economy vulnerable to a potential slowdown. We will adhere to Cambridge s bottom-up fundamental investment process to uncover attractive risk-reward opportunities. This involves evaluating the investment merits of a business and measures this analysis at a range of scenarios to determine the investment s potential upside and downside. This evaluation is an integral part our investment process and helps us prepare for potential volatility. We will monitor economic and market developments and will be ready to act when compelling riskadjusted return opportunities emerge. Effective April 3, 218, Karen Fisher became a member of the CI Board of Governors ( BOG ) and the Independent Review Committee ( IRC ) of the Fund. Meanwhile, Christopher Hopper resigned from the role as a member of the BOG and IRC. RELATED PARTY TRANSACTIONS Manager, Portfolio Advisor and Registrar CI Investments Inc. is the Manager, Portfolio Advisor and Registrar of the Fund. CI Investments Inc. is a subsidiary of CI Financial Corp. The Manager, in consideration for management fees, provides 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. fee and fixed administration fee rates as at March 31, 218, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) A Shares 2..2 A1 Shares A2 Shares A3 Shares AT5 Shares 2..2 A1T5 Shares AT8 Shares 2..2 A1T8 Shares E Shares EF Shares EFT5 Shares EFT8 Shares ET5 Shares ET8 Shares Annual management fee rate (%) Annual fixed administration fee rate (%) F Shares 1..2 F1 Shares F2 Shares.9.19 F3 Shares F4 Shares.8.12 FT5 Shares 1..2 F1T5 Shares FT8 Shares 1..2 F1T8 Shares I Shares Paid directly by investor - IT8 Shares Paid directly by investor - O Shares Paid directly by investor.15 OT5 Shares Paid directly by investor.15 OT8 Shares Paid directly by investor.15 P Shares Paid directly by investor.2 PT5 Shares Paid directly by investor.2 PT8 Shares Paid directly by investor.2 The Manager received $1.8 million in management fees and $.2 million in fixed administration fees for. Fees Approximately 26% of total management fees were used to pay for sales and trailing commissions. The remaining 74% of management fees were used for investment management and other general administration. Independent Review Committee The Fund received standing instructions from the Fund s Independent Review Committee 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. 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;

3 (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. 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 Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ A Shares Mar. 31, (.31).78 (.29).29 - (.8) (.32) - (.4) 1.94 Mar. 31, (.27) (.4) (.51) - (.55) 11.9 Mar. 31, (.7) (.1) - - (.1) 1.33 A1 Shares Mar. 31, (.25).84 (.8) (.12) - (.7) (.28) - (.35) 9.58 A2 Shares Mar. 31, (.25).75 (.48).11 - (.7) (.28) - (.35) 9.58 A3 Shares Mar. 31, (.25).81 (.78) (.13) - (.7) (.28) - (.35) 9.59 AT5 Shares Commencement of operations January 31, 216 Mar. 31, (.29).71 (.2).32 - (.7) (.29) (.54) (.9) 9.77 Mar. 31, (.27) 2.96 (1.53) (.4) (.48) (.51) (1.3) 1.43 Mar. 31, (.6) (.1) - (.12) (.13) 1.19 A1T5 Shares Mar. 31, (.24).91 (1.14) (.37) - (.7) (.27) (.46) (.8) 9.14 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

5 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ AT8 Shares Mar. 31, (.26).69 (.26).27 - (.7) (.27) (.84) (1.18) 9.12 Mar. 31, (.25) 1.99 (.51) (.4) (.47) (.81) (1.32) 1.6 Mar. 31, (.7) (.1) - (.2) (.21) 1.11 A1T8 Shares Mar. 31, (.22).77 (.8) (.17) - (.6) (.26) (.73) (1.5) 8.89 E Shares Mar. 31, (.3).82 (.44).19 - (.8) (.32) - (.4) 1.96 Mar. 31, (.26) 2.35 (1.1) (.4) (.51) - (.55) 11.1 Mar. 31, (.6) (.2) - - (.2) 1.32 EF Shares Mar. 31, (.18).81 (.39).35 - (.8) (.33) - (.41) Mar. 31, (.15) 2.85 (1.35) (.4) (.52) - (.56) Mar. 31, (.3) (.2) - - (.2) 1.36 EFT5 Shares Mar. 31, (.17).83 (.43).34 - (.7) (.29) (.55) (.91) 1.4 Mar. 31, (.15) 2.15 (.63) (.4) (.49) (.51) (1.4) 1.59 Mar. 31, (.3) (.1) - (.12) (.13) 1.23 EFT8 Shares Mar. 31, (.15).73 (.37).31 - (.7) (.28) (.85) (1.2) 9.38 Mar. 31, (.13) 2.5 (1.1) (.4) (.47) (.81) (1.32) 1.22 Mar. 31, (.3) (.1) - (.2) (.21) 1.15 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

6 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ ET5 Shares Mar. 31, (.27).78 (.35).26 - (.7) (.29) (.54) (.9) 9.79 Mar. 31, (.26) 2.9 (.71) (.4) (.48) (.51) (1.3) 1.44 Mar. 31, (.6) (.1) - (.12) (.13) 1.19 ET8 Shares Mar. 31, (.27).66 (.18).31 - (.7) (.27) (.84) (1.18) 9.12 Mar. 31, (.26) 2.21 (.81) (.4) (.47) (.81) (1.32) 1.5 Mar. 31, (.6) (.1) - (.2) (.21) 1.12 F Shares Mar. 31, (.19).77 (.32).37 - (.8) (.33) - (.41) 11.2 Mar. 31, (.16) 2.43 (1.3) (.4) (.52) - (.56) Mar. 31, (.4) (.1) - - (.1) 1.35 F1 Shares Mar. 31, (.15).97 (1.12) (.21) - (.7) (.28) - (.35) 9.67 F2 Shares Mar. 31, (.15) 1. (.98) (.5) - (.7) (.28) - (.35) 9.68 F3 Shares Mar. 31, (.14).69 (.63) - - (.7) (.28) - (.35) 9.69 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

7 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ F4 Shares Mar. 31, (.18) (.7) (.28) - (.35) 9.7 FT5 Shares Mar. 31, (.17).74 (.48).2 - (.7) (.29) (.55) (.91) 1.2 Mar. 31, (.15) 3.8 (1.71) (.4) (.49) (.51) (1.4) 1.58 Mar. 31, (.4) (.1) - (.12) (.13) 1.22 F1T5 Shares Mar. 31, (.14) 1.4 (1.52) (.53) - (.7) (.27) (.46) (.8) 9.23 FT8 Shares Mar. 31, (.18) (.7) (.27) (.85) (1.19) 9.34 Mar. 31, (.15) 1.86 (.55) (.4) (.47) (.81) (1.32) 1.19 Mar. 31, (.4) (.1) - (.2) (.21) 1.15 F1T8 Shares Mar. 31, (.14).96 (1.46) (.55) - (.6) (.26) (.73) (1.5) 8.97 I Shares Mar. 31, (.4).86 (.32).62 - (.8) (.34) - (.42) Mar. 31, (.1) 2.81 (1.16) (.4) (.53) - (.57) Mar. 31, (.2) - - (.2) 1.39 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

8 Net Assets per Share ($) (1) (2) (4) * Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ IT8 Shares Mar. 31, (.3).72 (.31).48 - (.7) (.28) (.87) (1.22) 9.64 Mar. 31, (.1) 2.13 (.63) (.4) (.48) (.82) (1.34) 1.37 Mar. 31, (.1) - (.2) (.21) 1.18 O Shares Mar. 31, (.6).84 (.39).51 - (.8) (.34) - (.42) 11.5 Mar. 31, (.2) 3.1 (1.7) (.4) (.53) - (.57) 11.4 Mar. 31, (.2) - - (.2) 1.38 OT5 Shares Mar. 31, (.5).76 (.3).52 - (.7) (.3) (.56) (.93) 1.3 Mar. 31, (.2) (.4) (.5) (.51) (1.5) 1.75 Mar. 31, (.2) - (.12) (.14) 1.26 OT8 Shares Mar. 31, (.5).73 (.51).27 - (.7) (.28) (.86) (1.21) 9.61 Mar. 31, (.2) 1.67 (.33) (.4) (.48) (.81) (1.33) 1.35 Mar. 31, (.1) - (.2) (.21) 1.18 P Shares Mar. 31, (.5).67 (.85) (.14) - (.7) (.29) - (.36) 9.77 PT5 Shares Mar. 31, (.5).91 (1.48) (.52) - (.7) (.27) (.46) (.8) 9.32 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

9 Net Assets per Share ($) (1) (2) (4) Increase (decrease) from operations: Dividends: Realized Unrealized increase net investment Net assets Net assets at the beginning of year (2) revenue expenses distributions) (decrease) from operations (2) income ) capital Return of capital (2, 3) at the end of shown (2) $ $ $ $ $ $ $ $ $ $ $ $ PT8 Shares Mar. 31, (.5).64 (.55).12 - (.7) (.27) (.73) (1.7) 9.6 (1) This information is derived from the Fund s audited annual financial statements. (2) Net assets per share and per share are based on the actual number of shares outstanding for the relevant class at the relevant time. The increase (decrease) in net assets from operations per share is based on the weighted average number of shares outstanding for the relevant class over the fiscal year. (3) Dividends are automatically reinvested in additional shares of the Fund. (4) This information is provided for s ended March 31.

10 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) after taxes (2) Effective HST rate for the year (2) Harmonized Trading Portfolio sales tax (2) (3) turnover rate (4) $ s s % % % % % % A Shares Mar. 31, ,914 4, Mar. 31, 217 6,931 5, Mar. 31, 216 2, A1 Shares Mar. 31, 218 5, A2 Shares Mar. 31, 218 1, A3 Shares Mar. 31, 218 1, AT5 Shares Commencement of operations January 31, 216 Mar. 31, 218 4, Mar. 31, 217 5, Mar. 31, A1T5 Shares Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

11 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % AT8 Shares Mar. 31, 218 3, Mar. 31, 217 3, Mar. 31, 216 2, A1T8 Shares Mar. 31, E Shares Mar. 31, 218 7, Mar. 31, 217 4, Mar. 31, EF Shares Mar. 31, 218 5, Mar. 31, 217 6, Mar. 31, EFT5 Shares Mar. 31, Mar. 31, Mar. 31, EFT8 Shares Mar. 31, Mar. 31, Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

12 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % ET5 Shares Mar. 31, Mar. 31, Mar. 31, ET8 Shares Mar. 31, Mar. 31, Mar. 31, F Shares Mar. 31, 218 9, Mar. 31, , Mar. 31, 216 1, F1 Shares Mar. 31, 218 3, F2 Shares Mar. 31, 218 1, F3 Shares Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

13 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % F4 Shares Mar. 31, FT5 Shares Mar. 31, 218 1, Mar. 31, Mar. 31, F1T5 Shares Mar. 31, FT8 Shares Mar. 31, Mar. 31, Mar. 31, F1T8 Shares Mar. 31, I Shares Mar. 31, Mar. 31, Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

14 Ratios and Supplemental Data (1) (5) * net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % IT8 Shares Mar. 31, Mar. 31, Mar. 31, O Shares Mar. 31, ,154 1, Mar. 31, ,1 1, Mar. 31, OT5 Shares Mar. 31, Mar. 31, Mar. 31, OT8 Shares Mar. 31, Mar. 31, Mar. 31, P Shares Mar. 31, PT5 Shares Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

15 Ratios and Supplemental Data (1) (5) net assets (5) Number of shares outstanding (5) before taxes (2) Harmonized sales tax (2) after taxes (2) Effective HST rate for the year (2) Trading (3) Portfolio turnover rate (4) $ s s % % % % % % PT8 Shares Mar. 31, (1) This information is derived from the Fund s audited annual financial statements. (2) is calculated based on expenses charged to the Fund commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net assets for, 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 shareholder residency and can be different from 13%. (3) The trading represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net assets during, 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 1% 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, and the greater the chance of an investor receiving taxable capital in. 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, 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. (5) This information is provided for s ended March 31.

16 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 made by the Fund in s shown were reinvested in additional shares 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 s 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. A Shares AT5 Shares AT8 Shares E Shares Mar. 217 Mar. 218 Mar. 217 Mar. 218 Mar. 217 Mar. 218 Mar. 217 Mar. 218 EF Shares EFT5 Shares EFT8 Shares ET5 Shares Mar. 217 Mar. 218 Mar. 217 Mar. 218 Mar. 217 Mar. 218 Mar. 217 Mar. 218 ET8 Shares F Shares FT5 Shares FT8 Shares Mar. 217 Mar. 218 Mar. 217 Mar. 218 Mar. 217 Mar. 218 Mar. 217 Mar. 218 I Shares IT8 Shares O Shares OT5 Shares Mar. 217 Mar. 218 Mar. 217 Mar. 218 Mar. 217 Mar. 218 Mar. 217 Mar. 218

17 OT8 Shares Mar. 217 Mar return is for the period from December 17, 215 to March 31, return is for the period from January 31, 216 to March 31, 216.

18 Annual Compound Returns The following table shows the Fund s annual compound returns for each year indicated, compared to the S&P/TSX Composite Return Index. The S&P/TSX Composite Return Index is a float-adjusted market capitalization weighted index which is the principal broad measure of the Canadian equity market. It includes common stocks and income trust units of companies incorporated in Canada which are listed on the Toronto Stock Exchange. 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 (%) A Shares 2.3 n/a n/a n/a 8. S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 AT5 Shares 2.2 n/a n/a n/a 7.9 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 AT8 Shares 2.2 n/a n/a n/a 7.9 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 E Shares 2.4 n/a n/a n/a 8.1 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 EF Shares 3.5 n/a n/a n/a 9.3 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 EFT5 Shares 3.5 n/a n/a n/a 9.1 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 EFT8 Shares 3.4 n/a n/a n/a 9.2 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 ET5 Shares 2.4 n/a n/a n/a 8. S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 ET8 Shares 2.3 n/a n/a n/a 7.9 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 F Shares 3.3 n/a n/a n/a 9.1 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 FT5 Shares 3.3 n/a n/a n/a 9. S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 FT8 Shares 3.3 n/a n/a n/a 9. S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 I Shares 4.9 n/a n/a n/a 1.6 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 IT8 Shares 4.7 n/a n/a n/a 1.5 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 O Shares 4.6 n/a n/a n/a 1.4 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 OT5 Shares 4.5 n/a n/a n/a 1.3 S&P/TSX Composite Return Index 1.7 n/a n/a n/a 1.9 OT8 Shares 4.6 n/a n/a n/a 1.3 S&P/TSX Composite Return Index 1.7 n/a n/a n/a

19 SUMMARY OF INVESTMENT PORTFOLIO as at March 31, 218 Category* % of Net Assets Category* % of Net Assets Top 25 Holdings* % of Net Assets Country allocation Long Positions Canada U.S.A Cash & Equivalents Switzerland Bermuda Other Net Assets (Liabilities)....2 Foreign Currency Forward Contracts... (.1) Long Positions Short Positions Options Contracts... (.) Short Positions... (.) Sector allocation Long Positions Energy Financials Consumer Staples Utilities Industrials Cash & Equivalents Real Estate Materials Information Technology Consumer Discretionary Telecommunication Services Other Net Assets (Liabilities)....2 Foreign Currency Forward Contracts... (.1) Long Positions Short Positions Options Contracts... (.) Short Positions... (.) Cash & Equivalents Walgreens Boots Alliance Inc Fortis Inc Hydro One Inc., Intact Financial Corp TFI International Inc Canadian Natural Resources Ltd Fairfax Financial Holdings Ltd., Sub-Voting Shares Keyera Corp RioCan Real Estate Investment Trust STORE Capital Corp Symantec Corp Thomson Reuters Corp Viper Energy Partners L.P Tourmaline Oil Corp Alimentation Couche-Tard Inc., Class B Restaurant Brands International Inc Nutrien Ltd Black Stone Minerals L.P Emera Inc The North West Co., Inc Verizon Communications Inc George Weston Ltd Chubb Ltd Canadian Pacific Railway Ltd Net Assets (in $ s) $124,821 *These are holdings and the breakdown of the underlying fund. 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.