US Equity Small Cap 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 United Financial, 2 Queen Street East, Twentieth Floor, Toronto, ON, M5C 3G7 or by visiting our website at or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure. INVESTMENT OBJECTIVE AND STRATEGIES The primary investment objective of the (the Fund ) is to obtain maximum long-term capital growth through direct and indirect investments in equity and equity-related securities of small- to mid-market capitalization U.S. companies that the portfolio advisor believes have the potential for positive total return. The Fund also may invest in other mutual funds. The portfolio advisor uses techniques such as fundamental analysis to assess the value and growth potential of a company. This means evaluating the financial condition and management of a company, its industry and the overall economy. As part of this evaluation, the portfolio advisor analyzes financial data and other information sources relevant to the issuer, assesses the quality of company management and conducts company interviews. The Fund may use derivatives, but only as permitted by securities regulations. The Fund may also enter into securities-lending transactions, repurchase transactions and reverse repurchase transactions, to the extent permitted by securities regulations, to earn additional income. The Fund may, from time to time, engage in active and frequent trading of investments. This increases the possibility that an investor will receive taxable capital. This can increase trading costs, which will reduce the Fund s performance. 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 a medium to high risk 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 net asset value of the Fund increased by $34.8 million to $279.7 million from March 31, 17 to March 31, 18. The Fund had net sales of $34.4 million during. The portfolio s performance increased assets by $12. million. The Fund paid distributions totalling $11.6 million. Class A shares returned 1.7% after fees and expenses for the one-year period ended March 31, 18. Over the same time period, the Fund s benchmarks returned.7% and 8.4%, respectively. The benchmarks are the S&P Return Index (new) and the Russell Return Index (old). During we changed the reference index of the Fund. We believe that the new benchmark better reflects the nature of the Fund. 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. Stocks rose sharply through the end of 17 as markets were aided by favourable tax legislation, a synchronized global recovery, and strong corporate results that generally topped Wall Street expectations. Markets got off to a strong start in January 18 thanks to earnings upgrades based on strong economic activity combined with tax cuts enacted in December 17; however, that but fell sharply in February 18 along with a spike in bond yields and the largest increase in volatility since August 15. Stocks tumbled further in March, with the White House announcing tariffs and ratcheting up trade rhetoric, while revelations about Facebook s handling of user data resulted in calls for increased regulation of technology companies and the U.S. Federal Reserve (Fed) hiked interest rates. The best-performing sectors were information technology and financials. Growth indexes, with their large information technology components, fared better than value indexes. Defensive sectors, including telecommunication services and utilities, had the largest losses. The energy sector also declined more than the broader market. While bond yields rose across the yield curve, the U.S. dollar weakened at most other major currencies on trade concerns and worsening fiscal imbalances. The portfolio posted a positive absolute return and outperformed the S&P Return Index for the period. While security selection was positive in the real estate, energy and consumer discretionary sectors, this was more than offset, on a relative basis, by selection in the consumer staples, health care, industrials and information technology sectors, among others. The largest individual contributors to performance were Molina Healthcare Inc., PTC Inc., Universal Display Corp., Eldorado Resorts Inc. and Kadant Inc. The largest individual detractors were TreeHouse Foods Inc., Criteo SA, NetScout Systems Inc. and Pacira Pharmaceuticals Inc. Investments in CyberArk Software Ltd., Inphi Corp., Casella Waste Systems Inc. Class A, Coherent Inc., LGI Homes Inc., Brunswick Corp., Eldorado Resorts Inc., LCI Industries, Bio-Techne Corp. and Dorman Products Inc. were made during. Casella Waste Systems Inc. Class A owns or operates 32 solid waste collection operations, 46 transfer stations, 187 recycling facilities, landfills and 4 landfill gas-to-energy facilities throughout the northeast. The company is benefitting from initiatives to increase volume to its landfills as well as tightening capacity in its markets. It also continues to improve margins through pricing and efficiency initiatives. All of the above should contribute to growth in revenue, EBITDA and free cash flow. is focused on using free cash flow to continue to reduce debt. LGI Homes is a home builder operating primarily in the southern U.S., with the state of Texas accounting for about half of the company s sales. The company is extremely well positioned from a macroeconomic and demographic perspective, given its focus on entry-level homebuilding in markets with strong population growth. The company s business model delivers attractive financial outcomes, with strong sales growth and high returns on capital. LGI s capital allocation priority is investing to grow the business, which is appropriate given high incremental returns on capital that comfortably exceed the company s cost of capital. Despite some investor concerns over rising interest rates, we believe that new home affordability remains very attractive by CIG

2 historical standards and that the company should continue to post strong revenue and profit growth that is not adequately reflected in the current share price. The portfolio sold out of investments in BankUnited Inc., NetScout Systems Inc., TreeHouse Foods Inc., Natus Medical Inc., Patterson Co., Inc., KAR Auction Services Inc., NorthWestern Corp., CSRA Inc., Oxford Industries Inc. and Steven Madden Ltd. during. We exited our position in BankUnited, a Florida-based bank holding company, after our assessment that the fundamental outlook had deteriorated. Specifically, regulators have increased their scrutiny of commercial real estate portfolios and lending concentrations, which will likely depress future loan growth. CSRA s shares surged in February, after General Dynamics announced its plan to acquire the company in an allcash deal representing about a % premium over CSRA s most recent share price. RECENT DEVELOPMENTS Growth in the U.S. is especially robust: the labour market is tight, solid domestic demand has helped the production side of the economy pick up, and the recent corporate tax cuts will add an additional boost in the short term. Europe is experiencing its best growth in a decade and even Japan is growing above trend. Increasing rhetoric and action around U.S. trade policy is a risk to the positive growth backdrop, but it remains to be seen if it will be enough to derail the global economy. Valuation multiples are unlikely to expand much further now that central banks in North America and Europe are moving from quantitative easing to quantitative tightening. Equity returns will instead rely on cash flow growth and. We also expect more frequent bouts of volatility will accompany incrementally higher interest rates and waning liquidity. Volatility could be exacerbated by the shift from active to passive managers and the increased use of systematic strategies that sell on auto pilot. We believe our investment approach is well suited to this environment, where investment returns are more closely linked to company fundamentals. As always, we seek companies that can generate a growing stream of free cash flow and can allocate that cash effectively for the benefit of shareholders. Annual management fee rate (%) Annual fixed administration fee rate (%) E3 Shares 1.9. E4 Shares E5 Shares ET8 Shares E3T8 Shares 1.9. E4T8 Shares E5T8 Shares F Shares.9.21 F3 Shares.9. F4 Shares.8.15 F5 Shares.77. FT8 Shares.9.21 F3T8 Shares.9. F4T8 Shares.8.15 F5T8 Shares.77. I Shares Paid directly by investor - IT8 Shares Paid directly by investor - OF Shares W Shares Paid directly by investor.21 WT8 Shares Paid directly by investor.21 The Manager received $.4 million in management fees and $.3 million in fixed administration fees for. Effective April 3, 18, 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, provided management services required in the day-to-day operations of the Fund. The Manager bears all of the operating expenses of the Fund (other than taxes, borrowing costs and new governmental fees) in return for a fixed administration fee. fee and fixed administration fee rates as at March 31, 18, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) A Shares E Shares Fees Approximately 24% of total management fees were used to pay for sales and trailing commissions and other services required. The remaining 76% of management fees were used to pay for investment management and other general administration. Principal Distributor The Manager has the exclusive right to arrange for the distribution of shares of the Fund. Pursuant to a series of agreements, the right to distribute such shares has been granted, on a collective basis, to the following dealers, each of which is an affiliate of the Manager. Assante Capital Ltd. Assante Financial Ltd. 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.;

3 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; (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 Commencement of operations October 22, 7 Mar. 31, (.58) 1.12 (.29).48 - (.11) (.54) - (.65) Mar. 31, (.52) (.13) (.8) - (.93) Mar. 31, (.51).79 (1.72) (1.22) - (.9) (.68) - (.77) Mar. 31, (.48) (.8) (.59) - (.67) Mar. 31, (.42) (.24) - - (.24) 16. E Shares Commencement of operations September 26, 8 Mar. 31, (.54) 1.35 (.38).7 - (.12) (.64) - (.76).15 Mar. 31, (.49) (.15) (.93) - (1.8).43 Mar. 31, (.45).83 (1.96) (1.33) - (.11) (.78) - (.89) Mar. 31, (.43) (.) (.68) - (.78).19 Mar. 31, (.38) (.27) - - (.27) E3 Shares Mar. 31, (.24).6 (.42).6 - (.6) (.31) - (.37) 9.7 E4 Shares Mar. 31, (.23).6 (.37).12 - (.6) (.31) - (.37) 9.71 E5 Shares Mar. 31, (.22).6 (.43).7 - (.6) (.31) - (.37) 9.72 ET8 Shares Commencement of operations December 22, 11 Mar. 31, (.26).63 (.12).38 - (.6) (.29) (.83) (1.18) 9.11 Mar. 31, (.25) (.7) (.46) (.84) (1.37).6 Mar. 31, (.24).46 (.86) (.) - (.6) (.42) (.9) (1.38) 9. Mar. 31, (.26) (.6) (.) (.91) (1.37) Mar. 31, (.26) (.17) - (.74) (.91) *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

5 FINANCIAL HIGHLIGHTS (cont d) 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) $ $ $ $ $ $ $ $ $ $ $ $ E3T8 Shares Mar. 31, (.24).59 (.34).13 - (.6) (.28) (.73) (1.7) 8.98 E4T8 Shares Mar. 31, (.22).6 (.43).7 - (.6) (.28) (.73) (1.7) 8.99 E5T8 Shares Mar. 31, (.21).6 (.42).9 - (.6) (.29) (.73) (1.8) 9. F Shares Mar. 31, (.15).59 (.43).14 - (.6) (.31) - (.37) 9.79 F3 Shares Mar. 31, (.14) (.6) (.31) - (.37) 9.8 F4 Shares Mar. 31, (.14).49 (1.4) (.55) - (.6) (.31) - (.37) 9.81 *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

6 FINANCIAL HIGHLIGHTS (cont d) 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) $ $ $ $ $ $ $ $ $ $ $ $ F5 Shares Mar. 31, (.12).63 (.44).19 - (.6) (.31) - (.37) 9.82 FT8 Shares Mar. 31, (.14).57 (.4).52 - (.6) (.29) (.73) (1.8) 9.8 F3T8 Shares Mar. 31, (.14).61 (.55).4 - (.6) (.29) (.73) (1.8) 9.8 F4T8 Shares Mar. 31, (.13).6 (.42).17 - (.6) (.29) (.73) (1.8) 9.9 F5T8 Shares Mar. 31, (.11).6 (.43).18 - (.6) (.29) (.73) (1.8) 9. I Shares Commencement of operations September 8, 8 Mar. 31, (.7) 1.58 (.67) (.15) (.76) - (.91) Mar. 31, (.4) (.18) (1.8) - (1.26) Mar. 31, (2.17) (1.) - (.12) (.89) - (1.1).12 Mar. 31, (.11) (.76) - (.87) Mar. 31, (.29) - - (.29) *Footnotes for the tables are found at the end of the Net Assets per Share section of the Financial Highlights.

7 FINANCIAL HIGHLIGHTS (cont d) 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 Commencement of operations June 22, 11 Mar. 31, (.4).85 (.31).67 - (.8) (.39) (1.9) (1.56) Mar. 31, (.2) (.) (.6) (1.8) (1.78) Mar. 31, (1.26) (.64) - (.7) (.54) (1.13) (1.74) Mar. 31, (.7) (.48) (1.12) (1.67) 14.7 Mar. 31, (.21) - (.89) (1.) 14.7 OF Shares Commencement of operations May 22, 8 Mar. 31, (.48) 1.49 (.52).78 - (.13) (.67) - (.8) Mar. 31, (.42) (.16) (.97) - (1.13) Mar. 31, (.38).86 (1.46) (.72) - (.11) (.81) - (.92) Mar. 31, (.37) (.) (.71) - (.81).89 Mar. 31, (.33) (.28) - - (.28) W Shares Commencement of operations October 22, 7 Mar. 31, (.12) 1.51 (.62) (.14) (.72) - (.86) Mar. 31, (.8) (.17) (1.3) - (1.) 22.7 Mar. 31, (.5).88 (2.14) (1.4) - (.11) (.85) - (.96) Mar. 31, (.5) (.) (.73) - (.83) Mar. 31, (.4) (.28) - - (.28) 19.5 WT8 Shares Commencement of operations June 22, 11 Mar. 31, (.6).79 (.34).55 - (.7) (.36) (1.1) (1.44) Mar. 31, (.5) (.9) (.56) (1.1) (1.66) Mar. 31, (.3).6 (1.7) (.33) - (.7) (.) (1.6) (1.63) Mar. 31, (.3) (.7) (.46) (1.5) (1.58) Mar. 31, (.3) (.) - (.84) (1.4) (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.

8 FINANCIAL HIGHLIGHTS (cont d) 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 Commencement of operations October 22, 7 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, E Shares Commencement of operations September 26, 8 Mar. 31, 18 11, Mar. 31, 17 18, Mar. 31, 16 21,9 1, Mar. 31, 15 16, Mar. 31, 14 14, E3 Shares Mar. 31, 18 3, E4 Shares Mar. 31, 18 1, E5 Shares Mar. 31, 18 1, ET8 Shares Commencement of operations December 22, 11 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

9 FINANCIAL HIGHLIGHTS (cont d) 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 % % % % % % E3T8 Shares Mar. 31, E4T8 Shares Mar. 31, E5T8 Shares Mar. 31, F Shares Mar. 31, 18 1, F3 Shares Mar. 31, F4 Shares Mar. 31, *Footnotes for the tables are found at the end of the Financial Highlights section.

10 FINANCIAL HIGHLIGHTS (cont d) 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 % % % % % % F5 Shares Mar. 31, FT8 Shares Mar. 31, F3T8 Shares Mar. 31, F4T8 Shares Mar. 31, F5T8 Shares Mar. 31, I Shares Commencement of operations September 8, 8 Mar. 31, ,278 4, Mar. 31, 17 96,582 4, Mar. 31, 16 93,282 4, Mar. 31, 15 59,47 2, Mar. 31, 14 41,257 2, *Footnotes for the tables are found at the end of the Financial Highlights section.

11 FINANCIAL HIGHLIGHTS (cont d) 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 Commencement of operations June 22, 11 Mar. 31, 18 2, Mar. 31, 17 2, Mar. 31, 16 1, Mar. 31, Mar. 31, OF Shares Commencement of operations May 22, 8 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, W Shares Commencement of operations October 22, 7 Mar. 31, ,329 5, Mar. 31, ,67 5, Mar. 31, 16 99,159 5, Mar. 31, 15 79,793 3, Mar. 31, 14 66,396 3, WT8 Shares Commencement of operations June 22, 11 Mar. 31, 18 14,258 1, Mar. 31, 17 13,676 1, Mar. 31, 16 11, Mar. 31, 15 6, Mar. 31, 14 3, (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 % 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.

12 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 E Shares ET8 Shares I Shares Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 IT8 Shares OF Shares W Shares WT8 Shares Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 9 Mar. Mar. 11 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar return is for the period from September 26, 8 to March 31, return is for the period from December 22, 11 to March 31, return is for the period from September 8, 8 to March 31, return is for the period from June 22, 11 to March 31, return is for the period from May 22, 8 to March 31, 9.

13 Annual Compound Returns The following table shows the Fund s annual compound returns for each year indicated, compared to the S&P Return Index (new) and the Russell Return Index (old). The S&P Return Index is a combination of the S&P MidCap Index and the S&P SmallCap 6 Index. The S&P MidCap Index is a broad measure of the stock performance of the mid-cap U.S. companies with market capitalization between US$1.4 billion to US$5.9 billion. The S&P SmallCap 6 Index is a broad measure of the stock performance of the smallcap U.S. companies with market capitalization between US$ million to US$1.8 billion. The Russell Return Index is comprised of the smallest U.S. companies that are part of the Russell Index, representing approximately % of the total market capitalization of the Russell Index. The Index is market cap-weighted and includes only common stocks incorporated in the U.S. and its territories. All Russell U.S. indices are subsets of the Russell Index, which represents approximately 98% of the investable U.S. equity market. 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 n/a S&P Return Index (new) n/a* n/a Russell Return Index (old) n/a E Shares n/a. S&P Return Index (new) n/a n/a* Russell Return Index (old) n/a 11.9 ET8 Shares n/a 9.3 S&P Return Index (new) n/a 15.8 Russell Return Index (old) n/a 14.7 I Shares n/a 12. S&P Return Index (new) n/a n/a* Russell Return Index (old) n/a 11.9 IT8 Shares n/a 14.5 S&P Return Index (new) n/a 15.8 Russell Return Index (old) n/a 14.7 OF Shares n/a 9.6 S&P Return Index (new) n/a n/a* Russell Return Index (old) n/a 11.2 W Shares n/a S&P Return Index (new) n/a* n/a Russell Return Index (old) n/a WT8 Shares n/a 12.8 S&P Return Index (new) n/a 15.8 Russell Return Index (old) n/a 14.7 *S&P Return Index data available only since June, 9. 13

14 SUMMARY OF INVESTMENT PORTFOLIO as at March 31, 18 Category % of Net Assets Category % of Net Assets Top 25 Holdings % of Net Assets Country allocation Long Positions U.S.A Cash & Equivalents Canada Israel Netherlands U.K Cayman Islands Options Contracts Other Net Assets (Liabilities)....7 Foreign Currency Forward Contracts... (1.3) Long Positions....5 Short Positions Options Contracts... (.5) Short Positions... (.5) Sector allocation Long Positions Financials Consumer Discretionary Industrials Information Technology Health Care Real Estate Materials Cash & Equivalents Energy Consumer Staples Utilities Options Contracts Other Net Assets (Liabilities)....7 Foreign Currency Forward Contracts... (1.3) Long Positions....5 Short Positions Options Contracts... (.5) Short Positions... (.5) Cash & Equivalents Bank of the Ozarks Inc PTC Inc Bio-Rad Laboratories Inc Hexcel Corp Texas Capital Bancshares Inc Kadant Inc., Bank of Hawaii Corp Summit Materials Inc Encompass Health Corp Western Alliance Bancorp US Ecology Inc CyberArk Software Ltd Howard Hughes Corp Service Corp. International Inphi Corp Casella Waste Systems Inc., Class A CONMED Corp Coherent Inc LGI Homes Inc Oil States International Inc American Woodmark Corp Brunswick Corp Universal Display Corp Eldorado Resorts Inc Net Assets (in $ s) $279,714 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. 14