MONTHLY FUND SUMMARIES

Transcription

1 January 31, 2016 MONTHLY FUND SUMMARIES Alternative Investments MAKING ACTIVE MANAGEMENT COUNT

2 CONTENTS MONTHLY FUND SUMMARIES as at January 31, 2016 Fund Performance Summaries 3 Norrep Canadian Enhanced Equity Fund 4 Norrep Market Neutral Income Fund 6 Norrep Enhanced Credit Fund 8 Alternative Investments

3 FUND PERFORMANCE SUMMARIES AS AT JANUARY 31, 2016 Fund YTD 1Y 3Y* 5Y* 10Y* 15Y* Since Inception* Inception Date Base Yield^ ALTERNATIVE STRATEGIES Norrep Canadian Enhanced Equity Fund¹ -0.7% -1.3% % Jan 31, % 3 Norrep Market Neutral Income Fund (capped)¹ -1.2% -0.7% 3.9% 6.7% % Dec 31, % Norrep Enhanced Credit Fund² -3.0% -4.5% 3.6% % Apr 22, 2015³ 6.0% * Annualized ^ Current Base Yield on Dividend or Distribution (subject to change) ¹ F Series ² I Series ³ A and F Series launched April 22, I Series performance starts on June 30, See Fund Summary. Commissions, trailing commissions, management fees and expenses all may be associated with investments. Please read the offering memorandum before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect the future values or returns in any Fund. These funds are available for sale to Accredited Investors, BC residents by Offering Memorandum or with a minimum purchase of $150,000 by a non-individual, and are subject to resale restrictions under applicable securities laws.

4 Norrep Canadian Enhanced Equity Fund Monthly Fund Summary as at January 31, 2016 Canadian Equity Fund with more choices than a standard long-only mutual fund through its use of long and short positions to provide enhanced portfolio returns with additional downside protection In normal times, the fund will invest 130% of its assets in long positions and 30% of its assets in short positions for 100% net market exposure Pays a targeted annual distribution of 3.0% payable quarterly PERFORMANCE NAV/Share F Series: $9.58 A Series: $ month 3 month 6 month YTD 1 year Inception* F -0.7% -4.7% -9.1% -0.7% -1.3% -1.3% A -0.8% -4.9% -9.6% -0.8% -2.3% -2.3% *Annualized 2015^ F -0.6% ^ 2015 return begins with January incep on 4 VALUE OF $10,000 INVESTED IN MF SERIES AT INCEPTION Up Months 6 Average Returns 1.8% Down Months 6 Average Returns -2.0% SINCE INCEPTION METRICS Beta Correlation R-squared Standard Deviation %

5 Energy TOP TEN HOLDINGS LISTED ALPHABETICALLY AS AT JANUARY 31, 2016 Bank of Nova Scotia BCE Inc. Canadian National Railway Company Clearwater Seafoods Inc. Great-West Lifeco Inc. EQUITY PORTFOLIO ATTRIBUTES Metro Inc. National Bank of Canada Royal Bank of Canada Trimac Transportation Ltd. Western Forest Products Inc. Long Positions Index* Short Positions Trailing P/E 12.3x 16.0x 17.0x Trailing ROE 19.3% 13.9% 7.8% Earnings Surprise 2.6% 0.9% -0.8% Earnings Momentum (QEM) 3.5% -4.5% -4.4% Expected Yield 3.8% 3.3% 2.7% Cash Flow / Debt Fund Codes Net Assets NRP300 (F) NRP301 (FE) NRP302 (LSC) $2.6 Million Inception January 31, 2015 CIFSC Category Risk Rating Management Fee (MF Series) Benchmark Index Portfolio Manager Auditor Custodian Transfer Agent and Registrar Canadian Equity Medium 2.00%* S&P/TSX Total Return Index Norrep Capital Management Ltd. KPMG LLP CIBC Mellon Trust Company CIBC Mellon Global Securities Services Company *Does not include performance bonus. *S&P/TSX Composite Index, Source: CPMS (of covered securi es) PORTFOLIO WEIGHTINGS 15 (15.1%) Basic Materials (10.3%) Industrials (10.4%) Consumer Discretionary (6.9%) Consumer Staples (6.7%) Financials (35.6%) Information Technology (2.5%) Telecommunications (5.5%) Utilities (2.9%) Cash (4.1%) PORTFOLIO POSITIONS Long Equity Positions 44 Short Equity Positions 30 DISTRIBUTIONS 2016 Paid Distributions Paid Distributions $0.303 MF Series Aggregate of eligible and capital gains dividends paid. Complete list and breakdown available at norrep.com. 5 Canadian Enhanced Equity Fund This product is a tool for Wealth Creation Norrep Canadian Enhanced Equity Fund is available for sale to Accredited Investors, BC residents by Offering Memorandum or with a minimum purchase of $150,000 by a non-individual, and is subject to resale restrictions under applicable securities laws. The fund is not guaranteed, unit values changes frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses all may be associated with this investment. Indicated rates of return are the historical annual compound total returns including changes in unit value and reinvestment of all dividends and distributions and do not take into account sales, redemption, distribution or optional charges or income tax payable by any security holder, if any, that would have reduced returns. The rate of return is used to illustrate the effects of the compound growth rate and is not intended to reflect future sales of the fund or returns on investment in the fund. The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice

6 Norrep Market Neutral Income Fund Monthly Fund Summary as at January 31, 2016 Canadian absolute return fund targeting a 6% - 8% annualized return over a full market cycle Provides lower volatility with returns uncorrelated to the market Pays a targeted annual distribution of 4.0% to help with downside protection PERFORMANCE NAV/Unit Class F: $11.14 Class A: $ month 3 month 6 month YTD 1 year 3 year* 5 year* Inception* F -1.2% -1.3% -2.1% -1.2% -0.7% 3.9% 6.7% 6.4% A -1.3% -1.6% -2.7% -1.3% -1.7% 2.8% 5.6% 5.3% *Annualized VALUE OF $10,000 INVESTED IN F CLASS AT INCEPTION DISTRIBUTIONS 2016 Paid Distributions Paid Distributions $ Paid Distributions $ Paid Distributions $ F Series Complete list of distribu ons available at norrep.com UNCORRELATED RETURNS Percentage of Positive Months Number of Positive Months Average Monthly Return Up Markets* 57.6% 19/33 0.3% Down Markets* 57.1% 16/28 0.8% Overall* 57.4% 35/61 0.5% *Based on the S&P TSX Composite Total Return Index

7 MONTHLY PERFORMANCE - CLASS F Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total % 2.6% 1.8% -2.0% 1.9% -0.1% 0.9% 4.8% 1.7% -1.2% 2.6% -0.2% 12.3% % 1.2% 2.3% 3.3% 1.7% 1.9% 3.3% -0.8% -1.9% 1.9% -0.8% -1.9% 8.5% % 1.0% 2.6% -0.1% 1.7% -0.5% 1.1% -1.3% -0.9% 3.5% 1.2% -0.7% 8.0% % 2.0% 0.8% 0.2% 0.7% 0.8% 0.3% -0.8% -1.3% 2.0% -1.3% -3.4% 0.7% % -2.3% 1.8% -1.9% 1.9% -0.2% 2.3% -0.6% 1.7% -2.0% 0.5% -0.6% 4.7% % % PORTFOLIO ATTRIBUTES S&P/TSX TRI Norrep Market Neutral Income Average Monthly Return Since Inception 0.2% 0.5% Average Return In Up Markets 2.2% 0.3% Average Return In Down Markets -2.1% 0.8% Maximum Drawdown* -16.5% -4.7% Standard Deviation^ 9.5% 6.1% Correlation^ Beta^ *Based on monthly performance ^Since Incep on Number of Longs 20 Number of Shorts 28 Number of Pairs 26 Number of Bonds 14 Percent Long 104% Percent Short 104% Percent Bond 99% Modified Duration (years) 2.5 Trailing P/E Trailing ROE Earnings Surprise QEM Yield Longs 12.2x 17.3% 2.9% 6.6% 4.1% Shorts 20.0x 7.0% -1.0% -3.2% 3.0% SECTOR EXPOSURE (GROSS & NET%) Fund Codes Net Assets NRP3100 (F) NRP3101 (A) $117.6 Million Inception December 31, 2010 CIFSC Category Risk Rating Management Fee (A Series) Capped MER Benchmark Index Portfolio Manager Auditor Custodian Transfer Agent and Registrar Alternative Strategies Low to Medium 1.9% 2.25% excluding performance bonus and taxes S&P/TSX Total Return Norrep Capital Management Ltd. KPMG LLP CIBC Mellon Trust Company CIBC Mellon Global Securities Services Company 7 Market Neutral Income Fund This product is a tool for Wealth Preservation The Norrep Market Neutral Income Fund is available for sale to Accredited Investors, BC residents by Offering Memorandum or with a minimum purchase of $150,000, and is subject to resale restrictions under applicable securities laws. The fund is not guaranteed, unit values changes frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses all may be associated with this investment. Indicated rates of return are the historical annual compound total returns including changes in unit value and reinvestment of all dividends and distributions and do not take into account sales, redemption, distribution or optional charges or income tax payable by any security holder, if any, that would have reduced returns. The rate of return is used to illustrate the effects of the compound growth rate and is not intended to reflect future sales of the fund or returns on investment in the fund

8 Norrep Enhanced Credit Fund Monthly Fund Summary as at January 31, 2016 Credit Fund with more choices than a standard long-only mutual fund through its use of long and short positions to provide enhanced portfolio returns Unique strategy of overweighting floating rate senior secured loans and/or high yield corporate bonds, depending on market conditions, helps manage credit and interest rate risk In normal times the fund will invest up to 130% of its assets in US and Canadian high yield bonds and senior secured loans and up to 30% of its assets in short positions (typically US Treasuries) for 100% net market exposure PERFORMANCE NAV/Share I Series: $8.93 A Series: $8.78 F Series: $ month 3 month 6 month YTD 1 year 3 year* Inception* I -3.0% -7.3% -8.6% -3.0% -4.5% 3.6% 6.3% *Annualized 2011^ I 2.7% 14.0% 11.9% 4.6% -0.3% ^ 2011 return begins with June 30 incep on VALUE OF $10,000 INVESTED IN I SERIES AT INCEPTION DISTRIBUTIONS Paid Distributions Paid Distributions $ Paid Distributions $ Paid Distributions $ Paid Distributions $ Paid Distributions $ I Series. Aggregate of eligible and capital gains dividends paid. Complete list and breakdown available at norrep.com. Up Months 43 Average Returns 1.0% Down Months 12 Average Returns -1.4% THREE YEAR METRICS Beta Correlation R-squared Standard Deviation % Beta represents the tendency of the fund s return to respond to market swings. <1 means the fund has less vola le returns than the index. Correla on measures how two instruments (fund and index) move in rela on to each other: +1 is perfect posi ve correla on. R Squared is a number 0 to 100 represen ng the percentage of a fund s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard Devia on is a measurement of investment vola lity (up and down) that illustrates how much dispersion there is from the mean. The lower the standard devia on the closer the data points are to the mean (average).

9 214 PORTFOLIO COMPOSITION AND ATTRIBUTES Investment Grade Bonds 0.0% High Yield Bonds 85.0% Senior Loans 7.8% Asset Backed Securities 0.0% Net Cash 14.0% Short Positions -6.8% Total 100.0% Current Yield 8.1% Yield to Maturity 9.7% Modified Duration (years) 3.3 Holdings 31 PORTFOLIO WEIGHTINGS Fund Codes Net Assets Inception (Series A, F) Inception (Series I) CIFSC Category Risk Rating Management Fee (A Series) Benchmark Index NRP6100 (F) NRP6101 (A) NRP6105 (I) $17.5 Million April 22, 2015 June 30, 2011* Alternative Strategies Medium 2.00%^ 25% Merrill Lynch Canada High Yield Canadian Issuers Index 25% Merrill Lynch U.S. High Yield Master II 17 AA -6.8% Portfolio Manager BB 19.2% Auditor KPMG LLP B 60.3% Custodian CCC 4.5% NR 8.9% Transfer Agent and Registrar Net cash 14.0% Total 100.0% ^Does not include performance bonus. 50% Credit Suisse Leveraged Loan Index Norrep Capital Management Ltd. CIBC Mellon Trust Company CIBC Mellon Global Securities Services Company 9 Canada (17.3%) United States (66.7%) Europe (1.9%) Cash (14.0%) This product is a tool for Wealth Preservation *Norrep Enhanced Credit Fund (Fund) continues the investment strategy of Centurion Credit Class (Centurion), which was a separate mutual fund class of Norrep Opportunities Corp (NOC). Centurion was established on June 30, 2011 and distributed securities to investors by private placement. Prior to offering Units of the Fund, Norrep Capital Management Ltd. (Norrep), on behalf of the Fund, arranged for the transfer of all of the assets held by Centurion to the Fund at fair market value in exchange for Series I Units. The management fee paid to Norrep in respect of Series I Units is paid directly to Norrep pursuant to a Series I agreement between each holder and Norrep, as was the management fee paid in respect of Series I shares of Centurion. In both cases, if the management fee was charged directly by Centurion or the Fund, the returns disclosed would be reduced to that extent. The performance of A Series and F Series Units will be reduced by the management fees charged by the Fund. Refer to the Offering Memorandum and financial statements of the Fund for further details. The Fund is available for sale to Accredited Investors, BC residents by Offering Memorandum or with a minimum purchase of $150,000 by a non-individual, and is subject to resale restrictions under applicable securities laws. Series I minimum investment requirement is $500,000. The Fund is subject to a performance fee. The Fund is not guaranteed, unit values changes frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses all may be associated with this investment. Indicated rates of return are the historical annual compound total returns including changes in unit value and reinvestment of all dividends and distributions and do not take into account sales, redemption, distribution or optional charges or income tax payable by any security holder, if any, that would have reduced returns. The rate of return is used to illustrate the effects of the compound growth rate and is not intended to reflect future sales of the fund or returns on investment in the fund. Performance of Series I shown discloses the performance of Series I shares of Centurion from June 30, 2011 until April 22, Performance after April 22, 2015 is performance of Series I Units of the Fund. The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice

10 NOTES

11 NORREP S VISION To be a leading global investment manager, providing unrivalled investment solu ons, delivering excep onal long-term performance and being a trusted partner to our clients.

12 CONTACT US MAKING ACTIVE MANAGEMENT COUNT Calgary Barclay Centre Suite 1100, Street SW Calgary, Alberta T2P 1T1 Toronto TD North Tower Suite 4330, 77 King Street West Toronto, Ontario M5K 1H phone client services sales & general