CI Can-Am 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 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 objective of the CI Can-Am Small Cap Corporate Class (the Fund ) is long-term capital growth by investing primarily in equity and equity-related securities of Canadian small capitalization companies. The Fund may also invest in foreign securities. The U.S. Federal Reserve (Fed) raised its target fed funds rate twice over the period to.75% - 1.%. Economic indicators show labour market strength continuing to support the removal of excessive monetary accommodation. Forward guidance indicates two more rate hike decisions in 217. This path remains dependent on economic data, which has been favourable as of late. The portfolio advisor will employ a disciplined management style designed to capture the returns and the diversification benefits of a broad cross section of North American small cap companies. The portfolio advisor will pursue this objective by participating in the investment performance of a broad range of readily marketable North American common share securities. The Fund may use derivatives, but only as permitted by securities regulations. In order to earn additional income, it may also enter into securities lending transactions, repurchase transactions and reverse repurchase transactions, to the extent permitted by securities regulations. 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 to diversify their portfolio with small cap stocks, 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 $34. million to $235.4 million from March 31, 216 to March 31, 217. The Fund had net sales of $12.5 million during the year. The portfolio s performance increased assets by $33.1 million. The Fund paid distributions totalling $11.6 million. The one-year return for Class A shares was 16.1%, Class AT8 shares was 15.9%, Class E shares was 16.2%, Class ET8 shares was 16.%, Class EF shares was 17.6%, Class EFT8 shares was 17.3%, Class F shares was 17.4%, Class I shares was 18.9%, Class IT8 shares was 18.8%, Class O shares was 18.7% and Class OT8 shares was 18.6%, as compared to the return of its benchmark of 27.8%. The benchmark is a combination of the S&P 1 Total Return Index - 5% and the S&P/TSX Canadian SmallCap Total Return Index - 5%. Despite strong absolute returns, the Fund lagged its benchmark in the 12 months ending March 31, 217 due to underperformance in the industrials and consumer staples sectors. Almost all global equity markets continued their upward march. Investors remain optimistic that the changes U.S. President Donald Trump promised during his campaign will continue to be a tailwind for both the economy and stock market. The Bank of Canada held its policy rate steady at.5% throughout the period. The nation remains fragile with some regions exhibiting strong economic growth and others still struggling to rebalance themselves in a lower energy price environment. Inflation pressure has yet to show sustained growth above the target rate, suggesting that Bank of Canada Governor Stephen Poloz will remain patient and keep the overnight rate low for a while longer. Positive market performance was broad-based with all benchmark sectors advancing during the period. Although absolute returns were sound, the Fund underperformed on a relative basis. As an outcome of the opportunity set, the Fund has a higher than average cash balance, contributing to underperformance over the period. In terms of sectors, industrials and consumer staples were the most significant detractors from relative performance, due primarily to stock specific challenges. Macdonald, Dettwiler & Associates Ltd. (MDA) and Empire Co. in the industrials and consumer staples sectors, respectively, were among the Fund s largest individual detractors from performance. MDA has retreated due to some cyclical headwinds and increased expenses as it spends on its U.S. growth initiatives. It is in the final innings of expensing this growth before it starts translating into revenue. Empire is the holding company for the grocery retailer Sobeys. Since acquiring the assets of Canada Safeway in Western Canada in 214, the company has been experiencing considerable integration issues. The company recently announced a change in leadership and the overall Sobeys franchise remains intact. The largest individual contributors to performance were Atco Ltd., Canadian Western Bank and Labrador Iron Ore Royalty Co. Investments in Casey s General Stores Inc., CI Financial Corp., Knight Therapeutics Inc., Staples Inc., Superior Plus Corp., Wabtec Corp., Varex Imaging Corp. and DH Corp. were made during the reporting period. Casey s General Store is a leading convenience store operator in the U.S. Midwest. The company has a long history of growing revenue and earnings per share at enviable rates. A sell off in the shares provided a reasonable entry point for ownership. CI Financial is one of Canada s largest independent asset management companies. It has a below-average valuation while maintaining a very attractive return on equity. Knight is a specialty pharmaceuticals company that carries no debt and has a large cash balance ready to be deployed toward the right opportunities. CEO Jonathan Goodman has a strong track record in the CIG - 614

2 industry. Staples is a leading retailer of office products. Shares offer compelling value after the failed merger with industry competitor Office Depot. Superior Plus has a leading market position in propane distribution and generates significant free cash flow. Management is improving the focus of the company while reducing debt, enhancing profitability and paying a healthy dividend to share owners. Wabtec provides equipment and services for the global rail industry. The company has a long history of generating above-average returns on equity. The company has also achieved attractive earnings growth through successful market penetration, geographic expansion, margin improvement and acquisitions. Varex Imaging is a leading designer and manufacturer of X-ray imaging components used in the medical and security screening industries. The company has a strong history of innovation, including an extensive patent portfolio, and enjoys scale advantages versus competitors. The Fund sold out of investments in Gibson Energy Inc., Open Text Corp., Manitoba Telecom Services Inc., WSP Global Inc. and DH Corp. Gibson has demonstrated less operating resilience than expected in the face of industry weakness. Open Text s market capitalization grew to exceed strategy guidelines. The Fund sold its investments in Manitoba Telecom as the value of BCE s acquisition offer became increasingly reflected in the share price. WSP Global was a successful investment, as the company expanded globally via a series of effective acquisitions. As a result of its success, WSP began to trade at a premium to its historical valuation levels. Shares of DH Corp. have risen significantly since November 216 when execution challenges and disappointing operating results provided an opportunity to own the transitioning financial technology firm at attractive value. Rapid share price appreciation made the risk-reward profile less compelling. U.S.-based investments represented approximately 25% of the total portfolio at the end of the reporting year. RECENT DEVELOPMENTS Elevated equity valuations are making it challenging to find new investments offering attractive value. In this environment, we continue to look for investment opportunities that have the ability to compound into appealing value characteristics over time. These businesses should have the ability to generate above-average cash flow and visibility into several years of low risk expansion. We also remain focused on managing downside risk while preserving the balance sheet and profitability advantages of the portfolio over the benchmark. The strategy is well-positioned to take advantage of additional opportunities as the year unfolds. Effective January 3, 217, James Werry became a member of the Independent Review Committee of the Fund. 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. Management fee and fixed administration fee rates as at March 31, 217, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) A Shares 2..2 AT8 Shares 2..2 E Shares EF Shares EFT8 Shares ET8 Shares F Shares 1..2 I Shares Paid directly by investor - IT8 Shares Paid directly by investor - O Shares Paid directly by investor.15 OT8 Shares Paid directly by investor.15 The Manager received $3.6 million in management fees and $.4 million in fixed administrative fees for the year. Management 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 Board of Governors ( BoG ) in its capacity as the Independent Review Committee ( IRC ) with respect to the following Related Party Transactions: a) trades in securities of CI Financial Corp.; b) purchases or sales of securities of an issuer from or to another investment fund managed by the Manager (referred to as Inter-Fund Trades ); c) purchases or sales of other investment funds managed by the Manager or their affiliates; and d) mergers of funds with another fund that is subject to National Instrument ( Fund Mergers ). The applicable standing instructions require that Related Party Transactions be conducted in accordance with the Manager s policies and procedures. The Manager is required to advise the IRC of any material breach of a condition of the standing instructions. The standing instructions require, among other things, that the investment decisions in respect to Related Party Transactions (a) are made by the Manager free from any influence by any entities related to the Manager and without taking into account any consideration to any affiliate of

3 the Manager; (b) represent the business judgment of the Manager uninfluenced by considerations other than the best interests of the Fund; and (c) are made in compliance with the Manager s policies and procedures. Transactions made by the Manager under the standing instructions are subsequently reviewed by the 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) (8) * A Shares Commencement of operations December 29, 1997 Year Ended Year Ended Year Ended Year Ended Year Ended Yea Mar. 31, 217 Mar. 31, 216 Mar. 31, 215 Mar. 31, 214 Mar. 31, 213^ Mar (.54) (.48) (.53) (.48) (.38) (2.8) (.98) (1.3) (.17) (.18) (.19) (.46) (.21) (.92) (.78) (.87) - - (1.9) (.96) (1.6) (.46) (.21) , ,32 184, ,11 128,695 8,174 8,137 8,792 8,414 7, AT8 Shares Commencement of operations February 17, 212 Peri Year Ended Year Ended Year Ended Year Ended Year Ended Ince Mar. 31, 217 Mar. 31, 216 Mar. 31, 215 Mar. 31, 214 Mar. 31, 213^ Mar (.26) (.25) (.29) (.29) (.25) (1.78) (.51) (.9) (.8) (.9) (.1) (.27) (.14) (.41) (.38) (.46) - - (.78) (.9) (.98) (.85) (.8) (1.27) (1.37) (1.54) (1.12) (.94) *Footnotes for the tables are found at the end of the Financial Highlights section. ^Historical figures are based on Canadian GAAP, for more details refer to footnote 7.

5 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Share ($) (1) (2) (8) * E Shares Commencement of operations October 4, 211 Peri Year Ended Year Ended Year Ended Year Ended Year Ended Ince Mar. 31, 217 Mar. 31, 216 Mar. 31, 215 Mar. 31, 214 Mar. 31, 213^ Mar (.38) (.34) (.37) (.34) (.26) (1.98) (.68) (.66) (.12) (.14) (.14) (.34) (.16) (.68) (.57) (.64) - - (.8) (.71) (.78) (.34) (.16) ,458 5,416 4,757 3,25 1, EF Shares Commencement of operations July 29, 215 Period from Year Ended Inception to Mar. 31, 217 Mar. 31, 216 $ $ (.14) (.7) (.31) (.9) (.9) (.47) (.39) - - (.56) (.48) , *Footnotes for the tables are found at the end of the Financial Highlights section. ^Historical figures are based on Canadian GAAP, for more details refer to footnote 7.

6 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Share ($) (1) (2) (8) * EFT8 Shares Commencement of operations July 29, 215 Period from Year Ended Inception to Mar. 31, 217 Mar. 31, 216 $ $ (.13) (.8) (.73) 1.51 (.1) - - (.7) (.9) (.41) (.37) (.76) (.52) (1.24) (.98) ET8 Shares Commencement of operations July 29, 215 Period from Year Ended Inception to Mar. 31, 217 Mar. 31, 216 $ $ (.24) (.15) (.73) 1.39 (.8) - - (.7) (.9) (.4) (.36) (.75) (.52) (1.22) (.97) *Footnotes for the tables are found at the end of the Financial Highlights section. 6

7 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Share ($) (1) (2) (8) * F Shares Commencement of operations November 13, 2 Year Ended Year Ended Year Ended Year Ended Year Ended Yea Mar. 31, 217 Mar. 31, 216 Mar. 31, 215 Mar. 31, 214 Mar. 31, 213^ Mar (.31) (.26) (.28) (.25) (.2) (2.72) (.98) (.74) (.17) (.18) (.18) (.44) (.2) (.92) (.77) (.85) - - (1.9) (.95) (1.3) (.44) (.2) ,148 9,545 9,82 5,695 3, I Shares Commencement of operations April 26, 26 Year Ended Year Ended Year Ended Year Ended Year Ended Yea Mar. 31, 217 Mar. 31, 216 Mar. 31, 215 Mar. 31, 214 Mar. 31, 213^ Mar (.4) (3.36) (1.28) 3.47 (.44) 4.16 (.81) (.2) (.21) (.21) (.5) (.23) (1.8) (.89) (.96) - - (1.28) (1.1) (1.17) (.5) (.23) ,238 17,652 15,157 9,686 5, *Footnotes for the tables are found at the end of the Financial Highlights section. ^Historical figures are based on Canadian GAAP, for more details refer to footnote 7. 7

8 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Share ($) (1) (2) (8) * IT8 Shares Commencement of operations February 17, 212 Per Year Ended Year Ended Year Ended Year Ended Year Ended Ince Mar. 31, 217 Mar. 31, 216 Mar. 31, 215 Mar. 31, 214 Mar. 31, 213^ Mar (.2) (2.27) (1.18) (1.11) (.9) (.1) (.11) (.28) - (.47) (.42) (.5) - - (.87) (.97) (1.3) (.88) - (1.43) (1.49) (1.64) (1.16) O Shares Commencement of operations October 4, 211 Peri Year Ended Year Ended Year Ended Year Ended Year Ended Ince Mar. 31, 217 Mar. 31, 216 Mar. 31, 215 Mar. 31, 214 Mar. 31, 213^ Mar (.6) (.3) (.3) (.3) (.2) (2.15) (.8) (.32) (.14) (.15) (.15) (.35) (.16) (.76) (.63) (.68) - - (.9) (.78) (.83) (.35) (.16) ,77 12,866 1,61 7,32 2,817 1, *Footnotes for the tables are found at the end of the Financial Highlights section. ^Historical figures are based on Canadian GAAP, for more details refer to footnote 7.

9 FINANCIAL HIGHLIGHTS (cont d) Net Assets per Share ($) (1) (2) (8) OT8 Shares Commencement of operations July 29, 215 Period from Year Ended Inception to Mar. 31, 217 Mar. 31, 216 $ $ (.3) (.1) (.71) (.73) (.11) (.8) (.9) (.41) (.37) (.76) (.52) (1.25) (.98) (1) This information is derived from the Fund s audited annual financial statements. (2) Net assets per share and dividends 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) Management expense ratio is calculated based on expenses charged to the Fund (excluding commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net assets for the year. The Effective HST tax rate is calculated using the attribution percentage for each province based on shareholder residency and can be different from 13%. (5) 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 the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a higher turnover rate and the performance of a Fund. Portfolio turnover rate is calculated by dividing the lesser of the cost of purchases and the proceeds of sales of portfolio securities for the year, and excluding cash and short-term investments maturing in less than one year, and before assets acquired from a merger, if applicable, by the average of the monthly fair value of investments during the year. (6) The trading expense ratio represents total commissions and other portfolio transaction costs disclosed in the statements of comprehensive income expressed as an annualized percentage of daily average net assets of the Fund during the year. (7) For financial years beginning on or after April 1, 213 the financial highlights are derived from the financial statements prepared in accordance with International Financial Reporting Standards (IFRS). IFRS allows net assets to be calculated based on the last traded market price for financial assets and financial liabilities where the last traded price falls within the day s bid-ask spread. There are no differences between the net assets calculated for purpose of processing shareholders transactions and the net assets attributable to holders of redeemable shares used for financial statement reporting purposes. For financial years before April 1, 213, the financial highlights are derived from the financial statements prepared in accordance with Canadian GAAP. Under Canadian GAAP net assets for financial statement purposes were calculated based on bid/ask price while for purpose of processing shareholder transactions net assets were calculated based on the closing market price. (8) This information is provided as at March 31 of the years shown.

10 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 dividends made by the Fund in the years 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 the years 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 AT8 Shares E Shares EF Shares Mar. 28 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 EFT8 Shares Mar Mar IT8 Shares Mar Mar Mar. 214 Mar ET8 Shares Mar. 28 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 O Shares Mar Mar Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar. 217 F Shares Mar. 28 Mar. 29 Mar. 21 Mar. 211 Mar. 212 Mar. 213 Mar. 214 Mar. 215 Mar. 216 Mar Mar Mar I Shares Mar. 217 Mar. 217 Mar Mar OT8 Shares Mar Mar. 216 Mar This figure is for the period from October 4, 211 to March 31, This figure is for the period from February 17, 212 to March 31, This figure is for the period from July 29, 215 to March 31, 216.

11 Annual Compound Returns The following table shows the Fund s annual compound returns for each year indicated, compared to the Blended Index composed of: (5% - S&P 1 Total Return Index and 5% - S&P/TSX Canadian SmallCap Total Return Index); the S&P 1 Total Return Index and the S&P/TSX Canadian SmallCap Total Return Index. The S&P/TSX Canadian SmallCap Total Return Index is a float-adjusted market capitalization weighted index which tracks the performance of the small cap market segment of the Canadian equity market. The Index includes common stocks and income trust units of companies incorporated in Canada which are listed on the Toronto Stock Exchange for at lease 12 full calendar months and at the same time have a market capitalization equal to or greater than $1 million and less than or equal to $1.5 billion. The S&P 1 Total Return Index is a combination of the S&P MidCap 4 Index and the S&P SmallCap 6 Index. The S&P MidCap 4 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$4 million to US$1.8 billion. 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 Blended Index n/a* n/a S&P 1 Total Return Index n/a** n/a S&P/TSX Canadian SmallCap Total Return Index n/a* n/a AT8 Shares n/a 9.7 Blended Index n/a 1.2 S&P 1 Total Return Index n/a 18.7 S&P/TSX Canadian SmallCap Total Return Index n/a 1.6 E Shares n/a 12.2 Blended Index n/a 12.4 S&P 1 Total Return Index n/a 21.2 S&P/TSX Canadian SmallCap Total Return Index n/a 3.5 EF Shares 17.6 n/a n/a n/a 1.1 Blended Index 27.8 n/a n/a n/a 14.5 S&P 1 Total Return Index 24.9 n/a n/a n/a 11.8 S&P/TSX Canadian SmallCap Total Return Index 29.5 n/a n/a n/a 16.4 EFT8 Shares 17.3 n/a n/a n/a 9.8 Blended Index 27.8 n/a n/a n/a 14.5 S&P 1 Total Return Index 24.9 n/a n/a n/a 11.8 S&P/TSX Canadian SmallCap Total Return Index 29.5 n/a n/a n/a 16.4 ET8 Shares 16. n/a n/a n/a 8.7 Blended Index 27.8 n/a n/a n/a 14.5 S&P 1 Total Return Index 24.9 n/a n/a n/a 11.8 S&P/TSX Canadian SmallCap Total Return Index 29.5 n/a n/a n/a 16.4 F Shares n/a Blended Index n/a* n/a S&P 1 Total Return Index n/a** n/a S&P/TSX Canadian SmallCap Total Return Index n/a* n/a I Shares n/a Blended Index n/a* n/a S&P 1 Total Return Index n/a** n/a S&P/TSX Canadian SmallCap Total Return Index n/a* n/a IT8 Shares n/a 12.2 Blended Index n/a 1.2 S&P 1 Total Return Index n/a 18.7 S&P/TSX Canadian SmallCap Total Return Index n/a 1.6 O Shares n/a 14.6 Blended Index n/a 12.4 S&P 1 Total Return Index n/a 21.2 S&P/TSX Canadian SmallCap Total Return Index n/a

12 One Year (%) Three Years (%) Five Years (%) Ten Years (%) Since Inception (%) OT8 Shares 18.6 n/a n/a n/a 11.1 Blended Index 27.8 n/a n/a n/a 14.5 S&P 1 Total Return Index 24.9 n/a n/a n/a 11.8 S&P/TSX Canadian SmallCap Total Return Index 29.5 n/a n/a n/a 16.4 *Index data available only since June 3, 21. **Index data available only since April 3,

13 Summary of Investment Portfolio as at March 31, 217 Portfolio Breakdown Percentage of Portfolio Breakdown (cont d) Percentage of Top 25 Holdings Percentage of Category Net Assets (%) Category Net Assets (%) Security Name Net Assets (%) Country allocation Canada U.S.A Short-Term Investments Cash & Equivalents Other Net Assets (Liabilities)....4 Sector allocation Financials Energy Industrials Materials Health Care Consumer Discretionary Short-Term Investments Utilities Consumer Staples Cash & Equivalents Telecommunication Services Other Net Assets (Liabilities)....4 Private Placements....1 Canadian Western Bank AltaGas Ltd Short-Term Investments E-L Financial Corp., Ltd Atco Ltd., Class I Superior Plus Corp Alleghany Corp Cash & Equivalents Secure Energy Services Inc MacDonald Dettwiler & Associates Ltd Industrial Alliance Insurance and Financial Services Inc Labrador Iron Ore Royalty Corp Varian Medical Systems Inc Leon s Furniture Ltd Pason Systems Inc Parkland Fuel Corp New York Community Banorp Inc Mullen Group Ltd Miller Industries Inc SNC-Lavalin Group Inc Staples Inc Varex Imaging Corp Knight Therapeutics Inc Wabtec Corp ShawCor Ltd Total Net Assets (in $ s) $235,418 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.