Real Estate Investment 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 Real Estate Investment Corporate Class (the Fund ) is to provide an ongoing flow of current income and long-term capital appreciation primarily by investing throughout the world in a diversified portfolio of real estate investment trust units, equity securities and equity-related securities of companies or entities in the real estate industry. Equity-related securities include convertible preferred shares, convertible debt obligations and warrants. The Fund also may invest in other mutual funds. The portfolio advisor establishes target sector weights following an analysis of national and regional economic trends, capital market conditions and property-type fundamentals. The Fund s investments are allocated in a diversified portfolio of securities with individual weightings based on the outlook for each major property sector. The portfolio advisor selects securities among those companies that are considered to be best positioned, subject to an evaluation that includes understanding the quality of properties owned and the track record of company management. The Fund will not have any direct ownership or investment in land or buildings. The Fund may use derivatives, but only as permitted by securities regulations. As the period came to a close in the first quarter of 2018, the prospect of higher inflation and accelerated U.S. interest rate hikes led to significant volatility across global financial markets, resulting in losses for both global real estate securities and broad equities. This did much to erase the solid that global real estate securities experienced through the final three quarters of In the final three months of the period, U.S. REITs displayed a high sensitivity to interest rates as the 10-year Treasury climbed to more than 2.9% from 2.4%. This was due to fears that the U.S. Federal Reserve (Fed) would take a more hawkish approach to normalizing interest rates in light of stronger economic growth and the added stimulus from tax cuts. REITs recovered somewhat late in the quarter as the 10-year note settled in the 2.7% area. It was a similar, though more muted, story in many other markets: healthy, broad-based economic growth, low unemployment and rising wages supported improving real estate fundamentals, but the rise in interest rates as began weighed on real estate stocks. Historically, a rise in interest rates in response to healthy economic activity has had only a transitory influence on REIT valuations, as landlords can raise rents as tenants compete for more space, potentially increasing cash flows to offset the effects of higher rates. 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 gain. This can increase trading costs, which will reduce the Fund s performance. The portfolio outperformed its benchmark for the 12-month period. Stock selection and our underweight allocation in the U.S. was an important contributor to relative performance. Throughout the period in the U.S., we were underweight the interest-ratesensitive health care sector, along with malls and shopping centers, which suffered steep losses amid tenant woes and expectations of declining rents. Stock selection in the U.K. also aided relative performance due to overweights in defensive sectors, including selfstorage, industrial and health care property owners. 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. This Fund is suitable for investors who can tolerate medium to high risk, want an investment that is focused on generating capital growth with a reasonable potential for current income, 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 $70.3 million to $498.3 million from March 31, 2017 to March 31, The Fund had net sales of $65.2 million during. The portfolio s performance increased assets by $20.9 million. The Fund paid distributions totalling $15.8 million. Class A shares returned 1.7% after fees and expenses for the one-year period ended March 31, Over the same time period, the Fund s benchmark returned -5.8%. The benchmark is the FTSE EPRA/NAREIT Developed Return Index. 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. Our overweight allocation in Spain, the top-performing country in the quarter, additionally contributed to relative performance as we were overweight Merlin Properties Socimi SA. The portfolio also benefited from our stock selection in Germany. Most notably, we held an overweight position in Deutsche Wohnen, a residential landlord that outperformed. A decision not to own Singapore was the largest detractor from relative performance. Stocks in the country gained on improving trade and economic data. However, employment growth has continued to stall and property fundamentals remain poor amid significant new supply and sluggish demand growth, driving our decision not to allocate. As mentioned prior, our move to an underweight in the U.S., the largest constituent in the benchmark, was a significant component of the portfolio s relative outperformance. We were underweight as momentum continued to shift toward non-u.s. markets. Europe and the Asia-Pacific region outperformed following a decade in which the U.S. was largely in the driver s seat within the global real estate market. Europe enjoyed the strongest economic acceleration of any developed economy after a prolonged period of anemic growth, driving demand for real estate space broadly across the continent which drove our overweight, as we favoured countries in the region. CIG

2 Also, we maintained a significant overweight in data center companies, while sustaining an underweight to retail landlords. The pressures of e-commerce on brick-and-mortar retailers caused retail-focused landlords to underperform globally. The headwinds were most significant in the U.S. The same trends that hurt retail properties benefited other sectors. Owners of cell towers, data centers and industrial properties enjoyed for most of the period due to demand for faster mobile networks, more bandwidth and data storage, and faster delivery times. This drove our overweight in data center companies in the U.S., and an opportunistic out-of-index allocation to the tower company Crown Castle Corp. RECENT DEVELOPMENTS Although volatility in real estate stocks may continue in the short run as investors seem focused on interest rates, bond yields are rising because of stronger growth and signs of higher inflation, both in the U.S. and abroad. We believe commercial real estate should continue to see improving operating fundamentals in most global markets amid solid economic growth, steady job creation, reasonable new supply levels, and monetary conditions that should remain relatively accommodative even as stimulus is gradually withdrawn. We anticipate that real estate demand in the U.S. will moderately outpace new supply across most sectors in the coming months, but cyclical and secular changes to some sectors will result in widely divergent operating results. West Coast central business district offices should continue to benefit from strong job creation and low speculative supply, while New York and other East Coast office markets are decelerating due to substantial supply and weaker demand. Property markets on the continent are likely to continue to benefit from strong economic activity in the region. We favour residential property owners in most markets, Spain and Germany in particular. Economic growth is likely to remain robust in Spain, with office landlords being a primary beneficiary. Offices in France also appear attractive given the sector s strong fundamentals. Effective April 3, 2018, 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, 2018, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) A Shares E Shares Annual management fee rate (%) Annual fixed administration fee rate (%) E4 Shares E5 Shares ET8 Shares E2T8 Shares E3T8 Shares E4T8 Shares E5T8 Shares F Shares F2 Shares F3 Shares F4 Shares F5 Shares FT8 Shares F2T8 Shares F3T8 Shares F4T8 Shares F5T8 Shares I Shares Paid directly by investor - IT8 Shares Paid directly by investor - OF Shares W Shares Paid directly by investor 0.22 WT8 Shares Paid directly by investor 0.22 The Manager received $0.7 million in management fees and $0.6 million in fixed administration fees for. 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. E2 Shares E3 Shares

3 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; (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, 2007 Mar. 31, (0.43) (0.03) (0.30) - (0.33) Mar. 31, (0.43) 1.04 (0.85) (0.10) (0.52) - (0.62) Mar. 31, (0.41) 1.34 (1.00) (0.07) (0.52) - (0.59) Mar. 31, (0.37) (0.06) (0.46) - (0.52) Mar. 31, (0.32) 1.01 (0.18) (0.08) - - (0.08) E Shares Commencement of operations September 26, 2008 Mar. 31, (0.45) (0.03) (0.39) - (0.42) Mar. 31, (0.44) 1.22 (0.86) (0.13) (0.68) - (0.81) Mar. 31, (0.41) 1.70 (1.13) (0.09) (0.67) - (0.76) Mar. 31, (0.37) (0.07) (0.58) - (0.65) Mar. 31, (0.32) (0.10) - - (0.10) E2 Shares Mar. 31, (0.26) 0.24 (0.47) (0.20) - (0.02) (0.25) - (0.27) 9.60 E3 Shares Mar. 31, (0.25) 0.21 (0.42) (0.17) - (0.02) (0.25) - (0.27) 9.61 E4 Shares Mar. 31, (0.24) 0.22 (0.47) (0.20) - (0.02) (0.25) - (0.27) 9.62 E5 Shares Mar. 31, (0.23) 0.23 (0.44) (0.15) - (0.02) (0.25) - (0.27) 9.63 *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) $ $ $ $ $ $ $ $ $ $ $ $ ET8 Shares Commencement of operations June 22, 2011 Mar. 31, (0.26) (0.02) (0.22) (0.77) (1.01) 8.50 Mar. 31, (0.28) 0.87 (0.50) (0.08) (0.41) (0.88) (1.37) 9.30 Mar. 31, (0.28) 1.15 (0.78) (0.06) (0.45) (0.88) (1.39) Mar. 31, (0.28) (0.05) (0.42) (0.80) (1.27) Mar. 31, (0.26) 0.99 (0.25) (0.08) - (0.77) (0.85) E2T8 Shares Mar. 31, (0.25) 0.19 (0.38) (0.16) - (0.02) (0.23) (0.72) (0.97) 8.89 E3T8 Shares Mar. 31, (0.24) 0.24 (0.38) (0.09) - (0.02) (0.23) (0.72) (0.97) 8.90 E4T8 Shares Mar. 31, (0.23) 0.24 (0.31) (0.01) - (0.02) (0.23) (0.72) (0.97) 8.91 E5T8 Shares Mar. 31, (0.22) 0.24 (0.41) (0.09) - (0.02) (0.23) (0.72) (0.97) 8.92 F Shares Mar. 31, (0.17) 0.03 (0.19) (0.04) - (0.02) (0.25) - (0.27) 9.67 *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) $ $ $ $ $ $ $ $ $ $ $ $ F2 Shares Mar. 31, (0.16) (0.03) (0.02) (0.25) - (0.27) 9.70 F3 Shares Mar. 31, (0.16) (0.06) (0.02) (0.25) - (0.27) 9.70 F4 Shares Mar. 31, (0.15) (0.08) (0.02) (0.25) - (0.27) 9.72 F5 Shares Mar. 31, (0.13) 0.24 (0.42) - - (0.02) (0.25) - (0.27) 9.73 FT8 Shares Mar. 31, (0.16) 0.02 (0.34) (0.20) - (0.02) (0.23) (0.72) (0.97) 8.99 F2T8 Shares Mar. 31, (0.15) (0.02) (0.23) (0.72) (0.97) 8.99 *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) $ $ $ $ $ $ $ $ $ $ $ $ F3T8 Shares Mar. 31, (0.15) 0.18 (0.47) (0.15) - (0.02) (0.23) (0.72) (0.97) 8.99 F4T8 Shares Mar. 31, (0.14) 0.24 (0.41) (0.01) - (0.02) (0.23) (0.73) (0.98) 9.00 F5T8 Shares Mar. 31, (0.12) 0.24 (0.41) (0.02) (0.23) (0.73) (0.98) 9.01 I Shares Commencement of operations September 8, 2008 Mar. 31, (0.06) 0.40 (0.09) (0.04) (0.48) - (0.52) Mar. 31, (0.03) 1.39 (0.98) (0.16) (0.81) - (0.97) Mar. 31, (1.18) (0.10) (0.78) - (0.88) Mar. 31, (0.08) (0.66) - (0.74) Mar. 31, (0.11) - - (0.11) IT8 Shares Commencement of operations June 22, 2011 Mar. 31, (0.04) 0.24 (0.06) (0.02) (0.28) (0.96) (1.26) Mar. 31, (0.02) 0.88 (0.56) (0.10) (0.51) (1.06) (1.67) Mar. 31, (0.67) (0.07) (0.54) (1.04) (1.65) Mar. 31, (0.06) (0.49) (0.92) (1.47) Mar. 31, (0.09) - (0.85) (0.94) OF Shares Commencement of operations May 22, 2008 Mar. 31, (0.36) 0.25 (0.32) (0.03) (0.36) - (0.39) Mar. 31, (0.35) 1.09 (0.85) (0.12) (0.63) - (0.75) Mar. 31, (0.32) 1.69 (0.81) (0.08) (0.62) - (0.70) Mar. 31, (0.29) (0.07) (0.53) - (0.60) Mar. 31, (0.25) 1.16 (0.11) (0.09) - - (0.09) *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) $ $ $ $ $ $ $ $ $ $ $ $ W Shares Commencement of operations October 22, 2007 Mar. 31, (0.09) 0.35 (0.06) (0.03) (0.41) - (0.44) Mar. 31, (0.06) 1.23 (0.86) (0.14) (0.70) - (0.84) Mar. 31, (0.04) 1.67 (1.07) (0.09) (0.67) - (0.76) Mar. 31, (0.03) (0.07) (0.57) - (0.64) Mar. 31, (0.03) 1.19 (0.08) (0.10) - - (0.10) WT8 Shares Commencement of operations June 22, 2011 Mar. 31, (0.06) 0.24 (0.05) (0.02) (0.26) (0.90) (1.18) Mar. 31, (0.05) 0.88 (0.59) (0.09) (0.48) (1.00) (1.57) Mar. 31, (0.03) 1.33 (0.77) (0.07) (0.51) (0.98) (1.56) Mar. 31, (0.03) (0.06) (0.46) (0.86) (1.38) Mar. 31, (0.03) 1.06 (0.11) (0.09) - (0.81) (0.90) (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.

9 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) $000 s 000 s % % % % % % A Shares Commencement of operations October 22, 2007 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, E Shares Commencement of operations September 26, 2008 Mar. 31, , Mar. 31, ,530 1, Mar. 31, ,737 1, Mar. 31, ,746 1, Mar. 31, ,343 1, E2 Shares Mar. 31, , E3 Shares Mar. 31, , E4 Shares Mar. 31, , E5 Shares Mar. 31, , *Footnotes for the tables are found at the end of the Financial Highlights section.

10 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) $000 s 000 s % % % % % % ET8 Shares Commencement of operations June 22, 2011 Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, E2T8 Shares Mar. 31, E3T8 Shares Mar. 31, E4T8 Shares Mar. 31, E5T8 Shares Mar. 31, F 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) $000 s 000 s % % % % % % F2 Shares Mar. 31, , F3 Shares Mar. 31, , F4 Shares Mar. 31, , F5 Shares Mar. 31, FT8 Shares Mar. 31, F2T8 Shares 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) $000 s 000 s % % % % % % F3T8 Shares Mar. 31, F4T8 Shares Mar. 31, F5T8 Shares Mar. 31, I Shares Commencement of operations September 8, 2008 Mar. 31, ,364 10, Mar. 31, ,328 9, Mar. 31, ,910 6, Mar. 31, ,889 5, Mar. 31, ,033 4, IT8 Shares Commencement of operations June 22, 2011 Mar. 31, , Mar. 31, , Mar. 31, , Mar. 31, , Mar. 31, OF Shares Commencement of operations May 22, 2008 Mar. 31, Mar. 31, Mar. 31, Mar. 31, 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) $000 s 000 s % % % % % % W Shares Commencement of operations October 22, 2007 Mar. 31, ,677 14, Mar. 31, ,774 13, Mar. 31, ,639 11, Mar. 31, ,398 11, Mar. 31, ,347 11, WT8 Shares Commencement of operations June 22, 2011 Mar. 31, ,832 2, Mar. 31, ,061 1, Mar. 31, ,224 1, Mar. 31, , 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 100% 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

14 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 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar IT8 Shares OF Shares W Shares WT8 Shares Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar return is for the period from September 26, 2008 to March 31, return is for the period from June 22, 2011 to March 31, return is for the period from September 8, 2008 to March 31, return is for the period from May 22, 2008 to March 31, 2009.

15 Annual Compound Returns The following table shows the Fund s annual compound returns for each year indicated, compared to the FTSE EPRA/NAREIT Developed Return Index. The FTSE EPRA/NAREIT Developed Return Index is a free float-adjusted capitalization weighted index, which is designed to track the performance of listed real estate companies and REITS. 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 FTSE EPRA/NAREIT Developed Return Index (5.8) n/a E Shares n/a 6.6 FTSE EPRA/NAREIT Developed Return Index (5.8) n/a 7.7 ET8 Shares n/a 8.3 FTSE EPRA/NAREIT Developed Return Index (5.8) n/a 10.2 I Shares n/a 8.9 FTSE EPRA/NAREIT Developed Return Index (5.8) n/a 7.7 IT8 Shares n/a 12.4 FTSE EPRA/NAREIT Developed Return Index (5.8) n/a 10.2 OF Shares n/a 5.6 FTSE EPRA/NAREIT Developed Return Index (5.8) n/a 5.7 W Shares n/a FTSE EPRA/NAREIT Developed Return Index (5.8) n/a WT8 Shares n/a 11.2 FTSE EPRA/NAREIT Developed Return Index (5.8) n/a

16 SUMMARY OF INVESTMENT PORTFOLIO as at March 31, 2018 Category % of Net Assets Category % of Net Assets Top 25 Holdings % of Net Assets Country allocation U.S.A Japan U.K Hong Kong Australia Germany Canada Spain Cayman Islands France Brazil Cash & Equivalents Cyprus Other Net Assets (Liabilities) Norway Belgium Malta Foreign Currency Forward Contracts... (0.6) Sector allocation Real Estate Cash & Equivalents Other Net Assets (Liabilities) Consumer Discretionary Private Placements Foreign Currency Forward Contracts... (0.6) Deutsche Wohnen AG Mitsui Fudosan Co., Ltd Sun Hung Kai Properties Ltd Link REIT Extra Space Storage Inc CK Asset Holdings Ltd Prologis Inc Host Hotels & Resorts Inc Kilroy Realty Corp Realty Income Corp Digital Realty Trust Inc Invitation Homes Inc Sun Communities Inc DEXUS Property Group Essex Property Trust Inc American Tower Corp., Class A UDR Inc Tokyo Tatemono Co., Ltd Boardwalk REIT Segro PLC Weingarten Realty Investors Simon Property Group Inc Goodman Group GGP Inc Merlin Properties Socimi S.A Net Assets (in $000 s) $498,262 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. 16